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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Kayaker who wrote (118870)	3/11/2009 1:32:33 PM
From: Big Black Swan	Respond to of 206121

That's very interesting, hadn't heard this. Thanks for the links.

To: Kayaker who wrote (118870)	3/11/2009 9:34:47 PM
From: axial	Read Replies (1) \| Respond to of 206121

Will they cut? Was thinking "no", but saw this today: Al-Seyassah: - OPEC is likely to cut output at its March 15 meeting to boost oil prices, citing Emad al-Ateeqi, a member of Kuwait’s Supreme Petroleum Council. and: Imad Al Atiqi, a member of Kuwait's Supreme Petroleum Council, said OPEC was likely to cut supplies when it meets in Vienna on Sunday in remarks published in the al-Seyassah newspaper. arabianbusiness.com --- *"OPEC kingpin Saudi Arabia kept supplies to customers steady for April, according to industry sources."* arabianbusiness.com The Saudi budget is getting tight - as are budgets for other crude-exporting countries. Apparently the Saudis are getting tired of carrying the burden for cuts: "Saudi has informed the presidency of the organisation, which is Angola, that there must be... serious compliance with the latest reduction decision taken in December, which has prevented oil prices from falling further," the newspaper reported, citing a senior source." arabianbusiness.com --- Information about the extent of demand decline/world economic damage was uncertain, even to the Saudis. Now the picture is clearer: "US crude traded down $3.48 to $42.23 a barrel by 2:23 p.m. EDT, while London Brent crude fell $2.39 to $41.57 a barrel. The US inventory report came after No. 2 consumer China showed a surprise 15 percent drop in imports in February, as oil companies scaled back purchases due to high inventories and low demand. The fall came after an 8 percent drop in January. "The Chinese crude data was really quite poor, and that's stalled any move toward $50 a barrel," Sucden Financial trader Robert Montefusco said. "Prices are going to struggle to get a great deal higher given the extent of the economic problems we're seeing in the world." German manufacturing orders fell 8 percent in January alone, data on Wednesday showed, indicating a deeper than previously expected recession in Europe's largest economy. The global economic slowdown has weakened crude demand, sending oil prices off peaks over $147 a barrel hit in July and prompting the Organization of the Petroleum Exporting Countries to agree to a series of deep output cuts last year." arabianbusiness.com --- Calls by Iran, Venezuela have zero credibility, and the world+dog knows it. But Qatar has stated that 800,000 barrels/day more would do the job. At least one Saudi source has discussed cutting another 1 million barrels. The quoted Kuwaiti source is a new voice, and credible. --- Saudis will balance US demand for low prices against calls for a price increase and possible danger of extending global recession. They'll compromise. Revised guess: one more careful cut: 1 million barrels/day, probably less. Maybe as little as 500,000 barrels. Jim