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Saudis still price setters, this is just a smoke screen to disguise that. The great Mike Master’s sell off that also triggered the last leg of the financial crisis must have run it’s course in the crude markets. Price hikes may return, this time with no excess inventory and very weak world economies. If their motives are the destruction of the Great Satans and Putin is with them it’s going to get very, very ugly.

OPEC’s oil supply must be ‘significant’- Khelil

(Reuters)- OPEC oil producers will cut oil supplies when they meet next week in Vienna and “the reduction must be significant,” the group’s president, Chakib Khelil, was quoted as saying on Saturday.

“There will be a reduction of the output and the reduction must be significant to restore the balance between supply and demand,” Algerian state news agency APS quoted Khelil as telling reporters.

The Organization of the Petroleum Exporting Countries will hold an emergency meeting on Oct. 24 in Vienna to discuss the impact of economic weakness on oil markets.

“If the cut is 1.5 million barrels per day, then it will be 1.5 million barrels. If it is 2.0 million barrels per day, it will be 2.0 million barrels per day,” added Khelil, who is also Algeria’s energy and mining minister.

Saudis will just start raising their posted prices and let their quantity adjust. The fall in demand for their output won’t be all that much as prices rise, suggesting to an unsuspecting world OPEC didn’t cut as much as they proclaimed.

Earlier, Khelil was quoted in Saturday’s edition of Algerian daily El Watan as saying that OPEC saw oil prices bottoming at $70-$90 per barrel.

“Normally, OPEC has no price target. The market decides on prices. But people say that the bottom price, the bottom cost below which we can not step down, is between $70 and $90 per barrel,” El Watan quoted Khelil as telling reporters.

What they are really saying is the Saudis decide the price, and the markets then determine how much they want to buy at that price.

He cited cases of Canada and Brazil, where oil could not pumped if prices were to fall below $70 per barrel.

On Friday, Khelil told Algerian state radio a “decision will be taken to lower oil supply by some OPEC members so that the oil price will not be damaged.

“This decision will not be implemented immediately because there are contracts, but will probably be implemented 40 days after it (the decision) is taken.” He did not say which countries were likely to cut supplies.


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4 Responses

  1. Do you see other OPEC countries cutting supply at a time like this when there is a dollar crunch. Isn’t a country like venezuela or mexico going to want to sell as much oil as it can to get hard-currency?

  2. Cuthceon, if I was mexico or south america or putin or saudi prince, and I had all the oil, and all you had was a spoiled daughter who was a useless materialistic shopping machine who wouldn’t even have sex with me if I was the last man on earth, what do I gain by helping you with your oil problems?

  3. en.wikipedia.org/wiki/Adnan_Khashoggi Princess Di was going to marry and have a baby by this guy’s nephew – notice how both SAUD and US governments backed the banks he made arms loans with – what a tangled web we weave. She was looking out for her country – kinda like Jackie Kennedy did with Onassis – but what Cleopatra does the USA today have to send to some thugs who are violent and have all the energy and are only willing to betray their people for some seductress – the good shepherds at the CIA better get some better control over US marketing forces that are brainwashing our children in the wrong ways!

    He was implicated in the Iran-Contra Affair as a key middleman in the arms-for-hostages exchange along with Iranian arms dealer Manucher Ghorbanifar and, in a complex series of events, was found to have borrowed money for these arms purchases from the now-bankrupt financial institution the Bank of Credit and Commerce International (BCCI) with Saudi and US backing. In 1988, Khashoggi was arrested in Switzerland, accused of concealing funds, held for three months and then extradited to the United States where he was released on bail and subsequently acquitted. In 1990, a United States federal jury in Manhattan acquitted Khashoggi and Imelda Marcos, widow of the exiled Philippine President Ferdinand Marcos, of racketeering and fraud.[1] He has also worked for Col. Ghaddafi of Libya in 1992 as a mediator.

    Khashoggi, along with Ramy El-Batrawi, was the principal financier behind GenesisIntermedia, Inc. (formerly NASDAQ: GENI), a publicly traded Internet company based in Southern California. After the September 11, 2001 attacks, Khashoggi’s U.S.-based checking accounts were frozen and Khashoggi was unable to make a margin call with Native Nations Securities, whose CEO and largest shareholder, at the time, was Valerie Red Horse, former office manager of junk bond king Michael Milken. In turn, Native Nations and Red Horse were unable to meet their obligations on the margin loan to MJK Clearing, Inc.[2][3] Trading in the stock of GenesisIntermedia was halted in September 2001. Khashoggi’s unwillingness to pay his margin loan to Native Nations Securities, and Native Nations (and Red Horse’s) inability to pay its debts to MJK Clearing, began a series of bankruptcies that ended in the largest payout in Securities Investor Protection Corporation history.[4][5] Native Nations Securities and MJK Clearing both eventually filed for bankruptcy.[6]

  4. See Cutcheon – you are just a little pipsqueak in the Reality the power brokers and dealers allow you to exist in – the quicker you come to understand this – the easier it will be for you to make sense of the insanity that you think surrounds you.

    http://www.slate.com/id/1006609/

    On Dec. 1, the “Washington Wire” column in the Wall Street Journal published this gratifyingly noir item about the postelection drama in Florida:

    “Madame Butterfly” Theresa LePore wasn’t always an embattled Palm Beach ballots chief. In the 1980s, she moonlighted as a flight attendant on private planes owned by Saudi weapons dealer Adnan Khashoggi, a middleman in Reagan administration arms sales to Iran.

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