Head of OPEC predicts price drop soon

[Tom Yossarian Joad]

http://www.chron.com/cs/CDA/ssistory.mpl/business/2781094

JAKARTA, Indonesia - The head of the Organization of Petroleum Exporting Countries forecast today that global crude prices would soon fall, partly because of expected supply increases from Iraq.

"International oil prices for the September to December period are likely to drop," Purnomo Yusgiantoro, who is also Indonesia's mines and energy minister, told reporters in Jakarta.

Iraq supply should improve later this year as security there is likely to improve, Purnomo said. Iraq is a member of the 12-member OPEC grouping.

An expected resolution of the Yukos oil scandal in Russia, which is the world's largest non-OPEC oil producer, should also help tame sky-high crude prices, Purnomo said.

<snip>

Hmmmm. That's awfully convenient in light of the pipeline attacks earlier today. They take care of their own. Thank you Carlisle Group / Poppy.

[Myrina]

1. Soon ? Like, 2 weeks before the election ?

Grrr.

[napi21]

2. Kerry needs to use the Bandar promise when that happens.

All he has to say is, remember Prince Bandar promised shrub he would pake sure gas prices came down in the fall so they wouldn't influence the election. Remember, plant the seed of doubt!!!

[Tom Yossarian Joad]

3. Dontcha know it!

[necso]

4. Oil is in the hands of speculators.

If speculators think that the price is going down they will sell, or short, or whatever, in expectation of a price drop.

One makes money relatively easily in speculation if one can anticipate which direction the "market" (the object of speculation) is going.

A few key traders moving in one direction can have the whole herd (and the whole "have heard") following and prices dropping (or climbing).

Perhaps this is not so much a statement of anticipation, as it is an attempt to trigger something.

I suppose that a lot of people must be under considerable pressure to drop oil prices... at least in the short term.

[daleo]

5. Why would the situation improve in Iraq?

The resistance is growing in strength, not waning. The oil situation there will probably get worse, not better. If prices do drop, it will be because the Saudis open their spigots to help the BFEE.

[hang a left]

6. Mr Yusgiantoro is speculating quite a bit.

He seems to be privy to information about the Yukos scandal and security in Iraq. I think this is more likely wishful thinking or as another poster suggested an attempt at market manipulation.

[NeoConsSuck]

7. At least where I live, people are damn disgusted with gas prices

if Kerry can tie price fixing to the repukes and their Saudi buddies, he's sails home a clear winner. This is a sure bet.

[spanone]

8. As Gomer would say 'Shizammm'

[Raiden]

9. Hmmm, just in time for the election...

n/t