OPEC about to dump cheap oil into the US market. Punitive tariffs anyone?

[RB TexLa]

It's dumping anyway you put it.


Oil falls as OPEC mulls raising output


By Fayen Wong 1 hour, 57 minutes ago

SYDNEY (Reuters) - Oil fell more than $1 on Monday, reversing the previous session's rally, after OPEC kingpin Saudi Arabia said the cartel would discuss boosting oil output at an upcoming meeting to cool surging oil prices.

U.S. light crude for December delivery fell as much as $1.08 to $95.24 a barrel in early electronic trading before recovering slightly to be down 90 cents at $95.42 by 0100 GMT.

U.S. oil, which struck a record $98.62 a barrel last Wednesday, settled 86 cents higher at $96.32 a barrel on Friday due to winter supply concerns and a falling U.S. dollar.

London Brent crude fell 67 cents to $92.51 a barrel.

http://news.yahoo.com/s/nm/20071112/bs_nm/markets_oil_dc_1

[hlthe2b]

1. and this is bad, why?

[Horse with no Name]

2. I think the OP has oil futures

He has written about it before.

[RB TexLa]

3. No, I have oil

[TomInTib]

6. Domestic?

We do.

And we ain't seeing shit.

[ret5hd]

11. More bragging.

[RB TexLa]

13. correcting someone is bragging?

[TomInTib]

4. "would discuss boosting oil output "

Hiccup...

[NightWatcher]

5. how does cheap oil hurt me? I dont own Exxon stock?

I could stand some cheap gas, and for the gas exec's to suffer a tad

[Horse with no Name]

7. It doesn't hurt us peasants

but it hurts the ones who invest in it.

[MadHound]

8. Who's going to provide it?

Saudi Arabia? They don't have that kind of reserve left. Chavez isn't going to do us any favors, Iraq and Nigeria are fucked. Kuwait:shrug:

We need to face the fact that our days of plentiful, cheap oil are over, in fact they're going to get worse. Sure, prices might drop a few dollars here, a few there, and then next holiday season, change in blends, summer driving season, what have you, the price will go up again. What were you paying last year at this time? Me, $2.19 a gallon, this year $2.85. I realize that prices vary amongst regions, but you get my drift here.

[Mojorabbit]

12. Yes

they don't have it to increase output. It is all talk ...but I am all ready to be amazed if not.

[karlrschneider]

9. Short term variables. My own oil is about 93...I just go with the "flow", as it were.

I'm just not motivated to raise a lot of hell over a .5 percent swing one way or the other.

[babylonsister]

10. Cheap as in quality or price? Price works for me. nt

[rucky]

14. It's only $95 a barrel, now? Thanks, OPEC!

I'm going to get some cocaine and hookers with all the money I'll be saving!

[IDemo]

15. I'll believe it when I see it

http://www.theoildrum.com/node/2325


Saudi Arabian oil production, Jan 2006-Jan 2007, from four different sources. Linear trends fitted to each series. Graph is not zero-scaled to better show changes. Source: US EIA International Petroleum Monthly Table 1.1, IEA Oil Market Report Table 3, Joint Oil Data Initiative, OPEC Monthly Oil Market Report, Table 17 (or similar) on OPEC Supply.

"I'll bet $1000 with the first person who cares to take me up on it that the international oil agencies will never report sustained Saudi production of crude+condensate of 10.7 million barrels or more." - (author of the above Oil Drum post)

[spag68]

16. Saudi oil

First of all, Saudi oil is heavy, and has lots of sulfur. That makes it harder to refine. Second, the Saudis made a statement two months ago that they were raising their output on Nov. 2. The real villains here are the speculators who got out of housing and are now blowing up oil and commodity's.