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Headlines OPEC worried about over supply of oil.

Jung

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NEW YORK Oil prices have been at record highs this year, with money gushing into the coffers of oil producers. And as leaders of the Organization of Petroleum Exporting Countries leaders head into a final meeting this year, the topic on their minds and on Friday's agenda is whether there will be too much oil next year.
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After hitting a record of more than $55 a barrel in October, oil prices in New York have fallen significantly. Crude oil for January delivery rose 56 cents to $43.10 a barrel Monday on the New York Mercantile Exchange.
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Because of OPEC's efforts, there is now more oil on the market than is needed. With the group's production at its highest in 25 years, some producers fear oil prices will tumble as demand slows next year on high prices and a usual seasonal brake in the second quarter. OPEC might be tempted to act preemptively and reduce output.
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Oil prices rose Monday after an attack on the U.S. consulate in Jidda fanned concern that renewed terrorist activity might threaten oil exports from Saudi Arabia. An occupation in Nigeria by villagers of oil platforms also helped prices. Under pressure to bring down prices, OPEC members began pumping at capacity this summer.
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"As an oil producer, OPEC wants to make sure that all the risk is on the upside," said Manouchehr Takin, an oil analyst at the Center for Global Energy Studies in London. "They'll want to cut output in anticipation."
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OPEC, which accounts for half the world's oil exports, can increase production to push prices down or rein in output to nudge them up.
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So far, the strongest call for a cut has come from Iran, OPEC's second-largest producer, which argues that member countries should stick to their assigned production quotas. Most are now pumping above their targets to meet demand.
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OPEC currently produces 28 million barrels a day, 1 million barrels above the group's quota - OPEC's self-imposed production ceiling - of 27 million barrels a day. Including oil from Iraq, which is a member but has not been assigned a quota since the 1990s, the group's output is about 30 million barrels a day.
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Few other members are showing their hands ahead of Friday's meeting in Cairo. Venezuela first offered to back Iran's call for a cut but then retracted its support for such a move. Various other members, like Libya or Algeria, have indicated they would be ready to cut production if prices fell further, to around $35 a barrel.
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The country that oil markets will be watching most closely is Saudi Arabia, OPEC's top producer.
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The kingdom carries the most clout because it keeps idle capacity and so can affect the oil market like no other member.
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Fears of instability in Saudi Arabia have tended to trigger spikes in oil prices. In May, for example, oil prices rose after suspected Qaeda militants attacked Westerners in Kobar.
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Saudi Arabia boosted its daily production to 9.5 million barrels in recent months, producing much more than its 8.5 million barrels quota. The kingdom is also drawing up plans to increase its sustainable capacity to 12.5 million barrels a day in the next few years, from 11 million barrels now.
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"We are doing what we can, we are doing our best, but we are going to do some more," Ali Al-Naimi, the Saudi oil minister, said at a conference at the Royal Institute of International Affairs in London on Nov. 29, according to Reuters. For now, he said, "There is no shortage of supply in the market."
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Roger Diwan, a managing director at PFC Energy, an oil consulting firm in Washington, said, "The Saudis will be cautious but they may trim a little bit of production." Saudi Arabia is aiming for oil at $30 to $35 a barrel, said Takin of the Center for Global Energy Studies. "That's the lowest they can afford in order to pay their bills and deal with their serious domestic situation," he said.
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Few of the issues that have pushed prices up this year have been resolved: Iraq is still at war; Venezuela's political stability under President Hugo Chávez remains unsure; the Russian government is still fighting it out with the country's largest oil producer, Yukos; and in Nigeria, the government is still facing militants and unions over the redistribution of the country's oil wealth.
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Still, most analysts estimate that the global oil demand will slow after this year's 3.3 percent growth, the highest rate of growth since 1978 and double last year's growth. The International Energy Agency, an advisory group to industrialized countries, based in Paris, estimates the world will consume 83.8 million barrels of oil a day in 2005, up 1.7 percent from this year.
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"So long as prices were rising, it made sense to increase production," said Deborah White, an economist at Société Générale in Paris. "But given how much prices have fallen in the past month, it makes no sense to continue on that path."
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One factor that weighs on OPEC's debate is that oil inventories, or oil stocks in consuming nations, are rising. That could mean an oversupply of 400,000 barrels a day this quarter, according to Cambridge Energy Research Associates, an energy consultant.
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The continuing decline in the dollar against the European common currency is also hurting oil producers, who sell their products in dollars but make some purchases in euros, and have euro-denominated debt.
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NEW YORK Oil prices have been at record highs this year, with money gushing into the coffers of oil producers. And as leaders of the Organization of Petroleum Exporting Countries leaders head into a final meeting this year, the topic on their minds and on Friday's agenda is whether there will be too much oil next year.
.
After hitting a record of more than $55 a barrel in October, oil prices in New York have fallen significantly. Crude oil for January delivery rose 56 cents to $43.10 a barrel Monday on the New York Mercantile Exchange.
.
Because of OPEC's efforts, there is now more oil on the market than is needed. With the group's production at its highest in 25 years, some producers fear oil prices will tumble as demand slows next year on high prices and a usual seasonal brake in the second quarter. OPEC might be tempted to act preemptively and reduce output.
.
Oil prices rose Monday after an attack on the U.S. consulate in Jidda fanned concern that renewed terrorist activity might threaten oil exports from Saudi Arabia. An occupation in Nigeria by villagers of oil platforms also helped prices. Under pressure to bring down prices, OPEC members began pumping at capacity this summer.
.
"As an oil producer, OPEC wants to make sure that all the risk is on the upside," said Manouchehr Takin, an oil analyst at the Center for Global Energy Studies in London. "They'll want to cut output in anticipation."
.
OPEC, which accounts for half the world's oil exports, can increase production to push prices down or rein in output to nudge them up.
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I'm pasted what I could here. The entire article can be found at the original source.
 

Jung

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I Googled peak oil, here's what I got. These oil prices are not going to drop... EVER! Current estimates are that the Middle East will reach it's peak by 2006. The US is already well past its peak on its own production. (It hit at 1970.) Here's a good graph on our resources (click for larger image):

 

Descent

Hella Constipated
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Time to go electric! That would help the world so much...
 

BrIONwoshMunky

EVERYBODY LOVE EVERYBODY!
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#4
jstager said:
Time to go electric! That would help the world so much...
you realize like 80% of U.S. electricty is still produced by fossil fuels right?
 

Descent

Hella Constipated
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#5
Yeah, I do. It's a fucking shame that cold fusion is physically impossible...at least with today's technology.

If cold fusion ever comes to light, it would revolutionize the way the world creates energy. Imagine nuclear power without the risk of meltdown or radiation exposure. Gamma rays would truly become a thing of the past...
 

BrIONwoshMunky

EVERYBODY LOVE EVERYBODY!
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#6
I say we turn Iraq into a Solar Panel for the world.
 

breakology

Kiss my Converse
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I swear I am going to be the first person in line to buy a Fuel Cell run car when they finally start production.
 

JediMasterYoda

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#8
ya you better have a lot of fucking money then cause they will cost a lot
 

JediMasterYoda

The Great Warrior
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#9
opec better put those prices down we should nuke them for being jackass oil price people or take control of all oil thingies
 

RageAgainst

Chaotic Neutral
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#10
To those who still don't understand why we're putting so much efforts in "democratizing" Iraq, if you need a fucking picture, there it was.
 

Captain 151

Seeped in a dry Merlot
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#11
junglizm said:
I Googled peak oil, here's what I got. These oil prices are not going to drop... EVER! Current estimates are that the Middle East will reach it's peak by 2006. The US is already well past its peak on its own production. (It hit at 1970.) Here's a good graph on our resources (click for larger image):

Who made that graph? I'm not just going to assume that is correct... because if it is, we are fucked. If that's true and peak production of oil is happening right now, scientists have better get on their asses and get that whole hydrogen cell, or ethanol, or some other kind of power.
 

breakology

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#12
OPEC can go to hell and die, I read how they are now cutting oil production (statrting in JAN) because they don't won't the price to fall off ... by fall off they mean close to the pre-war prices that were already through the roof.
Now they want to keep prices "close to current level" fuck all those assholes.
Where's my skateboard?
 

MaxPower

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#13
breakology said:
I swear I am going to be the first person in line to buy a Fuel Cell run car when they finally start production.
You can buy a Hybrid right now. 70 MPG+
 

breakology

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#14
MaxPower said:
You can buy a Hybrid right now. 70 MPG+
Really? From who? I read where toyota & ford were working on the first full production fuel cell hybrid, that was suppose to be available in 2006, but now has been pushed back to 2008. Did someone beat them to it? (all I need now is a hydrogen re-fueing station near my house)
:thumbsup: