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OPEC Unable To Reach Consensus On Boosting Oil Production
The worst nightmare of crude bears has just come true:
- OPEC secretary general says OPEC unable to reach consensus to boost production
- OPEC delegate says OPEC has no consensus for agreement
- OPEC president says some in OPEC believed should have had production increase, other said more time needed to asses
- OPEC secretary general says OPEC spare capacity down to 4-4.5MBPD after Libya
- OPEC president says final proposal was to wait for about three months to asses situation
- OPEC president says Status-Quo outcome unwelcomed by some members
- OPEC president says effective OPEC decision is a roll-over
This is what happens when, as we wrote yesterday, the OPEC is no longer a cartel but a loose gathering of dictators who do their best/worst to boost/scuttle Obama's re-election chances. Look for crude to do the HFT levitation on the news.
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And this news comes just in time:
Exxon discovers 700 million barrels in Gulf of Mexhttp://www.marketwatch.com/story/exxon-discovers-700-million-barrels-in-...
What is says is "700 barrel of oil equivalent", so it might be a lot of gas. What people need to watch is how the majors are replenishing the oil reserves with gas reserves..... because they are unable to find enough oil.
I am sure many people suspect the impasse to be because they cannot boost production. However it seems, the Fed's hopes of tanking the markets in order to take oil prices down to $75 or so, in order that they can do the next round of money printing, is going to have little effect on oil, given the huge supply constraints.
the world consumes about 85 million barrels per day, so that entire discovery would be enough for, ummm, a week or so. Somehow not very impressive ... but hey, it was the biggest discovery in the Gulf in a decade ...
Did anyone else notice the deceptive headline on yahoo finance this morning:
OPEC to Hike Output, Iran Proposes Compromise by Reuters.
The mainstream media is clearly in a state of collapse, and are losing more and more credibility as investor sophistication and critical thinking rises.
It is pathetic to see the levels they have to stoop to now; just to achieve a few points in price manipulation through fake headlines, they are willing to surrender all credibility, and integrity.
There's an order of magnitude problem here. If it was 7 billion or 70 billion, we might have reason to be happy. 700 million is better than nothing, but it's pretty small.
And the fact that this discovery is being trumpeted as a positive is a cause for concern. Anyone know what the "real" Saudi production has been lately?
The West (the USA and its NATO puppets) imperialism & colonialism are having not-too-good times in Iraq, Afghanistan, Libya, Yemen to name few. Easy victories that Bush, Obama, and their zionist masters were counted on are not there.
Presently, the US is in its worst financial, economic, and political crisis from the time of its foundation. Its population is brainwashed, fragmented, disillusioned. The US economic and political system is under a total control by the outside power, specifically by the Rothschild, Oppenheimer, Warburg, and Schiff families that own and control the Western central banks including FED and ECB.
The USA has lost its independence and became a colony. Its colonial masters are not interested in the well-being of America and its people. This is why American standards of living are going down, poverty is on a rise, democracy and freedom and the US Constitution are the relics of the past, illegal immigration is out off control, and the legal system is totally corrupt.
America must go to its roots: democracy, freedom, and free enterprise. It must restore its industrial might. It must think of "America first". Unfortunately, it is not where America is going now.
Yeah, turns out it's just sitting there pooled up on the bottom of the ocean.
HA!
You commented three seconds before I did.
yeah, it's just floating around on the surface of the water as I understand it.
"Exxon discovers 700 million barrels in Gulf of Mex"
just another part of the game - announcing large new discoveries of petroleum when there are geo-political reasons to bring the price of gas down (like Obama's re-election)
So, just over one month's worth for the USA. Yea!!
That's pretty pathetic since they are calling it one of the biggest finds in the Gulf in the last 10 years.
Next we'll be getting all excited over 100 million barrels.
BP discovers two liters of Crisco in the back pantry!
The world uses 700 million brls in about 9 days. The U.S. uses that much in about 35 days.
de nada...
Exxon discovers 9 days worth of oil in Gulf of Mex!
http://www.marketwatch.com/story/exxon-discovers-700-million-barrels-in-...
I see my sarcasm and cynicism was lost on some of you...
ONe never knows. To the uninitiated, it sounds like a lot...
/sarc always helps.
Yeah, most responses from people in the mainstream are exactly like yours, and they are not sarcastic. To people who don't know the consumption numbers and the time to bring a new project on line 700 million barrels sounds like we have nothing to worry about.
TPOG
Just great... more inflationary squeeze on the poorest and most vulnerable
What they really mean is "We need to know how much money is going to be printed first."
thumbs up!!!
Sadly, this argument makes the most sense.
I think you are right.
I demand charts! Nothing is true without'em!
But But But...its good for the CO2 levels.....much less now as fewer people can drive...enviros are happy...lets have another burning man celebration ....
for real man, all problems are transitory, you just have to envision a world where you are free, and everything will just fall into place.
Saudi will boost. Not sure OPEC matters.
Better phrased as, "Saudi will say they will boost."
BINGO! Thats their history so far...
Be afraid Oil consumers, Arabia's oil wealth will not be threatened by your financial indiscretions. No deflation in the oil markets, theres to much instability to know whats going to happen next!
Does anyone else ever feel like they are in a bad sitcom?
Not to mention the delicate question of could the OPEC countries substantially boost production even if they wanted to?
Protectionism.
When the liars and cheats that make up OPEC, are unable to agree upon a bullshit wink/wink quoto rate that is more PR statement than anything else, one can assume the mechanics of the cartel cooperation are indeed breaking down.
Obama should be pushing a 10 year program of NATURAL GAS as a transportation fuel RIGHT NOW. Jobs, national security, jobs, economic benefits, jobs.
I think we should go back to riding horses. They can also serve the dual purpose of fertilizing your garden.
+7 (in the pasture)
Start in DC. They're experts in horseshit
How future wars will be fought:
http://www.traveljournals.net/pictures/l/16/160958-the-jockeys-running-t...
lizzy,
You call them liars n cheats! They no more be liars or cheats than their buyers who are hooked on this arab oil since sixty long years! Think of it! Having one mistress for sixty years. I prefer to be DSK than to be hooked on ONE hooker!
More government subsidies and debt. It is NEVER going to work. Dump the gm volt and license 150/300mpg diesel tech from Volvo & VW. Eliminate long haul trucking and get the rail lines to establish a proper hub and spoke logistics integration. 10,000 times the ROI, 1/10,000 of the cost.
Commodities rallying...
An explanation is that most are already producing flat out, and can't raise the amount. If this is true of Saudi Arabia, then OPEC is pretty meaningless as a cartel.
nice.. latest nail in so called recovery
brent is 118 $.. i guess guys in OPEC really wanna see 2008 replay..
alx
OT:
Maybe this news has something to do with the "confidence building exercise" currently going on with ANF shares. Like I said, investing in $30 t-shirts while the nation sits on the edge of a global depression is...well...a speculative endeavor, to say the least.
An HFT terminator has engaged in an attempt to save this Ponzified stock...the one algo that did not get the memo that the CEO of the company has completed "Operation Billionaire."
Standby for more liquidations on balloon stocks that have no business at all being priced anywhere near where they are...as criminal syndicate Wall Street bankers press into service the obviously useless and valueless, helmet wearing ETF group, prying their mouths open to receive the puked up underlying shares.
Oops...and there it is..."Operation Billionaire" ends with the CEO telling supposed smart money fund managers that the quarter is going to come in light.
I'll remind you that on April 5 of this year, criminal syndicate Wall Street bankers took the stock from $59 to $66 in ONE SESSION because of...wait for it...something the CEO told them back then...wait for it...the company was "bullish due to its expansion in Europe." Uh huh. Nice thesis. In the interim, of course, said CEO unloaded hundreds of thousands of shares into the magically ballooning stock price.
Should the HFT terminator refuse to yield, and should the terminator try to take the stock back up, well, you will have a lovely chance to sell Abercrombie and Fitch into "smart money."
All of this could not have happened to a better company, and the longs on this issue deserve the meltdown coming here.
Iranian nutjobs 1 - Pussy Princes with tablecloth hats 0
What they really mean is, "Will the U.S. help me suppress my people (Bahrain, KSA, Yeman, Oman), or allow my people to overthrow me (Tunesia, Egypt, and maybe Libya)?"
OPEC Unable To Reach Consensus On Boosting Oil Production
....because they can't! Just like during the early stages of the Libya oil shutdown, Saudi Arabia bluffed that they could raise production...then failed to.
Now should be the easiest decision they ever made: oil over $100 AND increased Asian demand. But they too are scrambling with new technologies for drilling and collection. Must be that the old fields are less productive.
Ding Ding! You have hit the nail on the head.
Opec secretary is telling porkies.
the central bankers pretend that the money supply can remain stable in the context of global deflation and population declines - while OPEC pretends that it can increase production and control the POO if it needs to - while Western governments pretend that they can make good on the promises they've made to their citizens.
so, the entire economic system is based upon faith and trust. but it is becoming increasingly difficult to have faith and trust in global political leaders, bankers, and cartel members - who are increasingly brazen thieves, sociopaths, and sex criminals who no longer care about cultivating the faith and trust of the people and resources they govern.
Hello Banzai, everybody knows what silver bears look like, but I cannot imagine 'crude bears' - can you help?
Saudi goes rogue and will supply market with what it needs.
Ultimately this will drive the price of crude lower. As all these idiot nations with dictators, who require cash to buy their populations off, will start increasing supply, especially as the price goes higher. Supply discipline (such as it was is gone).
If i was saudi i would start pumping what ever extra supply i had, and dumping it on the market, until everyone got back in line.
You will get OPEC ex-Saudi and Saudi. Which means Saudi Arabia will now have to validate its excess reserve assumptions which are almost certainly bogus, which in turn means LT forecasts are shaken. May get a drop but LT this is very bullish if indeed peak oil is true.
Oh it's definitely true and here's the first solid evidence. Raising production in the face of rising demand and prices was hitherto a no brainer, often not requiring a meeting. Meanwhile they're scrambling for new resources just like everyone else, unable to raise production from older fields like everyone else (seen Prudhoe Bay stats lately?)
All cartels fail. And yes, why exactly would you build expensive offshore adventures...to lower your profit margin? The numbers have been a lie for a long long time. Saudi lies for lots of reasons but mostly because it is afraid of its own people whose standard of living has been steadily declining and yet is held back by rainbow promises
http://www.youtube.com/watch?v=SZY_n6fCgwA&feature=related
The last OPEC member to consistantly pump more than quota was invaded. Twice.
That is of course the other side of the "issue".
A giant game of chicken.
Seems that playing chicken is the game of choice these days.
well as long as chicken doesn't end up as chicken breast à la kiev on somebody's plate like Iraq did!
Maybe. You're a tad guilty of old normal thinking -- that scarce supply is a way to profit.
Oil is the alpha asset of civilization. It was what elevated global population from 1 billion in 1900 to 7 billion today. It is also what will take it down from 7B back to 1B in about a tenth of that time.
Can you really be long anything when there's a 6/7ths population decline in progress? Does scarce supply generate price jack when demand gets even more scarce?
Crash, do you really think that 6 billion people are going to die in the next ten years?
The only thing they are going to validate is that....
"I.... Ain't got nothin"
Gharwar has Peaked, Long Live Ghawar.
Our pending energy supply contraction
= no economic growth
= insufficient debt service
= chaos + oilwars
Cost of new production is finally putting a very significant dent in profitability. Most OPEC countries have relied on aging fields for a very long time. New exploration and drilling and use of new extraction technology hurts margins and requires big outlays.
Well, Chavez did in fact sign a solidarity pact with Iran a few years ago. An attack on either country will be perceived as an attack on both countries.
Venezuela cuts diplomatic ties with US.
http://www.presstv.ir/detail/183454.html
"This is what happens when, as we wrote yesterday, the OPEC is no longer a cartel but a loose gathering of dictators who do their best/worst to boost/scuttle Obama's re-election chances."
or is this what happens when the planet hits peak production of petroleum ...
The perma-bulls will try to spin this as a "Political Problem" that OPEC can no longer hold together. But the problem is cost of production. They can't agree to raise production quotas despite higher prices and increased demand! It's cause their oil fields are showing their age.
These fools aren't boosting jack shit because there is nothing left to boost. Lipservice, all. And they should be called on it.
+1 j0nx
The only guy who can boost is Chavez his Orenoco goo. But that is a real game changer LT as it needs big investments in both production as well as refining capacity. It is the only real unconventional oil supply available in big way that is not ecologically constrained like Canada oil shale or frack gas etc.
These solutions will only be proposed by oil majors when conventional oil/gas tightens to 150 +. Then we will be big time in game changer mode energy wise!
And US relations with Venezuela are shaky right now. Expect them to start sending all their oil to China:
http://www.businessweek.com/ap/financialnews/D9NLSUT80.htm
TPOG
And where is Bertha Coombs? Nowhere to be seen. After her "Exclusive Breaking News" of an output raise yesterday moved the market down over $1 is she gonna do a Weiner and come on with some tears??
Email sots@cnbc.com to rub it in. I did.
MSM reports looking to blame speculators on the price of oil-- a nice bullshit piece to follow-up from the lies of Shitanke. It's monetary policy aka fed reserve, their banking masters, and 'commercial players' that have added the $60 premium above and beyond the price of oil/barrel. More manipulation and bullshit spin to allow the genocide to continue and blame fall upon the wrong areas.
There's been recent speculation that peak oil is already here and production can't be ramped up all that much in a timely manner. With this OPEC dissonance I wonder if that is another factor they're not too eager to share.
"My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel." -Sheikh Rashid bin Saeed Al Maktoum (2nd PM of UAE)
My grandfather wore a teatowel. My father wore a teatowel. I like horses, my son likes horses, his son will like horses, but his son will drive a Toyota
That is a big wave, Dave.
my father wore pin stripes. I wear pants. My daughter only wears jeans and flimsy cotton casuals. My grandson will wear a fig leaf...I'm sure of it!
my son will wear a look of disgust
My Grandson will wear a washable cloth diaper, except in summer, where we will pasture raise him au natural!
Houston, yes Houston, we got a problem...
Ladies and Gentlemen,
May I offer this video as the most important oil interview you will see this year:
http://www.bloomberg.com/video/70335328/
It is a Lukoil executive being asked uncomfortable questions about Lukoil's 5% decline in production. Watch his body language when he talks about fixing the problem with Iraq and Ivory Coast and the Arctic.
He is talking about hope, not confidence.
Remember, Russia is the number 1 producer in the world and NOT a member of OPEC. 10 mbpd. His 5% decline is 500K bpd. That's about 1/2 a Libya.
Obviously they are not boosting production because there is no spare capacity.
The link takes me to this: http://noir.bloomberg.com/
Nevermind, had to use IE and not Firefox.
Those clowns couldn't agree that my tits are nice.
T.E.I.N.
Hey Sarkozy/Cameron/Obama Bin Lyin' et al...
Maybe if you fucktards would quit bombing Libya...
There would be a little more oil on the market...