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Saudis to increase oil production by half-million barrels: report

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  • Saudis to increase oil production by half-million barrels: report

    Saudis to increase oil production by half-million barrels: report

    Fri Jun 13, 11:14 PM ET



    WASHINGTON (AFP) - Concerned that skyrocketing oil prices might induce a worldwide economic slump, Saudi Arabia is planning to increase oil production next month by about a half-million barrels a day, The New York Times reported on its website late Friday.


    Citing unnamed analysts and oil traders who have been briefed by Saudi officials, the newspaper said the increase could bring Saudi output to a production level of 10 million barrels a day.

    The move is seen as a sign that the Saudis are becoming increasingly nervous about both the political and economic effect of high oil prices, the report said.

    While they are reaping record profits, the Saudis are concerned that today's record prices might eventually dampen economic growth and lead to lower oil demand, as is already happening in the United States and other developed countries, according to The Times.

    The current prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy, the paper said.

    Saudi Arabia is currently pumping 9.45 million barrels a day, which is an increase of about 300,000 barrels from last month.

    Crude oil prices slipped Friday on a firming dollar and signs of slowing demand ahead of an exceptional international oil summit in Saudi Arabia next weekend.

    New York's main oil futures contract, light sweet crude for July delivery, shed 1.88 dollars to close at 134.86 dollars a barrel.

    The Organization of Petroleum Exporting Countries on Friday cut its 2008 estimate of growth in world oil demand, as high prices and slower economic growth brake demand in major industrialized countries, the United States in particular.

    Global oil demand was now projected to rise by 1.28 percent in 2008, the Organization of the Petroleum Exporting Countries said in its June monthly report, lowering its prior estimate of 1.35 percent.

    In Japan, finance ministers from the Group of Eight industrialized powers discussed runaway crude oil prices and a global food crisis.

    At a two-day meeting in Osaka that ends Saturday, the G8 ministers will warn that high oil and food prices pose serious risks to global economic growth, said a G8 source, who requested anonymity

  • #2
    Re: Saudis to increase oil production by half-million barrels: report

    I'll believe it when I see it at the pump!!!!!!!!!!!! Greedy SOB's

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    • #3
      Re: Saudis to increase oil production by half-million barrels: report

      yeah, no joke.....talk's cheap.

      Still, I blame those damned "speculators" more than anyone......*envisions choking them Wile-E.Coyote style*

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      • #4
        Re: Saudis to increase oil production by half-million barrels: report

        The Saudi's analysis is right.

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        • #5
          Re: Saudis to increase oil production by half-million barrels: report

          I hope prices come down before the end of the summer... We could all use a break on gas prices.

          It still will not help with our dependence on petrolium...

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          • #6
            Re: Saudis to increase oil production by half-million barrels: report

            I want to see an alternative fuel
            unless it involves splitting atoms , it is not going to work

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            • #7
              Re: Saudis to increase oil production by half-million barrels: report

              I think the Saudis took the lead in this new increase in production, but I believe others have followed their lead.

              I agree with Tiresmoke. We've discussed this before. Even the Saudis have publicly said that oil is not worth more than $70 a barrel, some have even claimed a lower value than that. It is speculation that keeps the prices so high. Speculation seems to be a self fulfilling prophecy. By high, say its going higher and sell even higher. The monkey wrench in that plan would be a drastic reduction in the use of oil, but of course not everybody will cooperate in that reduction, so speculation continues and in doing so reaps huge profits for the speculators.

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              • #8
                Re: Saudis to increase oil production by half-million barrels: report

                Dont forget record profits.....

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                • #9
                  Re: Saudis to increase oil production by half-million barrels: report

                  Any time something gets a reputation as an idiot-proof investment, a bunch of idiots jump in and prove it isn't. This appears to have happened to oil, though it may take a while for prices to crash. We've recently seen similar sort of idiocy in the real estate market and earlier with people buying shares of useless dot-coms.

                  Interesting that they mentioned one of the biggest problems of high oil prices - they encourage oil conservation, putting limits on how greedy you can get away with being.

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                  • #10
                    Re: Saudis to increase oil production by half-million barrels: report

                    I am here to say that I pray the bubble bursts like it did in the real estate market...The economy is going to suffer horribl if this continues for any great lenghth of time....and its going to take years to recover...Prices on food are going up daily and soon beacuse of the floods beef is going to be 3 times the price of fuel, and E85 is going to go up also becaue the corn aint gonna be there.............its scarry times.....

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                    • #11
                      Re: Saudis to increase oil production by half-million barrels: report

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