OPEC sees no need to pump more after price surge

[dramama]

DUBAI (Reuters) - OPEC members saw no need on Sunday to pump more oil in response to last week's double-digit surge in oil prices to over $139 a barrel that top exporter Saudi Arabia described as unjustified.

http://www.reuters.com/article/businessNews/idUSL0832567120080608?feedType=RSS&feedName=businessNews&rpc=23&sp=true

[vhowell]

No, they need the money to buy thier multi-million dollar planes........our oil money at work....


DUBAI, United Arab Emirates (AP) - In the annals of excess, it could be a new high: a more than $300 million dollar, super-sized luxury airplane, bought and outfitted solely for the private comfort of a Saudi Arabian billionaire.
Once done, the Airbus A380, the world's biggest passenger plane, will be a "flying palace" for Prince Alwaleed bin Talal, the manufacturer announced Monday.

Airbus SAS would not give a specific price tag for the VIP double- decker jet, with its football field-length wings, saying only that it would cost more than the aircraft's list price of $320 million.

That doesn't even include the money the prince will spend to custom fit the nearly 6,000-square foot plane to include whatever he wants. The options include private bedrooms, a movie theater or even a gym with a jacuzzi. He'll also need a flight crew of about 15 to operate the luxury liner.

"Prince Alwaleed is the first, and so far the only customer of this aircraft," said David Velupillai, the spokesman of the Airbus, which announced the luxury order at the Dubai International Airshow.

[robinhoooood]

Check this article out... while we are on the subject of Saudi and oil...

http://www.business24-7.ae/Articles/2008/6/Pages/06042008_9c3b2fe49a4a41b6b505463693ecd67a.aspx

Quick Quote:

"Marri will seek to persuade council members that the oil production must be linked to the country's actual development needs not the needs of foreign consumers," Alriyadh newspaper said in a report from the capital Riyadh. "He will tell the Council that keeping sufficient oil quantities underground is a good investment for the future as oil prices will then be higher…he will argue that this will be better than producing more oil and generating financial surpluses on the grounds these surpluses are causing inflation."

This is a bombshell to anyone who knows what this could mean.

Saudi Arabia will be looking more and more to limit production of their reserves... no where does it say they are required to export X amount to X countries.. also keeping in mind they probably don't have any spare capacity as is.... this is a worrisome development.

[shayera]

It's not all OPEC's fault. This is something like a 12 part puzzle. They're only partly contributing to the problem.

The falling dollar has killed us, the interest rates are hurting the value, and these insane runaway speculators are the problem now. The bigger long term problem are the Green Liberals that have highjacked our rights to drill within our country.

Those all come before OPEC on my list of anger at that insane oil prices.

[stonewallfan]

It's not all OPEC's fault. This is something like a 12 part puzzle. They're only partly contributing to the problem.

The falling dollar has killed us, the interest rates are hurting the value, and these insane runaway speculators are the problem now. The bigger long term problem are the Green Liberals that have highjacked our rights to drill within our country.

Those all come before OPEC on my list of anger at that insane oil prices.

agree with you. I think it is many faceted. Weaker dollar. More consumers in devloping markets that want the energy. Speculators.

[robinhoooood]

Ok I have a quick comment on everyone calling speculators the issue...

Oil is not just some stock or empty house to be bid up in price... oil is a commodity that is being used every day by the millions of barrels...

These contracts that are being bid on in futures markets are actual orders for oil... yes?

So unless I am wrong... someone must eventually take order for that oil... so that speculator must be able to then sell that order or risk having a few hundred barrels of oil on his back porch right? So obviously there is someone out there willing to buy at that price who ISN'T a speculator right?

So then any speculation on price would quickly be ironed out by the actual value due to the supply and demand...

Ultimately the barrel of oil the speculator is bidding on and buying will be used shortly thereafter... so is it not possible that these speculators are simply speculating that since the supply and demand of oil is very tight that the price will go up and they should invest in this commodity...

I mean really... what is the price of oil then? Or is it the speculators that have bid it all the way up from $30 a barrel? and then 50 and then 70 etc etc... would you say $75 is the actual price? and then at what... 200 what would you say the REAL price should be? 150? These speculators are being given waaaay too much credit for the price of oil.... the price of oil is exactly that... because obviously people are willing to pay it (granted they have no choice) but at some point enough people will be priced out of the market and we will have a glut of oil and then the price will collapse... for a bit... Please someone tell me what I am missing....

I mean is it really hard to believe that we are pumping at capacity and using right at about the same level.... there is no wiggle room and everyone is still try to grow their economies... something has to give...