Saudis Offer to Increase Oil Output by About 6%

[Judi Lynn]

Saudis Offer to Increase Oil Output by About 6%
By NEELA BANERJEE

Published: May 22, 2004


WASHINGTON, May 21 - In an effort to drive down record crude oil prices, Saudi Arabia, the world's largest oil producer, offered on Friday to increase its output by at least 500,000 barrels, to 9 million barrels a day, starting June 1.

In contrast to an earlier suggestion by the country that OPEC increase its quotas, the offer is important because it would truly add more oil to the market rather than simply formalizing existing overproduction by the group's members.

With global demand relentlessly high, oil prices rose above $40 a barrel in New York on May 11 and remained there until Friday. Nearly all oil-producing countries are pumping at maximum capacity, and almost all the world's spare capacity is in Saudi Arabia.

The offer, made by the Saudi oil minister, Ali al-Naimi, at a conference in Amsterdam and confirmed by an official at the Saudi Embassy in Washington, shows the mounting concern - even among oil producers reaping a windfall from high prices - that oil has become so expensive and volatile that it could slow economic growth and encourage the development of alternative fuels, Saudi officials and oil experts said.
(snip/...)

http://www.nytimes.com/2004/05/22/business/worldbusiness/22oil.html?ex=1085889600&en=dabf5bb96e20442f&ei=5006&partner=ALTAVISTA1
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[bahrbearian]

1. Just like Seymore Predicted.

[Cooley Hurd]

2. And Woodward wrote that Prince Bandar and Shrub have a deal...

...sounds Like Bandar Bush (Poppy and Bar's adopted son) came through with his end of the bargain...

[Wind Dancer]

5. Yes, Bandar came through on his promise

as stated to Bob Woodward in his book.

[spotbird]

4. Wasn't it Woodward?

Let's see if there will be corresponding cuts by the other producers, they don't have a deal with Chimpster and they don't like him.

[bahrbearian]

7. Yes, I'm sorry, there are so many out there.

[RUMMYisFROSTED]

3. The equivalent of handing out more heroin.

It kills the cravings but it's not good for you.

[Massacure]

6. lol

Kerry already has ammo to throw at Bush, and if oil falls on the wit of the Saudis, he will have more. Gaining support early and keeping it is a lot easier than trying to get support at the very end. I think that the damage on Bush's reputation is already done.

[MGKrebs]

8. God forbid we encourage development of alt. fuels

"oil has become so expensive and volatile that it could slow economic growth and encourage the development of alternative fuels, Saudi officials and oil experts said."

Why are the oil companies scared of this? Aren't they going to be the ones developing alt fuels anyway?

[crossroads]

9. My, how generous...

Perfect timing!
:eyes:

[Tellurian]

10. Thia article is showing distinct promise...

http://www.msnbc.msn.com/id/5032508/site/newsweek/