Saudis offer to hike oil output

[wicket]

http://www.cnn.com/2004/BUSINESS/08/11/saudi.oil.price/index.html

Making good on a pledge made in May, Saudi Arabia announced Wednesday it is prepared to increase oil output by up to 1.3 million barrels per day -- 14 percent -- to cope with world demand.

"We believe the price of crude oil at current levels is way too high and should come down to more reasonable levels," Adel al-Jubair, foreign affairs advisor to Saudi Crown Prince Abdullah, told journalists in a telephone conference call.

He called it "pure fiction" to claim that the increase was due to a private deal with the White House -- timed to get the price of crude oil down in time for the November election -- as journalist Bob Woodward wrote in a recent book.

In addition, al-Jubair said the Saudi government is prepared to keep oil production at this level "indefinitely."

At the same time, he noted that the Saudis are not seeing a noticeable up tick in demand despite the steady increase in oil prices around the world. Factors affecting the rising prices include concerns about Iraq, coming elections in Venezuela and the controversy surrounding Yukos oil in Russia, he said.

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Well well well, isn't this convenient?! :eyes:

[olddem43]

1. It is just a coincidence that this happened as Woodward said.

Oh, and he didn't notice an increase in demand despite the increase in prices? Duh!

[kysrsoze]

2. Impeccable timing, I would say.

Like we didn't expect it.

[hatrack]

3. Gee, weren't they saying this a couple of weeks ago?

That they would just put down the coffee cup, run outside, turn a couple of big shiny wheels and give us all the oil we wanted? Whatever, Bandar.

[hunter]

7. The talk is more important than the reality...

The hard reality will not help Bush at all, so they are all doing their best to prop up the Bush Administration fantasy world until the elections.

[bearfan454]

4. Kind of early isn't it ?

I thought they were supposed to do that right before the election.

[Massacure]

9. It takes 2-3 months between pumping it, and using it as gasoline.

If they lower it now it will hit about late October or early November.

However they promised to boost production a couple of weeks ago. I don't think they can support much more.

[rullery]

13. Prince Bandar keeps his promise to Bush

This news has been known for months. In fact it is so transparent that the electorate should be able to see this for what it is: a blatant attempt by a foreign nation to influence our elections. I would not be surprised if some moderate Republicans jump ship and vote for Kerry, in response to this meddling. I predict that the Saudis will turn off the spigot right after our election, and we will have even higher gasoline prices than we have seen so far.

[wicket]

15. Welcome to DU!

:hi:

[TXvote]

5. Why Bother Pretending

Largely ignored news, it appears that nobody has been measuring the oil leaving Iraqi ports since the coalition took over.

"KPMG outlined a series of other shortcomings, including the coalition's failure to install meters on Iraq's Persian Gulf export loading platforms, making it impossible to determine how much oil Iraq was exporting. KPMG said that it was unable to verify independently the value of crude oil Iraq bartered for Syrian electricity."
Full story July 15, 2004
http://www.washingtonpost.com/wp-dyn/articles/A53164-2004Jul15.html

The Saudis can do whatever they want to, we now have the largest undocumented stash of crude in history. Of course, by "we" I mean not me or you, but some oil company or another that has been loading up crude for months....

[mtnester]

6. Of course they did...I am shocked

shocked I tell you

LACED with sarcasm

[gold_bug]

8. I doubt they have much spare capacity anyhow

I wouldn't think it could have a significant effect on prices.

[LeftHander]

10. SUV Drivers.....start puckering up....

Be nice to the Sauds...

They make gas cheap so you can drive a vehicle that gets 15 MPG on a good day. I am sure the Expedition drivers out there are happy to pay $65 to fill up rather than $165 like they do in Europe.

Amazing that that alone is more money than most people in the world make in a month.

[wicket]

11. So glad I drive an old Subaru!

:)

[wicket]

12. dupe - sorry!

[David Dunham]

14. I have read the Saudis have no spare capacity left. This is a ruse.

[wicket]

16. kick!

:kick: