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OPEC May Cut Output Again; McClatchy Cans 1,600; Malaysia May Quadruple Stimulus; Public Transportation Ridership at 52-Year High; AIG Warned Feds of “Catastrophic” Collapse; Wells Fargo Shares Rise on Buffett Comments; Capital One Cuts Dividend 87%
- The Organization of Petroleum Exporting Countries (OPEC) needs to cut its oil output by an additional 800,000 barrels a day, the group’s secretary-general, Abdalla el-Badri, said yesterday (Monday). OPEC will also lower its 2009 demand forecast to a drop of 1 million barrels a day in 2009, a boost from its earlier forecast of 600,000 barrels a day, Bloomberg
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10Mar2009 | Money Morning | Comments Off | ContinuedProspects for an Oil Recovery
Last Sunday 60 Minutes posed the question, “Did speculation fuel oil price swings?”
The news show’s investigative team naturally delved into the personal story of how a small-town heating oil company can’t predict the oil prices. Although I’m sure they left out his solution of charging a very high premium to his customers to ensure he doesn’t get left holding the bag.
And, of course, it included the hapless government regulator whose hands were tied because of lobbying efforts. Even Enron was brought up as a scapegoat (hint: if anything ever goes wrong in the energy markets, no…
19Jan2009 | Q1 Publishing | Comments Off | ContinuedOPEC: Too Little, Too Late
In March of 1974, in the midst of the oil-dependent world’s first oil shock, economist and Nobel Laureate Milton Friedman noted:
Higher [oil] prices induced consumers to economize and other producers to step up output…In order to keep prices up, the Arabs would have to curtail their output to zero…Well before that point the cartel would collapse.
Jump ahead 24 years and we’re going through it all over again.
A few days ago OPEC’s president warned “severe” cuts were on their way.
“Severe!” The markets seemed shocked. What did “severe” mean? Oil prices…
18Dec2008 | Q1 Publishing | Comments Off | ContinuedOPEC Production Cut Fails to Inspire Oil Market; Oil Drops to Four-Year Low
Oil prices fell again yesterday (Wednesday) – dropping below $40 for the first time in four years – as weak demand and growing inventories overshadowed a record cut in production by the Organization of Petroleum Exporting Countries (OPEC).
Light, sweet crude for January delivery fell $3.54 to settle at $40.06 a barrel on the New York Mercantile Exchange – the lowest level since 2004. Oil futures actually traded as low as $39.88 during the day yesterday. The slide came in spite of an announcement by OPEC that the cartel would cut its production quotas by 2.2 million barrels per…
18Dec2008 | Money Morning | Comments Off | ContinuedGlobal Oil Demand: Are You Ready for Gasoline Under a Buck a Gallon?
When I started driving, gasoline still contained lead and regular was selling for 29 cents a gallon. My father remembers 10 cents a gallon.
While it’s highly unlikely we’ll ever see those prices again, you could see gasoline below $1 a gallon, and it just might hit $0.75 a gallon. It might not be in time for Christmas, but the Easter Bunny might leave it in your Easter Basket.
That’s not just wishful thinking on my part: The International Energy Agency’s (IEA) most recent monthly forecast (released just yesterday) indicates year-over-year global oil demand will shrink in 2008 for the…
16Dec2008 | Investment U | Comments Off | ContinuedOPEC Left to Deliberate as Oil Prices Plummet
Crude oil prices have plunged two- thirds from its record high during the summer, and the likelihood they’ll fall further has caused panic among oil-producing nations and inspired the Organization of Petroleum Exporting Countries (OPEC) to call another meeting this week to discuss possible production cuts.
After blitzing to a record-high $147 a barrel in July, oil last week receded below $50 a barrel, causing a stir among energy companies and oil-producing nations that rely heavily on exports for income. Some analysts predict that oil could fall to $30 or $40 a barrel by early 2009, as so-called “ 24Nov2008 | Money Morning | Comments Off | Continued
Supply not demand is the issue
Our planet is facing a severe energy crisis, however not many are paying attention. I find it amazing that rather than focus on the very real threat of ‘Peak Oil’, the majority of investors seem to be worrying about the ongoing credit crisis.
My comment: I’m not surprised as the sheeple media overload and lack of critical thinking by "analysts" is nothing new.
Over the past few months, the price of crude oil has dropped sharply due to forced liquidation in every asset-class. Unfortunately, this decline has convinced everyone that the oil ‘bubble’ has burst. Every day,…
18Nov2008 | The Real Deal | Comments Off | ContinuedOPEC Cuts Output by 1.5 Million Bpd as Oil Prices Slump
The Organization of Petroleum Exporting Countries (OPEC) Friday said it would cut oil production quotas by 1.5 million barrels a day in an attempt to put a floor under oil prices, which have plunged nearly 60% from their July record.
"Oil prices have witnessed a dramatic collapse – unprecedented in speed and magnitude," OPEC said, adding that prices have fallen to levels that could jeopardize "many existing oil projects and lead to the cancellation or delay of others, possibly resulting in a medium-term supply shortage."
The 1.5 million-barrel daily reduction exceeded the expectation of many analysts, but failed to…
27Oct2008 | Money Morning | Comments Off | ContinuedOPEC Production Cut Up in the Air as Members to Clash Over Oil Prices
In the face of the worst worldwide financial crisis since the Great Depression, the Organization of Petroleum Exporting Countries (OPEC) is expected to cut crude-oil output and raise prices at an emergency meeting in Vienna tomorrow (Friday). But even with crude oil prices down more than 50% from their July record highs, friction between cartel members has analysts wondering just how big the prospective cut will actually be.
Oil prices continued their downward slide yesterday (Wednesday), dropping $5.22 a barrel, or 7.2%, to $66.96. Prices are down about 55% from the record high of $147.27 a barrel reached July 11.…
23Oct2008 | Money Morning | Comments Off | ContinuedSaudi Arabia Hesitant to Join OPEC in Production Cut
Despite earlier pledges to hold oil output steady, the Organization of Petroleum Exporting Countries (OPEC) yesterday (Wednesday) announced that it would cut production by 520,000 barrels per day in an effort to “strictly comply” with the production quotas set last September. However, Saudi Arabia, the cartel’s largest and most influential member has indicated otherwise.
The cartel, which controls 40% of the world’s oil exports, pointed to such factors as tumbling demand, greater supply, the dollar’s recent rally and an easing of political tensions – all of which have contributed to a 30% drop in oil prices over the past nine…
11Sep2008 | Money Morning | Comments Off | Continued
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