Saudis walk out on OPEC

[eddie]

The Death of OPEC ???

This is either a really really beautiful thing, or it's a sign of harder times to come. I do wonder if this is pure-OPEC politking, or if geopolitical and economic agitation is involved.

It also suggests to me that we are not as over-supplied as some would like us to think.

Thoughts?

 

[phrogpilot73]

Very, very interesting. I think the most important thing to take from this is that the Saudis are businessmen, first and foremost. They want to make sure their customers want to buy their oil. They know that if the price of oil remains high, customers will look to other means of energy. They know that if they keep production high, regardless of demand - the price will go down, and people will continue to buy their oil, and they will continue to be ungodly rich.

 

[bluesig1]

The Saudis are finally realizing that they are driving their customers to find new means of energy, especially with Brazil hitting some big oil deposits. They may be to late on keeping us from trying to change our energy needs, since thats a big topic for the presidential campaigns. The Saudis should start doing like UAE and diversifying their economy while they still can.

 

[Single Seat]

This isn't a new development. The Saudi's pulled this same tactic back in the 70's when the gub'ment was looking to invest big money into alternative energy during the crunch. The Saudi's saw the writing on the wall, and in turn slashed prices and upped production, thus pricing alternative energy out of the market.

 

[Flash]

OPEC often has big disputes, so this is nothing new. They all realize that they are much better sticking together than going their own seperate ways. This is most likely pretty temporary.

 

[phrogpilot73]

The Saudis should start doing like UAE and diversifying their economy while they still can.

UAE is doing it for a different reason than the Saudis would. UAE doesn't have as big of an oil reserve as Saudi Arabia. That's the big reason they're positioning themselves to be a top-notch tourist destination. They know the oil will flow for only so long. Saudi Arabia on the other hand, has enough oil to output for a long, long time. Even if we invest billions in developing alternative energy, there will always be a need for oil.

 

[skidkid]

That and Saudi Arabia will never be a popular tourist destination. Nothing says fun vacation like a public stoning, beheading or burkha enforcement.

 

[cisforsmasher]

You know, it sounded too good to be true. I think we may have to write that off as blog nonsense. There are no other news organizations reporting this. Check this little gem from forbes.com

http://www.forbes.com/business/ener...-markets-commodities-cx_ll_0911markets20.html

 

[brownshoe]

You know, it sounded too good to be true. I think we may have to write that off as blog nonsense. There are no other news organizations reporting this. Check this little gem from forbes.com

http://www.forbes.com/business/ener...-markets-commodities-cx_ll_0911markets20.html

Ah crap! And I was hoping I could get rid of this stupid Honda I was forced to purchase and get another new Tahoe! (You have to read the "Sad Day" thread in the War Zone to understand.)

Steve

 

[raptor10]

You know, it sounded too good to be true. I think we may have to write that off as blog nonsense. There are no other news organizations reporting this. Check this little gem from forbes.com

http://www.forbes.com/business/ener...-markets-commodities-cx_ll_0911markets20.html

Strange indeed.

Plus this press release from OPEC only mentions Indonesia suspending their membership in OPEC, with no news about Saudi Arabia whatsoever...

http://www.opec.org/opecna/Press Releases/2008/pr112008.htm

Let's see if/how the candidates respond to this news.

 

[raptor10]

Check it, San Fran Chronicle is echoing the MSN report.
Saudi Arabia won't follow OPEC production cut

 

[raptor10]

And the New York Times has a concurring piece:
Saudis Vow to Ignore OPEC Decision to Cut Production

 

[Flash]

This:

The Death of OPEC ???

Does not equal this:

Check it, San Fran Chronicle is echoing the MSN report.
Saudi Arabia won't follow OPEC production cut

And the New York Times has a concurring piece:
Saudis Vow to Ignore OPEC Decision to Cut Production

At all.

And not by any stretch of the imagination do the second two articles support many of the assertions of the first, including this one:

"OPEC has made no announcement about any possibility of dissolving, but the process is already over."

Just because the Saudis don't agree to go along with a production cut by their OPEC partners does not mean that they walked out of OPEC, or that it is the end of OPEC.

I guess that is what you get when you rely on the musings of some blogger versus cold, hard facts.

 

[raptor10]

This:



Does not equal this:





At all.

And not by any stretch of the imagination do the second two articles support many of the assertions of the first, including this one:

"OPEC has made no announcement about any possibility of dissolving, but the process is already over."

Just because the Saudis don't agree to go along with a production cut by their OPEC partners does not mean that they walked out of OPEC, or that it is the end of OPEC.

I guess that is what you get when you rely on the musings of some blogger versus cold, hard facts.

It sort of undermines the organization if you vow to ignore it's decisions don't you think?

 

[CAMike]

Back in the 1985/87 era, we had an Omani Exchange Officer on our ship for short time. A few of us developed a genuine friendship with the gent, a real stand up guy with solid MIL tactics. Other than his traditional long white garb that he wore- he was defintely a good guy in our books. When we arrived ashore, he took us to his home as his guests and we discussed a few different political/economic issues. We "green" JO's soon discovered that the "silent majority" of UAE/middle easterns were much more savy about thier future position in the world than many "Americans" are about thier current situation- including ourselves. Most gulf residents know the oil situation is a temporary commodity in the big picture. What the "Old Folks" do with thier money is one thing. What the younger folks do with their investing is an entirely different philosophy and you can bet they will be very different in their approach as opposed to the approach of their fathers.