GOOD NEWS!?

[FOTD]

Let's hope this drops the price. It should.
http://money.cnn.com/2008/06/09/news/international/saudi_oil.ap/index.htm?postversion=2008060913

Saudi Arabia seeks oil price curb
Information Minister says current oil price is 'unwarranted' as kingdom plans meeting of producers, consumers; will cooperate with OPEC.

The Saudi's buckle. And it will be after November before the price settles lower. But one must wonder what the futures traders are going to do and when that might affect price.

Meantime, this could ease things just in time to catch an indirect plane trip at the worst times available at twice last year's cost.

[Gaspar]

quote:Originally posted by FOTD

Let's hope this drops the price. It should.
http://money.cnn.com/2008/06/09/news/international/saudi_oil.ap/index.htm?postversion=2008060913

Saudi Arabia seeks oil price curb
Information Minister says current oil price is 'unwarranted' as kingdom plans meeting of producers, consumers; will cooperate with OPEC.

The Saudi's buckle. And it will be after November before the price settles lower. But one must wonder what the futures traders are going to do and when that might affect price.

Meantime, this could ease things just in time to catch an indirect plane trip at the worst times available at twice last year's cost.

Read that this morning.  Sounds good, but just a band-aid.  We need to produce our own energy, and increase efficiency.

No doubt about it!

[cannon_fodder]

...in other news college students complain that the price of beer is too cheap.
- - -

If futures traders run the price up too much, then buy on the spot market.  The market manipulation argument fails in that anyone who did so would be SELLING their futures now.  They would have bought low, and be selling high.  Problem is, in a good 'ole fashioned market scare irrational behavior rules and hence - we do not see bulk selling of futures contracts.

[FOTD]

LA Times: "For decades, Saudi Arabia worked with its dominant customer, the United States, to keep world oil markets stable and advance common political goals. But the surging price of oil, which soared more than $10 a barrel Friday to a record-high $138.54, has made it plain that those days are over. New forces, including a weak dollar and an oil-thirsty Asia, have blunted the United States' leverage and helped sour the two countries' relationship."

"By the end of 2007, it was also apparent that the Saudis no longer believed they could substantially affect prices by increasing production. Now, Saudi oil experts believe that the price run-up is due to such factors as investor speculation, the weak dollar and limited output from such key producers as Iraq, Iran and Venezuela. "

"leaders of the overwhelmingly Sunni Arab kingdom worry that the U.S.-led invasion of Iraq has weakened their security and fret about the Shiite Muslim domination of Iraq. Stephen Hadley, the national security advisor, recently acknowledged to reporters that the war has been a "stress" on the relationship."

http://www.latimes.com/news/nationworld/world/mideastemail/la-fg-ussaudi8-2008jun08,0,4289869.story