See other World News Articles
Title: Oil market is out of our control, says Opec
Source:
[None]
URL Source: http://www.telegraph.co.uk/money/ma ... money/2007/10/31/cnopec131.xml
Published: Nov 2, 2007
Author: Russell Hotten
Post Date: 2007-11-02 07:39:54 by Kamala
Keywords: None
Views: 3021
Comments: 5
Oil market is out of our control, says Opec By Russell Hotten, Industry Editor Last Updated: 1:16am GMT 01/11/2007 OPEC oil ministers say they are powerless in the face of many factors driving up the price of crude, with one member of the producers' cartel warning that the 'market is out of control'. Mohammed bin Dhaen al-Hamli, president of Opec, told a conference in London yesterday that record oil prices are the result of speculative investment and international political tensions. "We are of course concerned about high oil prices," he said. But "the market is increasingly driven by forces beyond Opec's control". Crude oil options traders work on the floor of the New York Mercantile Exchange However, there were signs yesterday that the inexorable rise in crude prices could be about to ease, with the cost of a barrel slipping on news that Mexico had increased production and investment bank Goldman Sachs saying that it was time for investors to "take profits". Mr al-Hamli said that Opec, whose members supply about 40pc of the world's oil needs, was "monitoring" the situation and would increase output if necessary. "If the market needs more oil, we will supply it," he said. But he added that the oil price, up 34pc since mid-August, was the result of geo-political tensions and speculation by traders. Mr al-Hamli did not refer to specific situations, although analysts have pointed to recent problems on the Turkey-Iraq border and speculation by hedge funds as fuelling recent price rises. Another oil minister, Qatar's Abdullah al-Attiyah, pleaded: "Please don't blame us for $93 oil... The market is out of control." He said that the oil market is "very confused", but added that this had nothing to do with an imbalance between supply and demand, but to factors outside Opec's control. However, major energy users believe one solution to the current problems would be for Opec to open the taps. "If oil is going up, keeping at this level may hurt the economy, especially nonoil-producing developing countries," said Nobuo Tanaka, executive director of the International Energy Agency, which advises large oil-consuming countries. advertisementThe head of the US Energy Information Administration, Guy Caruso, said: "Our view continues to be that the market is fundamentally tight. We think that the market still needs more barrels as we head out into the next year or so." US oil futures fell by $3.02 to $90.51 a barrel yesterday, after hitting a record high of $93.80 in the previous session. In London Brent fell $2.40 to $87.92, down from Monday's peak of $90.49. Oil analysts at Goldman Sachs, which in July predicted that oil may reach $95 a barrel, told investors yesterday that it was time to "sell" oil.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Kamala (#0)
Today's Crude Price -
Here's the reason crude oil is going up. Value of the dollar -
Boy howdee, the refiners are really going head-to-head with the retailers this year. While I was out yesterday, I saw the price of gas had gone up 20 cents to $3.159 about noon. That puts us a full dollar higher than year-ago. I'd have bet the farm that they'd have stayed below the evil $3 mark until after the holidays. Won't be too surprised to start hearing the term "windfall profits tax" thrown around shortly. Wonder how the gooberment's oil price war games went yesterday.
Value of the dollar - The financial talkers keep repeating the phrase, it just COSTS more to pump oil today, than it did yesterday. Reduced supply may drive up the price, but not the cost. The devaluation in the dollar seems to be the only true answer. I wish they'd cut the crap.
The handbasket has landed.
The central planners know exactly what they are doing by destroying the dollar. By 2010, the public will be begging for the Amero to relieve the inflationary pain. The fascists are in complete control now and the country is doomed.
#2. To: All (#1)
#3. To: Arete (#2)
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
#4. To: Arete (#2)
Here's the reason crude oil is going up.
#5. To: Esso (#3)
Top • Page Up • Full Thread • Page Down • Bottom/Latest