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Page added on June 10, 2014
OPEC Ministers Signal Output To Remain On Hold
OPEC oil ministers are signaling that the 12-nation cartel will keep its output target at 30 million barrels a day at their meeting Wednesday — even though demand could rise later this year.
The International Energy Agency sees the world’s appetite for crude growing in months ahead. But many OPEC members are at production capacity limits.
Additionally, sales from Iran, normally among the 12-nation organization’s top producers, are severely crimped by sanctions imposed over its nuclear program. And internal conflicts and domestic chaos have slashed Libya’s exports.
Angolan oil minister Jose Maria Botelho de Vasconcelos said Tuesday the meeting could decide to extend the present target of 30 million barrels a day.
OPEC powerhouse Saudi Arabia, however, is expected to unilaterally boost production if called for by demand.
5 Comments on "OPEC Ministers Signal Output To Remain On Hold"
shortonoil on Tue, 10th Jun 2014 11:03 am
“OPEC powerhouse Saudi Arabia, however, is expected to unilaterally boost production if called for by demand.”
Calculations, which use data provided by Aramco reservoir engineers, indicate that the water cut at Ghawar is now better than 45%. Based on that value it is possible to determine the remaining oil seam. Of the original oil seam of 350 feet, there can be no more than 30 feet remaining. Ghawar is now over 90% depleted.
Saudi Arabia is probably not be the power house that Rigzone believes it to be!
http://www.thehillsgroup.org/
Juan Pueblo on Tue, 10th Jun 2014 11:59 am
I expect OPEC to keep their 30 mbpd target at their meeting because they will not be able to agree on anything different for both political and geological reasons. Since most OPEC nations can’t increase production, be it for political, economical, or geological reasons, but have increasing costs, there is no incentive for them to agree to increase production. For most OPEC members it is preferable to maintain the current production target and try to raise prices a bit.
bobinget on Wed, 11th Jun 2014 10:36 am
Saudi Arabia, OPEC’s main producer is currently fighting for it’s future. Battle lines are clearly drawn.
The Saudis have been pouring billions into the effort to overthrow Syria’s government. So far so good.
Unintended conséquences: al Qaeda, a cohésive group with defined goals took control of the Syrian rebel movement. After three years of horrific history changing fighting, Assad’s government forces are gaining ground over rebels with the help of Hezbollah,
financed by Iran.
Iraq is, up to now, beholding to Iran.
If Sunni al Qaeda forces succeed in dismembering the sitting Iraqi government, the two trillion dollars and over five thousand dead American’s will have been all
for nought.
The next few weeks, months are, IMO, going to be most significant for the future of world oil, Mideast politics, religion.
I’m guessing Russia may intervene with a ‘Peace Keeping’ mission of tactical troops. I know, I know, that’s off the wall but Russia and Saudi Arabia are also
“at war” in Syria.
As long as the Iraqi Army is unwilling to fight, who knows how this momentous battle for oil supremacy will out?
Northwest Resident on Wed, 11th Jun 2014 10:53 am
A well-planned and executed “terrorist” attack on Saudi oil production would send the world economy into a tailspin.
As bobinget points out, chaos is taking over in the Middle East. Saudi Arabia is teeming with fanatics who would do anything up to and including sacrificing their own lives to destroy the Saudi Arabia government. We can be sure that Saudi Arabia is well aware of this fact and that they have beefed up security forces all over the place. But no security is perfectly bulletproof, and the forces of chaos are closing in for the kill. It is just a matter of time, isn’t it?
Northwest Resident on Wed, 11th Jun 2014 11:22 am
Adding a little more to my just-posted comment above, here is a very interesting read:
Oil and Terrorism: Al Qaeda’s Threat
academia dot edu/471280/Oil_and_Terrorism_Al_Qaedas_Threat
FACT: There are plenty of “terrorist” leaders in the Middle East — and in America!! — who would like nothing better than to take down the entire global economy, to burn all currently existing governments to the ground, and to emerge from the chaos as political/strongman leaders of their own local “tribe” or jurisdiction where THEY set the rules and THEY enforce their own concepts of religion and “justice for all”.
With the global economy already skating on razor-thin ice, and oil production not even holding the line but slipping ever so slightly on a steady basis, how close to total collapse are we. Add in all the fanatics who would do anything, cause any amount of mass death or chaos, and it is easy to understand just how dangerous and ultimately untenable the deteriorating situation is for all who live within the global economy — which is just about everybody. No wonder it is an economic free-for-all with rules no longer enforced — we are literally in the last days of this version of human civilization. Take, while the taking is good, because in reality tomorrow may not arrive, or if it does then you’ll find yourself waking up in a completely different world.