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International-UN-NGOs
Opec set to back production cut as oil close to $55 a barrel
2006-10-05
Opec has agreed informally that it needs to cut production by at least 1m barrels a day – at least 4 per cent – in order to boost the falling price of oil.
"Mr. Chavez, you have a call on the white courtesy phone. White courtesy phone, Mr. Chavez."
The majority of the cartel’s members back a voluntary reduction over the coming weeks and the deal could be ratified as early as the group’s mid-December meeting in the Nigerian capital of Abuja. “Opec is going to defend a price floor for its oil of $50-$55 a barrel,” said one Opec official. The price of Opec’s crude oil yesterday fell to $55.27 while Brent oil futures traded in London slipped 33c to $58 a barrel, 26 per cent below their July peak.

Saudi Arabia, OpecÂ’s most important member, is unhappy with the move towards voluntary cuts, but at the same time the kingdom has already quietly cut its production by 200,000 barrels a day over the past two months. It would rather reach a clear public position at the cartelÂ’s meeting in Abuja. However, yesterday the kingdom sharply increased the price it charges European refineries for its oil, making it likely that there will be a further drop in volumes in November.
Posted by:Steve White

#27  Made a short trip to Montgomery (Alabama)last weekend, $1.99 there and has since fallen here In Mobile from $2.21 to $2.13 as of yesterday morning.
No further fall today (Yet)
Posted by: Redneck Jim   2006-10-05 20:17  

#26  You mean "Indigenous People's Day"!

Gutter mouth.
Posted by: Berzerkly Bozo   2006-10-05 17:56  

#25  $1.93 yesterday on Midlothian Tnpk in Chesterfield County, VA, just outside Richmond. :-D
Posted by: Barbara Skolaut   2006-10-05 15:30  

#24  Yes, Happy Columbus Day to everyone and to all, a good night!
Posted by: BA   2006-10-05 15:10  

#23  BA:

Thanks! Was at the Victoria Haus in Blue Ridge a few weeks ago. Lovely crab cake dinner there, very civilized. Had to ride that old train again. You know the deal. Safe motoring over the Holiday!
Posted by: Besoeker   2006-10-05 15:03  

#22  Damn case of Premature enterage: also meant to add that this morning here in Skagit County, just north of Seattle, gas is $2.51 (Arco)- $2.79(Shell) within a mile of each other
Posted by: USN, ret.   2006-10-05 15:00  

#21  Re #3:Red "3.27 here in Kauai, Hawaii. How on earth did I get here?" You just turned West at Los Angeles. (rimshot) somebody had to do it.....
Posted by: USN, ret.   2006-10-05 14:58  

#20  Besoeker:

Enjoy Helen during Octoberfest, mate! And, the $1.99 price quoted was a local QT. All the other QTs were still at $2.02 this morning. The Costco at Mall of GA was $2.00 last night.

Funny thing is, my wife and I and the future Rantburgians (kids) were up in Dalton last Friday night (HS Football, ya know), and it was ALREADY $1.98 there!
Posted by: BA   2006-10-05 13:10  

#19  $2.49 at Costco in the Denver area sigh
Posted by: Jan   2006-10-05 12:51  

#18  BA:

Thanks for the tip. I'll stop on 400 and gas up the old buggy before we go to Helen for the Oct Fest! Einen shonen tag allerseits mate!
Posted by: Besoeker   2006-10-05 12:16  

#17  $1.99 here in Lexington KY. So will a 4 per cent drop in oil translate into a 4 per cent drop in gas??
Posted by: 49 Pan   2006-10-05 12:09  

#16  Dang, dreamsmith, you must be in P'tree City or somewheres. It's $1.99 up here in Gwinnett County (30 miles NE of Atlanta).
Posted by: BA   2006-10-05 11:35  

#15  Does anyone know how Irqas' production is now, and is projected to be a year from now?

The last I noticed, they were around pre-invasion production levels. It was just that saboteurs kept dmamging the pipeline to the shipping points... I think. The key is preventing sabotage. We can't go after Saudi Arabia until Iraqi production is there to fill the gap, and the bad guys know it, too.
Posted by: trailing wife   2006-10-05 11:29  

#14  Other than 1973, has OPEC ever been able to set a price?

I think not. Even the '73 effort was primarily Saudi. But now they've all gotten as addicted to the dollar flow as we are to the oil. Note that the dollars are accumulating in China, not OPEC. While OPEC will be stung, China will be the one holding the bag.
Posted by: Nimble Spemble   2006-10-05 11:21  

#13  Other than 1973, has OPEC ever been able to set a price? I think supply and demand set the price more than the cartel. After all, they're a bunch of greedy bastards, so they all cheat on their quotas.
Posted by: Jackal   2006-10-05 11:17  

#12  $2.10 here in MN. Does anyone know how Irqas' production is now, and is projected to be a year from now?
Posted by: Mike N.   2006-10-05 10:17  

#11  $2.19 this morning, 35 miles south of Atlanta.
Posted by: Dreamsmith   2006-10-05 09:56  

#10  And $2.39 in the Bronx.
Posted by: Grunter   2006-10-05 09:46  

#9  $2.51 in Your Nation's Capital.
Posted by: Seafarious   2006-10-05 09:25  

#8  Â“Opec is going to defend a price floor for its oil of $50-$55 a barrel,”

A nice diplomatic way of saying we intend to extort a certain minimum amount of money from the infidels. What's that word for when someone attempts to set an artificially high price for a commodity?
Posted by: SteveS   2006-10-05 08:46  

#7  $1.97 here in Chester, VA yesterday.
Posted by: Steve   2006-10-05 08:37  

#6  Interesting. Our market rose more slowly than the rest of the country and now is falling more slowly. It looks like not all domestic markets have the same rate of price change.
Posted by: Nimble Spemble   2006-10-05 06:53  

#5  $2.06 last night in Woodbridge, VA (25 miles south of DC)
Posted by: Bobby   2006-10-05 06:37  

#4  Being a Swamp Yankee Shoe Buckle Pilgrim, that is. $2.25 in Mass.
Posted by: Red Lief   2006-10-05 05:09  

#3  3.27 here in Kauai, Hawaii. How on earth did I get here?
Posted by: Red Lief   2006-10-05 05:08  

#2  --“Opec is going to defend a price floor for its oil of $50-$55 a barrel,” --

We're heading into the 40s.....
Posted by: anonymous2u   2006-10-05 00:59  

#1  Saw TV news footage of a sign that indic US$2.30 for gas - sigh, as of today, still US$3.18 here in Guam.
Posted by: JosephMendiola   2006-10-05 00:42  

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