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| OPEC loses ability to control prices |
| 2004-09-24 |
| OPEC members have lost control over the oil market. A report by the Center for Global Energy Studies asserted that the price of crude oil was no longer under OPEC control. The report said OPEC, with spare production capacity of 1.5 million barrels per day, does not have sufficient capacity to significantly reduce oil prices, which have exceeded $47 a barrel. "This leaves only the thinnest margin to cope with the unexpected and the market is worried that it could quickly be used up in the event of an interruption to supply or a cold winter," the report said. The center said OPEC production in the third quarter of 2004 reached 29.19 million barrels per day. The figure did not include Iraq. |
| Posted by:Mark Espinola |
| #4 Looks like increases for alternative fuel R & D should have been a LOT bigger. |
| Posted by: jules 187 2004-09-24 4:57:26 PM |
| #3 Here is a better summary: "The course of oil prices over the coming months is largely out of the hands of both OPEC and the international oil industry." "Increases in oil production capacity are on the way, both within OPEC and outside, but oil demand is growing too." "While commercial oil inventories are rising ahead of the coming Northern Hemisphere winter, global stockcover remains ten days lower than it was in 2001." "Without a sudden slowdown in oil demand growth this winter, the market looks set to remain tight and prices high." Reference |
| Posted by: Tom 2004-09-24 4:53:23 PM |
| #2 This is actually worrying. If OPEC has reached it's maximum capacity that means that oil production in the world has reached it's upper limits. Since the demand (especially China) is still growing, you know what that means. Oil will never go back under $40 a barrel. WE eat crow here, not them. |
| Posted by: True German Ally 2004-09-24 4:44:19 PM |
| #1 EAT CROW!!! |
| Posted by: Edward Yee 2004-09-24 2:26:53 PM |