Oil rises above $60 amid OPEC reports

[rodeodance]

http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/oil_prices;_ylt=AlOFROqapmFI76U9BLxQ6Zms0NUE;_ylu=X3oDMTA3OTB1amhuBHNlYwNtdHM-

Oil rises above $60 amid OPEC reports

By GILLIAN WONG, Associated Press Writer 36 minutes ago

SINGAPORE - Oil prices rose Monday in Asian trading following reports the Organization of Petroleum Exporting Countries was set to trim its daily production of crude by 1 million barrels.



Prices also edged up after North Korea announced Monday it conducted its first-ever nuclear bomb test, bringing geopolitical concerns back into the oil market's focus.

The market was awaiting a possible formal decision on Monday by
OPEC states about its output policy. Over the weekend, reports quoted OPEC officials as saying the 11-member cartel would reduce its output by about 4 percent to stem a 24 percent decline in prices since mid-July.

Oil prices have been range-bound in the past week as traders weighed tough rhetoric from some OPEC members calling for output cuts against that of Saudi Arabia, a representative of whom has denied there was a deal to reduce production.

[whistle]

1. Well, a jump in local gas prices will follow right on the heels of OPEC

[MadHound]

2. Already started here in Mid Mo.

Price went from $1.99/gal to $2.09/gal overnight last Friday. Glad that I stocked up on the cheap gas at the right time. Now I can store it over the winter and actually have enough gas to run the rider and other implements through mid summer next year.

[rodeodance]

3. whow.

[MadHound]

4. Yeah, I'm glad I jumped when I did

Up until a couple of weeks ago, I thought that gas would continue dropping right up until the elections. But then I heard a little blurb on NPR about OPEC mulling over options, and thought that I'd better lock in now. Because from here on out, it's going to go nowhere but up.

[pampango]

5. Damn, there goes my conspiracy theory #1927.

I thought oil/gas prices were going to decline through the elections due to manipulation of the prices by the Bush/GOP/Saudi Arabia/Big Oil conspiracy.

Then you guys have to go and report that the price is rising OPEC decisions and market factors. I am trying to keep my life as simple and uncomplicated, so I am going to ignore this OP.

[bedlounge_hiphop_boy]

6. very bad

they are only rising the amount but the quality is same

[dipsydoodle]

11. Not sure what SOHAM is in the USA

In the UK the word has an accepted totally different connotation : http://news.bbc.co.uk/1/hi/in_depth/uk/2003/soham_trial/default.stm

He killed two 10 year old girls.

[purji]

7. they know they are going to lose the House.

Their buddies at OPEC and in Saudi Arabia know they are going to lose. Why continue a low price gas plan meant to make the republicans look good if it isn't going to work any way.

[pampango]

9. I forgot to mention that my conspiracy theory #1928 is that the Bush.....

et al. conspirators are starting to realize that the House is lost, so let the price gouging begin.

Depending on how much intelligence I want to grant them, my theory #1929 is that they will start to realize that the Senate, at least, is still in play, so they might lower the price of oil/gas over the next few weeks to help the conspirators with the Senate races.

I'll let you know in a few weeks which conspiracy theory I want to stick with long term. I'm just floating some trial balloons right now. If events prove them to be wrong, I insist that you forget about these theories. And, by the way, in a few weeks I don't want anyone coming here and saying that real events actually impacted the price of oil and gas. I don't want to hear about OPEC, hurricanes or lack thereof in the Gulf, political tensions in Iran, Iraq, Israel. Keep the news out of it.

[purji]

10. your right its not OPEC its G.S.C.I.

<http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x2350540>

[Javaman]

12. The drop in gas prices did what they needed to do...

to invigorate sales of SUV's.

check out my theory.

http://journals.democraticunderground.com/Javaman/75

Also dovetailing into that, now that any sort of positive spin the repukes were going to throw at us has now been blunted by foley.

So if the other reason as to why keeping the prices low was it being political, they have no reason now and the deal they cut with the oil companies is probably off.

[rman]

8. "to stem a 24 percent decline in prices"

Odd that they didn't cut production 10 years ago when prices where like 75% lower than they are now.

Apparently they think $70 a barrel is an appropriate prices these days, which just might be an indicator of the current supply/demand ratio.

I think they are cutting production because because they are forced to due to oil-geological factors related to depletion of their oil fields.

[bhikkhu]

15. not so much an indicator of current supply/demand dynamics

but an indicator of the cost of bringing new production on line. Exploration costs, rigs, pipelines, labor...everything is going up. Not to mention the increased cost of maintaining production in aging fields.

[Parche]

13. opec

Amid reports that republicans are going to lose anyway.........

[European Socialist]

14. Since the Ruling Classes must know if we will go to war with Iran....

shouldn't crude prices be going way up? Or maybe Chimp hasn't decided yet.

[Gin]

16. they became accustomed to record profits......cutting prices

wasn't cutting it for OPEC..whatever the reason...the prices are being manipulated by the ones who control the oil. (IMO)