Saudi summit aims at oil prices

[RamboLiberal]

Source: CNN

Saudi Arabia this weekend will convene a special summit on oil prices that could lead to cheaper crude on the world market.

But a Saudi decision to produce more crude likely won't come without a demand: The Kingdom is expected to press the U.S. government to impose greater controls on oil trading and take steps to strengthen the dollar.

The Saudis are widely believed to be concerned that escalating oil prices - crude hovered around $134 a barrel Thursday, nearly double what it cost a year ago - will cause a permanent drop in demand as consumers get more efficient or, worse, the global economy slows.

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The Kingdom has long held that oil markets are well supplied, and that speculative investing is the real culprit behind high prices.

To that end, the Saudis will likely seek more oversight of oil markets, and perhaps even limits on the amount of contracts speculators can hold.


Read more: http://money.cnn.com/2008/06/19/news/international/saudi_oil/index.htm?postversion=2008061913

[DemocracyInaction]

1. I totally agree with the Saudi's

Our government - you know, that piece of useless shit that resides in D.C. - either puts in place (or reinstates) controls on speculators or this economy will be gone with the wind. Gasp--what happens if people really start liking staying home, saving money, etc. There not only goes the Saudi oil demand but there goes our "shop 'til you drop" economy! This is what unbridled capitalism turns into...a bunch of immoral criminals.

[Cleita]

2. You mean the people who brought us 9-11 are actually going to do

something to help us?

[DJ13]

3. Its a smokescreen

The Saudi's have more than enough money that if they wanted to lower the prices they could easily afford to pour enough money into the commodity markets on the short side they could force the speculators out and drop prices nearly overnight.

That they would rather hold a bogus "conference" that signifies nothing but empty talk and hand wringing shows they arent serious.

[FarCenter]

4. What is the Islamic view of futures trading?

Is it viewed to be a form of trading in goods, and acceptable?

Or is it viewed more like interest, and forbidden?

[CAG]

5. Saudis think you pay too much for gas, too

Source: CNN.com front page

Saudis think you pay too much for gas, too
Concerned that escalating oil prices will cause a permanent drop in demand as consumers get more efficient, Saudi Arabia on Sunday will convene a special summit on oil prices that could lead to cheaper crude on the world market, CNNMoney.com reports. full sto

Read more: http://www.cnn.com/

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Isn't that nice Amerka, Bush's friends the Saudi's have a soft spot for us, all of a sudden. See, they really are our friends, after all....

[Ian David]

6. Our money is practically worthless to them anyway. n/t

[gateley]

7. Great point. nt

[asjr]

8. BushCo must have written the script

for this scenario years ago. Election year gimmick.

[sam sarrha]

9. then they should hunt down the speculators and cut their F'n hands off..

[LiberalFighter]

10. All in favor say "Aye"

[silverojo]

11. I'd love to see alternative fuels take off worldwide

Can you imagine those rich bastards shitting their pants, when the demand for their oil is limited to manufacturers of plastics and the like? That would be so sweet!

[wordpix]

16. well, invest in them, then.

[surf]

12. Its like a drug dealer not wanting you to go to rehab

Very bad for business.

[nolabels]

13. The other end of the spectrum looks great

With the current dysfunctional government we now have things could go on like this for another seven to nine months. Consumers will be by then thinking twice about everything they buy (which does many things).
The drug addict analogy seems quite apt :-)

[davsand]

14. "Bad for business." You nailed it.

People in the US are starting to get pissed off at the gas prices and they are suddenly (!) driving less and starting to buy more fuel efficient cars. The big tipping point, however, is the recent public pressure to focus on domestic sources. You now have McCain out there talking about it and THAT is sending a big chill down the Saudi pipeline.

They have always walked a fine line between what the market would bear and profit, and now they are getting a bit nervous that they may have killed the golden goose. Family Bush may be in bed with the house of Saudi, but even they can't maintain the Middle East domination of our markets once dubya goes back to Texas.

Look for gas prices to "happily" drop back to the $2.50-$3.00 range for a few months. That way they will have time to reign in McCain and his talk of American energy.


Laura.

[wordpix]

15. "very bad for business"---hit nail on head, thanks

[wordpix]

18. "To that end, the Saudis will likely seek more oversight of oil markets,"

http://www.cnn.com/2008/WORLD/meast/06/22/oil.summit/index.html

snip: Sunday showdown

The meeting holds high stakes for both Saudi Arabia and the United States. If prices don't respond, the country's credibility will suffer, and with it any notion that someone has control over these record oil prices.

"Riyadh is seen as running out of options to regain control of the market," said Halff. "Failure to do so, it is assumed, could cause prices to leap even higher."

The Saudis will also expect something from consumer nations in return.

The Kingdom has long held that oil markets are well supplied, and that speculative investing is the real culprit behind high prices.

To that end, the Saudis will likely seek more oversight of oil markets, and perhaps even limits on the amount of contracts speculators can hold.

That's something consuming counties may give them. Several proposals along those lines have bipartisan support in Congress.

More difficult to deliver, and probably more important to the Saudis, is a stronger dollar.
snip

[wordpix]

17. "As a group, OPEC has been reluctant to raise production." Why should they?

If you produced a widget that doubled in value in one year, and few others could produce that same widget, you wouldn't have to work too hard to profit handsomely by what you do produce.

IOW, why should the Saudis work hard when they don't have to? They get rich without producing up to speed, anyway.

The world is addicted to their oil and the only way to wave them goodbye is to develop alternative fuel sources. And I'm NOT talking nukes.