OPEC Delegates Start Whispering About Potential Oil Cut

Reuters via Rig Zone ^ | November 11, 2014 | Rania El Gamal, Alex Lawler & David Sheppard

[thackney]

A subtle shift may be taking place within OPEC as it heads into its most important meeting in years, according to delegates with the producer group, as the discussion over whether it needs to cut output to defend oil revenues quietly intensifies.

OPEC's Secretary General Abudulla al-Badri this week urged markets not to panic over the drop in prices to a 4-year low near $81 a barrel, while Kuwait's oil minister said OPEC was unlikely to cut output when it meets on Nov. 27 in Vienna.

But privately, more delegates within the Organization of the Petroleum Exporting Countries are starting to talk of the need for the group to take some action, although they warn that reaching an agreement will not be easy.

"It will be a serious meeting, a difficult meeting," an OPEC delegate said. There might be an agreement to "bring production back to quota" if there is no consensus for a cut in OPEC's output target, the delegate said.

That could involve reducing output by around 500,000 barrels per day (bpd), the amount OPEC is currently producing above its output target of 30 million bpd, according to its own figures. That could serve as a face-saving compromise between those willing and opposing a formal cut.

International oil prices have fallen by around 30 percent since June, as fast-rising U.S. shale production has contributed to growing supplies. But so far only a Libyan OPEC official, Venezuela and Ecuador have called for OPEC to cut output.

Kuwait and Iran have said a reduction is unlikely, while Saudi Arabia, the most influential member, has yet to comment publicly. Oil traders and analysts are split over whether the group will act to shore up prices.

While many members of the group such as Ecuador, Iran, and Venezuela will face large budget...

[Texas Eagle]

Instead of decreasing production of oil why don't they increase production of other goods or services?

Oh.

[2banana]

The issue is always is that which country will cut production while price are low in order to eventually help the rest of OPEC with higher priced...

[bert]

Take notice of the Sadara Project.......

http:www.sadara.com

WHO WE ARE

Sadara Chemical Company represents a unique alliance between two corporate leaders in their respective industries – Saudi Aramco and The Dow Chemical Company – brought together through shared values and a dedicated vision to create a game changer in the chemical industry.

Sadara is constructing in Jubail Industrial City, Saudi Arabia, the world’s largest chemical complex ever built in a single phase, with 26 integrated world-scale manufacturing plants that will produce more than three million tons of products every year. Sadara will be a Fortune 500 company within the first year of full operation.

At Sadara, we seek to create value through chemistry. At the same time, we are committed to contributing to the economic diversification and downstream development in Saudi Arabia.

********************* The number of American jobs resulting from the Sadara effort is humongous

[Texas Eagle]

Oh. Good. Saudi Arabia getting into the chemical industry. What could go wrong there?

[V_TWIN]

“Instead of decreasing production of oil why don’t they increase production of other goods or services?”

Yeah, like what, sand? lol

[YankeeReb]

All the more reason to keep fracking, build Keystone, open offshore areas to production. Could you imagine how much OPEC would be weakened if we had a pro-American, pro-energy president in the WH instead of a Marxist,know nothing, community organizer.

[bert]

Look up Jubail Industrial city.....

Saudi Arabia is heavily into chemicals and has been for a long time

[dfwgator]

Screw the OPECkers, Drill Here, Drill Now.

[rottndog]

Opeckers are at it again I see...

[GoldenPup]

OPEC Delegates Start Whispering About Potential Oil Cut

Price of oil goes down, so the Arabs cut production to drive price back up. Nothing new...been doing it for years. If "Buckweat" had any cajones, he would approve the keystone pipeline, and give the Arabs the middle finger. Unfortunately, the "Chair-Warmer-in-Chief" doesn't know what he's doing, so we all suffer.

[expat_panama]

Drill Here, Drill Now.

That's a catchy phrase that's completely out of date. 

[dfwgator]

Imports should be down to 0%.

[DJ MacWoW]

6 Weeks
50%

Donate

[expat_panama]

Imports should be down to 0%.

That's not what people want to do with their own money, and it never works to have the state taking charge of how and where free people buy things.  Having some new Central Command bar everyone from buying foreign stuff is just as bad as the current Central Command trying to shut down domestic production.  Not only does it never work, imho it's morally wrong.

[moehoward]

Gas will be back up over $4 just in time for 0bama’s impeachment party.

[TBP]

If we had a rel president, we could respond to this by upping our production.

[dfwgator]

It’s a matter of national security. How much blood and treasure has been lost just to keep the free flow of oil from the Arab World? We should have nothing to do with that God-Forsaken part of the world.

[nascarnation]

Great post!

[nascarnation]

The fun part is that the towelheads new best customer is gonna be a country with mafia business practices and 1.5 billion expendable people to enforce them.

The 50 year long party in the mideast will be winding down this decade I believe.