OPEC president says production cut unlikely

Beirut Daily Star ^ | 8 April 2006 | By Agence France Presse (AFP

[shrinkermd]

PARIS: OPEC could avoid lowering its production quota this year if crude prices remain at their current level, the cartel's president Edmund Daukoru said here Friday. "If prices remain at this level, I don't see a cut," he said during an oil conference. Asked what the Organization of Petroleum Exporting Countries could do to prevent prices from shooting up over $70 a barrel, he said: "We do know how to do best and that is to build new production capacities."

[shrinkermd]

KEY QUOTES BELOW:

"Qatar's energy minister, Abdallah bin Hamed al-Attiyah, predicted that OPEC ministers at their next meeting in Caracas on June 1 will take no major decisions affecting quotas and prices.

If this is true and the Chinese, Indians and others are rapidly increasing importation of petroleum we may have a bigger problem than the title suggests. Summer is coming, hurricane season almost here--can you here 3$ per gallon gas?

I think so.

"OPEC at the moment is producing at "almost maximum" levels, he said. "Oil is flooding in the market."

[wolfcreek]

Harley Davidson opened their first store in China today citing a growing market of consumers. If they can afford the 'Toys", you can bet their consumption of fuel is going to skyrocket.

[sgtbono2002]

They are trying to make $3.00 before Memorial Day and might make it, They are up to $2.70 here now. I look for $4.00 before Labor day. have no idea what ti wil cost to heat the home next winte. Oil may be flooding the market but it hasn slowed down the gouginh. Oh I forgot I am not allowed to accuse anyone of gouging here the free market capitalists dont like it. Profits are still rising into the Stratosphere while we take it in the wallet.

[Racer1]

Its OK to say someone is gouging. The main reason that prices are so high is that there are too many people trading oil futures that have nothing to do with the oil market but to profit. That is they are not in the oil business. We have left this go on so long now, that the Arabs and others have so much cash, they can buy the futures and force the price up on there own, creating a false market (my terms).