Kuwait official sees oil staying above $100: report

Reuters ^ | Sunday August 3, 3:50 am ET

[BenLurkin]

KUWAIT (Reuters) - Oil was unlikely to fall below $100 per barrel as strong demand from emerging economies such as China and India put a floor under prices, a member of Kuwait's top oil council said in remarks published on Sunday. ADVERTISEMENT

Concerns about the economy of the United States and falling oil demand in developed countries have knocked crude from a July record of $147 a barrel to $125 on Friday.

"I don't think that prices will return to the record level, nor will they fall below $100 per barrel," Khaled Boodai told al-Seyassah newspaper.

"I think that the price ... will stabilize," said Boodai, a member of the Gulf Arab state's Supreme Petroleum Council.

The official reiterated that Kuwait's proven oil reserves stood at 100 billion barrels.

The size of Kuwait's reserves has been the topic of public debate since industry newsletter Petroleum Intelligence Weekly (PIW) reported in 2006 that reserves were just 48 billion barrels -- about half what was officially stated.

"What some media reported that Kuwait's oil reserves are less than that is wrong and not based on scientific record, on the contrary, there are new discoveries," Boodai said.

In June, four Kuwaiti parliament members proposed a bill requiring a detailed update on reserves and linking future output to actual reserves.

If the reserves were lower that officially stated, then the bill could force the OPEC exporter to cut oil output. The bill could only be enacted after approval from parliament and the ruler.

[BenLurkin]

"Boodai also reiterated Kuwait aimed to increase output to 4 million bpd by 2020."

$100/barrel would look pretty good right now...

[television is just wrong]

not if we start drilling or own domestic oil.

[redstateconfidential]

“Kuwait official sees oil staying above $100”

Thanks for saving us from Saddam and all, but we still enjoy stickin to yah infidel!Allah Fubar!

[Conservative Vermont Vet]

"I don't think that prices will return to the record level, nor will they fall below $100 per barrel," Khaled Boodai told al-Seyassah newspaper.

And if it should head toward $100, you greedy (sand monkey, camel jockey, pig fornicating) bastards in OPEC will cut supplies to insure it won't drop below that level

Our friends and allies the Kuwaitis, Saudis, et al. Yeah, right!!!

DRILL HERE, DRILL NOW, PAY LESS!!!

[calex59]

I hope the price stays high right up until the election. I know it is hurting people, it is hurting me, but I want people to hurt right up until the pull the lever for their candidates of choice.

I think we will get our majority back in both the house and the senate if this is the case. I also think McCain and the other republicans should keep pushing for drilling and accept NO compromises such as the idiotic "gang of 10" would like to pass. Republicans who join these stupid compromise groups are totally stupid or closet democrats, take your pick.

[Tarpon]

Since oil shale produces a barrel of oil at about $40 a barrel, this should be good, right? Colorado has lots of the stuff.

[Ben Reyes]

Would someone please translate this article to gibberish for Speaker Nancy Palooka?

[sima_yi]

Since oil shale produces a barrel of oil at about $40 a barrel, this should be good, right? Colorado has lots of the stuff.

There are at least 1.2 trillion (with a "t") barrels, of which 800 billion (with a "b") barrels are recoverable with current technology. That is enough to supply the entire current US oil usage for over a hundred years.

The last cost estimate I heard from Shell (using in situ retorting) was $30 per barrel, but after taking into account the hype, it is probably more like $60 per barrel. (I always discount salesmen's estimates by a factor of two.)

But you are correct, there is a LOT of it out there, just waiting.

[101voodoo]

Sure, it’ll stay above #$100 bbl, what else is he going to say? He sites demand from China and India as a reason for continued strong demand but somebody ought to clue the fool in to the fact if we go into a recession then much of those neat things China and India are producing will not have a home here any longer. If that happens then why would they need all that oil? Answer, they won’t and demand drops and with it prices.

We stop consuming, they stop producing as much and the oil goes looking for another home at a lower price.

[Gorzaloon]

(Reuters) - Oil was unlikely to fall below $100 per barrel as strong demand from emerging economies such as China and India put a floor under prices

Every gallon of expensive gas we buy is one more squeaky toy we do not buy from China, and one more IT job not outsourced to India.

We will set the demand levels in these countries by not being ABLE to afford to buy their stuff, and by reducing driving, as we already have.

Where are they otherwise getting the money to expand their demand for fuels? From people here that are paying more for fuel.

Cue in "It's a Small World After All".

[vpintheak]

If we start to produce our own oil the jihadists can go pound sand!

[CarrotAndStick]

India


GDP (official exchange rate): $1.099 trillion (2007 est.)

Exports: $150.8 billion f.o.b. (2007 est.)

Ratio Exports-to-GDP = 150.8 / 1099 = 0.137 = 13.7%

Exports partners: US 15.1%, UAE 8.8%, China 8.4%, UK 4.3% (2006)

Imports: $230.2 billion f.o.b. (2007 est.)

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#Econ

 

[mysterio]

Of course it will stay above $100. It’s a monopoly good that we are forced to buy. Additionally, the dems, repubs, and Bush have borrowed our dollar into worthlessness. Maybe we should fire up the Bernanke presses and bail out drivers. Print that cash!