Saudis leave OPEC

[Chadd 916]

This is absolutely huge news. Looks like they're taking "our" side on this one and refusing to use oil as a weapon, much like the US refuses to use food as a weapon against other countries.

http://blogs.moneycentral.msn.com/topstock...th-of-opec.aspx

[Fletch 219]

Wow. And right before the elections too, what a coincidence.

[chippa13 1844]

I think all the talk about domestic oil exploration and alternative energy sources might have something to do with this. Lower oil prices now reduces some of the impetus and urgency for finding cheaper alternatives elsewhere.

[Drewhunz 3]

Wow. And right before the elections too, what a coincidence.

Your foil hat is on too tight.

[kosydar 0]

Funny, I couldn't find any mention of it on BBC, Fox News or CNN. One would imagine this if far more important to the nation than Kanye being arrested.

[hockeyherb 1]

Kanye was arrested??? You got a link for that???

<_<

[Drewhunz 3]

Link for OPEC- sorry Kanye.

[Monty22 833]

Wow- I hadn't seen this. What an interesting turn of events. I'm curious to see how quickly this effects crude prices.

[mrusse01 0]

Very strange, this isn't to be found in mainstream news outlets almost anywhere, and apparently it happened yesterday?

http://www.globeinvestor.com/servlet/story...OPEC11/GIStory/

Article from the Globe & Mail, says nothing about Saudi Arabi 'leaving' OPEC. I'm going to dismiss this orginal link until I hear otherwise, sounds like the guy is putting a spin on the facts.

[Chadd 916]

Funny, I couldn't find any mention of it on BBC, Fox News or CNN. One would imagine this if far more important to the nation than Kanye being arrested.

It's good news for the economy, you won't see that anywhere.

[chippa13 1844]

It is strange that you can only find the story in that guy's blog. I figured I could at least find a snippit on FoxNews.com but there wasn't anything there, either.

[Chadd 916]

The story from yesterdays NY Tomes shows they were heading in that direction.

http://www.nytimes.com/2008/09/11/business...amp;oref=slogin

[Spreedizzle 1]

The Saudi's have not "left" OPEC, they have simply decided to not honor the current decision with regards to supply that the organization had decided on. Historically speaking, many of the nations involved in OPEC have done the same thing, and then come back in line with the mutual decision made by OPEC at the following meeting. This is interesting however as this is the first time that the Saudi's have gone against the wishes of OPEC, for reasons that I have no idea on, and my father (retired exec from Exxon Mobil) did not have an idea on either. I personally wouldn't count on gasoline pricing plumetting due to this isolated instance of revolt, but it may come down a shade.

[Chadd 916]

The Saudi's have not "left" OPEC, they have simply decided to not honor the current decision with regards to supply that the organization had decided on. Historically speaking, many of the nations involved in OPEC have done the same thing, and then come back in line with the mutual decision made by OPEC at the following meeting. This is interesting however as this is the first time that the Saudi's have gone against the wishes of OPEC, for reasons that I have no idea on, and my father (retired exec from Exxon Mobil) did not have an idea on either. I personally wouldn't count on gasoline pricing plumetting due to this isolated instance of revolt, but it may come down a shade.

The largest single producer in the world not falling in line is a major story and it's part of a major philosophical rift in the organization. It will be interesting to see how this plays out over the long term.

[JR97 2]

Funny, I couldn't find any mention of it on BBC, Fox News or CNN. One would imagine this if far more important to the nation than Kanye being arrested.

It's good news for the economy, you won't see that anywhere.

Exactly. "Main stream" news no matter how many you think there are really only 2 news sources. Reauters and the AP... which is owned by Reauters.

Kanye West arrested is just another weapon of mass distraction. And yes... I sell tin foil hats in bulk, too. Hit me up. We can talk HAARP and ELF waves in a different thread.

[Wolfpack_1986 154]

either way, they'll still make a killing off us... even if they undercut opec by 10 bucks a barrel. they'll do more volume and force opec to drop theirs. no more cartel, yo.

[Chadd 916]

either way, they'll still make a killing off us... even if they undercut opec by 10 bucks a barrel. they'll do more volume and force opec to drop theirs. no more cartel, yo.

The market sets prices, not opec. They may be able to control it somewhat via restrictions on output but they would all have to cut production (and income) significantly to make up for the Saudis refusal to cut back.You WILL see more saber rattling from Chavez and Iran in the near future in an effort to spook the market.

[JR97 2]

either way, they'll still make a killing off us... even if they undercut opec by 10 bucks a barrel. they'll do more volume and force opec to drop theirs. no more cartel, yo.

The market sets prices, not opec. They may be able to control it somewhat via restrictions on output but they would all have to cut production (and income) significantly to make up for the Saudis refusal to cut back.You WILL see more saber rattling from Chavez and Iran in the near future in an effort to spook the market.

Don't forget corrupt inventory practices. Like parking tankers off the coast. Or dis-information going to "market."

http://www.financialweek.com/apps/pbcs.dll...09049993/-1/TOC

[Allsmokenopancake 0]

either way, they'll still make a killing off us... even if they undercut opec by 10 bucks a barrel. they'll do more volume and force opec to drop theirs. no more cartel, yo.

The market sets prices, not opec. They may be able to control it somewhat via restrictions on output but they would all have to cut production (and income) significantly to make up for the Saudis refusal to cut back.You WILL see more saber rattling from Chavez and Iran in the near future in an effort to spook the market.

It's already begun. Chavez has told the US ambassador to leave Venezula within 72 hours

[JR Boucicaut 3802]

Gas jumped .70 cents today here in Atlanta - and pumps are "out" of regular gas. Has to do with Ike.

[lampliter87 8]

And what in the world are Russian bombers doing in Venezuala?

[Gwyren 0]

The largest single producer in the world not falling in line is a major story and it's part of a major philosophical rift in the organization. It will be interesting to see how this plays out over the long term.

I would care a bit more if Saudi Arabia had spare pumping capacity.

As much as high oil prices hurt now in the long term I think OPEC is doing us a service with high oil prices. From both an environment and a national security policy view point.

[Spreedizzle 1]

The largest single producer in the world not falling in line is a major story and it's part of a major philosophical rift in the organization. It will be interesting to see how this plays out over the long term.

I would care a bit more if Saudi Arabia had spare pumping capacity.

As much as high oil prices hurt now in the long term I think OPEC is doing us a service with high oil prices. From both an environment and a national security policy view point.

One of the main points in the discussion here is that the Saudi's DO have extra pumping capacity and are going against the wishes of OPEC to scale down their production to keep pricing/supply/demand in check. This has the potential for the market being flooded with crude production which in turn would lower the pricing due to an increase in supply.

[daca 0]

And what in the world are Russian bombers doing in Venezuala?

Same reason why US ships are in the Black Sea, nothing good.

[JR97 2]

The largest single producer in the world not falling in line is a major story and it's part of a major philosophical rift in the organization. It will be interesting to see how this plays out over the long term.

I would care a bit more if Saudi Arabia had spare pumping capacity.

As much as high oil prices hurt now in the long term I think OPEC is doing us a service with high oil prices. From both an environment and a national security policy view point.

One of the main points in the discussion here is that the Saudi's DO have extra pumping capacity and are going against the wishes of OPEC to scale down their production to keep pricing/supply/demand in check. This has the potential for the market being flooded with crude production which in turn would lower the pricing due to an increase in supply.

Wouldn't actually be the first time. I thought the uber low oil prices of the 90's were kept artificially low for the same reason or something similar.