World Oil Prices Fall from 21-Year Highs

[wubbathompson]

LONDON (Reuters) - World oil prices fell from 21-year highs on Friday as Saudi Arabia proposed hiking crude output by over two million barrels per day and said it had already substantially boosted supplies in a bid to cool markets.


Traders said oil markets were nervous ahead of an informal weekend meeting of OPEC (news - web sites) ministers and this had helped briefly to push U.S. prices below $40 a barrel for the first time in days.


U.S. light crude fell 75 cents to $40.10 a barrel, just over a dollar shy of a 21-year peak struck last Friday. London Brent crude futures lost 47 cents to $36.79.


Saudi Arabia, OPEC's largest producer and the only one with substantial spare production capacity, proposed that the cartel boost its oil output by more than two million bpd.

http://news.yahoo.com/news?tmpl=story&cid=568&u=/nm/20040521/bs_nm/markets_oil_dc_26&printer=1

[Jackpine Radical]

1. Well, that should result in a pass-through of lower gas prices

just in time for the election.
Thank you Prince Bandar.

[Tandalayo_Scheisskopf]

2. That's Ok.

Chimpy will just buy two million more barrels a day for the Strategic Oil Reserve. That's how they gamed these prices in the first place.

[DoYouEverWonder]

4. Once he pays top dollar to fill the reserves

then the prices can go down in time for the election.

W always takes care of his Arab friends first.

[T Roosevelt]

7. Is there data on the SPR impact?

Thom Hartmann brought this up - how much impact does diverting oil to the SPR have on crude oil and gas prices?

[bpilgrim]

3. hmmm...

the plot thickens...

guess george can't wait till the fall any more for the dramatic 'shot-in-the-arm' from promised increased production from their boyz in SA.

the real question i have is 'HOW LONG will they be able to sustain it'? if what we fear about peak oil is true... 1, 2..10 years

:shrug:

peace

[WI_DEM]

5. Well lets see we will probably see gas prices

in my town fall from an average 2.09 to 2.04 per gallon--Yippie!!

[T Roosevelt]

6. This is a problem

since OPEC is bumping up against production levels unseen since the late 70s. Saudi production is close to its historical highs as well.

[ClintonTyree]

8. Gas prices.................

rise IMMEDIATELY after crude price increases. Why then does it take so long for them to come down? Shouldn't prices at the pump drop as soon as crude prices do? Somewhere along the line, someone is making billions on the discrepency. I wonder who that could be?

[RUMMYisFROSTED]

9. It fell to $40.10.

LOL

[Tellurian]

10. This is a good sign...

Saudi Arabia is understanding the American People are upset and horrified at the Iraqi prisoner situation and feel helpless to do anything about it.

Also, this action is cutting the cat away from the kittens. If gasoline prices don't go down accordingly...whos to blame?

[Just Me]

11. This is the most deceptive headline I think I have ever seen.

It gives one the impression that oil prices have been high for 21 years and have suddenly fallen.

Maybe, it's "just me",...but,...that is the 1st impression I got from that headline,...I mean, the "framing" is quite manipulative/deceptive.

Geez,...

[mountainvue]

12. I was thinking the

exact same thing. Is Yahoo trying to slant this a bit?