OPEC to go ahead with production rise

[Blackaxe]

The Organization of Petroleum Exporting Countries (OPEC) will go ahead with a production increase of 500,000 barrels a day in August, Saudi Arabian Oil Minister Ali al-Nuaimi assured skeptics on Friday, adding that at the end of this month his country would open facilities increasing output by 650,000 barrels a day.

Earlier OPEC president Purnomo Yusgiantoro had said in Jakarta that "OPEC still has a commitment to raise its quota by 500,000 barrels a day beginning in August."

The Saudi Arabian minister told the newspaper that OPEC had said that a reasonable target price for oil was $22-$28 per barrel.

Commenting on doubts that OPEC could increase its output, Nuaimi said that Saudi Arabia "is producing 9.1 million barrels per day and can go up to 10.5 million barrels."

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=6111

[Tempest]

1. It's not going to make a difference for two reasons

1) China's appetite for oil continues to increase.

2) Iraqi insurgents continue to blow up oil pipelines. They blew up a natural gas pipeline this morning.

[Massacure]

2. Plus there are not enough refineries here in the states.

[puerco-bellies]

3. Another thing to remember

the Saudi's remaining oil production capability is in oil that is considered non-sweet, or high in sulfur content. This grade of oil is much more costly for U.S. Refineries to covert to Gasoline or #2 Fuel Oil.