Oil rises despite Saudi output pledge

[dkf]

Oil prices rise despite Saudi pledge to raise output; prices buoyed by Mideast concerns

VIENNA, Austria (AP) -- Oil prices rose Monday as traders shrugged off a pledge by Saudi Arabia to increase its production and focused on disruptions to Nigerian supply and heightened Middle East tensions.

ADVERTISEMENT
Saudi Arabia said Sunday it would produce more crude oil this year if the market needs it. The kingdom announced a 300,000 barrel per day production increase in May and said before the start of the meeting in Jeddah that it would add another 200,000 barrels per day in July, raising total daily output to 9.7 million barrels.

The announcement had already been factored into oil prices, analysts said.

"The meeting was mildly positive but it wouldn't really deliver anything that would give a heavy correction in oil," said Mark Pervan, a senior commodity strategist at the ANZ Bank in Melbourne, Australia. "They pledged production increases that the market thought was base case."

Light, sweet crude for August delivery traded up $1.42 at $136.78 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe. On Friday, the contract rose $2.76 to settle at $135.36 a barrel.

http://biz.yahoo.com/ap/080623/oil_prices.html?.v=3

[SpiralHawk]

1. "Smirk. Sneer" - Dickie 'Five Military Deferments' Cheney & republicon oil cronies

"Wow - what fabulous news for me and my republicon homelander oil cronies. Too bad about you little people. Smirk. Sneer."

- Dickie 'Five Military Deferments'Cheney & republicon oil cronies

[skooooo]

2. Americans are so used to thinking...

...that every problem has a single, sweeping answer that will inevitably fix it. Reality meet fan!

Time to sharpen those thinking skills!

[KharmaTrain]

4. Why Bother?

It's more to the corporate media's benefit to get people mad...outraged...and then to come up with some magic solution to answer the problem. If it's a "terrorist" strike in the US, then we must invade an A-rab country...and if things don't quite go our way, then let's attack another one. Broad strokes work better cause nuance and detail require doing reporting and investigating...and what fun is that? More fun to pontificate.

Now we're hearing how "everyone" wants to drill holes everywhere to get oil that won't get to market for another 15-20 years and then there's no assurance it won't go to Japan or some other country. It's as if the need to fill up the SUV is some constitutional right and that cheap gas is the do-all, end-all. If it's not that we're not drilling, then we're not refining or some other excuse. But then look whose sponsoring ads on the cable networks...the American Petroleum Institute. You tell me what type of coverage we're going to get...

[marmar]

3. Maybe the reason the Saudis aren't delivering the oil increase the market seems to want is......

..... they can't? :shrug: Maybe they know something about the amount of oil in the ground that they're keeping a closely guarded secret?

[dkf]

5. Erin Burnett told the Morning Joe crew that there are tankers

full of this stuff that nobody wants because its sour crude and its hard to refine.

[Fire Walk With Me]

6. "Saudi output pledge" = sarcasm and mockery, same as Bush.

They're all doing business together.