Saudis Archive

OPEC March Crude Output Down 30,000 Bbl/Day to 29.205 Mln

With supply following demand, as with any monopolistic arena, it looks like the world crude oil balance remains very much neutral leaving the Saudis in full control as swing producer where they set prices and let quantity adjust to market demand. Stable crude prices with 0 interest rates, high excess capacity and ...Read More

Re: Comments on Thoughts on Treasury plan

[Skip to the end] (an interoffice email exchange) >    >   On Fri, Sep 19, 2008 at 9:50 AM, David wrote: >   So creating liquidity for toxic assets RTC style. >    maybe, jury is still out on how that might work >    >   Make the government a little money and inspire confidence in banks, ok. >    ...Read More

Crude liquidation

[Skip to the end] Heard last night index funds have liquidated the equivalent of maybe 140 million barrels of crude. Add to that trend followers who went from long to short, and it’s way more than enough to explain the sell-off. Since the Saudis don’t want to make their price setting status ...Read More

Re: Oil prices

[Skip to the end] (an email exchange) >    >   On Wed, Aug 6, 2008 at 4:45 PM, Craig wrote: >    >   It seems that the ‘right’ price for them to set oil at is not >   necessarily the highest price possible. >    All the 911 passports were Saudi; so, they might have other agendas. >    ...Read More

Q&A: Oil prices

[Skip to the end] Russel asks: Any reason why the Saudi’s are allowing the price of oil to slide? Just a guess. The futures liquidations were large enough such that holding spot prices up and letting futures free fall would have made it obvious the Saudis are price setter. There also could ...Read More

Reuters: Lehman cuts oil demand forecast

[Skip to the end] Lehman cuts oil demand forecast by Richard Valdmanis (Reuters) Investment bank Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) said Wednesday it slashed its forecast for 2008 world oil demand growth due to a steeper-than-expected slowdown in energy consumption in the United States and other OECD countries. Lehman ...Read More

Re: Oil as a % of global GDP

(an email exchange) >    >   On Sun, Jul 20, 2008 at 10:46 PM, Russell wrote: >    >   Brad Setser, at Follow the Money, presents a couple of graphs on changes in >   oil export revenue: The Oil Shock of 2008. >    >   The following graph shows the Year-over-year change in oil exports as a >   percent of ...Read More

Crude sell off

[Skip to the end] Seems like a sale ahead of possible Congressional action to limit ‘speculation’. Not sure how big the dip might be, but yet another buying op as the choice remains – pay the Saudis their asking price or shut the lights off. The price only goes down if the ...Read More

The Independent: UK Bank deputy chief warning

Bank deputy chief warns of market trouble to come by Ben Russell, Political Correspondent and Sean O’Grady Britain is facing the risk of renewed turmoil in the financial markets, the new deputy governor of the Bank of England warned yesterday. Professor Charlie Bean, the deputy governor for monetary policy and a former ...Read More

May 2008 Saudi oil output up

[Skip to the end] Saudi Oil Production This does not bode well for oil prices. Increased Saudi output means demand has increased at current prices, and the Saudis (and Russians, etc.) remain firmly positioned as ‘price setter’. The Saudis continue to have the only excess supply, with about 1.5 million bpd excess ...Read More