OPEC president to propose 500,000 bpd output hike

[sabra]

http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nL29428357&imageid=&cap=

UPDATE 1-OPEC president to propose 500,000 bpd output hike

KUWAIT, Aug 29 (Reuters) - OPEC President Sheikh Ahmad al-Fahd al-Sabah said on Monday he will propose the cartel raise its output by 500,000 barrels per day when the group meets in September in an attempt to help cool oil prices at record highs.

...

"We hope that the resolution to the board to increase production and the ceiling, 500,000 (bpd) and 500,000 (bpd), and to refresh the dialogue with all the main consumers, I hope this will at least help the market and the prices to be more stable," Sheikh Ahmad told reporters.

...

"If we talk about demand and supply and other economic factors I don't think prices will reach $100 or even deserve to be near $70," he said.

"But if we talk about other issues or realities which play a role in the price increases like geopolitics, refinery problems or psychological problems...then prices may cross $100."

[durablend]

1. And the market's reaction?

YEAH, WHATEVER... :eyes:

[jackster]

2. yea.... as long as the gas guzzlers can

get gas at any price - do they care either? Nope, they can afford it!

[FloridaPat]

3. They can't do it with sweet crude. The last time they said this

they put out sour crude.

[Kolesar]

5. That sulfur-laden Saudi oil has limited markets

It won't replace the crude oil used in American refineries.

[boise1]

4. 500k/bpd is about 0.6 percent of daily world demand

I don't really think that is going to make much of an impact, and I don't believe that the Saudis or anyone else has the spare capacity they claim.

Not to mention, Katrina will very likely effect the already strained refining capabilies of the US.