OPEC to Cut Oil Output Target by 4 Pct.

[BeyondGeography]

By SUSANNA LOOF, Associated Press Writer

VIENNA, Austria - OPEC (news - web sites) will cut its production target by 4 percent as scheduled, the president of the group said Wednesday — a move that analysts say could drive crude oil prices higher even as U.S. customers are already facing high gasoline prices.

The Organization of Petroleum Exporting Countries, which pumps about a third of the world's oil, will reduce its output ceiling by 1 million barrels per day effective Thursday.

Analysts said the decision could boost oil prices to the psychologically important threshold of $40 per barrel. But prices fell in the wake of the widely-anticipated announcement.

The big question now is how serious OPEC members will be in complying with its new, lower target of 23.5 million barrels per day. An expected drop in seasonal demand during the April-June quarter and quota-busting by individual members of the group could eventually dampen the effects of the cut, analysts said.

http://story.news.yahoo.com/news?tmpl=story&ncid=&e=2&u=/ap/20040331/ap_on_bi_ge/opec_meeting_17

[Homer12]

1. Supply-Side Economics at it's best

[Leilani]

2. Guess the Saudis

aren't as good friends as Shrub thought.

[ZR2]

3. Current market price

is down $1.20 a barrel.

[indepat]

4. Will GWB still feel their pain if prices skyrocket during the campaign?

[The_Casual_Observer]

5. How could the "inflation index" possibly indicate

No inflation in the face of this? The price of EVERYTHING that I have to buy has skyrocketed in the past few months. How much longer can they maintain this soviet style happy face about the state of things?

[jeanmarc]

6. "Open up your spicots!"

I remember this chimp making this statement during the debates.

The Saudis get everything from him, and we get nothing. Boosh is just another member of the OPEC mafia.

It's time to declassify the Saudi portion of the 9/11 report! It was time long ago anyway.

[mikey_1962]

7. They do this every year... to make up for the seasonal drop off

when it warms up in the Northern Hemisphere, they artificially cut supply to support the price... and it works for a while until greed kicks it and Adam Smith's "invisible hand" brings supply in accordance with demand.

[wetbandit2003]

8. Boycott Gas Stations

Starting April 16 2004, There will be a boycott on certain petrol companies. We all heard in the news today that OPEC has decided to cut back production by another 4%. We all know that the Big oil companies will gouge prices on gasoline. We can prevent this from happening. Here is how it will work.

Starting April 16 2004 at 8:00am, Do not buy gasoline, food, or even a news paper from Shell or B.P. gas stations for 30 days. You must make sure that you do not buy ANYTHING from these gas stations. IT is important! You buy your gas, sodas, snackies and your morning paper from other gas stations instead of Shell and B.P. for the thirty days. This will force Shell and BP to lower the price on gasoline to regain their business, possibly by as much as a magnitude of 30 cents/gal. If the boycotted gas stations lower their prices by a few cents early in the boycott, DO NOT BUY ANYTHING UNTIL AFTER THE THIRTY DAYS! They might raise their prices again. When the thirty days are up, if Shell and BP lower their prices substantially, Reward them, Buy Gas and Goodies only from them for thirty days. The surrounding gas stations will be forced to lower their prices too in order to keep their business. If Gas companies raise their prices again, Repeat the process again, targeting another Gasoline companies' gas stations. The idea here is to allow the consumer to be in charge of the market, not the big oil companies.

[The_Casual_Observer]

13. This is kind of a freeper suggestion

How about instead simply trade in the SUV and do a little more walking?

Boycotting gas staions wouldn't do anything and never has.

[cliss]

9. Time to lock up the SUV in the garage.

These guys have got us over a "barrel". Last time I checked, free trade is a voluntary exchange of goods and services for money. No one's holding a gun to our heads when we pull up to the 76 to tank up.

OPEC has got our number, folks. They know we're all little petroleum junkies, and we gots to have our fix today. It's not like we weren't warned.

Let's wean ourselves off of this horrible oil addiction. Buy gas-efficient cars. Limit the driving. Take public transportation whenever possible. Let's show them who's really in charge.

[markses]

10. OPEC's Response:

BEE OH OH
AYCH OH OH

They still pissing all over Hugo Chavez? :eyes:

[peterh]

11. Back in 2000….

Clinton had his Energy Sec. Bill Richardson working the phones and got a deal out of OPEC to raise production….
Fast forward to the present….we find the twit has his Senior Security advisor, Condi, working the phones and comes away with a 4% cut and a “wink, wink, nudge, nudge” we’re disappointed in your decision….

And the best the twit can do is blame it on Congress…:eyes:

[area51]

12. incentive.

It looks like OPEC wants to help push the USA to get rid of Bush this Nov.

[doc03]

14. My idiot Senator Mike DeWine was just on C-Span raising hell about

OPEC raising oil prices. I just finished Keven Phillips book American
Dynasty, why don't he tell *, he's been in bed with the Saudis for years.