Crude Oil Price Hits 21-Year High

[NNN0LHI]

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=5313873

Crude oil prices soared to new heights after the terror attack in Saudi Arabia, as the Saudis tried to reassure markets today that OPEC would do its best to provide adequate supplies.

Saudi Arabia was boosting its own production, but not because the United States had pressured it to do so, said Saudi Oil Minister Ali Naimi.

He reiterated he would push for the Organisation of Petroleum Exporting Countries to raise its output ceiling by 2.5 million barrels a day, or 11%, when the group meets on Thursday in Beirut to consider increases in production.

“OPEC will do its best to make the fundamentals right,” Naimi said.

more

[placton]

1. Don't worry - prices will be down end of October

just in time for election day!

[pscot]

2. I'll bet against that

There is apparently some question as to how much the
Saudis can increase oil extraction without seriously damaging their oil fields. I have read that they are pumping more and more salt water to raise the same volume of oil. Not a good sign.

[hadrons]

3. and the stuff they've been pumping is packed with sulfur

people forget with oil there's quanity and quality; sure the Saudis have added additional oil to the markets, but I read it was heavy in sulfur and both the U.S. and China rejected some of this oil as unusable

[eurolefty]

6. Not necessarily

The tyrants of Saudi-Arabia seem to be losing a little bit of their control. And some power may be shifting to the anti-American theocrats. No hope for any sane or democratic development. Unfortunately.

Some cosmetic 'democratic' changes have been proposed, but even those may end up being blocked by the most reactionary wing of the royal family.

So no democracy for the Saudis, no cheap oil for the Americans and global Saudi-sponsored terrorism for us all. :shrug:

[LuminousX]

4. High oil prices, inflation, lack of job growth...

spiralling deficeits. What has George Bush done for the economy? Oh, that's right, screwed it over.

[UpInArms]

5. or maybe this oil crisis works for the maladministration

in other ways.

http://www.cbsnews.com/stories/2004/06/01/national/main620588.shtml

Eco Rules May Ease In Oil Pinch

(CBS/AP) With pump prices soaring, the Bush administration is considering easing environmental regulations and the permit process for new and expanding refineries to lift gasoline production, Commerce Secretary Donald Evans said.

<snip>

Options under consideration, he said, include easing environmental requirements to use different gasoline blends for to reduce air pollution and easing the permit process for building new refineries or expanding old ones.

Evans said no new refineries have been built in the United States in more than 25 years — a fact the Bush administration has frequently cited as it pushes to revise environmental rules governing the energy industry.

Environmentalists have resisted those moves, and may see Evans' proposal as using the rise in gas prices to achieve policy changes the administration sought long before the current oil squeeze.

For example, the 2001 National Energy Policy drafted by Vice President Dick Cheney's task force found that the requirements for special fuel blends "make it difficult, if not impossible, to draw on gasoline supplies from nearby areas or states to meet local needs when the normal supply is disrupted."

<snip>

In another development in federal environmental policy, the Army has told base commanders to forego some environmental programs in order to save money for the war on terrorism.

...more...

and the current price of oil:

http://quotes.ino.com/chart/?s=NYMEX_CLN4

Last trade 42.33 Change +2.50 (+6.27%)

[gasperc]

9. God forbid their record profits could be used to clean up

the environment

rat bastards, every last one of them

[reprobate]

7. Psssst......(whispers) Peak oil's acoming. Right round the corner.

[patriotvoice]

8. OPEC tacitly prices in Euros now: oil prices rise as the dollar declines.

See http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=9037