The head of OPEC, President Mohamed bin Dhaen al-Hamli, says that no discussion about raising oil supply will take place until the cartel's December meeting. That is a blow to countries that hoped that the oil-producing nations would decide to increase supply this month.
Reuters writes, "Asked whether he believed that OPEC needed to increase production, Hamli said: 'The next OPEC meeting is going to take place in early December and there we have to look at the market fundamentals and we will take a decision accordingly.'"
The comments may be aimed at convincing large oil-consuming countries to keep demand for oil high over the next several decades by cutting work on nuclear programs and bio-fuel. OPEC knows that current demand is strong, but it wants to make sure that this is also true in twenty or thirty years.
OPEC has the West and China caught between rising demand and little evidence that supply will increase. Oil may not trade above $100, but it is likely to stay above $90 for a long time. Oil producers are sending a signal that no one should look to them for help.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-13-2007 @ 6:25AM
Craigushka said...
They are all criminals, for all the people are to profit from the earths resources, not just the leaders, and a few fat cats. All the people.
Ecc 5:8 If thou seest the oppression of the poor, and violent perverting of judgment and justice in a province, marvel not at the matter: for he that is higher than the highest regardeth; and there be higher than they.
Ecc 5:9 Moreover the profit of the earth is for all: the king himself is served by the field.
11-13-2007 @ 9:46AM
Jeff said...
OPEC is the world's Fed.