The head of Saudi Arabia's oil operation said Tuesday global oil supplies are "well-balanced," and the oil market breathed a sigh of relief.
Ali Al-Naimi, Saudi Arabia's oil minister, in Vienna for OPEC's September meeting, added that he sees healthy inventories, Bloomberg News reported Tuesday.
The above comments were enough to convince energy traders and economists that OPEC will maintain current production levels when it meets later today, and oil fell $1.99 to $104.35 per barrel in early Tuesday trading.
OPEC a bigger concern than Hurricane Ike
Economist Peter Dawson told BloggingStocks Tuesday analysts and traders are certainly watching Hurricane Ike, a Category 1 hurricane that's likely to strengthen and hit Texas' oil-rig-laden coastline, but the larger concern remains OPEC.
"Of course, all eyes are on Hurricane Ike, which could cause loss of life and also significantly damage to property and oil facilities, but oil industry preparation has advanced and we're much better able to cope with these storms than even 10 years ago," Dawson said. "In comparison, an OPEC production cut is something no one can prepare for."
Ali Al-Naimi, Saudi Arabia's oil minister, in Vienna for OPEC's September meeting, added that he sees healthy inventories, Bloomberg News reported Tuesday.
The above comments were enough to convince energy traders and economists that OPEC will maintain current production levels when it meets later today, and oil fell $1.99 to $104.35 per barrel in early Tuesday trading.
OPEC a bigger concern than Hurricane Ike
Economist Peter Dawson told BloggingStocks Tuesday analysts and traders are certainly watching Hurricane Ike, a Category 1 hurricane that's likely to strengthen and hit Texas' oil-rig-laden coastline, but the larger concern remains OPEC.
"Of course, all eyes are on Hurricane Ike, which could cause loss of life and also significantly damage to property and oil facilities, but oil industry preparation has advanced and we're much better able to cope with these storms than even 10 years ago," Dawson said. "In comparison, an OPEC production cut is something no one can prepare for."
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