Sunday, December 21, 2014

Saudi/Kuwait: No oil output reduction even if others cut

 Gulf Times
The Saudi and Kuwaiti oil ministers said on Sunday that their countries would not cut oil production even if non-OPEC members reduce their output to shore up sagging oil prices.
"No... I think it's too late now," Saudi Oil Minister Ali al-Naimi told reporters when asked whether OPEC would cut its output if non-OPEC producers were to lower their own.
"If they (non-OPEC) want to cut production they are welcome. We are not going to cut, certainly Saudi Arabia is not going to cut," Naimi said on the sidelines of an energy conference in the United Arab Emirates.
Kuwaiti Oil Minister Ali al-Omair agreed.
"I don't think we need to cut. We gave a chance to others and they were not willing to do so," Omair said.
"OPEC will not cut. Nothing will happen until June and there is no emergency meeting," he said.
The two countries are influential members of OPEC and along with the UAE and Qatar pump around 16 million barrels a day, or more than half of total OPEC output.
The Organisation of Petroleum Exporting Countries decided last month to maintain its production unchanged at 30 million barrels per day, which led to a slump in oil prices.
The benchmark Brent oil price is hovering around $60 a barrel after losing almost half of its value since June because of a glut in supplies, the weak global economy and the strong US dollar.

So other oil producers should cut their production?


  1. So much for the Peak Oil argument! And so much for a lot of other things including the idea of a "Free Market" and any notion of the independence of the Saudi and Kuwaiti governments. Who in their right mind increases output by a fraction only to halve the price of that production and thereby increase costs and receive less revenue as a result? No one who values money and these psychopaths value money above all else.

    The only people in any sort of power who do not value money for itself are the small band of psychopaths who create the money in the first place at the stroke of a keyboard; the bankers.

    Therefore these bankers are very obviously in control of the Saudi and Kuwaiti govts and also in control of the means to threaten them - the US military.

    1. Hi James and yes
      I laughed when I read this 'So much for the Peak Oil argument!"
      Hubby said the exact same thing today- remember that when it was going around how many years ago- Oh it's peak oil and we are going to run out-- more scaremongering.
      free market, well we already know that was nonsense- I liken this system to a plutocracy.

      As for the bankers? The one who create the money whether paper or digital- what would the price of production vs the costs mean to them

      There are big rumblings out and about that someone is looking to trigger collapses in the oil industry- which will cause banks to "fail" triggering massive derivative payouts- and bail ins....

      Who would be the biggest winners in that scenario?
      The money changers of course!!

      I covered it last time in this post
      which links back to a number of other posts that should be read together because in 2013 I mentioned the potential of a derivatives pay out and bail ins

      scary, scary stuff!
      time to get any money one might have out of the banks....
      and forget about the stock market