After a meeting which saw a decision by the Organization of Petroleum Exporting Countries (OPEC) to leave current production levels in place rather than cutting them to maintain higher prices, a top-level member of the organization has said that they have done their part for the world's economy and "challenged" the U.S. and other countries to "clean up the financial mess they have made." Since cutting production following the collapse of demand last year, the cartel's Secretary General, Abdullah
Another year, another record profit statement from Exxon Mobil, the world's largest publicly traded oil company. The specific mind-numbingly large figure is $45.2 billion, which translates to $8.69 per share. While this figure handily beats the previous record of $40.6 billion that had been set by Exxon Mobil in 2007, these huge profits were recorded mostly in the second and third quarters of 2008 when fuel prices were at record levels in much of the world. Fourth quarter earnings fell by 27%, t
Yesterday, two pieces of news conspired to push the price of crude oil to new heights. The first is that U.S. oil inventories aren't as robust as everyone thought, and the second is that OPEC, the Organization of the Petroleum Exporting Countries, decided not to increase production of their black gold, Texas Tea. With these two nuggets of bad news, oil futures climbed $5/barrel yesterday, peaking at $104.95 before closing at $104.52. Even when adjusting for inflation, yesterday's closing price b
Bush sent a letter telling Congress what changes they can make to the energy bill so he does not veto it. Allan Hubbard wrote the letter that the White House sent to Congressional leaders (Nancy Pelosi, Harry Reid, Mitch McConnell and John Boehner) with a list of "deal-makers and deal-breakers." The energy bill does not have enough votes to make the bill veto-proof, so Congress will probably read this letter very
OPEC wants gas prices at the sweet spot which looks a little like this: "high enough to justify its investment in future production capacity but low enough to allow economic growth and deter a flood of alternative fuels," or roughly $2.25 a gallon, according to Fox News. Good business sense or a case of irritating exploitation?
With all the talk and rumors over the last month, we expected to see OPEC cut oil production by 1 million barrels per day. However, according to Reuters, Friday's announcement of the deeper than expected cut of 1.2 million barrels seemed to send an intended message to buyers on the oil market: if the price of oil does not stabilize, OPEC would be open to even deeper cuts.
This'll teach me to stare at news feeds all morning. At 7:39 AM EDT, the Dow Jones Newswire reported that the Organization for Petroleum Exporting Countries agreed to cut oil production by 1 million barrels per day (about 3 percent). As a result, early electronic trading saw the price of crude oil futures rise back up above $60 per barrel before the New York Mercantile Exchange rang its opening bell. At the time of this writing, it was at a $1.45 increase.
At a conference today in Vienna sponsored by the Organization of Petroleum Exporting Countries, Abdallah S. Jum'ah, president and CEO of the state-owned Saudi Arabian Oil Company (Aramco), proclaimed that the world has only consumed about 18 percent of its total crude oil supply. He said that with a 4.5 trillion barrel global potential, there is enough to maintain current consumption levels for 140 years.
The Associated Press reports that despite a $10 drop in the price of a barrel of crude oil since mid-July, the Organization of Petroleum Exporting Countries (OPEC) is expected to maintain its output quota of 28 million barrels per day. However, there is speculation that OPEC is drawing up an action plan in the event that crude dips below $60.
Could OPEC be looking to go green? Or is the cartel warily keeping an eye on a possible competitor? Edmund Daukoru, president of OPEC and also the oil minister of Nigeria, recently met with Petrobras CEO Sergio Gabrielli. Apparently Petrobras, which is owned by Brazil, is looking into importing liquid petroleum gas (LPG) from Nigeria. Brazil imports LPG from neighboring Bolivia, which has been steadily increasing its prices.