j_remington

High Steel Prices: A Preview of Peak Oil

Saudi Arabia is meeting ALL demands for oil.

``On May 10 we increased our response to our customers by 300,000 barrels because they asked for it,'' al-Naimi said later. ``So our production for June will be 9.45 million barrels per day. This is the request of about 50 customers worldwide.''

"The Saudi oil minister said Bush was satisfied ``because our response is positive. If you want to move more oil you need a buyer,'' al-Naimi said at a press conference at the Saudi foreign ministry in Riyadh."

"The Saudi supply increase will offset declines last month, MF Global's Laughlin said."

``This is good news for world oil markets and good news for President Bush, who appears to have used his personal relationship with King Abdullah to overcome Saudi reluctance to raise oil production and put downward pressure on world oil prices,'' said Jim Phillips, a Middle East analyst at the Heritage Foundation in Washington.

OPEC is smart. They do not want to curb economic growth. They want to maintain volumes of production to sustain it. It is within their control and best interest. Also, if they foresee the world economy declining (which is what is happening) they will surely sell as much oil as possible prior to the decline.

Oil prices are up because speculators like Goldman Sachs are manipulating the futures prices. Goldman Sachs' propaganda is fueling the speculation and investment hedging.

Also, oil futures trading is unregulated. Margin requirements are not stated nor enforced.

However the biggest picture is that the global recession is upon us and oil price and demand must decline.

Plus the US dollar is rising(interest rates will be hiked to curb inflation) would act to suppress the (dollar-denominated) price of oil.

The result will be lower priced oil in US dollars.

Read the latest excerpts regarding Exxon's shortfall in earnings. The larget Oil company in the world is