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OPEC President and Venezuela Energy Minister Ali Rodriguez said Monday OPEC would increase output if its basket of seven crudes continued to stay above the $28 per barrel level.

"We already have 10 continuous days above $28, and if this is maintained continually, then the market correction mechanism will be automatically triggered with an increase in production," Rodriguez told reporters in Caracas.

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http://www.iwon.com/home/money/money_article/0,2090,391|business|05-30-2000::09:20|reuters,00.html

Crude Oil in Asia Dips Below $30 Mark May 30, 2000 4:18 am EST

SINGAPORE (Reuters) - Crude oil in Asia dipped below the psychological $30 mark Tuesday as OPEC raised hopes of an output rise if prices stayed at current high levels.

By 0720 GMT, July New York Mercantile Exchange (NYMEX) crude futures traded at $29.96 per barrel, falling four cents from its settlement in New York Friday.

The New York market was closed Monday for Memorial Day.

OPEC President and Venezuela Energy Minister Ali Rodriguez said Monday OPEC would increase output if its basket of seven crudes continued to stay above the $28 per barrel level.

"We already have 10 continuous days above $28, and if this is maintained continually, then the market correction mechanism will be automatically triggered with an increase in production," Rodriguez told reporters in Caracas.

OPEC ministers had said they were agreed on a mechanism whereby they would raise or lower output by 500,000 barrels per day (bpd), if the 20-day average of OPEC's basket of crudes strays from a $22-$28 per barrel price band.

The 20-day average was at $26.88 Friday, while the daily average of the crude basket was $28.38.

KUWAIT SAYS OUTPUT DECISION PREMATURE

But other OPEC members such as Kuwait said any plans to change current oil output levels at this time would be premature.

"As I said before, it is still premature to decide on an amendment now. Everything is still as is," Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah told Reuters earlier Monday.

He was responding to a question on what OPEC would do with U.S. requests that oil producers keep their options open on increasing output to cool off high crude prices.

Oil prices, which fell to $23.85 for U.S. crudes in early April after OPEC's March agreement raised output by about 1.7 million bpd, have staged another rally on concerns over gasoline supply shortages during the U.S. summer driving season.

Thursday, NYMEX U.S. crudes closed at a 10-week high of $30.55.

The price rally had worried the U.S., which consumes a fifth of world oil, prompting it to urge OPEC to consider raising output at the June 21 meeting.

U.S. Energy Secretary Bill Richardson Saturday called on OPEC and other independent oil exporters to "keep their options open" on bringing more oil to world markets in the short-term.

"We, the United States, think OPEC members and other non-OPEC members should simply keep their options open to take that decision (to hike output) and watch the price in the market at the meeting on June 21 and supply," Richardson said after a conference in Mexico.

"What the world needs is price stability," Richardson said, noting he felt $10 a barrel was too low but $30 too high for oil.

SUPPLY CONCERNS PLAGUES U.S. MARKET

The already stretched U.S. oil market, which saw NYMEX gasoline prices hit post Gulf-War highs last Friday, would face further pressure as the U.S. Environmental Protection Agency(EPA) had rejected requests from some states for a delay in the introduction of a new grade of reformulated gasoline (RFG 2).

RFG 2 would be compulsory for around a third of U.S. motorists from June 1, but some companies have complained about problems producing the greener gasoline.

The EPA earlier granted a temporary waiver to St Louis, Missouri, but rejected waiver requests from Illinois and Wisconsin, as it saw ample quantities of RFG 2 in those cities.

-- cpr (buytexas@swbell.net), May 30, 2000

Answers

In a similar vein.....

I'm pleased to report that we got a nice 2" rain over the weekend here in Gentry county Missouri, so I guess the drought is over.

-- Sam (Wtrmkr52@aol.com), May 30, 2000.

OPEC would increase output

There IS a difference between would and HAS !

Cpr reminds me of the gullable people that swallow all the election year promises made by political candidates.

To coin a few well used phrases....

The proof is in the pudding.

...and

It ain't over 'till it's over.

...and

Don't tell me, show me!

You can toot your horn all day, WHEN the price of gasoline drops back down to a more reasonable level. Until then, you look foolish.

Todays price per gallon for self serve regular in S.E. Wisconsin is $1.84

-- New York, New York (Wanna Buy The Brooklin@Bridge.com?), May 30, 2000.

But...but...but I thought they increased output in March. You know when Richardson was traveling all over the world begging I mean asking our allies to lift the burden from the American Capitalist Pigs I mean people.

Oil production has or is currently peaking.

Prices now are low.

-- (...@...), May 30, 2000.

See what CPR was saying about oil prices in March.

http://hv.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=002maT

-- (10@weeks.ago), May 30, 2000.

BULL. And you all shut up damn fast when prices went DOWN after I wrote that. REPEAT: prices went down over 20% since I wrote that. In commodities thats a very substantial play.

HOW COME YOU DIDN"T POST THIS 6 weeks ago when prices were down??

ONLY when oil futures go up do the chants of the Doom Idiots about oil start again. Do you just assume that people are as STUPID as you are and don't remember what was posted here?

Go see what I was saying and writing about oil and oil stocks back in Spring, 1999 when I stated categorically "Oil can't stay at 12- 14 /bbl. sooner or later it has to rise back to $20". It is true that I thought targets between 18-22 were reasonable for light and sweet. I still think over $25 is pushing it but that has the nice side effect of being very good for the economy of Texas. In addition, the constant rise of Natural Gas prices is also a plus for us.

BTW: where are the Doom Zombies claiming that the rise in the price of NG is from "Y2k embedded problems". They dare claim with NO PROOF that Oil is up because of embeddeds but not NG?

OIL prices rises come from production cutbacks mandated inside OPEC in 1999 NOT from embedded systems and those who claim otherwise had better come up with PROOF. Especially after Fact Finders' display of Dale Way's statement about there NEVER being a problem from embedded as described by the public press and the Doom Zombies.

Somewhere on both Biffy and de bunking Y2k you will find statements that "people should look into the oil companies stocks which have been pounded down for years."

Later in March, I wrote prices would come down and THEY CAME DOWN.

Go long. Have a ball. You probably can use the tax losses anyway from your splendid investments in gold and bags of silver coins.

CPR

-- cpr (buytexas@swbell.net), May 30, 2000.

$1.84 a gal. WOW!!!!!! Tell this lady how tough you have it!!!!!! America has 4% of the worlds population but consumes 20% of the worlds oil,,,,, WHICH DOES NOT BELONG TO US!!!!!! GET IT!!!! WHERE IS IT WRITTEN THAT WE MUST HAVE $10.00 A BARREL OIL?????

Jessebelle Senior Member Posts: 688 From: Registered: Mar 2000 posted 27 May 2000 04:06 AM ---------------------------------------------------------------------- ---------- In Western Canada, the price, (atleast in my town) for regular unleaded is $3.23Cdn. per gallon, which equals 4.5461 litres. That translates to $2.48US, at today's bank rate, but that isn't a fair comparison, because our groceries here cost penny for penny at LEAST what yours do in the US, and oftentimes much more.

EFFECTIVELY then, we are still paying $3.23 per gallon of gas, even though you could cross the border and buy it for less than we pay due to the exchange rate of your dollar. From the looks of things though, you are better off at home. - Jesse

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-- df (a@a.m), May 30, 2000.

That translates to $2.48US

And when I pay as much per gallon in taxes as they do in Canada then we can talk. Until then it's apples and oranges.

-- New York, New York (Wanna Buy The Brooklin@Bridge.com?), May 30, 2000.

Supply/Demand......... You got it....I want it.....I pay your prices Remember,,, 4% population versus 20% consuption equals higher prices.

-- df (a@a.d), May 30, 2000.

Supply/Demand

Yea, so? I'm sure there is a point you're trying to make here somewhere. What it is is anyones guess at this time.

Are you related to Cpr by any chance?

-- New York, New York (Wanna Buy The Brooklin@Bridge.com?), May 30, 2000.

Lets see;Doomer mentality,Wiscosin, irrational attacks,,,,,,Huummm ,Are you related to dennis olsen? Try and fiqure this out,,,,,,

http://quote.bloomberg.com/fgcgi.cgi?ptitle=Gas% 20News&touch=1&T=energy_news_story.ht&s=AOTQg5xRARVBBIFJl

-- gh (a@a.l), May 30, 2000.

So now that we have "loaned" them tons of money that they'll never pay back, they finally fixed enough of their embedded systems to increase production. I figured it would take them about 6 months, so this is just about what I expected. What about all the Arab countries? We're still going to be paying high prices the rest of this year, in fact by next year we probably won't be seeing much gas under $2.00 from that point on.

-- Hawk (flyin@hi.again), May 30, 2000.

Lets see;Doomer mentality, HUH?

Wiscosin, irrational attacks I repeat, HUH?

-- New York, New York (Wanna Buy The Brooklin@Bridge.com?), May 31, 2000.

According to FutureSource.com,

Crude oil and gasoline futures could move higher Friday as traders add to positions after Jly climbed back on top of $30.00 a barrel. Also, with the heart of the peak consuming season approaching, gasoline will remain in demand.

"I would say that this market is probably going to attempt to continue this rally tomorrow," Flynn said. "Yes we probably are going to continue this move tomorrow. All this talk does not put one more drop of gasoline into the tank."

Get that, CPR? "All this talk does not put one more drop of gasoline into the tank."

-- Sergeant Friday (just.The@facts.Maam), June 01, 2000.

BTW: where are the Doom Zombies claiming that the rise in the price of NG is from "Y2k embedded problems". They dare claim with NO PROOF that Oil is up because of embeddeds but not NG?

Maybe???

Tuesday February 22, 8:57 am Eastern Time

Westcoast's Pine River, B.C. natgas plant shuts

NEW YORK, Feb 22 (Reuters) - Westcoast Energy Inc. (Toronto:W.TO - news) said its Pine River natural gas plant in British Columbia was shut Monday for an unscheduled outage.

The plant experienced a force majeure when a total programmable logic controller (PLC) failure occurred within the facility at 3:52 PST Monday.

``Westcoast Energy Inc. is currently working to return the facility to full operation,'' the company said late Monday.

No update was yet available Tuesday morning, but a recorded statement said about 149 million cubic feet per day was available from the plant.

http://hv.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=002dRr

-- Cave Man (Caves@are.us), June 01, 2000.

According to Bloomberg Business News:

... [OPEC's] members say they don't see a need for increased output and that any shortage is more to do with refiners and a lack of refined products, rather than a scarcity of crude oil.

Get it, CPR? According to OPEC, they are not responsible for any shortages; it's the refineries that are the problem. In case you don't understand the significance of this, it means that promises by OPEC to increase production will not solve the problem of gasoline price increases. I hope this helps.

-- Sergeant Friday (just.The@facts.Maam), June 02, 2000.