Oil- Down For Week Despite OPEC Threats
Posted by zmann on October 6, 2006
November crude contracts starts: $62.91, ends; $59.84
Opec’s Nigerian president says something must be done about low oil prices, says an emergency meeting will be needed on Oct 18-19.
Nigeria and Venezuela announce combined 170,000 bopd in cuts. Market yawns.
Kuwait, Iran, UAE announce that with the other they’ll cut 1 million bopd ASAP. Oil bounces $2 (briefly).
Saudi says oil prices are too high for poor countries. Does not want cut.
Opec president vows agreement by Monday on cuts. I’ll eat my hat if this happens. These guys are notorious cheats and without Saudi support their threats are meaningless.
Nigeria should control its rebels and get the more than 600,000 bopd (23% of their productive capacity) back on line. Then they could focus on counting money instead of griping about price.
I’m sure Sunday night will provide more rumors/news articles.