"Mexico City  Opec President and Venezuelan Oil Minister Ali Rodriguez said on Sunday that oil heavyweights would make no move on crude output until the cartel's September 10 meeting. He blamed red-hot oil prices on low stocks of distillates and not on oil supplies. The Opec chief told reporters on the first day of a trip to the Mexican capital that oil price levels, now hovering near 10-year peaks, stemmed primarily from a slide in refining activity and low stocks of products like gasoline. "If there is no refining then inventories drop. This is the problem that we have had all year," Rodriguez said. "It's a problem that is beyond Opec's control."

link

-- ABC (a@b.c), August 28, 2000

Answers

I POSTED THE REST OF IT LAST NIGHT ZOMBIE. HERE IT IS AGAIN, SINCE YOU SEEM TO BE "READ DISABLED".............

READ THE PART ABOUT "WE DO NOT WANT $40/BBL OIL".

Be Warned OIL JERKS. VENEZUELA wants oil at "22 to 28" not "40/bbl"

greenspun.com : LUSENET : TB2K spinoff uncensored : One Thread

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http://dailynews.yahoo.com/h/nm/20000827/bs/energy_venezue la_dc_1.html

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Sunday August 27 5:44 PM ET
Venezuela Wants 'Fair' Oil Price

CARACAS (Reuters) - Venezuelan President Hugo Chavez said Sunday that ``fair'' oil prices remain an economic life-line for the world's third largest petroleum exporter, but insisted he did not want to see crude reach $40 a barrel.

Left-leaning Chavez, who will host a heads of state meeting of the Organization of Petroleum Exporting Countries (OPEC) next month in Caracas, reiterated Venezuela had placed its full backing behind an OPEC price band system to moderate volatile crude prices.

The 11-member cartel has come under strong pressure in recent months from the United States, the world's top oil consumer, and the European Union to raise output to reduce sizzling petroleum prices. At over $30 a barrel, oil is currently near its highest level in a decade.

``We repeat to the world that we will not give in to pressure from anyone to reduce oil prices,'' Chavez said during a five-hour edition of his radio talk show ``Hello President''.

``But neither do we want to raise oil prices to $40 a barrel,'' he added. ``We have established a price band between $28 and $22 a barrel, and prices should be between there.''

The price band mechanism informally agreed by OPEC in June calls for a 500,000 barrel a day increase if the price of OPEC's basket of seven crudes stays above $28 a barrel for 20 working days.

Recalling that low oil prices had almost bankrupted the state when he took office in February 1999, Chavez said that both his recent tour of OPEC nations and the forthcoming summit in Caracas were aimed at ensuring prices remain ``fair''.

``For now, and in coming years, our lives depend on that, until we have a more solid, more diversified economy,'' said the former paratrooper turned president.

Under Chavez's 19-month-old government Venezuela has transformed itself from OPEC's biggest quota buster into the strongest advocate of the fractious group's output ceilings, contributing to the rise in international oil prices.

-- cpr (buytexas@swbell.net), August 27, 2000

Answers

http://dailynews.yahoo.com/h/nm/20000827/bs/energy_opec_dc _4.html Sunday August 27 10:49 PM ET
No Output Move Till OPEC Meeting

MEXICO CITY (Reuters) - OPEC President and Venezuelan oil minister Ali Rodriguez said on Sunday red-hot oil prices stemmed from low inventories of refined products and signaled that any decision on oil supplies will not be made until a September 10 meeting of the oil cartel.

``If there is no refining then inventories drop. This is the problem that we have had all year,'' Rodriguez said during a visit to Mexico. ``It's a problem that is beyond OPEC's control,'' he added.

Rodriguez said that on Sunday he met with Mexican counterpart Luis Tellez to exchange opinions on the global oil market. He said the two nations, two of the top three foreign crude suppliers to the United States, planned to issue a statement on Monday.

Earlier on Sunday Rodriguez said his nation was committed to sticking to OPEC's price band mechanism, signaling world oil supplies would increase if prices remain at lofty levels.

Rodriguez was also expected to meet with members of the transitional team of President-elect Vicente Fox, who won a general election on July 2.

-- cpr (buytexas@swbell.net), August 27, 2000.

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``But neither do we want to raise oil prices to $40 a barrel,'' he added. ``We have established a price band between $28 and $22 a barrel, and prices should be between there.''

I'll believe it only when they finally do get around to increasing production. They've made other promises in the last few months which have ultimately proved to be ineffective in bring oil down below $28 a barrel.

-- We've heard (these@promises.before), August 28, 2000.

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I'll call you.

Your check's in the mail.

We're from the government and we're here to help you.

-- Sam (wtrmkr52@aol.com), August 28, 2000.

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What the hell does that mean, they WANT it to be $22? I want it to be $.01. That ain't going to make it so!

More SPECULATION here, just like that UNDISCOVERED crap that you posted yesterday. Facts, cpr, facts.

<:)=

-- Sysman (y2kboard@yahoo.com), August 28, 2000.

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Can't wait for this to backfire on cpr so we can jam this shit down his throat the way he's been doing with the oh-so-dead-and-over-with y2k issue. Karma and pay-backs are a bitch, pal.

-- bwahaha (h@ha.com), August 28, 2000.

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What Venezuela and the rest of the OPEC and other oil- producing nations want is for the price to be as high as possible.

Surely an astute businessman like cpr can understand this???

What they don't want, and what is driving the games that cpr takes as gospel is for any other new or side-lined players to come on board and drive the price down.

So, they maximize their profits by maintaining a significant measure of instability about what will happen. Promise but don't quite deliver. And don't promise too far into the future. That's what OPEC has been putting us through for sometime now, and it has kept, and will keep, the prices much higher than they would have been.

-- Whatever (who@car.es), August 28, 2000.

-- cpr (buytexas@swbell.net), August 28, 2000.

I stated this weekend for those who care, "the Saudis probably made more money trading futures than they did shipping product". DON"T FORGET THAT PART. That is why the "consumer reactions" don't MATTER. Only the "shipments" and "uptake" matter.

THIS snippet below.... IS EXACTLY **CORRECT** and it should be noted that OPEC not "y2k embedded systems" is the problem that was so well "engineered" by the Saudis, Mexico and the Price Hawks. THEY KNOW TO THE MINUTE WHAT THE SUPPLY/DEMAND SITUATION IS. NOT A BUNCH OF Y2k DOOM ZOIDS pretending they do know. HOWEVER, the part about some new player wrecking the strategy can only happen if OPEC has "internal problems".

What Venezuela and the rest of the OPEC and other oil- producing nations want is for the price to be as high as possible.

Surely an astute businessman like cpr can understand this???

What they don't want, and what is driving the games that cpr takes as gospel is for any other new or side-lined players to come on board and drive the price down.

So, they maximize their profits by maintaining a significant measure of instability about what will happen. Promise but don't quite deliver. And don't promise too far into the future. That's what OPEC has been putting us through for sometime now, and it has kept, and will keep, the prices much higher than they would have been.

-- Whatever (who@car.es), August 28, 2000.

-- cpr (buytexas@swbell.net), August 28, 2000.

Well, actually, cpr, y2k had a significant impact back in the beginning of the year on the availability and price of refined product, it just wasn't the only factor.

The refineries are ignoring heating oil production at the moment cuz they don't want to stockpile something they may have to sell at discount several months ago. Instead they are concentrating on motor vehicle fuels.

That was not the situation last winter during the distillate crisis - the refineries could have sold immediately anything that they manufactured. Except that truly unusual numbers of refineries were out of action because of "unplanned maintenance" or failed pipelines, and that is why the refineries were not at full capacity at that time.

But even during that time OPEC was playing its game of promising us a little more oil for a little while longer. Except, of course, they never delivered on that promise. But maybe they will the next time. If they CAN deliver, of course. So far we have seen no proof that they can.

-- Whatever (who@car.es), August 28, 2000.

Well, actually, cpr, y2k had a significant impact back in the beginning of the year on the availability and price of refined product, it just wasn't the only factor.

--------> REALLY??? PROVE IT: name, source, URL or phone number, facts NOT YOUR "OPINIONS".

PROVE IT.

-- cpr (buytexas@swbell.net), August 28, 2000.

Pay close attention to the 4th paragraph from the bottom.

Top Financial News Mon, 28 Aug 2000, 9:37pm EDT Heating Oil Rises to a 10-Year High on Supply Concern By Mark Shenk

New York, Aug. 28 (Bloomberg) -- Heating oil surged to a 10- year high on concern that U.S. refiners won't be able to make enough of the fuel before demand picks up during the cold weather months.

U.S. inventories are down 39 percent from a year ago just a few months before the winter heating season begins. Heating oil supplies are low partly as refiners concentrated on making gasoline, which from February until last week fetched higher prices.

Unless heating oil supplies rise faster, ``we are looking at an energy crisis this winter,'' said John Kilduff, senior vice president of energy risk management at Fimat USA Inc. in New York.

Heating oil for September delivery rose 2.94 cents, or 3 percent, to 99.88 cents a gallon on the New York Mercantile Exchange, the highest closing price since October 1990. Prices rose as high as $1.002 during the trading session, a 10-year intraday high. Prices were last at this level when Iraq's invasion of Kuwait touched off the Persian Gulf War and caused concern that Middle East crude oil supplies might be disrupted.

The U.S. Energy Department already has warned that consumers in the Northeast may face surging prices this winter just as they did last winter, when retail heating oil rose above $2 a gallon during a cold snap. The department has created a 2 million-barrel reserve in the Northeast to help avoid shortages if there's another spell of cold weather.

Worried About Winter

``In the current atmosphere `up' is the new `sideways,''' said Chris Schachte, an energy analyst at GSC Energy Corp. in Atlanta. ``When there is no news and the market is slow, prices rise,'' he said. ``Everyone is so worried about the winter.''

The National Weather Service said in a forecast on Aug. 17 that the temperatures in most of the country would be above normal from December through February. Such forecasts are often revised extensively as the period approaches.

Heating oil futures last week became more expensive than gasoline for the first time since last winter. Gasoline prices that peaked at $1.088 a gallon on June 16 have since fallen 10 percent since then.

Gasoline for September delivery rose 2.36 cents, or 2.5 percent, to 97.77 a gallon on the Nymex. Gasoline and heating oil futures represent wholesale prices. Refiners have been concentrating on gasoline during the vacation driving season, when demand peaks.

Crude Oil Gains

``U.S. refiners find it easier to produce heating oil than reformulated gasoline but they still need enough time to make it,'' said Phil Flynn, vice president and senior market analyst at Alaron Trading Corp. in Chicago. ``Traders have visions of what happened during the cold snap last winter.''

Crude oil for October delivery rose 84 cents, or 2.6 percent, to $32.87 a barrel on the Nymex. Oil prices are up 20 percent this month. In London, the International Petroleum Exchange was closed for a national holiday.

U.S. crude oil inventories unexpectedly plunged 2.7 percent, or 7.77 million barrels, to 279.71 million barrels, the American Petroleum Institute said last week, leaving supplies close to a 24- year low of 279.0 million reached in early August.

Low oil inventories might make it difficult for refiners to make enough heating oil to meet demand in the months ahead, traders said. To be sure, some local dealers may already have begun filling their tanks, draining national supplies earlier than usual and skewing the API figures.

``We are seeing secondary users stock up earlier than in previous years,'' said Aaron Kildow, an energy analyst at Prudential Securities in New York. Even at current prices, local heating oil retailers are doing better buying now than if they you wait until December, if prices rise as many expect, he said.

OPEC Oil

Venezuelan President Hugo Chavez urged fellow members of the Organization of Petroleum Exporting Countries to resist U.S. and European pressure to boost oil output and lower prices, Algeria's official press agency reported.

U.S. President Bill Clinton wants OPEC to lower prices by about 25 percent, and European Union officials argue current prices have contributed to rising costs and threaten world economic growth.

The debate over production is causing divisions within the 11- member group two weeks before it's next meeting on Sept. 10. Saudi Arabia, OPEC's biggest producer, has called for action to cut prices, while Algeria, Iran and Venezuela -- countries that analysts estimate have little or no capacity to boost output -- have opposed increasing production.

``Even if OPEC raises production, it will not get here in time to help'' heating oil inventories, said Michael Fitzpatrick, a trader at Fimat USA Inc. in New York. ``If there is a cold snap, prices could skyrocket.''

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-- Mike (HugoChavez@forkedtongue.com), August 28, 2000.

Before you get bent out of shape, remember that some young person made a car run on vegetable oil!

-- ET (bneville@zebra.net), August 29, 2000.

http://www.arabia.com/article/0,1690,Business|27849,00.html

Read the last paragraph!!!!!

-- aw (aw@aw.aw), August 29, 2000.