World

Saudis Run out of $50.00 a Barrel Oil, Find New Reserves of $150.00 A Barrel Oil

by Barry Artiste | June 14, 2008 at 08:36 am

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Opinion
Barry Artiste, Now Public Contributor

Seem since President Bush's visit to Saudi Arabia to get the Saudi's to increase oil output failed last month, it seemed because the Saudi's ran out of $50.00 a barrel oil.

There is good news though the industrious Saudis have recently discovered a vast oil reserve of unlimited $150.00 a Barrel Oil.

See what happens when you look in all the right oil fields?

Saudis planning July oil output increase: reportReutersPublished: Friday, June 13, 2008
NEW YORK - Saudi Arabia plans to increase its oil output in July by some half-million barrels a day, a sign the country is growing concerned about the impact of high crude prices on the global economy, The New York Times reported.

Citing analysts and oil traders briefed by Saudi officials, the Times said in its Saturday editions the plans by the world's largest oil exporter had been privately disclosed recently by Saudi officials. The analysts declined to be identified for fear of being cut off from information from the Saudis in future.

"We would welcome any and all increases in oil production, including from Saudi Arabia," White House spokesman Tony Fratto told the newspaper. President George W. Bush pressed for increased production in two visits to Saudi Arabia earlier this year.

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eastvanray

flagged this story as Good Stuff

at 10:13 on June 14th, 2008

Barry Artiste, I like this story. It's good stuff. I am not into conspiricy theory so let's call this mental gymnastics. Let's say the Saudis and some of their close oil producing allies decide to "invest" some of the petro dollars into hedge funds. Those hedge funds could then, let's say, invest billions (leveraged 10 to 1) into long positions in commodity futures (say oil futures). Given that they impact the price of oil by their supply management they could actually be investing in a market they largely control. This would be a nice way to double up on their returns by making increased returns selling the spot commodity as well as making returns on the futures contracts. This would not only be much more profitable than just selling the oil and it would be risk free!

Barry Artiste

at 10:18 on June 14th, 2008

Thanks East Van for the comments, it is true as you say, and not a wild crazy Mel Gibson theory, Government regulators are currently investigating speculators who are doing just that. It has been said that at $50.00 a barrel, that oil profits are still high enough for the Oil Barons, so $150 a barrel is just plain greed.

eastvanray

at 10:33 on June 14th, 2008

If $150 is greed then what are you going to call it when it passes the $200 threshold? I would not be surprised if we see $200 by next summer unless consumer respond and demand substantially less oil. There's nothing like greed to correct markets that are overpriced; and reduced demands combined with excess stockpiles would send a clear message to begin shorting the oil future markets. That will drive down those prices as fast as they rose. i am not saying we will ever see $50 oil but it could drive it back to sub-$100. That is the good side of greed....money doesn't care how it gets made. If traders can make money pushing down a commodity price by shorting then that is just as profitable a strategy.

Barry Artiste

at 13:43 on June 14th, 2008

Well we'll see EastVan

René

flagged this story as Good Stuff

at 14:01 on June 14th, 2008

Barry Artiste, I like this story. It's good stuff.

Barry Artiste

at 14:14 on June 14th, 2008

Amazing eh Rene, who knew that $50.00 dollar oil fields were conveniently next door to a vast reserve of untapped $150.00 dollar oil fields? I wonder if there are any moderately priced 60, 70 or even 100 dollar oil fields are out there. Oh Happy days if there were eh? Happier Days, if we have a Money Tree that grew unlimited $150 dollar bills for everyone, but then that is just foolish talk, we all know they only have $4.00 dollar money trees.

Thanks for the comments Rene.

René

at 14:09 on June 14th, 2008

Oh, how convenient! Deception on peak oil is an old-story that they don't want you to know about. But the Saudis, hmm. great truth-tellers? Don't thinks so. Speculators could very well be them.