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OPEC Said Not to Plan Emergency Meeting Amid Falling Oil Prices

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The Organization of Petroleum Exporting Countries has no plans to hold an emergency meeting amid falling oil prices, according to a delegate from the group.

Crude prices have dropped almost 50 percent from a June peak as OPEC refused to cut production and U.S. output reached a three-decade high. There have been no concrete discussions about holding an emergency meeting, said the delegate, who asked not to be identified because the group’s talks are private. OPEC’s next regular meeting is on June 5.

Brent for April settlement added 29 cents to $59.19 a barrel on the London-based ICE Futures Europe exchange at 1 p.m. Singapore time. Monday prices rebounded to gain 45 cents in intraday trading after OPEC President Diezani Alison-Madueke said in an interview with the Financial Times that she will call a meeting if prices keep declining.

“An emergency meeting would suggest that they are going to do something to support the market,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.4 billion. “If there is no emergency meeting, then there is no reason to get excited, and that’s really where we are now.”

OPEC, which supplies about 40 percent of the world’s crude, pumped 30.9 million a day in January, exceeding its target for an eighth straight month, according to production estimates compiled by Bloomberg.

The Energy Information Administration forecast that U.S. output will increase to 9.3 million barrels a day this year, the most since 1972. Crude stockpiles rose to 425.6 million barrels as of Feb. 13, the most in EIA weekly data beginning 1982.

If the oil price “slips any further it is highly likely that I will have to call an extraordinary meeting of OPEC in the next six weeks or so,” Alison-Madueke said in the interview.


16 Comments on "OPEC Said Not to Plan Emergency Meeting Amid Falling Oil Prices"

  1. Plantagenet on Tue, 24th Feb 2015 1:42 am 

    OPEC already held a meeting six weeks ago and failed to do anything to reduce the oil glut. Just holding a meeting is the easy part—if OPEC wants higher oil prices then it is going to have to take the the painful step of actually cutting its oil production.

  2. Makati1 on Tue, 24th Feb 2015 3:15 am 

    Limbo lower now! How low can you go?


  3. rockman on Tue, 24th Feb 2015 6:58 am 

    In the HO of the Rockman OPEC, and especially the KSA, is following a very good plan to reap higher oil prices….over the long haul. And that it has little to do with inhibiting the US shale players. The price of oil over time has been dominated by economic activity much more the supply side. Many have posted the clear correlation between oil prices and economic vitality. Consider the price spike of 1980 and the subsequent global recession that didn’t yield a significant improvement in prices for a better part of 15 years. And then after prices recovered to about $30/bbl the price collapsed by almost 50% to $17/bbl. Not caused by the shales plays or Deep Water fields coming on at several hundred thousand bopd each but by the inability for economies to thrive at the higher price level. And OPEC/KSA didn’t close the spigots then either. And yet oil prices took only 3 years to recover to former levels.

    Not only recover but double in just another 3 years to $60/bbl as the global economy improved thanks to a fair degree by that period of lower prices. In fact, recover so well that that the global economy was able to sustain itself for 4 years at prices that eventually reached $100/bbl. And then once again global demand weakens quickly and prices fell almost 50%…again. And this time, again with no major reduction in global oil production the economy caught its breath and once again managed to deal with $90/bbl oil. But it did take more than a year for the economies to recover: the world consumed slightly less $58/bbl oil in ’09 than it did $98/bbl oil in’08. But just a few years later economies rebounded and were able to cope with high price oil again.

    Until the last 6 months. Of course, history doesn’t always repeat itself. But sometimes it does: over the last 4 decades oil prices spiked, economies degraded, oil prices collapsed, economies recovered and oil prices spiked once again. But there is a clear pattern that the time span between the phases has great diminished.

    Since the Rockman is of superior intellect and knows exactly what he doesn’t know he wouldn’t predict a quick oil price rebound this time around. But you know the old saying: The race is not always to the swift nor the battle to the strong. That’s true…but that’s typically not how the smart money bets. LOL.

  4. Dredd on Tue, 24th Feb 2015 8:37 am 

    The race is neck and neck to see who is the best human poisoning machine.

    “Whoopie!” – Slim Pickens

  5. BobInget on Tue, 24th Feb 2015 11:43 am 

    Because this so called glut if more political then geological, a single well placed missile, cost, $5,000, can turn this oil dependent world up-side down in a matter of hours.

    No amount of dour press releases predicting “the end of oil” will be able to plug that dyke.

    The facts are plain; production continues to fall, demand struggles to
    beat 2% growth, but manages.

  6. Northwest Resident on Tue, 24th Feb 2015 12:07 pm 

    As we obsess about oil gluts and Saudi/OPEC “manipulations” of oil price, and as we watch the stock market soar to all time highs based on absolutely no good financial news at all, it is easy to forget one fundamental fact, and that is, BAU is well on the way to crashing and burning. The cheap energy that BAU was built on is no more. Excessive amounts of debt are buying time, HAVE BOUGHT time, but time is running out.

    The canary in the coal mine is Greece. Too deep in debt to continue under that debt, but getting out from under the debt will cause massive upheaval in the financial markets and set off a chain reaction of financial destruction that will burn BAU to the ground. It is going to happen anyway, but TPTB seem to be desperately trying to stretch out that inevitable DOOM just a little bit more, and just a little bit more. The rubber band can’t stretch much more before it breaks, and when it does, the snap-back is going to hurt like hell.

    Recent headline on ZH:

    Revolt In Athens: Syriza Central Committee Member Says “Leadership Strategy Has Failed Miserably”

    Leadership must deal with reality, regardless of promises made to get elected. The reality is, there IS no solution. Greece must continue to suffer austerity of the worst kind under the current debt regime, or they can opt for massive chaos and even more suffering on a monumental scale by defaulting on their debt and bailing out of the EU. Damned if they do, even more damned if they don’t. That’s not even a rock and a hard spot. They are totally screwed, or screwed beyond all imagination of just how bad it can be.

    But guess what? We are ALL in that same exact situation to a lessor or greater extent, and all of us sliding inexorably onward toward the worst case scenario that Greece is experiencing right now. All paths leads to crash and burn.

  7. Plantagenet on Tue, 24th Feb 2015 12:11 pm 

    The facts are plain; Oil production continues to rise. Global oil production hit another high in 2014.

    It will be interesting to see if global production continues to rise now that we are in an oil glut and oil prices have plummeted. My guess is we’ll see a small downturn in US and global oil production in 2015.

  8. dave thompson on Tue, 24th Feb 2015 3:03 pm 

    Here ya go another good move by our commander in chief!

  9. Apneaman on Tue, 24th Feb 2015 4:26 pm 

    Plant, looks like were starting to get a glut of methane sphincters…of course this is just the beginning. You should go check them out next time you go globe trotting.

    Siberian Permafrost Methane Shows Growing Eruption: Number of Global Warming-Induced Craters Now Estimated at 20-30

  10. Perk Earl on Tue, 24th Feb 2015 6:46 pm 

    “The ground smoked for hours. Then, with a great flash and an enormous boom, the land exploded. When the smoke cleared, all that was left was a great, black hole. Ejected earth lay scattered around it — sheer sides plunging into the permafrost like some gigantic, gaping gun barrel.”

    Thanks for the link, Ap. I was wondering after the first 2-3 happened if there would be an increase in the number occurring. If it reaches a point in which the numbers of holes increases exponentially, it could be the canary in the coal mine leading edge of increasing methane releases worldwide.

  11. Makati1 on Tue, 24th Feb 2015 6:48 pm 

    Take some time and watch YouTube videos on the Great Depression and how it started. Especially the lead up to the Oct 29′ crash. I have watched several different series by several countries and they all pretty much say the same thing. It’s like looking at the Us today, only now it is much, much worse.

    Were you aware that the demand that Germany pay off their WW1 debts to the US immediately, (to keep the big US banks afloat) led to the rise of Hitler because it put Germany back into an economic depression just as they were getting out of one? Cause and effect at work. Boomerangs were in fashion than also. lol

  12. Davy on Tue, 24th Feb 2015 7:03 pm

    Mak, how about this prescription for your Brics:

    A faltering Chinese economy with growth ultimately slowing down to 3%.

    A hard landing for those countries plugged into China’s growth – especially Australia, South Africa and Brazil.

    A fall in commodity prices bringing with it pain to those heavily exposed.

  13. redpill on Tue, 24th Feb 2015 7:32 pm 

    “Were you aware that the demand that Germany pay off their WW1 debts to the US immediately, (to keep the big US banks afloat) led to the rise of Hitler..”

    You sure you don’t mean France?

    “At the conclusion of World War I, Germany reluctantly agreed to pay unspecified reparations in the armistice agreement of November 1918. Later at Versailles they were required to sign a treaty that assigned full responsibility to them for causing the conflict (Article 231, the “war guilt clause”) and called for the creation of an international reparations commission to determine the amount of damages.*

    The bill was tallied in April 1921, when the commission determined that damages caused by Germany amounted to $33 billion or 133 billion gold marks. Payments were to be made in cash or by such in-kind commodities as steel and coal. Representatives of the German government were extremely reluctant to shoulder this crushing debt and did so only under the full weight of international pressure.

    An initial payment of $250 million was made in September 1921. However, an economic crisis had gripped Germany, which caused runaway inflation and an end to additional installments. In May 1922, Allied governments granted Germany a temporary moratorium on reparations payments in the hope that their economy would recover during that period and enable the resumption of regular installment payments. France bitterly opposed the moratorium, having suffered severely from German aggression, but eventually agreed.

    At the end of the prescribed period, Germany was in no position to resume payments and defaulted. In January 1923, an impatient France, accompanied by a token Belgian force, marched into the Ruhr Valley and set up a military occupation, figuring that control of the valuable industrial area could help force the resumption of payments.

    The United States, of course, had not signed the peace treaty with Germany and had no claim to any reparations. However, hoping to avert a deepening of the international crisis, the Coolidge and Hoover administrations sponsored international plans to deal with the reparations issue:
    • The Dawes Plan (1924). The U.S. vice president helped to craft a plan for annual German installment payments, but avoided the more troublesome issue of the total amount owed.

    • The Young Plan (1929). A prominent U.S. financier worked to fashion a precise new German reparations formula to replace the Dawes Plan.
    The Republican presidents of the 1920s consistently denied that any link existed between war debt payments owed to the U.S. and the reparations payments expected from Germany. However, the fact was that the Allied recipients of the reparations payments were unable to pay the U.S. after the German default. This self-defeating stance did little to maintain good relations between the U.S. and its former allies.”

    Nice try at a history re-write there Mak.

  14. Makati1 on Tue, 24th Feb 2015 9:00 pm 

    redpll, maybe you need to look at the history from a view other than that of the winner? Do you really believe all of the propaganda you get from your masters? Even the slaves of the old south had more common sense, if little education.

    It was post Weimer Germany that had to pay the billions owed and in gold. That destroyed the recovery and took Germany into the Hitler era. France is a wimp country that folded quickly in the German attack. Russia won WW2 for the West, and lost 25 million of her citizens doing it. But, you will never see that in the UFSA history books. Makes the exceptional country look bad.

    The imperial arrogance is taking us into WW3 at a fast pace. I hope you are prepared for the missiles raining down in your neighborhood because the UFSA is not going to get through this one without massive deaths and damage in the 50 states.

  15. Makati1 on Tue, 24th Feb 2015 9:04 pm 

    Yes, I know I skipped to WW2 for some of the comment, but it still applies to today’s scenario. The UFSA, a dying country bent on world domination at any cost, run by psychopaths and war mongering old men.

  16. Davy on Tue, 24th Feb 2015 10:09 pm 

    Mak, please don’t butcher history or at least just spice it up little. You make a fool of youse of when you try to be cute.

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