‘Perfect’ timing:
– Saudi Arabia Cuts Oil Output, Export: Industry Report (CNBC, Feb. 19, 2012):
??The world’s top oil exporter, Saudi Arabia, appears to have cut both its oil production and export in December, according to the latest update by the Joint Organizations Data Initiative (JODI), an official source of oil production, consumption and export data.
The OPEC heavyweight saw production decline by 237,000 barrels per day (bpd) from three-decade highs of 10.047 million bpd in November, the JODI data showed on Sunday.
The draw-down was sharper for the actual amount exported, declining by 440,000 bpd, or 5.6 percent, to come in at 7.364 million bpd, the data also showed. The level would still be similar to exports after a steep ramp-up last June.
In its monthly report on February 10, the IEA put Saudi Arabia’s production number for December slightly lower at 9.55 million bpd, a disparity of 260,000 bpd versus the JODI data.
Iran appeared not to have filed data in time for the latest release, providing no additional clues about how many export barrels were already lost in December, as some reports have suggested.
JODI, an initiative coordinated by the International Energy Forum (IEF), depends on participating member states for data collection. The IEA estimated Iran’s oil supply in December to have been 3.45 million bpd, marking a drop of 100,000 bpd.
For the third month in a row, no details were available for the United Arab Emirates (UAE) and Libya, the immediate reasons for which are unclear.
Together with other Gulf oil exporters, the UAE has been in focus as a possible source of alternative supply for at least some of Iran’s crude. Widening sanctions have seen several Asian clients of Iran’s oil, including top importer China, send high-level delegations to the region in the last few weeks.
Iraq, another frequently-cited supplier to make up for part of the Iranian oil shortfall following European Union sanctions, reported no major changes to its supply and export regime. Authorities there are pursuing an ambitious production expansion plan with the aim of reaching 12 million bpd by 2016.
Here comes $6.00 for a gallon of gas. Before this was announced, consumers were told to expect $5.00 per gallon by Summer. What none of this addresses is the underlying growing currency wars between most of the world and the USA. I think the sacnctions on Iran was the final straw.
Over a year ago, China & Russia set up their own trade agreements using their own currencies, leaving the US dollar out of the transactions. China went on to establish similar agreements with Turkey and several South American nations.
Iraq, Libya and Iran all have one common characteristic…..all had leaders who wanted to replace the US dollar as the world standard currency using gold and alternative currencies. Suddenly, they were attacked by US military for being terrible dictators, etc. Now, they are pounding the war drums at Iran.
The world is weary of US attacks on smaller nations that have done nothing to the US to warrent it. This latest debacle with Iran has only weakened US standing…..we are seen as a nation that is no longer a nation of laws. We have a gaggle of fools running this nation over a cliff, and so called presidential candidates that are a disgrace.
Iran has grown very wealthy thanks to the insane wars in Iraq and surrounding areas. More sanctions are not going to work. China, Russia, India, Japan and others all trade with Iran & are not going to stop because of the US. India and Japan have joined with Russia and China to trade with gold and their own currencies. Soon, the US dollar will be dumped as the world standard currency. For the first time in our lifetimes (and I am not young), we will discover first hand what sanctions are about….prices will spike through the roof. $12 bread and gallon of gas is in our future.
The only allies we have are Israel and UK, both despised by the rest of the world. This article ought to warn anyone the other oil rich nations will join with China and Russia against us. We are seen as a rogue nation, and our word no longer is trusted.
Thanks for another article MSM ignores. I saw the DOW hit 13,000. I wish it meant something good, but the markets are rigged beyond recognition.