Saudi’s Slash Oil Production. Obama seen nodding head in approval.

“Under my energy plan, energy costs would necessarily skyrocket” Who said that?

Saudi slashes oil output, says market oversupplied

Saudi Arabia’s oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices.

Consumers have urged the exporters’ group to pump more crude to put a cap on oil, which surged to more than $127 a barrel this month, its highest level in 2 1/2 years amid unrest in North Africa and the Middle East.

Oil Ministers from Kuwait and the United Arab Emirates echoed Saudi Arabia’s Ali al-Naimi’s concerns about oversupply and said rocketing crude prices were out of the hands of OPEC, which next meets in June.

 

When gas prices hit 4.00 a gallon it was because GWB/Cheney/Haliberton needed money for war or something…. Gas prices will be 5.00 a gallon by Memorial day if not sooner.

Prices go up in a supply and demand parameter. In everything, supply and demand dictate price if all things are normal. There are three possible reasons for gas prices to be high now in the eyes of OPEC and other oil producers abroad.

1. There is NOT enough oil to meet the demand so a price rise is a way to curtail use and maximize profits.

2. There is PLENTY of oil in the market, the demand is equal to the supply but the profitability margins are not adequate for the risks. Therefore we cut production volume to drive up the price and increase our profits.

3. There is plenty of oil in the market place, profits are higher than ever and the oil producers are extremely pleased with the income they are generating for shareholders. However; Our best customer for our oil is the United States, and they are moving away from our product due to an agenda driven energy policy. The leadership of the United States is urging us to curtail our production to keep fuel prices high, which is good for us as well.

As you can tell by my EMPHASIS on #3, I seriously believe that Obama and his “Greenies” are more behind the rise in energy costs than any uprising in the Middle East, or OPEC.

Think about the agenda Obama subscribes to. Think about who is running the energy department and then ask WHY should our gas prices be high now? Those three options are the only ones that will make sense and out of those I’m betting on #3.