Saudis walk out on OPEC meeting. Says It will not cut production

[Mortikhi]

Yeessssss
http://blogs.moneycentral.msn.com/topstocks/archive/2008/09/11/the-death-of-opec.aspx

Saudi Arabia walked out on OPEC yesterday, saying it would not honor the cartel's production cut. It was tired of rants from Hugo Chavez of Venezuela and the well-dressed oil minister from Iran.

As the world's largest crude exporter, the kingdom in the desert took its ball and went home.

As the Saudis left the building, the message was shockingly clear. “Saudi Arabia will meet the market’s demand,” a senior OPEC delegate told the New York Times. “We will see what the market requires and we will not leave a customer without oil."

 

[Fox McCloud]

Perfect example of how Rothbard (and many other Libertarians) said cartels never last forever, as someone always wants to try to compete against the rest to get the upper hand.

I wonder if there Saudi Arabia will be expelled or suffer any consequences from OPEC by doing this? *shrug* dunno.

 

[tmosley]

Perfect example of how Rothbard (and many other Libertarians) said cartels never last forever, as someone always wants to try to compete against the rest to get the upper hand.

I wonder if there Saudi Arabia will be expelled or suffer any consequences from OPEC by doing this? *shrug* dunno.

If they do, so what? It would be like the US walking out of NATO. When the strongest member leaves an alliance, what you have left is a shell of an alliance.

 

[Kalifornia]

This is a mixed blessing. It may keep gas from going to $5 a gallon, but it also further reinforces the Saud Family/U.S. relationship, and puts more money into the hands of Wahabists as well.

The thing that the Sauds fear is demand destruction, and rightfully so. The only way out of this ongoing political mess is for the U.S. to find cheaper alternatives to oil, and let the hugo chavezes and achamennadjaizes (spelling incorrect for fun) can go back to herding camels or torturing peasants. The higher oil goes, the greater the incentive for alternative research becomes.

 

[Fox McCloud]

If they do, so what? It would be like the US walking out of NATO. When the strongest member leaves an alliance, what you have left is a shell of an alliance.

Oh, don't get me wrong, I have absolutely no problem with the Saudis leaving or getting kicked out of OPEC, I was merely pondering (in the open) if anything of that nature would happen or not.

 

[danberkeley]

The real kicker will be when OPEC stops accepting the US dollar and switches to Euros or any other sounder currency. Actually, Saudia Arabia leaving OPEC could clear the way for OPEC nations to quit the US dollar.

 

[constitutional]

Saudi Arabia will be running out of oil soon in the future from what I've heard.

What will happen to OPEC and U.S. then? Isn't a disaster waiting to happen?

 

[Zippyjuan]

The proposed cuts were to be less than one percent of global oil production- so not that significant anyways.

 

[dannno]

The proposed cuts were to be less than one percent of global oil production- so not that significant anyways.

That's great that you still agree with the principle, though

 

[freelance]

Don't we have some arrangement with the Saudis to protect the royal (sic) family in exchange for a guarantee of oil.

 

[dannno]

Don't we have some arrangement with the Saudis to protect the royal (sic) family in exchange for a guarantee of oil.

sshhhhhhhhhhhhhhhhhhhh