19 September 2012

COMMODITIES / OIL / SAUDI ARABIA : Saudi Threat Sends Oil Price Plunging.

http://www.reuters.com/article/2012/09/19/us-markets-oil-idUSBRE88G02F20120919

     To this blog's several readers in Saudi Arabia...hooray...for your oil minister!
     And...hey...it's about time he said something!
     His threat to increase production...plus a surprising USA supply rise...drove down prices for Brent and WTI crude...$4 per bbl...the 3rd day of oil's biggest sell-off in a year...as speculators finally got well placed knees to their groins.
     The damage...a decline of 7% so far this week.
     Brent settled at $108.19...with WTI at $91.98.
     Analysts also recently cautioned over the USA and the West opening their strategic oil reserves to knock down the unreasonably skyrocketing oil price.
     Realistically...with the global economy in the dump...WTI should be around $75-$80 bbl.