Oil Executive Predicts $1 Gas In 2009

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  • Mon, Dec 08, 2008 - 07:28am



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    Shock and Awe??

A top OPEC official says the oil cartel is considering a shock production drop
when its delegates meet on December 17.

Oil prices settled at a four-year low on Friday at $US40.81 per barrel, after
peaking in July at record highs above $US140 a barrel.


Shock and Awe??

OPEC warns of substantial cuts coming soon

For those of us who were dying for relief from record high gasoline prices this
summer, the recent drop in oil prices comes as great news, but this is not the
case for everyone. OPEC, which supplies the world with roughly 40% of its oil,
would like to see prices rise higher again, and today gave a clear sign that
larger than expected production cuts are on the horizon.

In an interview today, the President of OPEC, Chakib Khelil, stated that a
consensus had been reached for cuts at the next meeting of the oil cartel. The
next scheduled meeting is on December 17, and according to Khelil, the market
will be surprised.

Khelil stated that the he felt the best way to get a quick boost in oil prices
is to shock the market, and he felt that the upcoming production cuts would be
able to do just that. While he did not indicate exactly how large the production
cuts would come, he left no doubt that they will be substantial.

"The stronger the decision, the faster prices will pick up," Khelil said.


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