OIL PRICE TO COLLAPSE....SAUDI TO MAKE UP FOR LIBYA OIL.....MARKETS TO EXPLODE
PLACE YOUR BETS....THE ONLY REASON ITS AT THIS RIDICULOUS PRICR IS BECAUSE OF THE LIBYA SHORT-TERM NON-SENSE
Oil lost in Libya may be replaced by Saudi Arabia -- report cnnmoney
Steve Hargreaves, senior writer, On Thursday February 24, 2011, 1:45 pm EST
Markets around the world are wondering if oil-rich Saudi Arabia is serious about boosting its production to calm surging prices in the wake of continued upheaval in Libya.
The Saudis are said to be talking with refiners in Europe about what kind of oil they need to replace the lost Libyan production, according to the Financial Times, citing unnamed officials in the Saudi oil ministry.
If true, the move should calm oil markets, which have surged over the last couple of days.
Saudi Arabia holds the bulk of OPEC's spare oil capacity.
Oil in Libya was still flowing Monday, but oil markets were already nervous. U.S. crude prices surged more than 6% that day.
"Such blunt comments are atypical, especially...where the Saudis would usually wish to provide reassurance," Greg Priddy, an oil analyst at Eurasia Group, wrote in a research note Tuesday. The comments "hint at internal discord which could delay a Saudi output response to a disruption from Libya."
OPEC's official position has been that it stands at the ready to increase production in the event of a disruption.
According to a PBS Frontline report a few years ago, the Saudis would just as soon see the price of oil hold around $75.00. This gives them plenty of profit without having to worry about new technologies disrupting THEIR market. As gas prices approached the $4.00 mark, lithium ion battery companies took off along with electric automobile innovators. That's why the Saudis WILL step in. They are protecting their market. IMO