World News Blog

Saturday, October 25, 2008

OPEC tries to prop up oil prices

OPEC is trying to stop oil prices from sliding and announced a production cut on Friday.

However, prices continued to drop after the announcement of the 1.5 million barrel a day cut in output. OPEC will meet again in December and may slash production even further if prices do not stabilize. Although some member countries like Saudi Arabia can bear even further price reductions, other members need oil to stay in the $70 to $90 range to meet their budget requirements.

The commodities markets in general have slumped as investors surmise that manufacturing and consumption will drop due to the financial and economic turmoil.

Voice of America
OPEC Says It Will Cut Oil Output
New York Times, United States - 11 hours ago
Chakib Khelil, center, the president of OPEC, said on Friday that some regular customers could not obtain financing to buy oil. By NELSON D. SCHWARTZ and ...
OPEC CUTS OUTPUT BUT OIL PRICE NOT RISING Agenzia Giornalistica Italia
OPEC slashes oil production ABC Online
OPEC to cut oil production to halt price collapse CNN International

Labels: oil output cut, oil prices, opec

Saturday, August 30, 2008

Gulf oil rigs also threatened by Gustav

Hurricane Gustav is now a very dangerous Category 4 hurricane threatening western Cuba, and is expected to reemerge in the Gulf possibly reaching Category 5 strength, the most powerful type of hurricane.

While it is still uncertain whether the hurricane will impact the U.S. Gulf coast, two models for example have shown Gustav turning away to the West before landfall, all models agree that the important Gulf oil rigs are seriously threatened.

Significant damage to the oil rigs could send oil and fuel prices skyrocketing again. A serious oil spill could impact the U.S. presidential debate on new offshore oil drilling that has captured headlines recently during the campaign.

Map of Gulf Oil Rigs showing tracks of Hurricanes Rita and
Katrina (Foots Forecast)

http://static.flickr.com/79/225471352_7e008be563.jpg

Five-day Projected Track of Hurricane Gustav (NOAA)
[Image of 5-day forecast of predicted track, and coastal areas under a warning or a watch]

Click Here for a Printer Friendly Graphic

In addition to hurricane damage, Gustav may stall over Louisiana and/or Texas causing major flooding problems.

Folks in New Orleans and other parts of Louisiana are taking no chances. Mass evacuations are currently underway.

Labels: gulf coast, hurricane gustav, louisiana, oil prices, oil rigs, texas