Comments on: Media Rorschach Test: Divergent Readings on the Saudis’ Wee Production Increase http://www.nakedcapitalism.com/2008/05/media-rorschach-test-divergent-readings.html Mon, 23 Nov 2009 00:58:00 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/05/media-rorschach-test-divergent-readings.html#comment-8191 Anonymous Sun, 18 May 2008 15:04:00 +0000 http://www.nakedcapitalism.com/2008/05/media-rorschach-test-divergent-readings-on-the-saudis-wee-production-increase/#comment-8191 The Saudis said in their announcement that they had brought the 300,000 bpd online on May 10, well before Bush's "request". <br/><br/>But the production they had brought online was Khursaniyah. It was supposed to come online at 500,000 bpd last November, but went through delay after delay. It's a difficult project.<br/><br/>So, the Saudis aren't really bringing new production online. Instead, they chose to make an announcement of new production for June (after already announcing this new production in April). That's why the markets didn't react. They already reacted to this new production a few weeks ago.<br/><br/>The whole thing was a bewildering propaganda piece that seemed to be designed to accommodate Bush and embarrass Bush at the same time.<br/><br/>In any case, all it showed the markets was that the Saudis truly are maxed out on production. <br/><br/>By the way, Goldman has projected an average price of $141 in the second half of '08.<br/><br/>Moe Gamble The Saudis said in their announcement that they had brought the 300,000 bpd online on May 10, well before Bush’s “request”.

But the production they had brought online was Khursaniyah. It was supposed to come online at 500,000 bpd last November, but went through delay after delay. It’s a difficult project.

So, the Saudis aren’t really bringing new production online. Instead, they chose to make an announcement of new production for June (after already announcing this new production in April). That’s why the markets didn’t react. They already reacted to this new production a few weeks ago.

The whole thing was a bewildering propaganda piece that seemed to be designed to accommodate Bush and embarrass Bush at the same time.

In any case, all it showed the markets was that the Saudis truly are maxed out on production.

By the way, Goldman has projected an average price of $141 in the second half of ‘08.

Moe Gamble

]]> By: Anonymous http://www.nakedcapitalism.com/2008/05/media-rorschach-test-divergent-readings.html#comment-8157 Anonymous Sat, 17 May 2008 14:57:00 +0000 http://www.nakedcapitalism.com/2008/05/media-rorschach-test-divergent-readings-on-the-saudis-wee-production-increase/#comment-8157 They say a picture is worth a thousand words, and this from the Houston Chronicle just about says it all:<br/><br/>http://www.chron.com/disp/story.mpl/business/5784848.html<br/><br/>The juxtaposition of the foto of Bush receiving a kiss from Simon Peres next to the headline "Saudis tell Bush they see no reason to hike output" is priceless.<br/><br/>Bush had to chose between the neocons and the guys with the oil wells. He chose the neocons, and today the American people pay the price every time they pull up to the pump. They say a picture is worth a thousand words, and this from the Houston Chronicle just about says it all:

http://www.chron.com/disp/story.mpl/business/5784848.html

The juxtaposition of the foto of Bush receiving a kiss from Simon Peres next to the headline “Saudis tell Bush they see no reason to hike output” is priceless.

Bush had to chose between the neocons and the guys with the oil wells. He chose the neocons, and today the American people pay the price every time they pull up to the pump.

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