Saudis plan to boost oil production

Only a few days after a militant OPEC meeting, were the first signs that Saudi Arabia was planning on the good on their vows to boost oil production on its own, sending crude oil futures tumbling form.

Broke Wednesday meeting of the organisation of countries up as crude result production without any decision.

OPEC fragmented into two camps: Gulf States under the direction of Saudi Arabia, who sat down for a 1.5 million barrels per day, and other Nations, against the movement due to an uncertain Outlook for the global economy.

After the meeting, Saudi Arabia's oil Minister Ali Naimi said the world's largest oil...

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Saudi's have reduced production, but do not believe that it is due to the lower demand

You will reduce Saudis production with Brent crude to $120 / barrel.

Saudis adapt oil production such as world demand varies - NYTimes.com.

Why? The International Energy Agency says that it is due to weak demand. Does this make sense? Now, shows why this weak demand in the price be? There is no question that the Saudis learned the lesson from the 1980's, at low prices cause the high prices, and thus have an incentive enough, these prices cut produce. So why they reduce production if prices still high??

For me, is the only reasonable explanation that they can no longer produce. She might be the doubt by opening their oil fields, investigate inspection, but they do not have. And why? Because if we know the truth, it would be that it not as much oil as they say, do, and they want to know that not.

You had and have an incentive to lie, to support a higher OPEC quota. I predict that Saudi oil production to under 5 million barrels per day will fall in the next 5 years. This is still a lot of oil production, but much less than that the IEA says 8.88 barrels a day, they now produce.

Saudi consumption is increasing at the same time, with a growing population. If they were smart, they import the conversion of its vehicle fleet to natural gas and from nearby Qatar. Then again, if we were smart would we change produced here, to natural gas, in the United States.

This announcement from the IEA is much better on when someone is renting for long-term oil prices. I do not know what tomorrow will bring, but I think that if we do not change traffic on natural gas very soon, the price of oil high will increase. So or so, the energy companies and the oil service providers benefit. Example: Schlumberger (SLB), Apache (APA), Anadarko petroleum (APC), Exxon Mobile (XOM), Chevron (CVX) and Conoco Phillips (COP) benefit bound are (I own shares of SLB, APA, APC and COP)

Also the energy of ETFs, UNG for natural gas and oil, USO can rise in the long term are expected.

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