Saudi Oil Boost Little More Than PR

As easy oil supplies dwindle, project launched along Saudi-Kuwaiti border

(NEWSER) - Saudi Arabia and Kuwait have embarked on a risky, expensive hunt for heavy crude—and that might be a bad sign for global oil supplies. For decades these countries have fueled the world with its easy-to-drill light oil supply, but now those reserves are drying up, one Middle East energy analyst explains to the Wall Street Journal . “The easy oil is coming to an end,” he says. So the countries have resorted to a bold experiment: mining their shared Wafra oil field for its previously unattainable heavy crude supply, estimated at 25 billion barrels. More»

(NEWSER) - OPEC has approved a cut in output of 2.2 million barrels of crude a day, the largest reduction ever, MSNBC reports. The consortium believes that stabilizing prices now by decreasing supply will guard against a price spike when consumer confidence increases. OPEC’s monthly report predicts that demand will have fallen 700,000 barrels in 2008, and will decline by twice that amount in 2009. More»

OPEC expected to slash production to push up prices

(NEWSER) - Oil prices continue to plunge as demand slackens amid the global economic downturn. Oil has dropped 19% drop this week, the biggest weekly decline in five years, reports Bloomberg. Prices have tumbled 70% since reaching a record $147.27 in July, and some predict prices may dip as low as $25 a barrel. OPEC will announce a cut in output at its next meeting Dec. 17, according to a spokesman. More»

Promise to protect 'Muslim property'

(NEWSER) - Islamic militants have vowed to liberate a Saudi oil tanker seized a week ago by pirates off the Somali coast, reports CNN. Five armored vehicles arrived in the nearby Somali town of Harardhere filled with al-Shebab fighters, who told residents they would battle the pirates because the tanker, carrying $100 million in crude oil, is owned by a Muslim country, said a witness. "If the pirates want peace, they had better release the tanker," warned a spokesman for the militants. More»

Ship loaded with oil is taken to Somalian port

(NEWSER) - Pirates flying the Liberian flag hijacked a Saudi Arabian oil tanker today, the BBC reports. The Sirius Star is now bound for the port of Eyl, Somalia, a common destination for pirates to unload their booty. Currently holding its full load of 2 million barrels, the Sirius Star contains one-quarter of Saudi Arabia’s daily oil output. "It's the largest ship that we've seen pirated," said a US Navy spokesman. More»