AT the mercy of OPEC

Saudi Arabia signaled Tuesday that it was proceeding with its plans to cut oil production, prompting a gathering of OPEC officials here this week to prepare to voice support for higher crude oil prices..
"Throwing more oil on the market would be destructive for everybody," said Ali al-Naimi, the oil minister for Saudi Arabia, the most pivotal member of the Organization of Petroleum Exporting Countries. Naimi sought to brush aside criticism that his nation was seeking higher returns from oil exports, claiming a flurry of speculative activity in commodity markets was behind the recent increase in oil prices..
But as if on cue, the price of light crude for May delivery climbed 80 cents a barrel following Naimi's statements to $36.25 on the New York Mercantile Exchange, approaching the 13-year high that oil prices reached earlier this month..
OPEC is expected to discuss Wednesday whether it will adhere to a production cut of one million barrels announced at a meeting last month in Algiers..
OPEC, which produces roughly a third of the world's oil, is believed to be producing about 26 million barrels a day, or well above its official target of 24.5 million barrels. Supported by strong demand in China and the United States, the price for West Texas crude oil averaged $35.25 a barrel in the first quarter, the highest such level in the past 20 years, according to Cambridge Energy Research Associates..
There appears to be strong sentiment within OPEC to keep prices high, with several delegates speaking in support of Saudi Arabia on Tuesday, including representatives from Algeria, Libya and Venezuela..
"I feel we should go with the cut," Fathi bin Shatwan, Libya's oil minister, said. "Maybe there's a bit of oversupply, even.".
Despite signs that some producers in the Gulf, including the United Arab Emirates and Kuwait, might be hesitant to pursue an output cut, OPEC is expected to sway in the direction of Saudi Arabia, which alone has the swing capacity to rapidly increase or decrease production..
The Saudi economy is growing at its fastest pace since the early 1980s, helped by robust oil sales..
Growing concern in Washington over rising oil and gasoline prices seemed to be having little effect on OPEC's decisions. "People in power know that crude supplies have nothing to do with the current gasoline prices in the U.S.," Naimi told reporters in Vienna on Tuesday morning. "A lot of things will be said in an election year.".
But few analysts expect OPEC to actually implement production cuts even if it announces such measures..
For instance, it would be almost impossible for OPEC to immediately make any cuts in April since its members have already committed to shipping oil to customers around the world next month..
Data collected by analysts that track tanker movement also suggest that OPEC shows few signs of letting up on shipments..
Vela, the tanker arm of Saudi Arabia's national oil company, is thought to be sending more shipments to American ports in the Gulf of Mexico in April than in any month since last October, said Katherine Spector, an energy strategist at Deutsche Bank..
"We might get cuts from a smaller OPEC member like the U.A.E, but more for reasons of maintenance than anything else," Spector said. "It's hard to see any significant cuts taking place.".
The New York Times

How long will the powers to be allow this nation to be held at the mercy of OPEC. Isn't it time for a realistic energy policy be developed. One which includes funding for a Manhattan like project, similar to the one that developed the atomic bomb, to develop alternate energy sources?