opec ministers are there and it's about compliance.s you mentioned with your last guest, particularly in venezuela and with russia where compliance has gone under 70%. i think it's more about compliance than new quotas. >> steven, do you agree? >> absolutely. i'll also throw in here the value of the dollar. this is something opec takes into great consideration. they get paid in dollars, but spend a lot in euro, yen and so forth. it's not only adding fuel to the speculators, but it's certainly going to be a topic of discussion when the ministers meet this afternoon. i agree with dan. i don't expect anything other than the status quo and obligatory nod to compliance when they're done, but i am confident that if the dollar continues to weaken, the rhetoric out of opec will be more hawkish. >> dan, i mean, they're kind of getting hit in two ways on this move from the dollar. it's going down, that's hurting them. they're getting paid in dollars. they're paying for other things in other denominations. at the same time, a lot of people are us

it's the known opec countries that can be a problem for opec because it is true that the opec countries want to have a higher oil price. they want to have an oil price around $80 a barrel, at least in the next coming months. but they can't afford another cut in product. they have cut production back in october in 4.2 million barrels a day and, in fact, the other companies, namely russia, has increased production. russia has had record high production in august of 10 million barrels a day. that means even if opec wants to have a higher price, they can't afford a cut right now because the other countries, the nonopec countries would increase the market and supply the demand that opec wouldn't. and still i had a chance to catch up with the saudi oil minister yesterday and i had a funny conversation with him. i started by asking him if he's happy with the oil price. >> yes, very happy with the price. >> are you worried -- >> any more questions? >> is compliance an issue? >> supply, no. supply ahead of -- >> what is an issue? what are you going to be discussing. >> no issues. >> everything i

and it's ppening. >> sus: you have an opec meeting coming u in december. do you see anything ing on in the markets that would call f a change in policy? >> right now i don't lieve so. i think will be as we are today. >> sie: yo >> susieyou can watch the entire interview with minist naimi onur web site, "nightly busine report" on pbs.org. an monday, we'll bring you my interview with the c.e.o.f saudi amco, the biggest oil company in the world. >> susiemonday, what happens if 30 million insured people e suddenly in the system? some answers as we continuour healtheform coverage. bankruptcy may make range dfellows for mattress maker simmons. thfirm plans to file for bankruptcy ptection, and will be sold to ares magement, which owns rival sta mattresses. simms hopes to reduce its debt from billion dollars down to $450 million. mattressales have suffered in the economic downturn. simms bankruptcy filing could come within 90 days. >> paul: de soap is joining forces with brylcreem. consumer products giant unever is buying sara lee's body re products unit. the pric

now, russia has been a huge thorn in the side of opec.hey've actually increased production at a time when opec is cutting back and trying to keep prices higher. this is something saudi arabia's been working very hard on so the oil market isn't flooded right now. i caught up with ali naomi, saudi arabia's oil minister a little while ago. and i asked him why is venezuela's oil minister in russia right now instead of here? here's what he had to say. >> he's in russia. that's why. does that answer the question? >> it does. but i think it's probably a little more delicate than that. >> this is the problem with the press. you always look for something that is not there. when you are -- what do you do? when you go to opec, what do you do? what do you say? his boss says stay. what do you do? >> i listen to what my boss tells me. >> good girl. >> you know, what can you say? i mean, we think there's a little conspiracy going on here for a long time. you know, some say the rest of the group has resented a little bit the power saudi arabia has. venez

opec accounts for one-third of the crude production. melissa francis is in at the cartel meeting and rebecca jarvis is standing by at the nymex where they trade the crude futures. melissa, start things off. >> mark, the number one issue at this opec meeting is all about compliance. compliance with the quota has put to 70%. was 80% last time we were here. pouring salt in the wound is russia who said back in december they could cut production. they aren't part of opec but they'd say would cut back. but they've done the opposite, amped up. this as saudi arabia trimmed 70 million barrels a day. russia is now the largest producer and seller of oil all around the world. the other big theme here is iran's new oil minister who was just appointed last thursday. he comes from the commerce ministry. no oil experience whatsoever. of course he has a close political ally of ak moud ahmadinejad. don't forget that iran is the second largest producer. this meeting doesn't even kick off until after sun down because it is ramadan. they think it's going to

joe, you're following this a day before the opec meeting. we're not expecting any -- >> i don't believe anything comes out of opec. they are going to maintain the current production levels. but look at energy. look at the entire sector. what does it mean going forward? to karen's point. most money managers right now, one sector they want to be in is energy. and is it priced right now in terms of valuation fairly? is it may or may not be. but you have to look inside what the fundamental shift is. and that occurred during the month of august. normally during the month of august you see inventories here in the united states relatively flat. this month in -- rather this past august you saw a change inventories for the first time. we drew down inventories 20 million barrels collectively between reformulated gasoline, distillates and oil itself. so there has been in the last 30 days a fundamental change, and that is the reason why i think most money managers -- want to be in this energy sector the remainder of the year. >> and you know what's not

you have a reputation for tryg to keep oilrices stable, but there are other opec countries that are n committed to that. what do you say to them? >> we always tryook reasonable and moderate, in erything we do, actually. if i am at an oc conference, we will ha, of course, differences of opinion. but eventually, modetion becomes the... subje of the day. >> susie: a big question for eryone right now isthe recession over? what do you think? >> i wish knew that. but because i'man optimist, i believe-and based on what we ve seen,he recovery of price and how is reacting to groh eye believe woe are-- we are on the roado economic recovery. >> susie: whatigns are you seeing? >> see it inemand for energy i see i reflected ithe price. so is there. and it's happening. >>usie: you have anpec meeting coming up in december. do you see anything gog on in the markets that would call for a change in policy? >> right now. i don't beeve so. i think weill be as we are day. >> sus: yo >> susie: u can watch the tire interview with minister naimi on o web site, "nightly businesseport" on pbs.org. and ononday,

opec isn't going to be meeting until after this market closes, but i want to touch on the point and thatr weakness and why prices are higher as far as commodities are concerned. what traders see is the demand to own hard assets over paper money. rick, over to you in chicago. >> it's the fiat. we're not talking about the car. we are talking about paper currency. let's look at the credit markets. one-month ten, a longer version. why? because rates are only up three basis points. 351 is still is the highest yield in about two and a half weeks. getting some action in terms of the dollar. two-day dollar index shows you there's been another handle change. we've moved in the 76. that hasn't been seen obviously in a year and if you look at the dollar, yen with a 91 handle, this is the first time since february. bill, back to you. >> we didn't mention the ten-year note auction coming up this next hour. a key report on the state of the government's housing bailout program was released in washington this morning. diana olick joins us from capitol hill with more on the home front, plus, she has a sp

opec is likely to keep oil output unchanged. yesterday, saudi arabia's oil market said markets were, quote, in good shape. analysts expect the group to keep its current production level, which is just under 25 million barrels per day. vismont has reported a five-month drop in sales with revenue in the region plummeting nearly 40%. the swiss luxury goodsmaker says sales in the middle east have failed to offset a decline of sales in europe. they're still urging caution, rather. that would be your watch that we're looking at there, mike? >> no. this would be my watch. i just -- i can't get into that trend of, you know, these big, huge dials and i don't have the wrist size for it nor the bank account. >> right. whatever. diamonds encrusted, sure. we know better. >> yeah. no bling for me. you're the one with the nice glittery, shiny, silver necklace from yesterday. oh, and it's back. no, it's gone. the congressional panel mean time overseeing the t.a.r.p. says taxpayers will face heavy losses in its bailout of the auto industry. in t

all of this ahead of opec's meeting tomorrow. opec expected to stand pat on production levels. after all, they're way above quota right now. back to you. >> thank you ever so much. coming up, china sounds the alarm on helicopter ben's loose money. gold crosses $1,000. december gold hits $1,000. the u.s. dollar weighed down. david gilmore, steve forbes. they're going to come back after the break. i must tease you. i must have a quickie here, a quick whip around. dollar down, gold up. is this, steve forbes, the new normal? >> it's going to be a temporary normal as the federal reserve gives the worst of both worlds, inflation fears. >> is this the new normal? >> no, this is casual causality. . >> is it going to reverse? >> i think we'll see dollar strength down the road, but right now, we have a week or two of weakness as people sort of try to get a sense of reserve managers and what they're up to. >> steve forbes, will the fed defend king dollar in my lifetime? >> they will, but we're going to have to learn a lesson before they learn stable dollar good. >> all right, we're going

>> well, opec is really overproducing at the moment. they did cut their quotas, their production ceiling at 2.4 billion barrels a day. some opec producers aren't being as compliant as they could be and that certainly compliance is deteriorating and it has been since march of this year. and that's probably a reflection of the rising prices. but what perhaps is slightly more worrying than overproduction is the extent of capacity that's been in the world. opec shut down quite a lot of its capacity, but there's a lot of new capacity coming on stream. and the potential in opec to increase output, not just with existing capacity, but with potential capacity is -- certainly provides an adequate question in the oil market. >> caroline, thank you very much for joining us, caroline bain, stephen gallo, head of market analysis for snyder foreign exchange, you're sticking around for the rest of the hour. don't forget, you can learn more of our coverage of the crisis, 1 year later at cnbc.com. >>> the fdic may ask billions of banks to shore up its d

opec is meeting tomorrow.n hearing from some of the opec ministers saying they're not likely to raise or cut quotas, but they are looking at stricter ways to cut the quotas. right now, crude is up $1.39 to $69.41. if you've been watching the ten-year, it ended with a yield around 3.44% last week. the yield is lower this morning at around 3.427%. >> let's go to the trading pits and see if this guy has any answers, kevin ferry, cronus futures $3,000 gold, 3.42% ten year. you guys have no idea what you're doing in those pits. >> joe, nothing will ever go wrong again. >> will you explain it? >> welcome back, everybody. >> really, tell me, i don't get it. i don't get the move in gold with where the ten-year is. >> it's wild. everything is up this morning. there's nothing that is going wrong. that is definitely the big story. obviously, not just gold breaking above $1,000, but some of the currency ranges are now being threatened through the upside, also. that's really the investment theme that's going on. and you're

above $71 a barrel as we look ahead to tomorrow's opec meeting. meanwhile, not only gold but also silver up about 30%. copper on fire. it is really a dollar story and these traders here, gold up, thaer taking advantage of it. >> thanks. >>> what does the rising price of gold mean for stocks in  general as investors return? the big question remains, can this rally continue or are we in for a big sell-off? let's bring in tom liden and our bear. hello, gentlemen. tom, start with you since you're the bull. can stocks in general rise as gold rises in tandem as is the case this morning? >> absolutely. everybody's talk about the september, october corrections. if everybody talks about it, it usual never happens. the last time we had a 45% correction and the next year, 2003, the market stormed. from labor day to the end of the year, the market was up 15 to 20%. so i think we're up for a repeated history here. >> i want to ask you, david, maybe this isn't a gold versus stock story. maybe a gold versus u.s. dollar story. when gold is rising this much, st

looking at the dollar weaker, crude oil and other commodities high are and of course oil traders out opec meeting happening tomorrow. the momentum that we're seeing in the metals market is not only with gold, we're looking at silver which is continuing to outpace gold, up about 30% in the past two months and copper look looks like it do possibly reach that $3 mark as it did in september of 2008. again, the momentum there he helping to fuel the rally across the board in the coppers market and option traders here in gold are taking advantage of that rick santelli, to you in chicago. >> yes, gold is definitely higher, a huge $11 worth. why? because the dollar is getting hit really hard, new lows for '09. lows going all the way back to the fall of last year. we continue, of course, to monitor other stories bubbling through. you know, there's many ways to deal with overt kou-the-counter derivatives. china seems to have found a very efficient way. their government may be working along with their institutions holding losing over the count e oil and energy derivatives, just not to honor the contr

this of course ahead of opec. output levels not expecting to change and we're seeing nice increases of stock prices. we've been in pretty much a range for a long time. >> and i think we may continue to be in this 60-80 day range. the saudis brought on more supplies and you're going to have speculation that people are going to make larger bets on smaller inkrementes. until you have major recovery globally and significant incremo i think it's hard to really break out from this band. >> let's bring in the expert here. the liquidator, joe joins us now on the fast line. joe, above 71 bucks. how much higher can we go? >> you know, i think today is all about asset allocation in the market and clearly energy is the space that everyone right now wants to be in. look back upon august. you know, you heard a lot of chatter about china itself. yes, china was the contributor in the first quarter to stabilizing oil prices, but let's point out inventories in august historically of all run about flat. however, this august, melissa

in addition to demand recovery, opec has removed a substantial amount of oil from the market. 3 milliondemand is down. in addition to looking at the demand, you have to look at supply, which across base metals and energy is quite constrained and i would give opec ten out of ten. without their cuts in production since the beginning of the year we would be at $40 a barrel. removing 3 million barrels has brought us up to $70. next year it will be a constraint on any price recovery. we are not going to see $100 plus oil at any time throughout 2010, but between now and the end of the year you'll see prices continue to grind higher up to $85, $95 based on the supply constraints and the start of demand recovery. >> so that means you are putting new capital to work intie commodities right now? >> pretty much. $70 is a good price for exploration and discovery. it is a good price $70 or above. >> all right. >> i think it is good for both the those in favor will vote aye side and at these prices at least it appears to be okay for the demand side. we are seeing demand recover despite the recover in

of recovery from the recessio buhe doesn't see a change in production quotas beeen now and deceer's opec meeting. you can e susie's interview with naimi heron "nightly business report", on fday. >>uzanne: president barack obama says while t u.s. was slow trecognize the threat of climate change h administration is cing to catch up at a united tions climate change smit in new york, the esident said the u.s. is making i largest ever vestment in renewable energy the idea is to dble america's gerating capacity from wind and other renewable ergy resourcein just three years. the president called on ri and developing nions to follow in our footsteps, butdmitted conqueng climate change won't be easy. >> all of us will face dbts and fficulties in our own capitals as we try to ach a lasting solution to the clime challenge. but diiculty is no excuse for complacency. >> suzannetomorrow, president obama meets with japan's n headf state for the first time. prime minister yio hatoyama takes the helm as japa strugglewith daunting problems including an aging socty, staggering public debt andhe global recs

plus big decisions on oil production from opec. more from cnbc's melissa francis. joe wilson, i'm sorry. poet he apologizes for heckling the president. talking to luke russert who got to face to face with the republican at the center of today's political firestorm. more ahead on quit's the economy." back pain in the morning, back playing in the afternoon. excedrin back and body has two ingredients to block and relieve the pain. doesn't your whole body deserve excedrin strength relief? excedrin. what ache? ♪ is to get as far away from it all as possible. don't let erectile dysfunction get in the way. ♪ viva viagra! viagra, america's most prescribed ed treatment, can help you enjoy... a more satisfying sexual experience. ready to talk to your doctor? find out how at viagra.com ask your doctor if your heart is healthy enough for sex. don't take viagra if you take nitrates for chest pain... as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical

opec signaled it likely will not change oil production.g under 25 million barrels a day. >>> health care debate may have stalled key financial reforms enacted by congress. the obama administration still hoping to enact tighter bank and market rules by the end of this year. let's get a quick look at wall street and how things are trading at this hour. dow is up 50 poise and trading volume there 94, and keep an eye on that. monica sf. >>> less than one hour, president obama will address the nation's schoolchildren in a speech that has sparked controversy before the president even uttered a word. some parents say the president aims to push a political agenda. that of course, prompted the white house to release an advanced transcript of the speech. michelle kosinski is live in florida. the speech will be broadcast to kids in pembroke pines, florida. i wonder what you're hearing from students and parents and have you spoken to any parent or teacher that went online and took a look at the speech itself? >> yeah, plenty of parents knew about this

opec produces about 40% of the world's oil supply. despite the traditional september been a bull market killer we have seen certainly the stock market reached new highs and how to months. brain is with us over at the cme group would be make of this rally this first full real trading week in september? we have had a couple days in a row with a market rally. unless filling could it seems to be a feeling that the part of is that people don't miss it. there's money on the sidelines best breeding money into the stock- market. boy of 3057 e points a day is not just hundreds and hundreds and hundreds the other part of the market we have to look at is interest rates should we had a blowout we can treacheries we had preteens and thirties all options when well yesterday that 30 year was a killer it came out great it was great attendance everyone care in a trade up a point after the auction came as 12 billion three-year notes. this is significant more than 20 billion in government ious own record please supply in the market is eating it up. at t

. >> it looks very similar to an opec-style cartel. it's highly concentrated. the various producers are sort of secretive about their expansion plans, about their pricing movements. >> reporter: lithium producers deny that. consumers will wait and see, but no question, in the world's evolving energy science, lithium means power. mark strassmann, cbs news, in the salar de atacama, chile. >> couric: nasa gave us a look at the sharpest pictures ever from deep space from the newly repaired hubble telescope. to give you perspective,this picture was taken from earth and shows a galaxy six million light years ay. here is that same galaxy photographs in vivid detail by one of hubble's new cameras. some o include aclinude a close-upiew aof nebula, which is a dying star blowing off its outer atmosphere, shaped like a butterfly. and a cluster of five galaxies. coming up, steve jobs back on the job. (announcer) take your time to find the right time with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be re

we import 4.5 billion barrels from opec. there are countries in opec that do not like us. venezuela is in that group. the nigerians we struggle with all of the time. iran is in it. when you looked through it, we get 4.5 million barrels a day from opec. if we did 18-wheelers on natural gas, we could cut out half of that. that would be big. the big part of that would be for the last 20 years that when they set the energy table for discussion, we do not have a place of that table. we are just the consumer. 85 million barrels -- 85 million barrels of oil are it made every day. we import 13 million to the united states. we are using 25% of the oil produced every day with 4% of the population. that is not good. when we tell them that we are going to go on our resources and we will help ourself, we will have a place at the table. then we can negotiate for the price of oil. when you are sitting away from the table and just observing what is going to happen to you and you have nothing to say about what will take place, then you do not have a very strong position. that is where we h

a $2.5 million foreign aid packages for libya, and opec nations. bucs have you gotten a response? no official response. it is stunning that khadafi would get taxpayer money. this is the man who recognized -- who organized the welcome home for a terrorist. >> have you made a phone call or talk to anybody -- talked to anybody? >> they claim that the libyans are better off now. >> from what? >> they have stopped an active program to make nuclear weapons. they are still responsible for chaos across africa. what we saw from the khadafi speechess that this is not the -- >> what are the charities? >> this is for the foundation of both his son and daughter. supposedly to do a democracy and governance work. horribly nike because it is a one-party state with one dictator. >> who were you getting support from? >> we're getting support across the board. >> so it is bipartisan? >> it is absolutely bipartisan. this is a complete waste of taxpayer funding. $2.5 million should not be spent. >> here is what i do not get. as much as we were all appalled to see that celebration when the pan am bombe

wavering on this, but it is also part of a larger $2.50 million foreign aid package for libya, an opectry responsible for security problems across africa. greta: have you gotten a response to your letter to the president? >> no response yet, but the son would get this money, and this is that an organized the welcome home ceremony for the man who murdered 189 americans aboard pan am flight 103. greta: have you made a telephone call or talked to anybody? why are they willing to make this contribution? >> they say the libyans are better off now. certainly, the libyans have stopped an active program to make nuclear weapons, but they are still responsible for chaos across africa, and what we saw from the kaddafi's speeches, this is not a stable government with a rational head of state. this is for the foundation of both his son and daughter, supposedly to do democracy and governance work, but horribly naÏve, because this is a dictator state, muammar qaddafi. greta: who are you getting support from? >> we are getting support from both sides. greta: so it is bipartisan? >> it is absolutely bi

the saudi minister does not see a need for opec to raise production or cut production. one of the other things folks watch is whether they are adhering to their quote to. looking at gold it is bouncing back. closed again yesterday by 1,000. this marx the third session trading above the 1 k mark. rick santelli onto you. >> it isn't a lucky seven. ing-the-unless you're long on sevens. i'm talking about the major currencies and futures. the yen, aussie, pound, you'eurd swis franc. if you look at some mores stow take, the asian, you'll see more. after the dollar index is right back to testing that 76 handle which we haven't tested since mid-september a year. if you look at interest rates, they're creeping higher, but no matter which vantage point, which tangent you look at to grab onto perspective and interest rate, the 3-year and 10-year isn't far behind. supply doesn't seem to be a problem just something to pay attention to for issues down the road. now back to mark and erin. >> in asia, overnight, here's how it looked. here's how it looked. we don't have it. and i don't

. >> we didn't get much of a opec announcement. stocks are drifting higher boosted by positive news by proctor and gamble. much more on that coming up. right now, the dow is up 21 points. we had pretty good unemployment claims drop today. the s&p is up 2.6 points. the nasdaq is following behind. let's get some intensive detail on this discussion with scott wapner down in the new york stock exchange. hello, scott. can you intensely bring us up to date? >> larry, i'll play off what you said in terms of watching the dollar in the oil market. we're watching the direction of the dollar in the stock market. as it pulled off the lows of the day, you saw some commodities and material stocks move weaker. let's talk about the overall situation here in the market and really those better than expected outlooks we got today probably the reason why the dow is in positive territory and a big boost to the major averages in general. proctor and gamble reaffirmed their unemployer sales. the new information was they said they expect to return to s

. >>> opec decided to keep oil production levels unchanged. the cartel banking on the recovery is maintaining prices near $72 a barrel. current prices are translating in to gas prices that cost 2.585-gallon. now the official driving season is over, analysts expect to see prices drop a little more from current levels and we will take it to savehea little at the pump. >> you are saving us more in the next half hour. >>> we are. money saving tip of the day. we are saving you $200 a year on your phone bill. >>> thank you t are. >>> an update on first lady's idea to have a farmers mark near the white house. they approved the application to close the 800 block of vermont avenue for a temporary farmers market. the market would operate between h and i streets every thursday between 1:00 and 8 p.m. with this hurdle out of the way the markets could open as early as next thursday. >>> lawmakers on the hill are opening a probe to the sec's failures in the madoff case. >>> it is 8 after the hour. 67 degrees. you are watching 9 neow nws. sa >>> we are wishi

ahead of tomorrow's opec meetings, gold hitting an 18-month high, the weak dollar helping out there. the precious metal breaking through the $1,000 mark but closing below that level. financials and oils, ge was upgraded. the dow industrials up 9496, s&p 500 up 1025, nasdaq up 18 points. matt nesto, we are on the noor of the nyc right now. matt. >> i keep remembering my parents went to "x" and i got this lousy t-shirt. it is kind of lousy. any number of things that could have ignited a rally and we got 50 points. we were up, we were down, but never could break above 9500 to 9600 the premarket session to the closing bell, industrials, energy and material. gold witherred at the close. we were at $1,000, ge was a big story, big gainer in the dow, all session long. best day from that stock since the beginning part of august. the dow was clearly the best performer. seconded by alcoa. those stocks have low share prices, the price-weighted index so they don't have much wallop. chevron and exxon strong in the dow, the s&p, names like peabody, a coal mining company, some consider it a materia

pillsbury.com. you'll never have to call them to the dinner table twice >>> opec decided to keep oil production levels unchanged. they are banking on a recovery in the world economy to maintain prices. current oil prices are translating in to an average gas price at the pump of $2.58. with summer driving season everyone they expect prices to drop slightly. many businesses could be unprepared if employees catch the h1n1 flu. two-thirds of businesses surveyed said they couldn't maintain operations if half of their workers were out two weeks. they are advising companies to train workers to do the jobs of absent colleague and let employees work from home if they don't come down -- if they come down with h1n1 flu. >>> apple's ceo steve jobs made the first public appearance since receiving a liver transplant this spring. he received a standing ovation when he took the stage. he urged everyone to become organ donors and then unveiled a lineup of ipod media players including the ipod nano with a built in video camera. bad weather is delaying the efforts of firefighters. crews want to set bac

in terms of crude prices, the three-dollar jump to $71 a barrel is significant looking ahead to the opec meeting tomorrow. they are expected to leave levels unchanged. there is a lot of talk about world energy demand picking up and the epeopec meeting tomorro. >> maybe some are wearing too rosey a pair of glasses. we saw a number 5 1/2 minutes ago. consumer credit for july was expected to deteriorate by $4 billion. close. how about $21.6 billion. consumer credit is one of the black-and-white key issues about what the consumer is going to have to play with down the road. it isn't looking good. that isn't to say equities moved a lot lower on it. if you blinked you missed the quick downdraft in the s&p or dow or spike in interest rates. if you look at a two-day chart of the dollar, we are at the lowest levels in exactly a year. people are saying this is a terrific thing the dollar is so weak. you have to draw your own conclusions. how many stocks do you have that have an international complex? ten-year yields? they have moved a lot today. some of the lowest yields on the three-month chart y

demand functions as well as in the oil industry, unlike the copper industry, you have the impact of opec involved there. and there's trading issues. at any point in time all those factors come together with a price. but, you know, oil in some respects is correlated to the price of copper. we benefit when prices are lower from a cost standpoint, but then generally copper prices are lower, and vice versa. >> let me ask you about your own investing, and of course, according to the financial reports, you spent $248 million on exploration in '08. looking at this year given the economic environment that we all face, would you be maintaining that kind of exploration budget? what's your plans in terms of capital expenditures? are cuts coming? >> in exploration, we did adjust our budget at the beginning of the year down to $75 million. now, prices are higher, we're spending a bit more than that. but we have done a lot of core drilling, and we're stating this year, analyzing the information that we had gained over the past two years. our capital spending this year is going to be under $1.5 billion

all eyes will be on opec ministers when they meet tomorrow in vienna -- up to $71 a barrel. they are expected to keep things unchanged. i am lauren green. now, back to glenn beck. glenn: hello, america. i believe our constitution is under attack by people with a radical agenda and one you don't for. barack obama has said he wants to fundamentally transform this boy, i don't. i would like to work on some of the things we stink at. i don't think it needs fundamental transformation. one of his special advisors stepped down over the weekend. if you think van jones is gone and forgotten, you're wrong. i have been thinking about it way where i could explain it to you where it makes sense on the 103. this is 103 monitors. wow. can you bring up the iceberg, please? let's say this is the uss constitution. patti ann said a minute ago that the president is going to make a big speech tomorrow night to talk about healthcare. well, i have to tell you, there are billions if not trillions of dollars at stake, and the power -- we're playing for the power of the world here. there's a lot of m

we import 4.5 billion barrels from opec. there are countries in opec that not like us. venezuela is in that group. the nigerians, we struggle with all the time. iran is in the group. when you look through it, we get 4.5 million bear -- million barrels a day from opec. we could cut out over half of that with just 6.5000018 wheeler's. that would be big. but the big part -- we could cut out 6.5 billion 18 wheeler's out of that. when they set the table for discussion, we do not have a place at the table because we are consumer. 85 million barrels of oil is produced every day in the world. we use 21 million of that. we import 13 million to the united states. we are using 25% of all the oil produced every day with 4% of the population. not good. if we tell them we're going to go on our resources year and help ourselves, we will have a place at the table. then we can negotiate for the price of oil to. but when you are sitting away from the table, just a absorbing what's getting ready to happen to you and you have nothing to say about what's going to take place, you don't have

. >>> opec meets this week. and apple is expected to roll out an updated ipod on wednesday.rd is itunes could start to sell beatles songs. >>> flying the sea-filled skies. airline fees are piling up for passengers and now some air travelers will have to shell out more money. joining us here at msnbc is sean o'neil, senior editor of "budget travel".com. i'm not looking at you with stink eye but southwest airlines is tacking on a fee to board early? >> that's right. it is an airline fee for all and southwest is used to be the first in a few waves of boarding, pick your own seat because they don't assign seats and now $10 for one of the first to board to get that privilege. and, you know, southwest is hurting for past nine months, not making money so there's pressure on them to add charges in order to get some extra income. >> do you think that people are going to take advantage of this? this will apply to -- people needing extra time down the walkway or parents with small children be able to board without the $10 pee? >> yes. parents with small children to take advantage of th

well, a lot of folks are saying they obviously are watching what opec will say and what will come out of its meeting. they'll begin meeting in a couple of minutes here now that the markets are closed and also that the ramadan holiday is essentially under way. so they will begin meeting. they'll talk about that. many suspect they'll leave output on change. leaving aside the question, really at the side, traders say they're watching the u.s. dollar. and that continues to be key here. not just as a matter of dollar weakness equates to oil strength, but as a matter of paper money weakness equates to people wanting to buy hard assets. hard assets like oil and like gold. rick santelli, over to you in chicago. >> thank you, rebecca. that definitely is the theme for the gold market. and a theme in the treasury c complex. let's start with bills. we had $22 billion in one month bills. you can see the one-month chart of one-month bills. for nine basis points, we saw a demand that was the strongest demand for that bill auction in 7 1/2 years. 3 1/2 times more interest than there was paper. they

we had the opec meeting. no change there as expected. revising oil demand upward. that's not what the market here is talking about. all the traders are focused on natural gas and more than 16% surge in natural gas prices just today. just about 8% in the last two hours. and what has happened here with natural gas prices, well, it all started at 10:30 a.m. this morning when we got the report from the energy department that natural gas storage levels, yes, they increased, but they didn't increase nearly as much as many analysts expected. the increase was about 69 bcs. then you look at what happened in the month of august to natural gas prices. they fell about 22%. we're talking about a very oversold market. and so what insued? a traditional short covering rally. the magnitude was immense because we had prices that were down so low, around $270, $275. this is a very volatile market. we saw an 8% gain in just one day. a couple of weeks ago, 10% another week. this is a market that is very liquid and has a lot of momentum trading going on in it. and we are looking at the

. >> iran is the second largest producer within opec and exporter. that's exactly the type of geopolitical concern that really would have upset oil markets in the past. is this going to provide balance in the future or is it all scare and no actual substance? >> unfortunately i think we've gone through this song and dance so many times the market's become immune to it. i think the markets will shrug it off. again, i think everything's really all centered on the dollar that continues to weaken into year end. there's no reason why the dollar can't drive crude oil up to the $80 level. right now our target price for the year is about $80 on crude oil. >> what about the tremendous production of natural gas from shale? isn't there overproduction cooking there? >> certainly that's been the case. a lot of that is residual from we had $15, $14 natural gas last summer. now you're down to levels we haven't seen in seven or eight years. >> right. >> eventually that production destruction is going to kick in. the big achilles heel in natural gas has been the inin

opec meets tomorrow in vienna. its president finds that the global economy rebounding means the organization won't need to take action and said its members are expected to stress compliance with output limits already in place. melissa francis, cohost of it's the economy, will be there to attend. >>> gold climbed above $1,000 an ounce today amid concerns of the u.s. dollar. the rush was sparked by a united nations report out yesterday that criticized the dollar's position in the global economy. the value of the gold has been on the rise since the recession, since precious metals tend to keep their value in tough economies. >>> hey, forget cash for clunkers. a spring of expensive luxury cars coming on the market. so what do those automakers think? who's going to buy this in the middle of a recession? >>> plus, south carolina governor mark sanford says despite his affair, he's no bill clinton. he also reveals his secret agent mission. more of his revealing interview just ahead. >>> and with the near collapse of the mo

we have my friend melissa francis with quick results from the opec meeting regarding oil prices. hello, melissa. what do you have? >> hi, larry. the meeting just let out seconds ago. i think you can see the people leaving the meeting behind me. this is one of the ministers surrounded by reporters. we are hearing that they are rolling over the quota. they are, in fact, making the quota unchanged. $70 a barrel was just fine, something between 70 and 73. there was no reason to change the status quo. but as you can see, ministers pouring out of this meeting. we are hearing right now, we have not seen the official statement. we don't know what other language is in there. that's breaking news for you now, larry. >> melissa francis from vienna, austria. we have a little bit of everything tonight. thank you very much, melissa. now returning to the principal theme. president obama is looking to hit the reset button on the health care debate with a rare speech to congress in about an hour. but just what does he need to say? here's senator evan bayh and judd gregg. gentlemen, thank you ever

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but if you get $750 billion -- you go to the gas tank, you might as well send a check to the opec countries. now let's be honest with each other. what we're saying is, when you stop at a gas station or whatever kind of station there's going to be in the next decade or two, we want that money staying in ohio. in the midwest, in america. not going -- so, you send the $750 billion off, then you pay your tax bill at the end of the year and you send money to the federal government and then you find out that the defense department sends $120 billion of your tax dollars to escort ships going in and out of the persian gulf. does this make any sense to anybody? this makes no sense what we're doing here. we got to stop it. and then we send subsidies to the oil companies so they can keep going. this doesn't make any sense. i'm sorry. i don't know any other way to say it. we need to stop doing this. and it's going to have some disruption and everyone's going to have to figure this out but we have smoothed this over over 20 years no one's jamming this down anybody's throat. and these manufacturing facil

i believe that opec is holding the world hostage in a sense. the price of oil could come down to $20 per barrel then the recession would end. everything is tied to the price of gasoline. these features, speculators -- i'm not sure what they're called, but they would get out of the way and opec would say, $20 per barrel -- all the recession would completely disappear. all things are tied to gasoline. susan, could you do me a favor when you speak in the next segment about afghanistan? you cannot win a religious war. it is all tied to religion. thank you, and good morning. host: emily? guest: speculation is one of the things we're starting to hear come to the service at the g-20 this week. we heard from italians and australians that there would like it higher on the agenda. the issue is not what opec is doing, but more what investors are doing to make money. much of what we saw last year the argument is with $150 per barrel oil -- that crash and price was caused by trading, not supply and demand. congress has been talking about this also about wha

the cartel's call, opec meeting in vienna, expected to keep health care unchanged. mr. obama is expected to address congress and the american people in a prime time speech tonight. plus, beatles mania. decades after launching a media revolution, the entire catalog has been remastered and it will be reborn in the homes around the world in the latest rockband game today. it's 9-9-09 when "squawk box" begins right now. ♪ >>> good morning, everybody. welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kernen and carl quintanilla. the beatles, i like this song. anyway, opec is holding court in vienna today. that meeting officially begins at 3:00 p.m. eastern time. influential saudi minister expects the cartel to leave production levels unchanged. a saudi newspaper reports that he plans to telling others that global inventories are high, but they should decline as soon as demand starts picking up. right now, you can see that nymex crude oil is up about 7 cents. $71.17. expectation has been that they would do nothing in terms of either cutting or raising

. >> and quickly, victor, what do you think opec is going to do in the mist of all this? >> in the mist of all this, i'm sure they are ecstatic with the current price level and they are unlikely to change output. >> okay. victor, very good talking to you, as always. thank you very much for dropping by. well, reema ten duke ka joins us live from the india business report. tory about that. >> hello. down about 1. 5%. sensex, as well, trading lower by about 0.2%. on the gaining side, we have fewer gainers. but on the gaining side, it's the royal bank which has announced $4.3 billion worth of loans to india out of which $2 billion will be marked for the banks. $1 billion to power grid. so we have all the entire banking space which are holding up smartly and on the losing side, it's the three companies which are looking to raise money. they raised over 950 under pressure. the promotors have sold shares and stocks are down about 4.5%. and the other one, the mtn deal has hit a road block, as well. >> reema, thank you so much for that. >>> a couple of stories, we're looking at op

we'll check on crude prices for you now and see how they are doing ahead of the opec meeting. nymex light sweet crude at 69.07. brent crude trading right now looks like this. that's currently standing here -- we'll get that number for you as soon as possible we can. $67.59. how are the futures doing? good morning, mike. >> good afternoon, maura. it looks like the u.s. might be taking its cues from asia. whether it's what's going on in gold or all of the m&a news over the past couple of days and the week b for that matter, we see the futures at this point pointing to a much higher open on the dow, the s&p 500. keep in mind that the dow and the s&p are coming off their worst week in nearly two months. moving on to the treasury market, let's check the yield on the ten-year bund right now. it's sitting at 3726% on friday. the price of the benchmark ten-year treasury note here in the states did go down. the yield finished at 3.44%. it was up that day and it was down for the week, however. we have the government coming in with a significant amount of debt to auction off this week, i

crude is getting clobbered, according to the opec chief and the dxy dollar index is strong.peaking of strong, let's check in with bob pazani at the nyse. how is your gold position? >> that's nonexistent. but besides gold, copper is also weak here. multi-month low there. there's a little bit of discussion about some of the weakness in the last few days, we saw it in july, a couple of sideway days, it amounted to nothing in july. no worries yet. let's take a look at the reits, the ipo's, half the shares offered that were initially thought of, th

opec supplies are at the highest level they have ever seen them.. and more support for that fund mentally bear risish thesis.s. keep in mind here, russia is the world's largest energy exporter. when you look at that in combination with the data that we're seeing here in the united states in terms of demand and supply, people are putting it together for a bearish picture.. one last thing to keep in mind here, though, we are seeing range-bound trade. as we have seen throughout the last month, between that $65, $75 a barrel level, oil continues to challenge those levels and until it breaks s through to either side, many traders are saying they're not really sold on the particular direction of this trade. chris says to watch the thursday options expiration. one last thing we're watching here, natural gas. it is an out liar. it is retired today. we'll tell you why coming up next. rick santelli, over to you in chicago. >> thank you. of course, we talk about supply a lot. on a week when the u.s. treasury is going to have fuel supply, there's many corporati