when you look at opec and high oil prices can opec afford to see the u.s. and say the european euro zone going to double dip and still sell their oil because you still have the chinese and the indians i mean that's the dynamic has changed so much even if the west goes into recession you could still have high oil prices. yeah i know i know it's we're in a totally counter-intuitive world these days the fact is that i think that there are members of opec you are very concerned about the danger of double dip and they . are a b. and the other gulf g.c.c. partners were working to get more oil out there to keep prices under control i mean in terms of your original question where do we see your prices going i i i think that there is a reasonable risk now that we could see some softness in the short term purely related to the danger of you know growing unemployment you know unemployment is stubbornly high and in o.e.c.d. economies we've got solvent that issues we've got a raft of political risk as well so so i do think that there are problems but longer term i compl

a bit too much what is the state of opec right now. well i think i don't know how to call it a crisis i would just call it a. further pushing of saudi arabia you know doing what they want to do i mean for the last some years it's almost been everything that gets done in opec and saudi arabia actually does it because they have the capability of supplying more oil to the market and they basically have been getting consensus from opec. at this stage of the game it seems that the more price hawks within opec those that do not have the capability of adding surplus capacity into the marketplace i guess i'm just tired of sanctioning saudi arabia and i think in the long run i think it's good for the consumer it's actually good for saudi arabia because at least until the summer saudi arabia can act upon their own instincts is to put more into the market if they see fit to do that which in fact they said they will do and there's no reason not to believe that they won't do that so i think opec opec is really you know it's not in my view ever been

that means opec may not bring down oil prices. saudi arabia spare oil about 2.5 to 3 million barrels. we're seeing rising crude prices that may slow down economic recovery on the world. opec may not have the spare capacity to make a difference. i'll be back to talk about oil demand. stick around. >> we look forward to it. >>> sobering words. let's start out with indices in europe, all have started on a lower note. six day of losses in a row for some markets. heaviest losses coming from the dax and the cac 40 in paris. investors are concerned about the lack of economy in u.s. and germany exports fell by 5.5% in april and imports declined by 2.5%. ben bernankes the best way to support the dollar is to pursue maximum employment and price stability. as you can see, we currently have euro down against u.s. dollar, the pound down against the u.s. dollar. pound trading at 1 .638 0. euro, 1.4672. yen up trading 79.84ers have the greenback. >>> let's take a look at how things fared in asia. losses for automakers and utility on nikkei paved

john defterios at the opec meeting in vienna. >> make sure you take a look at john's opec blog on our website where you can find out more about one of the most politically charged meet innings recent memory. go to cnn.com/biz360. >>> exxonmobil says that it struck oil in the gulf of mexico with the discovery that could yield $700 million barrels. it's exxonmobil's first oil strike in the gulf since the moratorium on deep water exploration was lifted following last year's bp disaster. >>> just when you thought it couldn't get any worse, the debt crisis seems to have taken a new term. german officials say the current economic aid package will not be enough to prevent the country from defaulting. germany's finance minister told the imf and the european central bank that a new package should allow more time for greece to repay its loans and he also said taxpayers in the private sector should shoulder some of the burden of the additional bailout. >>> sonny pictures has told more than 37,000 customers that their personal information may have been compromised in the latest hacking attack to

a stunner out of the opec meeting in vienna. the oil cartel did not reach a deal to increase output, and the members usually agree on most things. >> tom: suzanne, this means new worries about oil supply through the summer and potentially higher prices at the pump just as they're starting to come down. july crude futures jumped on the news-- up $1.65 in new york trading-- closing over $100 a barrel for the first time in a week. >> suzanne: talks broke down after saudi arabia couldn't convince other nations to boost production. for insight into the opec surprise, i spoke with veteran oil analyst fadel gheit and began by asking if the impasse was political or economic. >> it's a combination political and economic. the saudis and their faction don't want to see a repeat of 2008. we don't want oil prices to get out of kroll. they are convinced that speculators have taken kroll of the market and are likely to push crude oil prices much higher. at this political as well as economical. >> suzanne: we have some opecmey of supply and the

and the future of opec.oming up after this break, a discussion of 2012 presidential politics. >> c-span radio rears five tv news shows. topics include presidential politics, the economy, and the situation in the middle is. we begin at noon eastern time with her "meet the press." the first debate between debbie wasserman schultz and reince priebus. also rick santorum. at 1:00 p.m., it is abc's "this week." richard shelby and former new jersey gov. jon corzine and robert reiss. then tim pawlenty on fox news. union, callsof the " a preview of tomorrow night's new hampshire debate. a former new hampshire governor. "face the nation," steny hoyer and paul ryan. five network television talk shows brought u.s. a public service by the networks in c- span. meet the press, this week come boxed is sunday, stated the union, face the nation. listen to them all on c-span radio in the washington d.c. area, on xm satellite radio, downloadable as a app. >> connect with c-span online with the latest video on twitter, continuin

so opec has reality gap. they have a quote that's very dated at the second half of the 2008 when oil prices went from $1.37, down to 35. so they took oil off the market. but they put more oil on the market at 26.3, not counting iraq at 2.7 million barrels a day. so opec's view is there's ample supplies. but your story right now about yemen preceding us and libya is playing into the oil market. secretary-general told me as they started the meeting, sitting at the head of the lectern, there's still a 15 to 20% premium. so as a result built into the price this he want to send a signal to the market, not more production, but to get the quote from 24.6, to 26, to send a signal to the market, we're ready to provide more oil, if necessary. >> the interesting thing, john is that they're getting a lot of pressure from the international energy agency as well. strongly worded pressure from the international energy agency to increase output. is there a sense this opec would actually even listen to the i.e.a.? >> well it'

opec oil ministers meet for the first time since the arab uprising began.they're expected to debate whether to increase output to help boost the global economy. american officials say the president of yemen was more seriously injured by last week's rocket attack than previously thought. mr. saleh is reported to have suffered 40% burns and bleeding inside his skull after the attack on friday. today there are unconfirmed reports that two senior yemeni opposition figures traveled to saudi arabia where the president is being treated. our correspondent is in the yemeni capital, and she gave us the latest on the president's condition. >> well, i've just been talking to presidential sources who are accompanying president saleh to saudi arabia, and they basically said that he can sometimes recover, but he's on the way to recover. he's able to speak. his voice is better. but he doesn't -- he's not able to move a lot because he wants to rest, and that's what the doctors are saying, that he needs time to recover. now, having said that, it's unclear when is exactly pre

even though opec took more than 4 million barrels a day. in 2009, they averaged 61.76 and rose steadily last year to finish just below $80 a barrel. considering all the unrest in the middle east, the chief executive at one of the top oil giants says opec has done a good job of managing chaos. >> 10, 15 years ago you would have announced that there is a risk of something happening on the suez canal, there's a risk, the price of oil would have been multiplied by four. >> reporter: with prices at the century mark and rising unemployment in the u.s., opec is under pressure to increase its production ceiling, officially at 24.8 million barrels a day. actual output is at 26.3 million barrels a day which does not include iraq which zest mated to produce more than 2.5 million barrels a day and is still rebuilding after the war. >> it should go up with the quota, by not as much as foreign western countries want because we don't know where the u.s. recovery will go, and we still have a sluggish economy in japan due to the earthquake. >> reporter: tha

how much does opec earn during this sort of crisis? in 2008 when prices hit $147 a barrel, and then collapsed in the second half of the year, the cartel earned $990 billion. at this pace with prices over $100 for north sea brent, opec will earn more than $1 trillion in 2011. with prices high and reserves plentiful, saudi arabia can bank on a steady stream of revenue for decades to come. the kingdom wants to diversify its economy to create jobs, especially for saud diz, after transforming a sleepy fishing village decades ago it now wants to go to the next step. jim bolden reports. >> reporter: teenagers playing football, late at night here in saudi arabia to escape the heat. they attend one of the schools built for families in jubail. one day they may attend the technical colleges that are expanding here to train young saudis to find morning in this vast but remote petrol chemical city. >> we have to make things available for them. all those colleges secure their job to provide the qualified manpower. >> reporter: 36-year-old jubail is

quota so an incase in opec limiwouldn't hav held them. they uldn't be able to sell anyor oil so they didn't hav much ierest in that. where saudi arabia on the oth hd could produce me oil. saudi arabialso has the world'slarge oil reserv. d it havery mch an terest in not putnghe prce of oil so high th it encourages alrnives to il o. saud arabia doest want the rt of t world moving to electr car, usinmore biofuels, using phaps natural gas in thei vehles anso on. saudi aria getsorried ifhe price is toohigh and alsof it los like the pri of oi is going to t the worleconomy into recession ich ceainly looks like a realisat the moment so those are all thecomic faors. then you've al got tese political visions. long rni polital tension and suspici between saudi arabia a irn, very much inflameat the momenbecause of ahrain bahrin a all isla ste in the persian gulf i sween ai/ -- saudi arabia and iran,rosts tre, protts again the goverent, violence, mass aest as and so on. and the suthere is that saudi araa bas the hraini government, sent troops to help

members of the oil exporting cartel opec meeting in vienna are expected to announce the first. twenty two thousand. at the r.t. business there to explain. why the pressure has been on for a while make a difference to prices and basically that's why why this is done but opec is likely to increase production quotas they say by roughly one a half million barrels a day. push fuel prices lower and also take some pressure off the world economy and this is done to replace the lost levy on supplies now alice however think that the move will be largely symbolic since most opec countries already produce more than that daily quotas and raising the quota could allow some countries to boost production even more now the u.s. is saying that the demand for oil is you know is going to increase but clearly the economic data doesn't show it. doesn't suggest that so we'll be watching how the prices on the oil react to this to these decisions at the moment all is down point seven percent and light sweet is trading at around ninety nine dollars per barrel and brant is around one hundred fourteen so

quota so an increase in opec limit wouldn't have helped them. they wouldn't be able to sell any more oil so they didn't have much interest in that. where saudi arabia on the other hand could produce more oil. saudi arabia also has the world's largest oil reserves. and so it has very much an interest in not putting the price of oil so high that it encourages alternatives to il o. saudi arabia doesn't want the rest of the world moving to electric cars, using more biofuels, using perhaps natural gas in their vehicles and so on. so saudi arabia gets worried if the price is too high and also if it looks like the price of oil is going to tip the world onomy into recession which certainly looks like a real risk at the moment so those are all the economic factors. then you've also got these political divisions. long running political tension and suspicion between saudi arabia and iran, very much inflamed at the moment because of bahrain. bahrain a small island state in the persian gulf in sween audi/ -- saudi arabia and iran, protests there, protests ag

opec members insist there is no shorta shortage.theless, the price is on the rise, up by more than 1%, it has fallen back, up by almost a third of 1% at just over $91 a barrel. it wasn't that long ago when it was over $100 a barrel. the price might be rebounding burks still has a long way to go before it reaches the highs we saw earlier this year. take a look at the graph here. this is where the price of oil is coming from. it sank as low as $89.69 a barrel in interday trade yesterday, settling at $91.02 at the close. that's a slide of 4.6%. >>> the extra oil should be coming onto the market towards the end of next year, released at a rate of 2 million barrels a day. the iea says each country will release according to its consumption. european nations will open the valves for about 30% and japan and south korea will supply the remaining 20% or about 10 million barrels. nina. >> andrew, it's only the third time members of the iea have tapped the strategic reserveless. they did it twice, once during the gulf war and once again during

the members of the oil exporting cartel opec meeting in vienna where they're expected to announce the first boost in since two thousand and eight the creator of the all see business just to explain more accrued of the pressure has been owner from around this make a difference to fuel prices in particular well carry both at once to increase production quotas by roughly one and a half million barrels a day to push fuel prices lower and take some pressure off the world economy that's bound to replace the drop in median supplies but analysts however think that the move will be largely symbolic since most opaque countries already produce more than their daily quota and raising it will boost production even more now the united states is saying that they're not in for oil will increase eventually but economic data doesn't suggest that meanwhile could all futures are trading below ninety nine dollars a barrel and many analysts don't expect opec decisions to affect prices much well have a look at how the markets are reacting to all these decision and to the oil fluctuation in about ten minutes

a message opec serving no that's like a scene from a fight club exactly but it's even worse it's like one of those suicide bombers that accidently blows themselves up like a hundred miles from the intended destination of their cell phone like going to how do i get this problem again is what's the moment. so nobody know it is their statement course they only find little remnants of japan all over the place in this case so i mean i want to turn back to the headline from march fourteenth this is a few days after the fukushima disaster or oil settles higher japan may boost fuel imports because of course eleven percent of japan's energy needs come from nuclear energy fukushima is knocked off the line and they've had to turn to more oil imports so they're more reliant on oil imports now than ever before so the message that they're sending to opec is that hi will be back a few days paying more for it then we sold it to or so the context here is you know the fukushima disaster which took energy production offline they need more oil so to help the people that are now in blackouts who can find

and we'll talk more to talk more with opec and find a way of doing that opec did try to increase productione didn't agree on leaving the level but the other members of the open admission like saudi arabia u.a.e. and kuwait i in a position to put two and a half million betters to market which is equivalent to what they're putting in but we have seen the price actually being very much affected by this initiative has now gone down as i mentioned before to below ninety dollars per barrel which is almost one year low pretty much what do you make of the current price doesn't really reflect supply and demand when things like this happen the market reacts the speculators come in and they start making calculations and the try to to be on the side of caution and with the price goes down but when things that are down in the alleged victim does happen in the market was to but i don't do is that the price of oil you can't talk about a fixed price nobody tries to fix the price doesn't try to fix the price we talk about everything to believe the range of between eighty and one hundred dollars but it is re

opec's role is one of stabilizing the market. their view -- their mission has broadened to making sure that the buyers never stop. they want to eliminate price the volatility by buffering supply. opec provides a key role in preventing prices from going too high. what is different from 10 years ago is that the energy-demand growth in some nations is so rapid and brisk that it does not necessarily matter what the primary buyers in the world -- we're still the biggest buyer in the world in the u.s., but we are not the biggest grower. world demand will grow, even if we have a significant contraction. what that means is their ability to play the best and manage price in that fashion -- placate us and manage price in that fashion is considerably less as a result. host: we're talking with kevin book, " founder and managing director of clearview -- co- founder and managing director of clearview. you can send us e-mails or messages via twitter. if you're in the oil business, we would love to hear from you. tell us about the effect of the

so they're more reliant on oil imports now than ever before so the message that they're sending to opec is that hi will be back a few days paying more for it then we sold it to or so the context here is you know the fukushima disaster which took energy production offline they need more oil so to help the people that are now in blackouts who can find the on switch in their little hobbles and tokyo their country is going to antagonize the only source of energy they have and. so here we've proven that they're selling oil this is kind of like a gordon brown move remember he announced to the market that he was going to sell half of britain's gold supply of course it guaranteed the lowest price possible this is exactly what japan and the u.s. and france and germany are doing there announcing to the market we're dumping all of this oil give us the lowest price possible especially since we're going to. back at a later date now the other thing of course we knew that oil would fall seven percent now check out this headline max see f.t.c. investigating a oil release leak oh yes max surprise surpri

they call messages japan sending to opec you know japan imports form. million barrels of oil per day almost entirely from saudi arabia and the u.a.e. well before we have those suicide bombers in iraq we have the kamikaze way this is kamikaze thinking let's blow ourselves up let's blow up our only natural resource that we're one hundred percent entirely dependent on to show opec a message oh. that's like a scene from a fight club exactly but it's even worse it's like one of those suicide bombers that accidently blows themselves up like a hundred miles from the intended destination of their cell phone like going to work at this moment it is a little bit. so nobody you know it is their statement of course they only find little remnants of japan all over the place in this case so i mean i want to turn back to the headline from march fourteenth this is a few days after the fukushima disaster or oil settles higher japan made boost fuel imports because of course eleven percent of japan's energy needs come from nuclear energy fukushima is knocked off the line a

costs it could be one of the most volatile covering since the gulf war it is believed opec wants to replace a drop in median supplies and meet the growth in demand later this year but industry analyst doesn't think not talking achieved it. most of her country's mouth given up. on the sorry budget for expansion sort of said the current social spending integration sold to suffocation from spending reduced come your way once you see that in russia bush according to bush and russian budget was balanced in two thousand and seven with more that seventeen know it was barely brown says a hundred ten. once you fascists not inflation spending it's very hard to pull back especially in these more of the countries so you get somewhere around between one hundred maybe one hundred ten maybe even slightly many of them out there would be just very very price that everyone's looking out at the moment is no announcement can also occur perkins is ready to change not. take a look at the markets crude is low it raise an early gains amid speculation that opec might increase its target oil output light swe

and i think the opec decision but it was taken not to increase production i think did actually upset many. people around the world so partly it's about power it's also about inflation. second look at the current oil prices they're now and they're edging bad cards after plunging on the international energy agency's release of reserves although the pace of this recovery is not as high as it was even an hour ago light sweet is up less than a dollar now brant is up just over one barrel. and asian shares are trading higher this is on renewed confidence over health to greece and japan exporters are among the main advances with toyota and toshiba in the lead however the oil sector firms are weaker with impacts down around the percent and hong kong's hang seng is up almost two percent china is in. a rush or the markets will mostly start trading in five minutes before the myself the r.t.s. is already showing it's up zero point seven per cent on thursday the r.t.s. my six all pretty hefty losses obviously was down two point six percent my six almost two percent this was on the back of lower oi

top stories in business opec is meeting in vienna to increase production quotas for the first time since two thousand and eight to push through prices lower germany for full business politics twenty minutes from now. one pm here in the russian capital this is our table the world news and much more welcome to the program. well to the be the first where nato bombardments continued throughout the night and what has been the most intense coalition since. march warplanes reportedly for the tripoli more than sixty times killing food to go in people what's the latest in the capital right now refer. to a traumatic night where you want to use up to date what's happening. well exactly you're absolutely right it has been tough and hard to stay for tripoli i can't even say that nato has launched the most intensive strike since the beginning of the operation here in march bombs have been struck in the city every few hours and we've tried to count them and they have been dozens of. during the day time this is quite a new job because i we've this is people we have been able to speak to here in libya ha

and i think the opec decision fifteen days ago that was taken not to increase production i think did actually upset many people around the world so partly it's about power it's also about inflation. of the markets now and world prices are edging back plunging on the international energy agency as well as of. light sweet is up around one dollar. seventy cents actually precisely one dollar seventy cents brant is up one dollar nine cents more than one hundred eight dollars per barrel still far to go until they come back to the previous levels asian shares are also positive this after the drop in oil prices japan exporters are among the main advances with two seven percent to three prison however will sector firms of course weaker impacts down around the percent meanwhile on the same saying is up more than one point three percent with china again around seven percent. in russia the markets will start trading the final session of the week in around two hours time of the r t s m i six or the have to plunge there on thursday losses were driven by we could crude prices obviously looking ahea