U.S. Oil Prices March Forward

Monday, January 08, 2001
U.S. oil prices resumed their upward climb on Monday, egged on by word from OPEC that the cartel had a consensus to slash output output by next week, Reuters reported By early afternoon, crude oil for February delivery on the New York Mercantile Exchange was trading at $28.30 a barrel, a 35-cent rise, taking total gains in the last six trading sessions to $2.50 a barrel, or ten percent. A statement by OPEC Secretary-General Ali Rodriguez on Sunday spurred the day's advance. Rodriguez, the former energy minister of Venezuela said on Sunday that the 11-member producers' cartel had a consensus to cut crude oil supplies but had not decided by how much. "For the time being there is a consensus to cut but how much we don't know," Rodriguez said. Rodriguez's remarks came after the former Venezuelan energy minister met with departing U.S. Energy Secretary Richardson in Vienna. Richardson, in probably his last mission for the Clinton Administration, which bows out next week, warned against what he called precipitous action to cut output. "We would like to see no production cuts but we recognize that there are realities," he said. OPEC convenes its ministerial meeting to assess market conditions on January 17. Many cartel members have recently pressed for cartel action to curb production to prevent prices from sliding, as world demand is expected to fall in the second quarter. Despite Rodriguez' silence on OPEC's possible reduction volume, Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah had said on Saturday he understood from Rodriguez there already was a cartel consensus for a cut of between 1.5-2.0 million barrels per day (bpd). Price hawk Kuwait favors the higher figure. Strong backing for slashing OPEC output by at least two million came from Mideast producer Qatar on Monday. Qatari Oil Minister Abdullah bin Hamad al-Attiyah reasoned that the bigger cut would be "more effective in guaranteeing that prices remain within the $22-$28 range set by OPEC."
Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

VesselVanguard Partners with Hatteras Yachts

VesselVanguard announced today a new partnership with Hatteras Yachts to provide a five-year subscription for its award-winning maintenance management solution

Rescue 21 Achieves 'SOLAS' Declaration from DHS

The U.S. Coast Guard is declaring 'Sea Area A1' service in certain areas off the coast of the United States based on the performance of the General Dynamics-built Rescue 21 system.

EC Study on LNG as Shipping Fuel Reveals Industry Backing

As efforts to combat climate change increase worldwide, pollution stemming from maritime shipping presents a particular challenge.     The study on the perception

Energy

BG Group's Australian Project Helping to Double LNG Supplies

A smooth start to operations at BG Group's Australian project in Queensland is expected to help the British company to roughly double its liquefied natural gas (LNG) supplies in 2015/16,

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Ghana-Ivory Coast Maritime Dispute Mar Tullow

A dispute over maritime boundaries between Ghana and Ivory Coast is damaging Tullow Oil, which risks postponement of its TEN project in the waters off Ghana's coastline.

 
 
Maritime Security Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.6860 sec (1 req/sec)