Oil Prices Slip Again

Monday, March 12, 2001
U.S. oil prices slid for the second straight day on March 9 as traders speculated on the size of a widely-expected supply cut by the OPEC producer cartel next week.

On the New York Mercantile Exchange (NYMEX) crude oil for April delivery settled 38 cents lower at $28.01, little changed over the week.

Traders turned cautious as a Saudi official said that though the oil producers' cartel was heading toward its second production cut this year when it meets next week, the magnitude of the cut remained undecided. Market estimates of the likely supply reduction range from 500,000 to a million barrels bpd out of the group's current 25.2 million bpd supply quotas.

Despite the fall, traders said the market's outlook remains bullish as U.S. crude stocks remain tight, having fallen to 25-year lows last week. A round of talks between oil superpowers Saudi Arabia, Venezuela and non-OPEC Mexico will precede the March 16 meeting in Vienna.

Saudi Arabia, the world's biggest oil producer, Venezuela and Mexico, all key U.S. suppliers have combined since early 1998 to curb supply and revive oil prices from their $10 lows to peak at more than $37 last year. OPEC cut daily output from February 1 by 1.5 million barrels to keep prices high when winter demand tapers off, amid growing signs that economic slowdown is eroding petroleum demand growth.

That has placed OPEC in a delicate position of deciding how much it can reduce output without harming a fragile world economy, especially the U.S. which gobbles a quarter of the world's oil. Concern that prices may rise too high with a large cut, stifling demand further, might lead OPEC to opt for a compromise 750,000 bpd cut, market watchers say.

The U.S. has suffered a catalogue of energy woes over the last year as first gasoline and then heating fuel bills leaped to record levels, while California ran into a chronic shortage of power supplies.

So far, the Bush administration has eased the pressure of OPEC, saying it will not publicly lobby the cartel about output policy, in contrast to the strong rhetoric of former Energy Secretary Bill Richardson.

U.S. Energy Secretary Spencer Abraham has said he would opt for quiet diplomacy and that the market should drive crude prices.

Abraham said on Friday that he agreed with Mexican Energy Minister Ernesto Martens and Canadian Natural Resources Minister Ralph Goodale to work together to develop a unified energy strategy. - (Reuters)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Energy

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.1434 sec (7 req/sec)