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 March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

MOL President Reports Slack Performance

MOL President, President, Koichi Muto reported that the performance of the company was slack. Presenting his report he stated:  I am sad to report that our business performance fell short,

Holland America Line Wins Sparkie Award

At a March 5 reception at the Seattle Waterfront Marriott, Holland America Line was presented with a Sparkie Award by the United Way of King County, Washington.

Knightsbridge Shipping, Golden Ocean Merger wrap up

Knightsbridge Shipping Limited has completed its previously announced merger with Golden Ocean Group Limited. In connection with the closing of the merger,

Energy

Interior opens Alaskan waters to Shell

Today, the Department of the Interior issued a Record of Decision affirming Lease Sale 193 in the Chukchi Sea in Northwest Alaska. The federal government unlawfully

Knightsbridge Shipping, Golden Ocean Merger wrap up

Knightsbridge Shipping Limited has completed its previously announced merger with Golden Ocean Group Limited. In connection with the closing of the merger,

GasLog Acquires 2 BG Group's Carriers

GasLog Ltd. completed the acquisition of two LNG carriers from Methane Services Limited (“MSL”), a subsidiary of BG Group plc (“BG”), which was previously announced on December 22, 2014.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Ship Electronics Shipbuilding / Vessel Construction Winch
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: 0.0997 sec (10 req/sec)