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

Finance

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

DP World Profit Up 22%

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015,

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Energy

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | 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: 0.3687 sec (3 req/sec)