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

Finance

Oceanteam Focuses on Mexico Strategy

Oceanteam Shipping ASA releases its Q2 2014 financial report, with extracts as follows: The company says it saw, with its early focus on Mexico, a long term

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

Big Increase in Port of Houston Steel Cargoes

More steel moved across the docks in July than any month since 2008, Executive Director Roger Guenther reported at the recent meeting of the Port Commission of the Port of Houston Authority.

Energy

Narendra Modi Eyes Breakthrough Nuclear Pact with Japan

India is hoping to win Japanese backing for a nuclear energy pact during a visit by Prime Minister Narendra Modi, and lure investment into its $85 billion market

Venezuela Considers Importing Crude for the First Time

PDVSA would use its own fleet to transport imported crude; Purchases of crude imports would reduce costs; Venezuela has been exporting oil for a century Venezuela

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage 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: 0.0818 sec (12 req/sec)