Oil Prices Soar

Monday, June 12, 2000
World oil prices soared in volatile trading las Monday on short-term supply uncertainties and a question mark over whether OPEC producers would soon open their taps. International benchmark Brent crude futures traded on London's International Petroleum Exchange (IPE) stood 85 cents a barrel up, while U.S. light crude was up $1.20. Prices are at their highest since the Organization of the Petroleum Exporting Countries (OPEC) agreed in March to raise output by seven percent. Traders said a strike affecting production in Norway, the world's second largest exporter, combined with continued uncertainty over OPEC's next production move led to Monday's buying spree. Norway's 225,000 barrels per day Draugen oilfield was closed at the weekend because of a strike that included workers at the facility. "At this stage, the market is looking at any excuse to move higher and test upside technical targets once Brent broke $30," a London broker said. Peter Rehmer, an energy specialist at U.S.-based technical analysts Elliott Wave International, said OPEC needs to see a decisive price move higher before taking action. "Although the market can't quite seem to believe it crude will need to mount a loud, attention-getting move well above OPEC's $22-$28 band before they start opening the spigots," Rehmer said in a report. OPEC last week decided against immediately implementing an automatic 500,000 barrels per day (bpd) of extra supply after a basket of OPEC crudes rose above the $28 a barrel threshold that the cartel agreed in March would trigger additional output. Instead, the group will probably put off any output decisions until their June 21 ministerial session in Vienna, OPEC delegates said. The uncertainty has left traders confused -- wondering whether OPEC will leave output unchanged, raise output by 500,000 bpd or lift supply by a larger volume. Last week an OPEC source said leading cartel producer Saudi Arabia was considering a move that would require OPEC to add a much as one million bpd of extra oil. The influential Middle East Economic Survey on Monday reported that the United States, the world's largest consumer, is asking OPEC to increase output by more than 500,000 bpd to ease supply concerns during peak gasoline demand season. The U.S. is believed to want OPEC to roll back 1.35 million bpd of supply restrictions, the volume it cut in June 1998 in a second of three rounds of cartel supply curbs that amounted to 4.3 million bpd altogether between March 1998 and March 1999.
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Victaulic Debuts Delta-Y Assembly for Offshore

Victaulic  introduces the Style DLY Delta-Y assembly, a combination of preassembled Victaulic cast grooved fittings, rigid couplings and butterfly valves. The Delta-Y

MOL Merges Group Companies; Upgrades Bridge Simulator

MOL adds DPS and enhances safe operation by integrating expertise through merger Mitsui O.S.K. Lines, Ltd. (MOL) announced the merger of MOL Marine Consulting, Ltd.

Swire Pacific Acquires 3rd L Class PSV

Shipowner and operator, Swire Pacific Offshore Operations (Pte) Ltd (SPO) celebrated the naming and delivery of its third L Class PSV vessel, Pacific Legend in Kyoto,

Tanker Trends

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Odfjell Finalizes LPG/Ethylene Joint Venture Deal

Following Odfjell SE’s May 16, 2014 announcement declaring the signing of a definitive agreement to form a LPG/E shipping joint venture, Odfjell today announced

Scanjet Bags Multiple Tank Management Orders

SCANJET Group has followed up its breakthrough Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority 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: 0.1373 sec (7 req/sec)