OPEC Raises Output

Wednesday, March 29, 2000
OPEC has seemingly bowed to U.S. pressure for cheaper oil by agreeing to higher output limits, immediately agreeing to turn up the taps by 1.45 million barrels daily, or seven percent. Iran, OPEC’s second largest producer, opted out of the deal, saying it feared a price plunge and complaining about interference from Washington. The action, which has been anticipated given the strong political pressures placed on the OPEC ministers, immediately sent petroleum prices into a tailspin, with Brent futures dropping $1.26 to $24.25 per barrel. OPEC won applause from the Clinton administration, which said there was now no need to release national emergency supplies to ease election year political pressure from consumers irate at high gasoline prices. "This decision was made in the interests of producers and consumers in a prudent way. It will have a positive impact and moderate prices," Saudi Oil Minister Ali al-Naimi said. President Bill Clinton said: "These increases will help sustain worldwide economic growth and provide greater balance between oil supply and demand." Naimi said OPEC was aiming to keep the price of benchmark North Sea Brent in the range $20-$25 a barrel compared to a recent nine-year high of $32. Despite Iran’s complaints, it will nevertheless raise production at the allocation in any case from April 1. That will add another 265,000 barrels daily. "We will not lose market share," Iran's OPEC governor Hossein Kazempour Ardebili was quoted as saying. "We will certainly do the increase that would have been allocated (and) we will consider our position on increasing beyond that." Non-OPEC Mexico and Norway, having cooperated with OPEC in cutting exports when prices crashed, are shortly expected to announce their own supply increases. Ross of PIRA said net new OPEC oil could be expected to rise by about a million barrels a day. That is not as much as OPEC is offering on paper because of recent leakage over official quotas. U.S. Energy Secretary Bill Richardson said Washington had withdrawn its threat to release crude from the national strategic petroleum reserve. He predicted a 28 cent fall in U.S. wholesale gasoline prices by December.
Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Sjo Resigns from Polarcus Board of Directors

Polarcus Limited announced that Hege Sjo will resign from its board of directors effective February 2, 2015.   Sjo has accepted an appointment as Deputy Director

BOEM Issues Supplemental Environmental Impact Statement

The U.S. Department of the Interior, Bureau of Ocean Energy Management (BOEM), announces the availability of the Draft Supplemental Environmental Impact Statement

Europe's Offshore Wind Capacity Growing

New capacity edges down 5 pct from record 2013; industry body forecasts stable growth over 2015/6. Europe's offshore wind capacity kept up a steady rate of growth

Finance

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Repair Ship Simulators 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: 0.1273 sec (8 req/sec)