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 U.S. Energy Secretary Bill Richardson said Washington had withdrawn its threat to release crude from the national strategic petroleum reserve.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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Gas Plant Fire Halts US Gulf Coast Platforms

At least two offshore oil platforms halted operations on Tuesday in the U.S. Gulf of Mexico after a fire at a natural gas processing plant in Mississippi shut a

Sevan Marine Divests Stake in KANFA Aragon

Sevan Marine ASA said it has disposed 50 percent of its stake in KANFA Aragon AS to Sembcorp Marine Ltd. for cash consideration of NOK 20 million, representing

Norwegian Unions Say 755 O&G Workers Could Strike

About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting output from western Europe's top producer, if a new wage deal is not agreed before a Friday deadline,

Finance

Baltic Index Rises for Fifth Consecutive Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Tuesday for a fifth straight session on stronger demand across all vessel segments.

Singapore Exchange, Baltic Exchange Continue Transaction Talks

Singapore Exchange (SGX) has agreed with the Baltic Exchange Limited (Baltic Exchange) to extend the period of exclusive discussions regarding a cash offer for

Hanjin to Return 38 Vessels Next Year

Hanjin Shipping is planning to return a total of 38 chartered vessels once their contracts end as part of its restructuring efforts, reports the Korea Herald. A

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0801 sec (12 req/sec)