OPEC Secretary General Says No Shortage of Oil

Posted by Eric Haun
Tuesday, June 24, 2014

OPEC is ready to pump extra oil in the event of any supply disruptions caused by Iraq and its biggest producer, Saudi Arabia, can ramp up to capacity if needed, oil officials said on Tuesday.

For now the market is well-supplied and prices above $114 a barrel are the result of market nervousness, OPEC Secretary General Abdullah al-Badri said.

An official from Saudi Arabia, the only OPEC member with significant spare capacity, said it was committed to supplying the market if needed.

Saudi Arabia, which produces around 9.7 million bpd, has the ability to pump to its full capacity of 12.5 million bpd, the official told Reuters.

"Saudi Arabia has the capability to produce up to 12.5 million bpd when the customers ask for it. The oil resources, production facilities and the management all support this," the official said.

The Organization of the Petroleum Exporting Countries earlier this month agreed to keep its output ceiling unchanged at 30 million barrels per day (bpd).

Since then, concerns that violence in Iraq could disrupt supplies have stoked volatility and driven international benchmark Brent above $114 a barrel.

Disruption in Iraq would aggravate the impact of outages in Libya, Syria and sanctions on Iran, which have already curbed production by almost 3 million bpd, or more than 3 percent of daily global demand.

Badri said he understood there was no production problem so far in Iraq. Production in the south of the country was mostly intact, he said.

"As of now what we see in the price today is not because of any shortage of supply. The market is well-supplied," Badri told reporters, adding that OECD commercial stocks stood at 57.5 days of forward demand. He declined to give a figure on OPEC's spare capacity.

Badri was speaking in Brussels, where he took part in the latest regular round of EU-OPEC dialogue, an exchange of producer-consumer views.

He also said there was no reason for now to call an emergency OPEC meeting, although the producer group was willing to step in if needed.

(Reporting by Barbara Lewis in Brussels and Rania El Gamal in Dubai; additional reporting by Jan Strupczewski and Julia Fioretti in Brussels, editing by William Hardy)

Maritime Today


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

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

Energy

Det Norske to Restore Production at Alvheim after Leak

Norwegian oil firm Det norske said it expected to reach full production at its Alvheim FPSO (floating storage, offloading and producing unit) overnight after a leak,

Enterprise to Export First Ethane Cargo from Houston Terminal in August

Enterprise Products Partners on Thursday said the first ship to load ethane for export from its new terminal on the Houston Ship Channel will arrive on Aug. 1,

Damen Presents Decommissioning Vessels Concept

Damen Shipyards Group has announced its latest concept design: the Damen Decommissioning Series. The vessel will specialize in three core areas of the oil and gas

News

Container-on-barge Returns to Baton Rouge

Container-on-barge services have returned to the Port of Greater Baton Rouge to provide the petrochemical industry with another option to move its products.   Operated by SEACOR AMH,

Cenac Marine to Christen New Vessel, Donate Barge

A ceremony will be held July 29 at Cenac Marine Services headquarters in, Houma, La. To commemorate the christening of its newest vessel, M/V Quincey Cenac, as

Enterprise to Export First Ethane Cargo from Houston Terminal in August

Enterprise Products Partners on Thursday said the first ship to load ethane for export from its new terminal on the Houston Ship Channel will arrive on Aug. 1,

Logistics

Container-on-barge Returns to Baton Rouge

Container-on-barge services have returned to the Port of Greater Baton Rouge to provide the petrochemical industry with another option to move its products.   Operated by SEACOR AMH,

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Damen Presents Decommissioning Vessels Concept

Damen Shipyards Group has announced its latest concept design: the Damen Decommissioning Series. The vessel will specialize in three core areas of the oil and gas

Middle East

Sanmar Building 150th Robert Allan Designed Tug

Robert Allan Ltd. and Sanmar Denizcilik A.S. have reached a milestone in their ongoing relationship: scheduled to be launched later this year, a RAstar 2800 will

Bahri Q2 Net Profit Soars

National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, reported a 47.2 percent increase in second-quarter net profit on Tuesday.

Libyan Deal to End Oil Ports Blockade Needs Signing

Libyan Petroleum Facilities Guard (PFG) commander Ibrahim Jathran said on Monday he was ready to end a blockade at key oil terminals, but the U.N.-backed government

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Salvage Ship Electronics Ship Repair 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: 0.0905 sec (11 req/sec)