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 Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

CFE to Lift Eight LNG Cargoes

Mexican state-owned utility CFE has bought eight cargoes of liquefied natural gas (LNG), four traders said. Swiss trading house Trafigura was awarded the bulk of the volume,

Sino-Global to Acquire Tanker

Sino-Global Shipping America, Ltd. a shipping agency, logistics and ship management services company, today announced that it has entered into a Memorandum of Understanding (the "MOU"),

Libya Forces Tanker Away from Supplying Rival Government

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it.

Energy

CFE to Lift Eight LNG Cargoes

Mexican state-owned utility CFE has bought eight cargoes of liquefied natural gas (LNG), four traders said. Swiss trading house Trafigura was awarded the bulk of the volume,

Britain to Ban Fracking in National Parks

Britain said on Monday it would ban fracking in national parks, reversing a policy announced last year, in a concession to the opposition Labour Party which had

Libya Forces Tanker Away from Supplying Rival Government

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it.

News

CFE to Lift Eight LNG Cargoes

Mexican state-owned utility CFE has bought eight cargoes of liquefied natural gas (LNG), four traders said. Swiss trading house Trafigura was awarded the bulk of the volume,

‘Maritime Spectrum’ of CMMI a Big Draw

For The Company of Master Mariners of India, the conference “Maritime Spectrum” that comes at the turn of each year has become a brand in itself, and each one

ms Veendam Rescues Pilot Off Maui Coast, Hawaii

On Sunday, Jan. 25, 2015, at 5:21 p.m. local time while en route to Lahaina, Hawaii, Holland America Line’s ms Veendam answered a request for assistance from

Logistics

CFE to Lift Eight LNG Cargoes

Mexican state-owned utility CFE has bought eight cargoes of liquefied natural gas (LNG), four traders said. Swiss trading house Trafigura was awarded the bulk of the volume,

Abu Dhabi Ports Invests in Management Software

Abu Dhabi Ports is implementing a brand new terminal operating system (TOS) which will enhance the general cargo operations at the emirate’s ports, significantly

Baby Medevaced from Cruiseship in Gulf of Mexico

A Coast Guard helicopter crew medevaced an 8-month-old baby girl from the cruise ship Carnival Triumph early Monday morning, 140 miles southeast of Galveston.

Middle East

Abu Dhabi Ports Invests in Management Software

Abu Dhabi Ports is implementing a brand new terminal operating system (TOS) which will enhance the general cargo operations at the emirate’s ports, significantly

Libya Forces Tanker Away from Supplying Rival Government

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it.

EU Annulls Sanctions on 40 Shipping Firms

The European Union's second highest court on Thursday annulled EU sanctions on an Iranian bank and 40 shipping companies hit with asset freezes as part of pressure

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Offshore Oil Pipelines Port Authority Salvage Ship Electronics 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: 0.1579 sec (6 req/sec)