Showing posts with label Oil Supplies. Show all posts
Showing posts with label Oil Supplies. Show all posts
6/8/13
Energy - Oil Supplies: OPEC’s slipping grasp on the world’s oil market - S. Mccarthy and J.Jones
OPEC ministers put on a brave face when pressed about one of a number of growing threats to the cartel’s influence over world crude oil markets – surging shale oil production in the United States.
At OPEC’s home base in Vienna last week, Saudi Arabia’s powerful oil minister, Ali al-Naimi, played down the impact of the light, sweet crude that is gushing in record volumes from beneath North Dakota’s bald prairie and the scrubby landscape of South Texas.
“This is not the first time new sources of oil are discovered, don’t forget history,” he said. “There was oil from the North Sea and Brazil, so why is there so much talk about shale oil now?” Secretary-general Abdalla El-Badri was even more blunt: “OPEC will be around after shale oil finishes.”
Despite the bluster from the biggest names in the 12-nation group that supplies a third of the world’s oil, however, it is clear the Organization of Petroleum Exporting Countries is getting nervous, and experts are questioning how long the cartel can act together to hold sway over global oil prices.
Read more: OPEC’s slipping grasp on the world’s oil market - The Globe and Mail
At OPEC’s home base in Vienna last week, Saudi Arabia’s powerful oil minister, Ali al-Naimi, played down the impact of the light, sweet crude that is gushing in record volumes from beneath North Dakota’s bald prairie and the scrubby landscape of South Texas.
“This is not the first time new sources of oil are discovered, don’t forget history,” he said. “There was oil from the North Sea and Brazil, so why is there so much talk about shale oil now?” Secretary-general Abdalla El-Badri was even more blunt: “OPEC will be around after shale oil finishes.”
Despite the bluster from the biggest names in the 12-nation group that supplies a third of the world’s oil, however, it is clear the Organization of Petroleum Exporting Countries is getting nervous, and experts are questioning how long the cartel can act together to hold sway over global oil prices.
Read more: OPEC’s slipping grasp on the world’s oil market - The Globe and Mail
2/16/12
Iran Cuts Oil Exports To Netherlands, Spain, Italy, France, Greece and Portugal
Iran has announced it is cutting oil exports to six European countries ahead of sanctions imposed by the EU.
State TV said exports to Netherlands, Spain, Italy, France, Greece and Portugal would be cut, but did not elaborate on to what extent oil would be allowed to be traded, if at all.
Around 18% of Iran's oil exports currently go to the EU. Less than 1% of its oil exports go to the UK.
For more: Iran Cuts Oil Exports To Netherlands, Spain, Italy, France, Greece and Portugal
State TV said exports to Netherlands, Spain, Italy, France, Greece and Portugal would be cut, but did not elaborate on to what extent oil would be allowed to be traded, if at all.
Around 18% of Iran's oil exports currently go to the EU. Less than 1% of its oil exports go to the UK.
For more: Iran Cuts Oil Exports To Netherlands, Spain, Italy, France, Greece and Portugal
3/9/11
OIL CRISES LOOMS SAYS GOLDMAN SACHS: Brent oil trading back at $113, Libya & Saudi Arabia in focus
Banking giant Goldman Sachs suspects that OPEC has been pumping far above its agreed quota since November 2010 and therefore cannot easily raise oil output much without cutting deep into global spare capacity.
Jeff Currie, the bank’s oil expert, said Saudi Arabia oil output had quietly crept up by 700,000 barrels a day even before the Libyan supply shock. So any assumption that OPEC has added 1.9m barrels per day over the last two years could be wishful thinking.
“We believe that OPEC spare capacity has already dropped below 2m barrels per day. The question therefore arises how much spare capacity is left to absorb potential supply disruptions in other countries.” said Currie.
If this picture is broadly correct, OPEC spare capacity is already close to the wafer-thin levels that led to wild oil price increases in the summer of 2008.
For more: Brent oil trading back at $113, Libya & Saudi Arabia in focus | Oil Prices, Oil Trading
Jeff Currie, the bank’s oil expert, said Saudi Arabia oil output had quietly crept up by 700,000 barrels a day even before the Libyan supply shock. So any assumption that OPEC has added 1.9m barrels per day over the last two years could be wishful thinking.
“We believe that OPEC spare capacity has already dropped below 2m barrels per day. The question therefore arises how much spare capacity is left to absorb potential supply disruptions in other countries.” said Currie.
If this picture is broadly correct, OPEC spare capacity is already close to the wafer-thin levels that led to wild oil price increases in the summer of 2008.
For more: Brent oil trading back at $113, Libya & Saudi Arabia in focus | Oil Prices, Oil Trading
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