LONDON (Reuters) - OPEC output in May has hit its highest since 2008 as Saudi Arabia maintained high production rates despite a drop in prices and Iranian shipments did not fall substantially further ahead of an EU embargo, a Reuters survey found on Tuesday.
LONDON (Reuters) - OPEC output in May has hit its highest since 2008 as Saudi Arabia maintained high production rates despite a drop in prices and Iranian shipments did not fall substantially further ahead of an EU embargo, a Reuters survey found on Tuesday. Supply from the 12-member Organization of the Petroleum Exporting Countries has averaged 31.80 million barrels per day (bpd), up from 31.75 million bpd in April, the survey of sources at oil companies, OPEC officials and analysts found. ...
What is Saudi Arabia’s bottom line for propping up oil prices unilaterally before it leans on the rest of OPEC to help share the burden?
At $112 a barrel for Brent crude, well above OPEC’s preferred $100, it may not look like a hot issue just yet.
As Ali al-Naimi, oil minister for Saudi Arabia, OPEC’s biggest producer said this week, the oil market is in “the best situation it can be” and at “the right price.”
In the middle of November, the CEO of Vodafone Vittorio Colao warned of a "prisoner's dilemma" in the efforts to offer bundled television and broadband services. It makes sense for a company to seek unique content to differentiate it from others. However, if all the providers try to secure exclusive content, it triggers an arms race of sorts as they all do the same thing or risk losing out.
Wall of Supertankers Heads For US
Brent crude at $125, US Crude at $110, and soaring gasoline prices everywhere have caused quite a stir. See Highest Price Ever of Gasoline in March; State-by-State Gas Price and Gas Tax Comparison for a discussion.
In response to high prices, Saudi Arabia has a plan to send a wall of supertankers to the U.S. to knock down prices and Republicans have attacked President Obama for not doing enough.
VIENNA — OPEC Gulf oil producers will not propose an output cut on Thursday, reducing the likelihood of joint action by OPEC to prop up prices that have sunk by a third since June and raising the prospect of a global oil price war.
“The GCC reached a consensus,” Saudi Arabian Oil Minister Ali al-Naimi told reporters, referring to the Gulf Cooperation Council which includes Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. “We are very confident that OPEC will have a unified position.”
OPEC further lowered the forecast demand for its crude in the fourth quarter and 2014, and said its production remained higher than next year’s global requirement despite a plunge in Iraqi and Libyan output.
The outlook could point to a challenging 2014 for the Organization of the Petroleum Exporting Countries. Rising rival output will make it harder for it to keep its own production at high rates without risking a drop in prices below its preferred level of $100 a barrel.
Saudi Arabia might end up doing more in the growing multilateral campaign against the Islamic State of Iraq and Syria (ISIS) than its muted response so far has suggested: Using its oil-market power to drive down the price of oil, which the insurgent group relies on to fund its Islamist rebellion.
“What could Arab countries offer the West to help contain this threat? Lower oil prices,” wrote Francisco Blanch, commodity and derivative strategist at Bank of America Merrill Lynch, in a note published this week.
Top oil exporter Saudi Arabia told OPEC it reduced its oil output in August by 400,000 barrels per day (bpd), a cutback coinciding with a drop in oil prices towards the kingdom’s preferred level of $100 a barrel.
In a monthly report issued on Wednesday, the Organization of the Petroleum Exporting Countries also cut its forecasts for demand for OPEC crude this year and next, pointing to a supply surplus of more than 1 million bpd in 2015 if OPEC keeps output at current levels.
Iran’s interim deal with global powers on its nuclear program may do little to remove the risk premium on Middle East oil and may even send prices higher, according to an analyst.
“Price reaction may be subdued in the short-term,” said Michael Cohen, analyst at Barclays Bank Plc. in a telephone interview from New York. “There are so many geopolitical tensions that, if anything, could actually be worse off [due to] this deal.”