Just before the OPEC CONFERENCE,

What the outcome of the OPEC Conference on 14th June will be is anybody’s guess….

OPEC's 12 member countries exceeded their quota by 1.9 Mn b/d in April, according to the International Energy Agency.
In contrast, Iran’s oil exports have fallen by an estimated 40 percent since the start of the year according to an IEA report of 13th June. Preliminary indications suggested exports fell to 1.5 Mn b/d in April-May from 2.5 Mn b/d at the end of 2011. It is believed that Iran is still producing 3.3 Mn b/d, down from 3.5 Mn b/d last year and stockpiling unsold oil. But, “In months ahead, Iran may need to shut in production volumes if export markets remain similarly constrained and storage fills up,” added the IEA.
In face of this situation, Venezuela’s Oil Minister Rafael Ramirez declared “We are going to make a very strong call in the meeting to the countries that are over-producing to cut production”.
Saudi Arabia for its part has lifted output to 10 Mn b/d, its highest in decades, to help nurse sickly global economic growth in what Saudi Oil Minister Ali al-Naimi has called a “type of stimulus” for the economy. That has taken supply from OPEC to 31.6 Mn b/d in May, an OPEC report estimated on 12th June, well above the official 30 Mn b/d target it set in December.
In addition, Al-Naimi responded to questions from reporters in Vienna, after the Gulf Oil Review published a report quoting him as saying in a June 2nd/3rd interview that OPEC might need to enlarge its collective production ceiling of 30 million barrels a day. “I didn't say it that way, I said maybe, be careful” he told reporters upon arriving at his hotel yesterday evening. “Maybe more, maybe it can be anything, it can be less”.

Mazhar Al-Shereidah.

This entry was posted on 13 de junio de 2012. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed.

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