nnuut
Moderator | TSP Legend
Do Ya think they want to jack the price of oil UP a Notch? CROOKS!
OPEC's acting chief sees oil oversupply
The cartel will take measures to balance the market at its Dec. 14 meeting.
December 9 2006: 11:48 AM EST
LAGOS, (Reuters) -- The global oil market is over-supplied by over 500,000 barrels per day (bpd) and OPEC will take appropriate measures to balance it at its Dec. 14 meeting, the cartel's acting secretary-general said on Saturday.
Mohammed Barkindo stopped short of saying OPEC would cut production at the Abuja meeting, though the group's President Edmund Daukoru said on Friday he favored a further reduction after OPEC cut output by 1.2 million bpd in October.
"The over-supply is well over 500,000 bpd. It's between 600,000 and 700,000 bpd for the first half of next year, but those numbers are continually being adjusted," Barkindo told Reuters in a telephone interview.
The cooling global economy
"We are going to study market developments, particularly changes in stocks and non-OPEC supply in the context of a cooling global economy, and come up with appropriate measures to balance the market," he said.
Oil fell to just over $62 a barrel on Friday as ample U.S. stockpiles offset the prospect of a new OPEC cut. Bulging oil inventories in the United States have pushed crude prices from record highs over $78 a barrel in July.
The price has recovered from a 17-month low of $54.86 on Nov. 17, but analysts say the market has not yet fully absorbed OPEC's October cut. There has been some speculation that the group would refrain from further trimming output.
U.S. Energy Secretary Sam Bodman said on Friday OPEC should not reduce output in Abuja but instead should "continue to keep markets well-supplied."
Barkindo said the OPEC secretariat would make its formal recommendation after a technical session on Dec. 13. The ministers will make a final decision at their Dec. 14 meeting.
Angola's application
He said the issue of quotas was not on the agenda of the Abuja meetings.
However, Angola's application to become a full member of the cartel would be considered, he said.
"The Angolans have confirmed that they have decided to join as full members. This is on the agenda at Abuja. What is required is acceptance by all founding members of OPEC and a majority of the other members. I don't see any hitch with that."
Angola is Africa's second biggest producer of oil after Nigeria. Buoyed by the end of a 27-year civil war in 2002 and heavy foreign investment, production has risen by more than 10 percent to 1.4 million bpd since last year. Output is expected to hit 2 million bpd in 2007.
Barkindo said that Sudan and Ecuador were considering joining but had not yet made a formal application to OPEC.
http://money.cnn.com/2006/12/09/news/economy/opecoversupply.reut/index.htm?postversion=2006120911
OPEC's acting chief sees oil oversupply
The cartel will take measures to balance the market at its Dec. 14 meeting.
December 9 2006: 11:48 AM EST
LAGOS, (Reuters) -- The global oil market is over-supplied by over 500,000 barrels per day (bpd) and OPEC will take appropriate measures to balance it at its Dec. 14 meeting, the cartel's acting secretary-general said on Saturday.
Mohammed Barkindo stopped short of saying OPEC would cut production at the Abuja meeting, though the group's President Edmund Daukoru said on Friday he favored a further reduction after OPEC cut output by 1.2 million bpd in October.
"The over-supply is well over 500,000 bpd. It's between 600,000 and 700,000 bpd for the first half of next year, but those numbers are continually being adjusted," Barkindo told Reuters in a telephone interview.
The cooling global economy
"We are going to study market developments, particularly changes in stocks and non-OPEC supply in the context of a cooling global economy, and come up with appropriate measures to balance the market," he said.
Oil fell to just over $62 a barrel on Friday as ample U.S. stockpiles offset the prospect of a new OPEC cut. Bulging oil inventories in the United States have pushed crude prices from record highs over $78 a barrel in July.
The price has recovered from a 17-month low of $54.86 on Nov. 17, but analysts say the market has not yet fully absorbed OPEC's October cut. There has been some speculation that the group would refrain from further trimming output.
U.S. Energy Secretary Sam Bodman said on Friday OPEC should not reduce output in Abuja but instead should "continue to keep markets well-supplied."
Barkindo said the OPEC secretariat would make its formal recommendation after a technical session on Dec. 13. The ministers will make a final decision at their Dec. 14 meeting.
Angola's application
He said the issue of quotas was not on the agenda of the Abuja meetings.
However, Angola's application to become a full member of the cartel would be considered, he said.
"The Angolans have confirmed that they have decided to join as full members. This is on the agenda at Abuja. What is required is acceptance by all founding members of OPEC and a majority of the other members. I don't see any hitch with that."
Angola is Africa's second biggest producer of oil after Nigeria. Buoyed by the end of a 27-year civil war in 2002 and heavy foreign investment, production has risen by more than 10 percent to 1.4 million bpd since last year. Output is expected to hit 2 million bpd in 2007.
Barkindo said that Sudan and Ecuador were considering joining but had not yet made a formal application to OPEC.
http://money.cnn.com/2006/12/09/news/economy/opecoversupply.reut/index.htm?postversion=2006120911