2002
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China to soak up 2003 oil growth
China will soak up 80 per cent of additional global demand for oil next year, according to the International Energy Agency. It predicts that Chinese oil consumption will rise by 260,000 bpd to 5.14m bpd in 2003. This reflects that fact that Chinese GDP is growing by eight per cent a year compared with stagnation or recession elsewhere.
Saudi Arabia predicts big output cuts
Saudi Arabian oil minister Ali Al Naimi is pushing for an actual reduction in oil output of 1.5-2m bpd, and for the raising of formal output targets by 1-1.5m bpd. He told reporters ahead of an Opec summit that such cuts would keep oil at around USD25 per barrel which is what Opec is happy with. Oil traders said they were skeptical about whether Opec would follow this route.
IEA says stockpiles will cut prices
The International Energy Agency has predicted that higher oil inventories will erode oil prices sometime next year. Its latest monthly bulletin says world oil prices are believed to have peaked on the basis of market fundamentals. But this assumes that Opec does not cut output to maintain prices.
Russians firms expect to exit Iraq
Russian oil companies told Vremya Novostei that they expect to be squeezed out of Iraq in a post Saddam Hussein era. Oil men said the US would not share the market with anyone. They claimed that Baghdad might also renege on USD7bn in Soviet era debt.
Venezuela halves oil production
A nationwide strike in Venezuela has halved its oil exports, reported Reuters. This leaves output at 1.3m bpd against 3.1m bpd produced in November. Venezuela supplies 13 per cent of US crude oil imports.
Saudi warns of an oil price slump
Saudi Arabian officials are concerned that the world risks an oil price slump unless Opec members cutback production, reported Bloomberg. Oil minister Ali Al Naimi is expected to seek better compliance with Opec quotas at the group's next meeting, although Saudi has been one of the biggest quota breakers.
Iran calls for Opec to raise limits
Iran has called on Opec to raise its official production quotas while at the same time cutting down on quota busting, reported Reuters from Tehran. Oil minister Bijan Zanganeh told a conference that the reality is that the market is oversupplied and that probably we should discuss a reduction in supply.
Kuwait mulls foreign oil investment
Kuwait may invite foreign companies to participate in Project Kuwait to double output from five northern oilfields, reported the Petroleum Argus. Ceo of Kuwait Petroleum Corporation Nader Sultan told the journal that the country may work with ExxonMobil and BP on the project to boost production to 900,000 bpd.
Venezuelan strikes to hike oil price
The wave of strikes in Venezuela which threaten to topple the government of president Hugo Chavez look likely to force oil prices higher this week. Brent crude starts the week at USD25.60 per barrel.
Oapec ministers to meet in Cairo
Oil ministers from the Organisation of Arab Petroleum Exporting Countries, Oapec, will meet in Cairo on December 21 to review international oil markets, reported Wam. On the agenda will be the creation of a new pan Arab free zone and environmental issues.
Opec 2.54m bpd above target
Oil production by Opec members was 2.54m bpd above the official target of 21.7m bpd in November, reported Bloomberg. Overproduction is a mounting concern as Opec members head to Vienna for their summit meeting on December 12.
EIB says instability will get worse
A new study from the Emirates Industrial Bank has highlighted the instability in the Middle East and its impact on global oil markets for a second year in a row. EIB notes that this situation will get worse if the US invades Iraq. GCC oil revenues peaked at USD156bn in 2000, fell to USD112bn last year and will rise to USD120bn in 2002, predicted the EIB study.
Experts hail Slavnest sell-off
Industry sources are impressed by Russia's approach to the selling of a 75 per cent stake in Slavnest, its seventh largest oil producer, reported the Financial Times. A public auction later this month is now expected to raise more than USD1.7bn. Some observers say the bidding could reach USD3bn.
Exxon and Shell deal near in KSA
Mega oil companies Exxon Mobil and Royal Dutch/Shell are apparently close to reaching a deal with Saudi Arabia regarding explotation of natural gas reserves, according to news agency Bloomberg, quoting an Arabian Business magazine report.
Four years of problematic talks may come to an end imminently as Saudi Arabian officials admitted negotiations are in the final stages.
Four years of problematic talks may come to an end imminently as Saudi Arabian officials admitted negotiations are in the final stages.
Japan's AOC seals Kuwait deal
Japan's Arabian Oil Company officials report that the company has received final approval from Kuwait's Supreme Petroleum Council for a new oil deal, replacing the expiring 40-year long concession. The much-delayed agreement concerns AOC's activities in the Neutral Zone, between Kuwait and Saudi Arabia.
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