News / Economy

Oil Prices Rise Before OPEC Meeting

The Organization of the Petroleum Exporting Countries (OPEC) logo is pictured at its headquarters in Vienna, June 10, 2014.
The Organization of the Petroleum Exporting Countries (OPEC) logo is pictured at its headquarters in Vienna, June 10, 2014.
VOA News
Oil prices rising Tuesday to near $105 a barrel leaves smiling OPEC ministers with an easy task to leave crude output levels as they are at their Wednesday meeting.
 
Brent North Sea crude has stayed above that price, the preferred level of top OPEC producer Saudi Arabia, all year and was trading near $110 on Tuesday, supported by the almost total loss of supplies from OPEC member Libya.
 
The Organization of the Petroleum Exporting Countries, whose dozen member nations pump more than a third of the world's oil, is meeting in Vienna to agree on policy for the second half of the year.

Ministers have said they will leave the output target of 30 million barrels per day (bpd) unchanged, and that the market is well-supplied.
 
“The price is good. Brent is $110, it is not bad,” said Angolan Oil Minister Jose de Vasconcelos.
 
Saudi Arabia's Oil Minister Ali al-Naimi had yet to arrive in Vienna, but gave his unambiguous view on the meeting last month.
 
“There is no reason for a change. Absolutely no reason,” he told reporters in Seoul.
 
“Supply is highly sufficient, demand is great and the market is fairly stable.”

US supplies

Meanwhile, U.S. crude supplies are seen falling, the AP reported.

Data for the week ending June 6 is expected to show draws of 1.2 million barrels in crude oil stocks of 500,000 barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration - the market benchmark - will be out on Wednesday.
 
Riyadh kept production little changed in May, pumping 9.705 million barrels per day, according to industry sources, supporting Naimi's view that the market did not need more.
 
OPEC has steered a course around the loss of over a million barrels per day of oil from Libya, as the crisis there deepened to its worst since the civil war three years ago.
 
Oil Minister Omar Shakmak said on his arrival in Vienna that output had fallen below 200,000 bpd, a fraction of Libya's 1.6 million bpd before the conflict.
 
He at least welcomed the oil price.
 
“This is positive for the market, it's for the benefit of producers and customers alike,” Shakmak said.
 
Prices "elevated"

The IEA in its May report said oil prices remained “elevated” and market balances called for a “significant rise” in OPEC production from current levels for the second half of the year.

As well as unrest in Libya, western sanctions on Iran have also cut OPEC supplies, but output recovered in May close to the 30 million bpd target as extra barrels from Iraq and Angola helped offset the unplanned reductions.
 
“With the current low price volatility, OPEC has no incentive to change anything when it also has to deal with the uncertainty of Libya and Iran,” said Olivier Jakob, oil analyst at Petromatrix.

Also, there are worries of potential supply strains as Ukraine risks sliding into all-out civil war, the French news agency AFP reported, noting that investors are concerned that a full-blown conflict in Ukraine would disrupt supplies and send energy prices soaring.

Some information for this report provided by Reuters, AFP and AP.

You May Like

Multimedia US Defense Secretary: Iraqi Forces Lack 'Will to Fight'

Ash Carter criticizes Iraq's reaction to Islamic State; National Security Advisor Susan Rice echoed Carter's concerns in an interview on CBS More

Boko Haram Surrounds Havens With Land Mines

Chad and Cameroon say huge numbers of land mines planted by Boko Haram fighters along Cameroon's border with Nigeria are a danger to people, livestock and soldiers More

Women Activists for Peace Cross Korean DMZ

Governments of Koreas give international delegation of women peace activists permission to pass through heavily fortified boarder, but some critics say symbolic crossing only benefits Pyongyang More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs

World Currencies

EUR
USD
0.8957
JPY
USD
120.93
GBP
USD
0.6393
CAD
USD
1.2199
INR
USD
63.470

Rates may not be current.