World News
IEA: Weak Crude Prices Harming Non-OPEC Oil Investment
Weak oil prices are discouraging conventional oil supply investment in countries not a part of the Organization of the Petroleum Exporting Countries (OPEC), leading to a fear that it will affect the flexibility of the markets, Platts reports.
According to the International Energy Agency's (IEA) director for energy markets and security, Keisuke Sadamori, a decline in investment in non-OPEC countries is likely to draw emphasis back to OPEC producers.
"If we see quite a substantial decline in upstream investment in conventional sources in non-OPEC countries, then the power to supply the marginal barrel will go back to the hands of the OPEC producers and they are also facing the extremely difficult unstable geopolitical situation," he said.
"Ensuring the security of supply supported by robust upstream and downstream investments will continue to be the priority and that's going to be a huge challenge in the coming decades."
The current "war" between the oil producers is one that IEA says OPEC is winning, but the cost of defending market share has had a considerable impact on prices, and pushed bunker prices down their lowest in over a decade.
Last week IEA predicted that next year non-OPEC oil production will make the biggest decline in 24 years but it still may not be enough to clear the current oil glut.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 548.00 | 0.50 | 677.50 | 2.00 |
| Rotterdam | 513.00 | 0.50 | 649.00 | 3.00 |
| Houston | 544.50 | 2.50 | 675.00 | 4.00 |
| Fujairah | 541.50 | 2.50 | 744.00 | 3.50 |
| Global 20 Ports Average | 572.00 | 2.50 | 758.00 | 2.50 |
| Global 4 Ports Average | 536.50 | 1.50 | 686.50 | 3.00 |
| Global Average Bunker Price | 624.00 | 2.50 | 801.00 | 3.50 |
Popular Now More
-
Dec 16The new hire previously worked for ExxonMobil from December 2018 to October of this year. -
Dec 19The new board was appointed after an extraordinary general assembly of the association's members, incoming Chairman Mustafa Muhtaroğlu tells Ship & Bunker. -
Dec 17Ossi Mettälä, product manager at NAPA Shipping Solutions, discusses the upcoming FuelEU Maritime regulation and how the shipping industry can respond.