World News
OPEC Secretary-General: Low Oil Price Cycle "Will Not Continue"
Abdullah al-Badri, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), says that oil prices will head higher in "a few months or a year," the Globe and Mail reports.
"I've been in the oil business all my life. I saw six cycles - I saw very high price, I saw low price, and this is one of them. This will not continue," said Badri, who was speaking at the first OPEC-India Energy dialog in New Delhi.
"In a few months or a year or so this will change."
He noted that although OPEC does not have an official target price for oil, the group's member countries want a price where they can have a "decent income."
It is also important to have a price where OPEC members can invest in more supply to consumers, he added.
Badri noted that low prices have already resulted in $130 billion worth of planned industry investment being cut this year, and that non-OPEC supplies will decline by about 400,000 barrels per day next year.
However he believes that even events like a lifting of the crude oil export ban in the U.S. will not further weaken prices or affect OPEC's production level.
In November, Ship & Bunker reported that a leaked OPEC report showed the organization's belief that crude oil prices will remain under pressure through to 2019.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 646.50 | 5.50 | 773.50 | 11.50 |
| Rotterdam | 604.00 | 5.00 | 756.00 | 5.00 |
| Houston | 630.50 | 1.00 | 798.50 | 4.00 |
| Fujairah | 650.50 | 3.00 | 897.00 | 13.50 |
| Global 20 Ports Average | 662.50 | 1.00 | 858.50 | 0.50 |
| Global 4 Ports Average | 633.00 | 3.50 | 806.00 | 6.50 |
| Global Average Bunker Price | 718.50 | 0.50 | 914.00 | 1.00 |
Popular Now More
-
Apr 23The ship had come to Singapore from St Petersburg. -
Apr 22The 46,000 DWT MR2 chemical tanker Green Land was arrested at about 3:30 PM on April 17. -
Apr 22Iranian fuel oil has been widely reported to have been resold in the bunker markets of ports in the region for years, as well as being exported further afield.