World News
Gulf Delegate: No OPEC Output Cuts Unless Non-OPEC Producers Do the Same
A senior Gulf delegate of the Organization of the Petroleum Exporting Countries (OPEC) told Reuters this week that if non-OPEC crude producers aren't willing to help in reducing supplies, then OPEC will likely maintain its current oil output.
The unnamed delegate, who noted that demand for crude is expected to remain strong in 2016, said, "It is a difficult situation for OPEC to cut alone then others increase their production. If non-OPEC did not cooperate, OPEC is likely to keep its policy unchanged."
The delegate went on to state that higher than normal commercial stocks is keeping prices from taking off, and "the expectation now with oil production from many areas such as in the United States and North Sea will go down, stocks will start going down by early next year."
He added, "When you start seeing stocks going down, you will start seeing prices going up."
The International Energy Agency predicts that oil demand will slow in 2016 and that this combined with an expected increase in Iranian exports will keep the market oversupplied.
The latest comments add to a growing number of signs that indicate oil prices, and by implication, bunker prices will remain low in the near to medium-term.
Earlier this week, a leaked internal OPEC report revealed that the organization expects crude prices to remain under pressure through to 2019.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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