World News
Vitol Chief: Crude Oil Prices Won't Keep Falling
After Brent crude oil prices fell below $100 per barrel Tuesday, Ian Taylor, president and CEO of oil trader Vitol, said he does not expect prices to keep falling, Reuters reports.
"I think it has done what it is going to do for a while," Taylor said.
Traders said Saudi Arabia might seek to reduce crude output if prices continue to fall.
"A continued price slide is unlikely, for this would prompt OPEC to reduce supply in a bid to shore up the price," analysts at Commerzbank said.
"At an oil price of below $100 per barrel, some OPEC producers find it difficult to finance their national expenditure through oil revenues."
The drop below the $100 threshold was the first in nine months, reflecting factors including new reports of slow growth in China and the U.S.
Analysts predicted in December that oil prices would fall in 2013, forecasting an average price of $108 per barrel for Brent crude compared with $111.71 in 2012 due to global economic issues and rising U.S. oil production.
Brent was down again yesterday, falling $2.22 to $97.69 per barrel.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
Popular Now More
-
Apr 28Failing to keep track of energy density variations could be costing shipping companies as much as $25/mt in fuel bills, Shipergy CEO Daniel Rose tells Ship & Bunker. -
Apr 29The ships are accused of delivering cargo to ports under the control of Yemen's Houthi movement. -
Apr 28The product is being produced at the company's 100,000 b/d Fujairah refinery, and the firm's ship the Elandra Falcon was the first to take on the new fuel at Fujairah.