Saudis Ready to Hike Oil Output
Posted: 13 October 2004
News agency Reuters reports that the world’s largest oil exporter Saudi Arabia has vowed to maintain spare oil production capacity of 1.5 to 2 million barrels per day, and said it was prepared to hike output to meet customer demand.
"We plan to maintain spare capacity of 1.5-2.0 million barrels a day for the foreseeable future," Oil Minister Ali al-Naimi said.
"There is no shortage of oil and there will be no shortage of oil and we are willing to meet demand as it rises. We are pumping around 9.5 million bpd now and if our customers want more crude it's available," the minister said.
Oil prices held near record highs on Friday, October 8, even though oil unions in OPEC member Nigeria said a two-day wildcat strike would pass without any impact on exports.
U.S. light crude by 1205 GMT slipped 29 cents to $52.38 a barrel, after touching $53 on Thursday, the third day in a row prices set all-time highs.
London Brent slipped 20 cents to $48.70 after an early rally had struck a new record $49.30 a barrel.
Prices made only limited losses after a senior union official said a two-day strike by Nigerian oil workers at Royal Dutch Shell Group would end later on Friday and that exports continued normally.
Strong demand growth, particularly in China, has helped oil surge 60 percent this year, drawing OPEC to pump at a 25-year high and leaving little margin for supply disruptions or refinery outages.
Stretched supplies have been further stressed by the lingering loss of US production from the Gulf of Mexico where around 475,000 bpd remains out of commission over three weeks after Hurricane Ivan hit the region.
Oil major BP, which operates nearly half the lost output, said this week that it did not expect to restore full flows until the end of this month.
Production is also being curtailed in Norway by a rig workers strike that unions say will widen at the weekend to shut in 55,000 bpd of the nation's three million bpd.
Posted by Alexander Lindsay, Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
