Building a world of
resilient communities.

MAIN LIST

 

Saudi Oil Minister Calls on OPEC to Increase Output

Saudi Arabia's oil minister said the Organization of Petroleum Exporting Countries should increase quotas by 6.4 percent, causing the biggest drop in crude oil prices in more than a month.

The group, producer of more than a third of the world's oil, should boost its output target by 1.5 million barrels per day, from 23.5 million now, Saudi oil minister Ali al-Naimi said in a faxed statement.

``It is certain that the kingdom believes that increasing the OPEC production ceiling would keep supply and demand in balance,'' al-Naimi said in the statement. ``We in the kingdom estimate the required increase of the ceiling should not be less than one and a half million barrels per day.''

Oil prices last week reached to $40 a barrel in New York for the first time since the 1990-1991 Persian Gulf war on concern of potential gasoline shortages in the U.S. during the summer travel season. New York crude lost as much as $1.31 a barrel, or 3.3 percent, to $38.62 a barrel in electronic trading. Brent crude slid as much as $1.40 to $35.60 and was down $1.12 a barrel as of 11:08 a.m. in London.

The quota increase will be discussed among OPEC oil ministers during the International Energy Forum to be held in Amsterdam next week. OPEC ministers should issue a decision to increase quota during their meeting on June 3 in Beirut, the Saudi minister said.

Rising Demand

Al-Naimi said demand for oil is expected to increase in the second half of this year because of greater consumption from Asian countries.

``We do not want to see oil prices at the level that they negatively affect the growth of the international economy or the demand for oil,'' al-Naimi said.

Saudi Arabia, the world's biggest oil exporter, and nine other OPEC members lowered output quotas by 1 million barrels a day as of April 1 to 23.5 million a day to offset an expected drop in demand.

Al-Naimi blamed oil price increases on ``the market's unwarranted fear of disruptions in supplies from some oil- producing countries, when only the kingdom and probably two other countries have spare production capacity.''

Expected shortages of some types of gasoline in the U.S. and speculation in the future crude markets have also driven oil prices to high levels, he said.

``The kingdom's policy is based on clear fundamental principles -- maintaining enough supplies to avoid prices and fluctuation which might negatively affect producers, consumers and the oil industry as well,'' the minister said.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

As Nations Embrace Paris Agreement, World’s Existing Fossil Fuels Set to Exceed its Goals

Entitled “The Sky’s Limit: Why the Paris Climate Goals Require a …

Naomi Klein & the Let­down of the Leap Manifesto: Poli­tics Doesn't Trump Physics, Nor the Economics of Collapse (part 2/3)

Politics can be egalitarian when going up Hubbert's Curve, but it's a whole …

Carbon Tracker Analysis: ‘Renewables are Already Outcompeting Fossil Fuels’

Clean technologies are already cheaper, on average, than the incumbent …

Timeline: The Past, Present and Future of Germany’s Energiewende

The Energiewende (energy transition) is an internationally recognised …

The Sower's Way: the Path for the Future

Our paper on "The Sower's Way" has been published in the IOP …

Just 16,000 Catenary Trucks Would Use All of California’s Electricity with only 2400 to 8300 Miles of Overhead Wires

It makes sense to electrify trucks since fuel from oil, coal, and natural …

The Energy-Water Nexus  

Energy and water are inextricably linked: It takes energy to supply water, …