Arab Today, arab today gulf producers to resist cuts at opec meet
Last Updated : GMT 07:58:57
Arab Today, arab today
Arab Today, arab today

Preserving market share remains top priority

Gulf producers to resist cuts at OPEC meet

Arab Today, arab today

Arab Today, arab today Gulf producers to resist cuts at OPEC meet

Gulf oil producers, led by Saudi Arabia
Kuwait City - Arab Today

Gulf oil producers, led by Saudi Arabia, will resist attempts to cut output at an OPEC meeting next month as preserving market share remains their top priority, industry analysts say.

A decision by the 12-member Organisation of Petroleum Exporting Countries not to cut production in November sent prices crashing 60 percent before a partial recovery in recent weeks.

Gulf and other OPEC members said they wanted to safeguard their share of a market that has faced a supply glut as a result of sharp increases in the production of shale and sand crudes.

"Preserving market share still remains a top priority for Gulf states," Saudi economist Abdulwahab Abu-Dahesh said.

"This time they are even encouraged by signs their November strategy is working after a drop in US shale oil production and in the number of rigs," Abu-Dahesh told AFP.

In the face of the sharp drop in their earnings, some OPEC members, led by Iran and Venezuela, have publicly called for the cartel to cut production to support prices.

"I don't thing that any change will happen at OPEC's meeting," a former member of Kuwait's Supreme Petroleum Council, Musa Maarafi, said.

"Gulf states will continue to defend their market share and it is their right to do so," Maarafi told AFP.

"They will not accept to cut output at their own expense unless an agreement is reached with non-OPEC producers."

The burden of any cut in OPEC output would likely fall on the cartel's Gulf members -- Saudi Arabia, Kuwait, the United Arab Emirates and Qatar -- whose production has risen by around 3.5 million barrels per day since 2011.

Currently, they pump 16.8 million bpd, or 55 percent of OPEC's total, with Saudi Arabia accounting for 10.3 million bpd. They export around 12.5 million, almost two-thirds of the cartel's total.

- Mounting competition -

Head of marketing at national oil conglomerate Kuwait Petroleum Corp. (KPC) Jamal al-Loughani told a symposium last week that a change in the global energy map has made market share a highly sensitive issue.

He said the sharp rise in US production to 9.4 million bpd had allowed Washington to stop light crude imports from Africa.

It also cut imports of heavy oil from Latin America, substituting it with Canadian sand oil.

"That led African and Latin American exporters to seek new markets in the east," said Loughani, adding that more than 3.0 million bpd of additional high good quality crudes are being pumped into these markets in competition with Gulf exports.

"That places additional pressure on OPEC members, especially Gulf exporters, to cooperate to maintain market share and even ensure new takers for additional quantities in the future," he said.

A relative rebound in prices and a drop in US shale oil output is likely to convince OPEC to continue with its strategy.

Data from the US Department of Energy showed US crude production dropping 112,000 bpd to 9.26 million bpd in early May.

"Prices are improving, growth in supplies from outside OPEC -- especially shale oil -- is lower than before and demand is recovering," Kuwait's governor at OPEC Nawal al-Fuzai told reporters last week.

Over the past few weeks, oil prices have climbed about 40 percent but remain well below their levels of more than $100 a barrel in June last year.

Fuzai said crude oversupply dropped from around 2 million bpd late last year to between 1 million and 1.2 million now.

But Commerzbank warned in early May that "the oil market will continue to be oversupplied until OPEC significantly cuts its output."

And the International Energy Agency reported that the cartel's output hit 31.21 million bpd in April, the highest level since September 2012.

"It would thus be premature to suggest that OPEC has won the battle for market share," the IEA said. "The battle, rather, has just started."
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gulf producers to resist cuts at opec meet Arab Today, arab today gulf producers to resist cuts at opec meet

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gulf producers to resist cuts at opec meet Arab Today, arab today gulf producers to resist cuts at opec meet

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday