Lloyd's List is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call UK support at +44 (0)20 3377 3996 / APAC support at +65 6508 2430

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Opec maintains production output

THE tanker industry breathed a sigh of relief over the weekend when the Organisation of Petroleum Exporting Countries decided not to cut oil production in the second quarter of this year. The cartel met on Sunday to outline an output strategy for the next three months and decided to enforce the existing production targets set at the end of last year. There were fears that another cut in oil exports would put more pressure on tanker rates, especially for ships operating out of the Middle East and Africa. Since September last year, Opec has cut production targets by 4.2m barrels per day to halt the slump in oil prices from more than $140 per barrel in July to $45 per barrel this month. “The good news is Opec decided not to hold another round of cuts and will maintain their current production quotas,” said brokers with Imarex Asia. “There should not be any massive demand destruction [for tankers]. However, Opec will still aim to focus more on enforcing existing production cuts.” Analysts said Opec could still reduce output levels by 800,000 bpd to comply with the cuts agreed in December 2008. Production cuts would also have affected demand for liquefied petroleum tankers as LPG is a by-product of crude and gas production operations in the Middle East.

Advertisement

Topics

Advertisement
UsernamePublicRestriction

Register

LL054496

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel