The Bunker Review is contributed by Marine Bunker Exchange
OPEC members are meeting in Vienna tomorrow the 31st of May, to discuss the output target. It is expected that the 12 members will maintain its target of 30 million barrels a day. Many are of the opinion OPEC needs to conform better with production limit to avoid supply from overwhelming demand. SocieteGenerale SA said the necessary reduction could be substantial. The Centre for Global Energy Studies also said prices may tumble without output curbs.
The OPEC countries, which accounts for 40 percent of global oil supply, has not stuck so closely to its output ceiling since the current level was set in December 2011, according to data compiled by Bloomberg. That has not stopped Brent crude oil, against which more than half the world’s crude is priced, losing 7.3 percent this year, and falling as low as $96.75 a barrel on April 18, due to a combination of slowing global demand and surging U.S. shale supplies. The world oil market will face an increasing robust oversupply and demand will keep up with the increased volumes available. OPEC will most likely be the one to cut back on production, since they will lose buyers producing their own shale oil.
Bank of America Corp. cut its 2014 Brent crude price estimated to $105 a barrel from $112, citing the combina-tion of lower demand and higher supply. There is a growing possibility that Brent will move into a range of $90-$100 after next year, since there is less of a structural oil market deficit on softer emerging market activity and the rise in non-conventional oil supplies, the bank said in a report dated yesterday.
U.S. crude output is near its highest in two decades as horizontal drilling and hydraulic fracturing, or fracking, unlock supplies from shale deposits in Texas and North Dakota. The nation pumped 7.4 million barrels a day in the week to May 3, the most since 1992, according to the Energy Department.
West Texas Intermediate (WTI) and Brent crude oil slid on Wednesday near a four-week low, headed for a second month of declines, as investors bet signs of continued U.S. economic growth will strengthen the case for reduced stimulus.
For the coming week oil prices are expected to continue its downward trend.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-05-30 |
580 |
605 |
|
Rotterdam 2012-05-30 |
609 |
666 |
|
|
|
|
|
Gibraltar 2013-05-30 |
595 |
645 |
|
Gibraltar 2012-05-30 |
649 |
705 |
|
|
|
|
|
St Petersburg 2013-05-30 |
536 |
565 |
|
St Petersburg 2012-05-30 |
390 |
500 |
|
|
|
|
|
Panama Canal 2013-05-30 |
605 |
685 |
|
Panama Canal 2012-05-30 |
622 |
- |
|
|
|
|
|
Busan 2013-05-30 |
614 |
740 |
|
Busan 2012-05-30 |
656 |
- |
|
|
|
|
|
Fujairah 2013-05-30 |
603 |
730 |
|
Fujairah 2012-05-30 |
653 |
- |
All prices stated in USD / PMT
All time high Brent= $147.50 (July 11, 2008)
All time high Light crude (WTI)= $147.27 (July 11, 2008)
|
Product |
Close May. 29 |
|
Light Crude Oil (WTI) |
$93.13 |
|
Brent Crude Oil |
$102.43 |