The Bunker Review was contributed to IAA PortNews by Marine Bunker Exchange
West Texas Intermediate headed for the lowest close in 16 months yesterday 91.67 (-1.08) and Brent dropped 0.7 percent and closed at 98.04(-1.12). Today Thursday CET 12:07, oil prices continue to drop and WTI has dropped further to 91.18 (-0,49) and Brent 97.39 (-0.65) USD per barrel. The reason for the price drop is said to be the rising of U.S. crude output, which will add to the already high excess supply.
The Saudi Arabia’s oil minister, Ali al-Naimi, said he’s not worried about the decline in prices. OPEC trimmed its output target by the most in three years amid surging U.S. production. Oil prices always fluctuate, and this is normal,” al-Naimi told reports in Kuwait on Thursday.
The oversupply and the economics are not really supporting the demand picture that’s driving prices lower. The production frontier is shifting and geopolitical risk is waning. Oil prices have decreased about 7 percent this year.
Oil prices are expected to decrease next year as U.S. crude production reaches a 45-year high, the EIA said Sept. 9. WTI will average $94.67 a barrel in 2015 versus the August projection of $96.08, the government forecast said in its monthly short-term Energy Outlook. It trimmed its Brent crude estimate for next year to $103 from $105.
OPEC expects it will need to pump an average of 29.2 million barrels a day of crude next year, 200,000 a day less than it forecast a month ago, the Vienna-based group said in its monthly market report yesterday.
Supply from non-OPEC producers, led by the U.S., Canada and Brazil will increase by 1.3 million barrels a day next year to 57.6 million a day.
Bunker prices are expected to continue slide, with a possible rebound next week.
All prices stated in USD / Metric Ton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)