Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Kerry Saudi King discuss oil supply says US official  Join our daily free Newsletter

MENAFN - Arab Times - 29/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Annon ireland june 28 (agencies): us secretary of state john kerry and saudi king abdullah briefly discussed global oil supplies during a meeting on the crisis in iraq on friday a senior state department official said. during the talks kerry referred to recent comments by a saudi oil official that the world's largest oil producer would increase supplies should crises in iraq or syria disrupt supplies the official said. 'the secretary noted positively a recent statement from an oil official in the kingdom reflecting the kingdom's desire to do what will be required in the event of any turbulence' said the state department official who briefed reporters on the talks. the official said kerry believed the saudi official's comments were 'constructive.'

us officials have expressed the belief that concerns in oil markets will ease once a more inclusive government is formed in baghdad that can deal with a sunni insurgency threatening to break apart ira

saudi arabia was kerry's last stop in a week-long tour of capitals in europe and the middle east which included a visit to baghdad to address the crisis that threatens to tear apart iraq. the united states wants the saudi arabia to use its influence among fellow sunnis in iraq to press them to join the new government. brent crude oil was little changed in trading on friday following one of the international benchmark's biggest weekly falls this year due to reduced concerns over exports from iraq.
prices have dropped more than 2 from a nine-month high of 115.71 hit on june 19 as output from iraq's southern oilfields which produce most of that nation's 3.3 million barrels per day (bpd) remained unaffected by fighting in the north and west.

reco

oil markets have staged only a muted reaction to the bloody insurgency gripping opec's number two producer iraq but analysts warn any disruption to supplies could push prices to record peaks. the offensive led by the islamic state of iraq and the levant (isil) that has swept through the north of the country and is now threatening to rip iraq apart has sent prices to nine-month highs but they remain 30 below the peaks hit in 2008. 'this contrasts with the period of civil war in libya in early 2011 that halted production. back then oil prices volatility and skew all reacted far more aggressively' said bnp paribas analysts harry tchilinguirian and gareth lewis-davies.

'the reason for the orderly advance this time is simple: we have not had an actual supply disruption.' brent oil has risen by only 6.0 percent since the beginning of the latest crisis in iraq to a high point of 115.71 in the middle of june. the price had surged by almost 35 percent in 2011 to a high of 127.0

another example is the 16 percent the european benchmark jumped in a month to 128.40/bbl when the eu imposed an embargo on iranian oil at the end of january 2012. in dubai oil futures have even turned bearish dropping a fifth from their may peak as traders fret about what impact the crisis in iraq could have if it spills into the broader region.

'with the exception of the first couple of days following the onset of the iraqi crisis oil markets have remained admirably calm' said analysts at pvm. that is mainly because there has been little actual disruption to exports from iraq so far. insurgents have forced the shutdown of the country's main oil refinery but have not managed to break into the key kirkuk oilfield in the autonomous region of kurdistan or hit the main oil fields in the south. opec's second-largest supplier produces around 3.3 million barrels of crude a day (bpd) and exported around 2.6 million in may ? less than the 3.52 million bpd the iea estimates the cartel could produce if needed.

commerzbank argues any real disruption to exports is 'very unlikely' as the militants are unlikely to make any real headway in the shiite-dominated southern regions which account for 90 percent of exports. 'it is first and foremost the fear of disrupted supply in iraq that is causing the risk premium on the oil price to rise' said analysts at the bank. 'assuming ? as we expect ? these interruptions fail to materialise the oil price is likely to shed its fear-driven gains again just like it did in the late summer of 2013 and to fall back to below the 110 per barrel level.'

still as abhishek deshpande at natixis argues any substantial reduction in shipments 'could take global spare capacity dangerously close to zero' and so push prices to above 120/bbl. the problem could be particularly acute in the summer when the 12-nations in opec tend to have less spare capacity due to higher demand and so could force the iea to release stocks to calm world markets as it has done in the past. 'events in 2007-8 are clearly our closest guide to how high prices could go in such a scenario' said deshpande.


 


Arab Times




  MENA News Headlines
 Sep 19 2014 - Anaesthesia additive blamed for Syria measles vaccine deathsAFP
(MENAFN - AFP) Syria's opposition said Thursday that 16 children who died during a measles vaccination campaign in the mostly rebel-held province of Idlib had been given an anaesthesia additive by ...

 Sep 19 2014 - Travels triumph in Kanoo cricketArab News
(MENAFN - Arab News) RIYADH: Travels Division scored a comfortable 30-run win over Kanoo Freight to emerge champions in the Kanoo Inter-Division cricket tournament held here recently.Put into bat by ...

 Sep 19 2014 - Scots vote to stay in the United KingdomArab News
(MENAFN - Arab News) EDINBURGH: Scotland spurned independence in a historic referendum that threatened to rip the United Kingdom apart sow financial turmoil and diminish Britain's remaining global ...

 Sep 19 2014 - Tropical storm flooding shuts down Philippine capitalArab News
(MENAFN - Arab News) MANILA: Heavy rains brought by the outer bands of Tropical Storm Fung-Wong shut down the Philippine capital Manila on Friday stranding motorists and forcing tens of thousands to ...

 Sep 19 2014 - Modi: Indian Muslims will live for India die for IndiaArab News
(MENAFN - Arab News) NEW DELHI: India's new prime minister has dismissed Al-Qaeda's plan to set up a South Asia branch saying it was 'delusional' to think the country's Muslim minority would follow ...

 Sep 19 2014 - British business welcomes Scotland staying in UKArab News
(MENAFN - Arab News) LONDON: Britain's business community breathed a sigh of relief on Friday after Scotland voted by a clear margin to remain in the United Kingdom.Markets had fretted that ...

 Sep 19 2014 - French criminal arranges own funeral to escape justiceArab News
(MENAFN - Arab News) PARIS: A French criminal came up with a cunning plan to escape the long arm of the law by announcing his own funeral which both the police and his unsuspecting granny ...

 Sep 19 2014 - Zambia president: 'I am not dead'Arab News
(MENAFN - Arab News) LUSAKA : Zambia's elusive President Michael Sata made a rare public appearance Friday opening a new session of parliament and declaring 'I am not dead.'The 77-year-old leader who ...

 Sep 19 2014 - Ellison gives up Oracle CEO role becomes chairmanArab News
(MENAFN - Arab News) Oracle announced that its flamboyant hard-charging chief executive Larry Ellison will step down after nearly 40 years running the company he co-founded in 1977.The 70-year-old ...

 Sep 19 2014 - Pakistani National Assembly Speaker to Visit Bahrain SaturdayQatar News Agency
(MENAFN - Qatar News Agency) Manama September 19 (QNA) - Pakistan National Assembly Speaker Sardar Ayaz Sadiq will begin on Saturday a two-day visit to the Kingdom of Bahrain . The Pakistani official ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help