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.


 






  MENA News Headlines
 Jul 28 2014 - Muslims mark sombre Eid in bloodied GazaAFP
(MENAFN - AFP) The end of a month of fasting was supposed to be a time to celebrate for Abeer Shamali. But instead, she spent the Muslim Eid feast at the grave of her teenage son. Fellow mourners ...

 Jul 28 2014 - Radiant During RamadanMuscat Daily
(MENAFN - Muscat Daily) Keep your skin and hair glowing and shiny even as you're fasting in this holy month. Some tips... Moisturise Your skin too gets dehydrated when you fast. It is ...

 Jul 28 2014 - Cream of the CropMuscat Daily
(MENAFN - Muscat Daily) Mahmood Said Humaid al Shibli glances at the wall clock. It's 11am with change, and only two hours to ''go to plate''.  There's crepes to layer, oranges to slice and ...

 Jul 28 2014 - Coaches satisfied with Mansoor's performance at youth sailing worldsMuscat Daily
(MENAFN - Muscat Daily) Despite young Mansoor al Mahrooqi's last-place finish in a field of 57 sailors in the Laser Radial class at the ISAF Youth Sailing World Championship held recently, Oman ...

 Jul 28 2014 - ORT set for Belgian challengeMuscat Daily
(MENAFN - Muscat Daily) Oman Racing Team (ORT), led by Muscat-based racer Ahmad al Harthy, has managed just 12 points over the past three rounds of the 2014 Blancpain Endurance Series. Despite ...

 Jul 28 2014 - Alizz islamic bank reports RO2.6mn lossMuscat Daily
(MENAFN - Muscat Daily) Alizz islamic bank has reported a loss of RO2.6mn for the period ended June 30, 2014 which the bank said, in a disclosure to the Muscat Securities Market, "is in line ...

 Jul 28 2014 - Duqm Airport takes offMuscat Daily
(MENAFN - Muscat Daily) The newly opened Duqm Airport received its first Oman Air flight ahead of schedule on Wednesday with officials saying that the facility will serve as an air transport and ...

 Jul 28 2014 - All you want to know about Oman - on a busMuscat Daily
(MENAFN - Muscat Daily) Highlighting the leadership of His Majesty Sultan Qaboos bin Said, the National Centre for Statistics and Information (NCSI) has launched a new initiative that will see public ...

 Jul 28 2014 - Air fares rise by 35 as travellers rush to make the most of long breakMuscat Daily
(MENAFN - Muscat Daily) Fares of most airlines have gone up due to the increase in demand during Eid al Fitr holidays. The prices of tickets to different destinations have gone up by nearly 35 per ...

 Jul 28 2014 - MoHC invites bid for construction of $250mn Oman Cultural ComplexMuscat Daily
(MENAFN - Muscat Daily) After announcing the appointment of the UK-based international consultancy and construction company, Mace as project manager for the Oman Cultural Complex (OCC), the Ministry ...

more...


 






Google

Click to Apply

 
 

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