Price fails to deter oil exporters

Date

1/21/2016 1:21:09 PM

(MENAFN- The Peninsula)

By Sachin Kumar

DOHA: Despite sharp decline in crude oil prices most of the major oil exporting countries have not cut their exports. Instead they increased oil exports during 11 months of last year.

Saudi Arabia the world’s largest oil exporter exported about 7.72 million barrels a day in November which was around 3 percent more than it exported in January 2015.

Interestingly Saudi Arabia’s shipments in November were the highest since April last year.

It exported about 7.47 million barrels per day in January last year according to the Joint Organisations Data Initiative data.

Another major exporter Iraq exported about 33 percent more oil in November than it did at the start of year. It exported around 3.4 million barrels per day in November much higher than 2.5 million barrels per day in January last year.

Russian Federation exported around 4.96 million barrels per day in October which was 7 percent higher than 4.65 million barrels per day in January.

Export figures for the United Arab Emirates were not available for November. Its export of oil in January stood at 2.96 million barrels per day lower than 2.44 million barrels per day in June last year.

Canada increased oil export by 2 percent during last year. It exported 2.36 million barrels per day in November compared to 2.31 million barrels per day.

Increased oil export from major producers has led to oversupply in global oil market that has led to sharp decline in oil prices. Brent crude futures yesterday fell by 81 cents to $27.95 a barrel after trading as low as $27.70 close to the 12-year low of $27.67 hit on Monday.

The global oil surplus will persist at least until late 2016 as demand growth slows and the Organisation of the Petroleum Exporting Countries (Opec) shows “renewed determination” to maximise output the International Energy Agency said last month.

The Peninsula

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