Subscribe to our free daily newsletters
  Energy News  




Subscribe to our free daily newsletters



ENERGY TECH
OPEC needs to up output before new crisis

disclaimer: image is for illustration purposes only
by Staff Writers
London (UPI) Feb 21, 2011
Oil producer group OPEC needs to increase production to meet a growing global demand before considering further risks to supply from the developing crisis over democratic rights in the Middle East, the London Center for Global Energy Studies said Monday.

A CGES monthly report challenged the Organization of Petroleum Exporting Countries' position, frequently stated by oil-producing states' energy ministers, that the current oil supplies were sufficient to meet global demand.

"OPEC insists that the world is well-supplied with oil and that prices are reflecting speculation," said the center, in a reference to recent spurts in crude oil prices. "OPEC thus shows no sign of raising output."

Crude oil prices jumped to more than $93 per barrel in New York Monday. On the New York Mercantile Exchange, oil climbed 8.3 percent or more than $7 over the weekend to $93.47 per barrel.

It said that unrest in the Middle East since Tunisia's "Jasmine Revolution" and the resignation of Egyptian President Hosni Mubarak raised concerns about the security of supply but oil prices were rising before those developments and were rooted in firmer fundamentals.

Oil supplies were tight worldwide and stock cover went down by four days during 2010 and now was at levels last seen in 2008, said CGES, countering OPEC argument there was enough oil around to meet current needs.

"OPEC insists that the world is well-supplied with oil, arguing that potential customers are not being turned away and oil inventories remain high," said the think tank.

It said the real picture was patchy. Parts of the world, including the United States, are well-supplied with oil and that supply situation is seen behind recent falls in WTI prices.

Elsewhere, including Europe, the outlook is different. End-January crude oil stocks in Europe were at a six-year low for that time of year, while strong demand in East Asia continued to draw supplies out of the Atlantic Basin and Mediterranean sources.

Oil stocks elsewhere outside the former centrally planned economies of the former Soviet Union, China and Eastern Europe, also fell and further reduced forward cover.

CGES believes OPEC member countries are now pushing for prices in the $100-$120 a barrel range.

"As long as the Chinese continue to buy large, and growing, volumes of crude, most OPEC members see little need to act to bring down prices, while those who are usually more inclined to do so appear unwilling to act alone this time around," said the think tank, in a reference to December 2010 OPEC talks in Ecuador where members seemed divided on a future production and price strategy.

"The governments of several OPEC countries feel the need for a quick boost to their revenues as they seek to raise social and security spending in the face of the wave of unrest sweeping North Africa and the Middle East, and this can best be achieved through higher prices."

CGES said, "OPEC appears oblivious to the potential for high oil prices to derail the global economic recovery and undermine future demand for its own oil.

"The organization has always been slower to act to stop prices from rising than it has been to prevent them falling," said the think tank.



Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


ENERGY TECH
Study Finds Massive Flux Of Gas And Liquid Oil At BP Gulf Well
Athens GA (SPX) Feb 21, 2011
A new University of Georgia study that is the first to examine comprehensively the magnitude of hydrocarbon gases released during the Deepwater Horizon Gulf of Mexico oil discharge has found that up to 500,000 tons of gaseous hydrocarbons were emitted into the deep ocean. The authors conclude that such a large gas discharge-which generated concentrations 75,000 times the norm-could result ... read more







ENERGY TECH
Energy sector deals to increase, PwC says

Vietnam to hike electricity prices

EU, Russia meet for top-level energy talks

Australia's electricity prices to rise

ENERGY TECH
Nigerian state energy firm wants to boost exports to China

OPEC needs to up output before new crisis

Chinese footprint in Argentina oil grows

Google-backed startup zaps electricity waste

ENERGY TECH
Eon to build fifth U.K. offshore wind farm

GL Garrad Hassan Launches Onshore Wind Resource Mapping For UK

Construction Begins On Dempsey Ridge Wind Project

India's Suzlon wins $1.28 bn wind power deal

ENERGY TECH
Vanguard Energy Partners Builds Five Solar Arrays In New Jersey

Solar Power At Former Norton Air Force Base

Phillips-Van Heusen Selects Solis Partners To Install Solar PV System

Multifunction Shipper Maximizes Shipping Density For PV Makers

ENERGY TECH
Saudi, France sign peaceful nuclear cooperation pact

Spent Nuclear Fuel Is Anything But Waste

Unrest delay Egypt's nuclear power plant tender

EDF repairs reactors amid anomalies

ENERGY TECH
Green Chemistry Offers Route Towards Zero-Waste Production

Agave Has Tremendous Potential As New Bioenergy Feedstock

Advanced Ethanol Leaders Join RFA to Form New Advocacy Council

Study: Meeting biofuel goal may be costly

ENERGY TECH
China Mars probe set for November launch

Shenzhou 8 Mission Could Top Three Weeks

U.S. wary of China space weapons

Slow progress in U.S.-China space efforts

ENERGY TECH
Global warming means longer allergy seasons: study

If Greenhouse Gas Emissions Stopped Now, Earth Still Would Likely Get Warmer

2.4 million in Somalia face drought: UN

Cross-Border Conservation Vital To Protect Birds In A Climate-Change World


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement