Opec keen to avoid crude supply glut amid US output increase

A view of Opec headquarters in Vienna, Austria. File photo

Dubai: Oil ministers from Opec's three biggest producers rejected the possibility of a glut in global crude supply next year amid an increase in US output and efforts by Iran and Libya to add barrels to the market.
Iraq is seeking to buy gasoil to run its power plants and requested bids for supply from February through June.

The Organisation of Petroleum Exporting Countries (Opec) won't need to cut production in 2014 because growth in demand can absorb any additional crude from Iran or Libya, ministers from Saudi Arabia, Iraq and Kuwait said after a meeting of Arab oil exporters in Doha, Qatar, on December 21.

Opec agreed when it met on December 4 to keep its output target unchanged at 30 million barrels a day because the market is balanced, said Saudi Oil Minister Ali Al Naimi, whose country is the group's largest producer. Kuwaiti Oil Minister Mustafa al-Shemali said the group doesn't need to change the target in the next six months because the market will remain stable. Iraqi Oil Minister Abdul Kareem al-Luaibi said no Opec member will need to cut output next year. 

Exports from Libya plummeted this year as political strife and labour protests shut oil fields, refineries and ports. The North African nation will resort to force if necessary to reopen the ports, its minister Abdulbari al-Arusi told reporters in Doha. The shutdown has cut Libyan output to 250,000 barrels a day from 1.4 million barrels a day in March.

In regional spot trading, Oman and Dubai grades gained for the second week in three, each adding $1.09 a barrel, or one per cent, according to data compiled by Bloomberg on Monday. Oman crude rose to $107.20 a barrel in spot trading in the week ended on December 20. Dubai increased to $107.06 a barrel.


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