Kuwait expects oil price to ease

Updated 02 July 2014
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Kuwait expects oil price to ease

KUWAIT CITY: Kuwait Oil Minister Ali Al-Omair said he expects oil prices to ease following a rise prompted by unrest in oil-producing OPEC members Iraq and Libya.
“Markets have witnessed a slight increase recently, but this rise will not last for long as prices will stabilize.
They have already started to ease and return to normal levels,” said Omair, cited by the KUNA news agency.
He attributed the prise rise to violence in Iraq and Libya, both key oil producers and exporters in the Organization of Petroleum Exporting Countries.
Omair said that the violence in Iraq, where militants launched a lightning offensive on June 9, has not impacted crude supplies.
The violence in Iraq has a direct bearing on global crude prices because the country is the second-largest oil exporter in the 12-nation OPEC after Saudi Arabia.
Iraq sits on more than 11 percent of the world’s proven resources and produces 3.4 million barrels a day.
Militants have overrun swathes of territory there, but have so far yet to directly threaten the key oil-producing region in the south.
In Libya, where a NATO-backed uprising in 2011 toppled and killed former dictator Muammer Qaddafi, tensions were raised when a rogue former general began a campaign in May to rid the eastern city of Benghazi of radicals, drawing many regular army units to his cause.
Oil prices edged higher in Asia on Wednesday as dealers await the release of a US stockpiles report for clues about demand in the world’s top crude consumer.
US benchmark West Texas Intermediate for August delivery rose 10 cents to $105.44, and Brent crude gained nine cents to $112.38 in afternoon trade.


OPEC allies including Russia back output hike: Angola

Updated 5 min 2 sec ago
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OPEC allies including Russia back output hike: Angola

VIENNA: Russia on Saturday joined partner countries in backing an OPEC-led pledge to boost oil production in response to growing global demand, Angolan Oil Minister Diamantino Azevedo said.
“We have agreed,” Azevedo told reporters after a meeting with OPEC ministers and 10 non-OPEC partner countries in Vienna.
The green light was widely expected after energy ministers from the Organization of Petroleum Exporting Countries already agreed on Friday to raise output by one million barrels a day.
The proposal is the result of a face-saving compromise hammered out after days of tense talks in Vienna dominated by Iran’s resistance to easing an 18-month-old supply-cut deal that has lifted oil prices to multi-year highs.
Saudi Arabia, supported by Russia, was strongly in favor of pumping more oil to ease fears of a supply crunch and quiet grumbles about the higher prices in major consumer countries like the United States, China and India.
But Iran, bracing for the impact of fresh US sanctions on its oil exports, fiercely objected to raising output targets, as did countries like crisis-hit Venezuela and Iraq who are unable to raise output in the near term.
In the end, a vaguely-worded statement that made no mention of the one-million figure allowed all sides to save face.
Ministers also acknowledged that production problems in several countries meant the real number of extra barrels coming to the market would be several hundred thousand less.
Markets were disappointed with the modest output hike, sending crude prices soaring on Friday.
Brent crude added $2.50 to finish at $75.55 a barrel, while the US benchmark West Texas Intermediate gained $3.04 at $68.58 per barrel.