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OPEC as no spare capacity

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  • P. Neuman self only
    ... Date: Tue, 03 Aug 2004 17:00:50 -0000 Subject: [energyresources] OPEC as no spare capacity OPEC head: We have no extra oil Cartel s president calls crude
    Message 1 of 1 , Aug 3, 2004
      --------- Forwarded message ----------
      Date: Tue, 03 Aug 2004 17:00:50 -0000
      Subject: [energyresources] OPEC as no spare capacity

      OPEC head: We have no extra oil

      Cartel's president calls crude prices "crazy," warns of supply
      shortage as demand accelerates.
      August 3, 2004: 7:11 AM EDT

      JAKARTA (Reuters) - OPEC has no extra oil to immediately supply the
      world market to cool record-high prices, the head of the group said

      "The oil price is very high, it's crazy. There is no additional
      supply," said OPEC president Purnomo Yusgiantoro, who is also
      Indonesia's oil minister.

      U.S. oil hit a high of $44.24 a barrel Tuesday, the highest since
      crude futures were launched on the New York Mercantile Exchange in
      1983. London's Brent crude jumped 48 cents to hit a high of $40.45 a

      "Minister Naimi has said Saudi Arabia can increase production, but
      they cannot do it immediately," said Purnomo, referring to Ali al-
      Naimi, oil minister for the world's biggest exporter, Saudi Arabia.

      A Gulf industry source said late last month that Saudi Arabia may
      boost production to 9.5 million barrels per day (bpd) in August.
      That output level would be just a million bpd below the country's
      full capacity.

      Purnomo's comments echoed those Monday of Algerian Oil Minister
      Chakib Khelil, who said the Organization of the Petroleum Exporting
      Countries had done all it could to stop this year's oil price rally.

      "OPEC can do nothing," Khelil told reporters in Algiers.

      International oil prices have surged more than one-third since the
      end of 2003 as global demand has accelerated with robust economic
      growth, stretching world production almost to its limits.

      Security fears in the Middle East, which pumps about one-third of
      global output, and supply disruptions or potential outages in other
      major producers such as Nigeria, Norway and Russia have helped boost
      oil markets higher.

      Some industry estimates indicate that OPEC, which accounts for about
      40 percent of supply, is pumping close to 30 million bpd of crude
      for the first time since 1979.

      The group, which raised its official production limits to 26 million
      bpd on Aug. 1, has been producing way over its self-imposed ceiling
      to try and dampen soaring prices.

      The official limits exclude Iraq, where exports are expected to
      reach between 1.7 and 1.8 million bpd this month as operations
      recover from a series of sabotage attacks earlier this year.

      Copyright 2004 Reuters All rights reserved. This material may not be
      published, broadcast, rewritten, or redistributed.

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