-------------------------------------------------------------------
Crude Oil Rises on Renewed Concern the U.S. Will Invade Iraq
By Mark Shenk
New York, Aug. 2 (Bloomberg) -- Crude oil rose on speculation that an Iraqi bid to start talks on weapons inspections will do little to reduce chances for a U.S. invasion of the fourth-largest oil producer in the Middle East.
Prices rebounded in afternoon trading after falling earlier in the day on news that Iraq had invited United Nations official Hans Blix to Baghdad for talks on resuming inspections that have been halted for almost four years. Analysts concluded that the overture wouldn't deter U.S. President George W. Bush from his goal of deposing Iraqi leader Saddam Hussein.
``There was a knee-jerk response on the news that Mr. Blix was going to visit Baghdad, but on second look it doesn't change much,'' said Tim Evans, senior energy analyst at IFR Pegasus in New York. ``The last round of these discussions broke down on July 5, and given the history it is probable these will as well.''
Crude oil for September delivery rose 37 cents, or 1.4 percent, to $26.84 a barrel on the New York Mercantile Exchange after falling as low as $26 in early trading. Prices were up 1.1 percent for the week.
In London, the September Brent crude-oil futures contract rose 30 cents, or 1.2 percent, to $25.31 a barrel on the International Petroleum Exchange. Prices in London also rose 1.1 percent this week.
The U.S. government has been pressing for a return of weapons inspectors who have been banned from Iraq since they evacuated in December 1998 before a bombing campaign by the U.S. and U.K.
`Time for Action'
The Iraqi government must honor its commitment to provide weapons inspectors unrestricted access, White House spokeswoman Claire Buchan said.
``They know that obligation,'' Buchan told reporters accompanying Bush to Kennebunkport, Maine. ``It's time for action, not discussion.''
Bush has said Iraq will face military action if it doesn't allow the return of the inspectors. The U.S. Senate Foreign Relations Committee yesterday completed two days of hearings on whether to force Hussein from power.
Blix heads a UN commission charged with carrying out resolutions requiring Iraq to rid itself of biological, chemical and nuclear weapons and long-range missiles that could deliver them. The UN resolutions were adopted after the Persian Gulf War, sparked by Iraq's invasion of Kuwait 12 years ago today, on Aug. 2 1990.
Hussein ``has a long history of playing games,'' the U.K. Foreign Office said in a statement. ``As his track record shows, he does not deliver. Iraq remains in breach of at least 23 of 27 separate obligations'' imposed by the UN.
Iraq is permitted by the UN to export oil as an exception to economic sanctions imposed after the invasion.
Production Survey
The Persian Gulf country produced 1.93 million barrels of oil a day in July, according to a Bloomberg survey of oil companies, producers and analysts. Saudi Arabia was the largest producer among Middle Eastern members of the Organization of Petroleum Exporting Countries, followed by Iran, the United Arab Emirates and Iraq, the survey showed.
Crude-oil futures in New York rebounded partly because prices for the September contract failed to fall below $26 a barrel, a level at which historical price charts indicated there would be some buying.
``The lows were hit early in trading and when it wouldn't go below $26, the buyers started to come in,'' said Marshall Steeves, an energy analyst at investment brokerage Refco Inc. in New York. ``The situation in the Middle East is very fluid, and even though the weapons inspector is going to Iraq, that doesn't necessarily negate any U.S. plans.''
-----------------------------------------------------------
08/04 10:05
Saudi Aramco's Oil Output Fell 2.6% in 2001, Annual Report Says
By Sean Evers
Dhahran, Aug. 4 (Bloomberg) -- Saudi Arabia's crude oil production fell 2.6 percent in 2001 as the Organization of Petroleum Exporting Countries reigned in sales to keep prices close to $25 a barrel, the state oil company said.
Saudi Aramco, the largest oil company in the world, saw its output decline by 200,000 barrels a day to 7.6 million barrels a day. The company also said its natural gas reserves rose by 2.5 percent to 224.2 trillion cubic feet last year, according to its annual review.
With a population of 22 million, Saudi Arabia is developing the world's fourth-largest gas reserves to produce electricity for new industries. The economy must grow by 6 percent a year to keep unemployment at its current 15 percent.
Saudi Aramco ``met the crude oil requirements of the world market and maintained sufficient excess capacity to assure flexibility and responsiveness in the face of market uncertainties,'' Ali al-Naimi, the country's oil minister and chairman of Aramco's board of directors, said in the report.
Aramco reported that the 1.5 billion cubic feet a day Hawiyah gas plant was commissioned last year.
The kingdom, OPEC's largest producer, lead the 11-member oil exporters group in cutting output quotas by a total of 5 million barrels a day last year to avoid a glut and keep prices between $22 and $28 a barrel. OPEC agreed to maintain the cutbacks through September of this year.
----------------------------------------------------------------------
Saudi Arabia, Iran Oppose Military Strike on Iraq, AFP Says
By Tim Coulter
Tehran, Aug. 3 (Bloomberg) -- Saudi Arabia and Iran, OPEC's two biggest oil producers, oppose any U.S. military action against neighboring Iraq, Agence France-Presse reported, citing the foreign ministers of the two nations.
``We have always opposed any attack against an Arab or Muslim country, and that also means Iraq,'' Saudi Foreign Minister Saud al-Faisal said as he arrived in Tehran for talks with Kamal Kharazi, his Iranian counterpart. Kharazi said his government shared that opinion, AFP reported.
Crude oil prices yesterday rose more than 1 percent to $26.84 a barrel on traders' concern that an Iraqi bid to start talks on weapons inspections will do little to reduce chances of a U.S. invasion of Iraq, holder of the world's second-largest oil reserves. Oil prices have jumped 35 percent this year in New York, in part because of rising tensions in the Middle East.
The two foreign ministers were meeting today to discuss Middle East issues, including increasing violence between Israelis and Palestinians and what assistance the Islamic world can provide the Palestinians, AFP said.
Iraq this week invited the head of the United Nations weapons monitoring team to visit Baghdad for talks that may lead to a resumption of inspections to verify that President Saddam Hussein's regime isn't making weapons of mass destruction.
The Senate Foreign Relations Committee on Wednesday opened the first congressional hearings on a possible invasion of Iraq. Iraq in April halted UN monitored oil sales to protest Israeli violence against Palestinians. The UN monitors Iraqi oil sales because of sanctions in place after the Gulf War.
Saudi Arabia, the world's largest oil producer, has said it won't restrain oil supplies for political reasons. The last time it did so was in 1973, during the Arab-Israeli War.
-----------------------------------------------------------------------
08/04 07:00
Algeria to Ask OPEC for Higher Oil Production Quota (Update1)
By Sean Evers
Algiers, Aug. 4 (Bloomberg) -- Algeria will ask OPEC for a greater share of the group's production, raising analysts' concern of a squabble among member-states that would hurt oil prices.
Algeria is pumping about a fourth more oil than targeted by the Organization of Petroleum Exporting Countries, making it the biggest cheater on output quotas. Nigeria last week said it also wants to expand production.
The African nations want a greater share of the market after companies such as Royal Dutch/Shell Group and Anadarko Petroleum Corp. spent millions there to develop new fields. An increase in sales now may replicate one in 1997, when slowing economies and additional supply sent crude oil below $10 a barrel, analysts said. Brent crude was at $25.31 on Friday.
``This is the worst time to increase production because it will throw the whole market out of balance,'' said Ihsan Buhulaiga, a Riyadh-based economist and member of an advisory committee to the government of Saudi Arabia. ``You have all the reasons not to increase -- no demand, high inventories and no real recovery in the U.S.''
Daily output from the 10 OPEC members with quotas, or those except Iraq, rose for a fifth consecutive month in July, gaining 130,000 barrels, or 0.6 percent, to 23.3 million barrels a day. The rate was the highest since December and exceeded their combined quota by 1.6 million barrels a day.
``We have asked our representative to negotiate a higher quota,'' said Chakib Khelil, the official APS news agency reported. The North African state produced 850,000 barrels a day last month, 157,000 above its daily OPEC quota, a Bloomberg survey found.
Meetings
The request will be considered at a meeting of OPEC governors later this month in Geneva and also next month, when the ministers are scheduled to gather in Japan.
OPEC nations control about a third of the world's supply and agree to restrain sales to bolster prices. They have no mechanism to enforce their agreements. Last month all OPEC nations surpassed their quota.
The OPEC basket price, an average of seven oils, stood at $24.78 a barrel on Thursday and has stayed within the group's preferred range of $22 to $28 since March 11. OPEC slashed output on four occasions last year to keep prices within its target range.
Saudi Arabia is the group's largest producer, and Qatar is OPEC's smallest
<center>
<HR>
</center> |
Thread-Ansicht
Mix-Ansicht
Reihenfolge
Thread gesperrt
