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PEOPLES DAILY, TUESday, JUNE 9, 2015
Energy OPEC agrees to keep pumping as oil glut fears persist
O
il group OPEC agreed to stick by its policy of unconstrained output for another six months on Friday, setting aside warnings of a second lurch lower in prices as some members such as Iran look to ramp up exports. Concluding a meeting with no apparent dissent, Saudi Arabian oil minister Ali alNaimi said OPEC had rolled over its current output ceiling, renewing support for the shock market treatment it doled out late last year when the world’s top supplier said it would no longer cut output to keep prices high. The Organization of the Petroleum Exporting Countries will meet again on Dec. 4, Naimi said. With oil prices having rebounded by more than a third after hitting a six-year low of $45 a barrel in January, officials meeting in Vienna saw little reason to tinker with a strategy that seems to have resurrected moribund growth in world oil consumption and put a damper on the U.S. shale boom. “You’ll be surprised how amicable the meeting was,” a visibly pleased Naimi told reporters after the meeting. Oil prices rose by nearly $1 a barrel after the decision, paring some of this week’s losses on news that OPEC had not raised its output ceiling to match current output levels that are much higher, as a handful of analysts had suggested. Friday’s decision defers
discussion of several tricky questions set to arise in the coming months as members such as Iran and Libya prepare to reopen the taps after years of diminished production. Iranian oil minister Bijan Zanganeh had promised to press the group for assurances that other members would give Tehran room to add as much as 1 million barrels per day (bpd) of supply once Western sanctions are eased. But most delegates saw little reason for Tehran to pick a fight now. “When the production comes, this matter will settle itself,” one OPEC delegate told Reuters. That may not occur until 2016, according to many analysts who question how quickly Tehran will win relief
from sanctions and be allowed to sell more crude. Libya, still afflicted by a crippling civil war, hopes to double production to some 1 million bpd by September if key ports resume working, but past efforts have failed to deliver a sustained recovery in shipments. U.S. oil CLc1 is on track for its first weekly decline since March as traders weigh deteriorating physical market conditions. But prices are still $15 off their lows, and some analysts see further gains ahead. “The markets are moving in OPEC’s favour,” said Dr. Gary Ross, executive chairman of PIRA Energy Group. “Prices are stimulating robust demand
growth and slowing capex. This was the objective of the Saudi strategy and it’s working.” OPEC Secretary-General Abdullah al-Badri, speaking to reporters after the meeting, said he saw the oil market as “very positive”. “The economy is growing, demand is growing. We see nonOPEC supply is not growing as in the past,” Badri said. OPEC output has exceeded the group’s 30 million bpd ceiling for most of the past year, reaching 31.2 million bpd in May, its highest in three years, according to a Reuters survey. Notably absent from this week’s agenda were efforts to push for output constraints - even from hawks such
as Venezuela, which faces deepening budget woes at prices below $100 per barrel. While oil ministers have maintained a relentlessly upbeat attitude this week, some analysts see dark clouds gathering. The U.S. tight oil industry has been more resilient than many had expected, with falling costs helping sustain the revolution and possibly setting up another downward spiral. “Balances show we are oversupplied and OPEC is in pedal-to-the-metal mode,” said Bob McNally, founder and president of Washingtonbased consultancy The Rapidan Group. He said Brent crude could fall back to $50 a barrel. (Reuters)
36 ships laden with petrol, kerosene, other cargoes expected in Lagos
T
hirty six ships laden with petroleum products, food items and other commodities are expected to arrive at Lagos ports from June 8 to June 21. This is contained in the Nigerian Ports Authority (NPA) daily publication - `Shipping Position’ made available by to newsmen in Lagos on Monday. It stated that the expected ships were laden with petrol, kerosene, diesel, containers, general cargo, fresh fish, bulk gypsum and buck wheat, base oil, bulk fertiliser, buthane gas, and steel product. The publication indicated that eight other ships laden with petrol, base oil and bulk rice also arrived at the ports and waiting to discharge their contents. It stated that 14 other ships laden with diesel, bulk sugar, rice, crude salt, buckwheat, were also discharging at the ports. (NAN)
PHCN10 in Lagos
Oil dealer lands in court for fleecing supplier of N10.3m A
businessman, Ahmed Ismaila, 29, who allegedly obtained petroleum products worth N10.3 million under the pretext of paying for it after a week, has been docked at the Igbosere Magistrates’ Court, Lagos. The accused, whose address was not stated, is standing trial on a four-count charge bordering on conspiracy, fraud, stealing and issuing dud cheque. The accused, however, entered a no guilty plea at his
arraignment on Monday. But the Prosecutor, Insp. Idowu Olawale, told the court that the accused and others at large committed the offences between August and September of 2013 within the jurisdiction of the court. Olawale said that the accused obtained petroleum products of N10.3 million from one Cariads Petroleum Company owned by one Khadija Awwal under the pretext of paying back the total sum after one week.
He said that the accused was unable to pay the money as promised and instead issued a Zenith Bank cheque of N8 million and N2.3 million that were dishonoured. He said that the accused did not have sufficient funds in his account for the cheques to be cleared for payment to Awwal, the creditor in the transaction. The prosecutor said that the accused, by his action stole N10.3 million property of Awwal.
He said that the accused contravened sections 312 (b), 319 (b) and 409 of the Criminal Laws of Lagos State 2011. The magistrate, Miss Alli Balogun, granted Ismaila bail in the sum of N3 million with two ``responsible’’ sureties in like sum. She said that the sureties must be gainfully employed and must produce evidence of employment. Balogun adjourned the case to June 23 for mention. (NAN)