Gulf Oil and Gas accountACCOUNT

Saudi Arabia to Replace Libya Oil

Source: Bloomberg 2/24/2011, Location: Middle East

Saudi Arabia and other OPEC nations including those in West Africa are willing and able to replace any lost Libyan oil as soon as companies ask for it, including crude of the same quality, a Saudi Arabian oil official said.

There is no reason for oil prices to rise because Saudi Arabia and OPEC wonít allow shortages to exist, the official said by telephone today, declining to be identified by name.

As OPECís statute indicates, it is the responsibility of the group to ensure that the market is well balanced and that there is no shortage of supply, the official said.

Exporters are under pressure to ensure adequate supplies to the market after violence in Libya, Africaís third-largest producer, sent Brent crude oil futures in London to as high as $119.79 a barrel earlier today, the highest since August 2008. Brent retreated below $116 after the Saudi officialís comments were reported.

Some West African oil which goes to Asian markets can be redirected to Europe, and extra Saudi oil can go to Asia to replace the West African supplies, the official said. OPECís West African members are Nigeria and Angola.

OPEC collectively pumped 29.4 million barrels a day last month, according to Bloomberg estimates, and has about 5 million barrels a day of spare capacity, according to the International Energy Agency. Most of the unused capacity is in Saudi Arabia, the organizationís biggest producer.

Unrest in MENA - The New Oil Order

Economics/Financial Analysis News in Saudi Arabia >>

Oman >>  5/15/2019 - KBR, Inc. (KBR) has been awarded a Front End Engineering Design (FEED) contract by Oman LNG L.L.C for the debottlenecking of their facility at Sur in ...
United Arab Emirates >>  5/10/2019 - McDermott International has been awarded a sizeable* contract by ADNOC to provide FEED services on a design-competition basis for phase one of the Umm...

Iraq >>  5/9/2019 - Iraq is planning a $53 billion mega project with global energy giants ExxonMobil and PetroChina to use seawater from the Persian Gulf to boost oil pro...
Qatar >>  5/9/2019 - Northern Offshore announces firm Letter of Awards for two (2) long-term contracts for its premium, heavy-duty jack-up drilling units from Qatar Petrol...

Saudi Arabia >>  5/3/2019 - KBR, Inc. (KBR) has received a three year extension to its existing General Maintenance Services (GMS) contract for the 440,000 bpd refinery at SATORP...
United Arab Emirates >>  5/1/2019 - McDermott International, Inc. (MDR) announced it has been awarded a sizeable* contract by ADNOC Refining to provide front-end engineering design (FEED...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.