Developed Nations Prefer Petroleum to Crude Oil
OPEC opens its regular summit in Vienna tomorrow. The oil cartel is expected to maintain current quotas on crude oil production. Though the price of $60 per bbl apparently satisfies the better part of OPEC, the figures of IEA, which is an economic advisor for OECD, signal OPEC is likely to extend quotas in the near term. Otherwise, the crude prices will become skyrocketing again.
According to IEA, the decline in OECD reserves of crude oil was the ten-year record in January to February – 1.26 bbl a day on average. The reasons were the reduced production at OPEC in late 2006 and unusually cold February in the United States.
Regardless, the reduction in crude reserves at OECD by 23.8 million bbl was partially triggered by the 13.7-million bbl growth in petroleum reserves. In other words, the obviously excessive stocks of crude oil were refined into petroleum.
OPEC ministers aren’t inclined to give a dramatic turn to the events, viewing, perhaps, IEA conclusions as an attempt of energy consumers to pressurize the forthcoming summit. At the same time, OPEC nations will hardly be disappointed, if the record reduction in OECD reserves fuels first the demand and then the prices for crude oil.
www.kommersant.com
All the Article in Russian as of Mar. 14, 2007
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