Opec upbeat on 2013 crude oil price

Opec upbeat on 2013 crude oil price
29 January 2013
Opec has struck an an upbeat tone about the oil market for this year, anticipating prices of around $110 a barrel on average for 2013.
Abdalla El-Badri, Opec secretary-general, added that the oil cartel, which accounts for 40 per cent of global oil supplies, would probably keep its production stable for the time being, after member countries cut output in November and December.
“As of now I think the situation is really improving,” he said. Speaking about the outlook for the oil market, he added: “When I see growth in China is improving, growth in India is improving, when I see growth in the US is improving, I think that unless something dramatic happens in 2013, it will be a repetition of 2012.”
Brent crude oil, the global benchmark, set a record annual average in 2012 of roughly $111.5 a barrel.The benchmark closed at or above $100 every trading day last year, bar 24 days in late June and early July.
Weak global growth and increased domestic oil production in the US, traditionally Opec’s largest customer, have led some analysts to forecast downward pressure on the price of oil this year, as well as an erosion of Opec’s ability to influence prices.
Saudi Arabia, Opec’s largest producer, cut production to its lowest in a year in December. The kingdom supplied more than 10m barrels a day in mid-2012 to meet a seasonal increase in demand and offset the loss of Iranian production. But it has since cut output to 9.3m b/d, according to the International Energy Agency.
But Mr El-Badri denied Opec was reducing production to accommodate increased US supply, and said the organisation welcomed increased diversity of supply.
“US unconventional production is evolutionary for the market not revolutionary,” he said. “Forecasts suggest 3m b/d in 20 years – that is not a threat to us,” he said on the sidelines of an oil conference organised by Chatham House, the London-based think tank. Between them Opec countries produce around 37.5m b/d.
Mr El-Badri also signalled a more relaxed approach to enforcement of member production quotas. Even after Saudi Arabia’s production cut in December, Opec members still exceeded their 30m b/d quota for crude oil by 400,000 b/d.
While repeating the official line that “no country should exceed their quota”, Mr El-Badri said of the 30m quota: “This a sign, you know.”
He added that Opec was not looking to cut production further while some countries continued to struggle. “We don’t see the need [when some countries] are really not in a good shape.”

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Nikkei Falls 1st Time In 6 Days On Profit-Taking 05 February 2013

Tokyo stocks ended lower Tuesday afternoon, with the Nikkei Stock Average sliding 213.43 points, or 1.9%, to end the day at 11,046.92.
Global investors generally sought to avert risk amid political uncertainty in southern Europe, prompting European and U.S. markets to close lower overnight.
Overseas investors dumped Japanese stocks, which have been steadily rising recently, to lock in gains. Selling of stock index futures also prompted the benchmark Nikkei average to decline further in the afternoon.
Bargain hunters were making purchases amid lingering expectations that stocks will rise. As a result, trading was mixed, though not heavy.
The trading value on the first section of the Tokyo Stock Exchange totaled about 2.54 trillion yen on a preliminary basis, the highest level since March 17, 2011.

Tsunami Warning In Effect In The South Pacific After 8.0-Magnitude Earthquake 06 February 2013

A tsunami watch is in effect in Australia, New Zealand, and other places in the South Pacific after an 8.0-magnitude earthquake struck off the coast near the Solomon Islands, Michael van Poppel at BNO News is reporting, citing information from the website of the U.S. Geological Survey.
The strong quake hit in the Santa Cruz islands, a group of islands 250 miles southeast of the Solomon Islands Chain. It struck 50 miles west of Lata, a provincial capital in the Solomon Islands, at a depth of 5.8 kilometers, the AP reports.
The Solomon Islands, Vanuatu, Nauru, Papua New Guinea, Tuvalu, New Caledonia, Kosrae, Fiji, Kiribati, and Wallis and Futuna are currently under a tsunami warning, according to the Pacific Tsunami Warning Center.
A tsunami watch is in effect for New Zealand, American Samoa, Tonga, Australia, the Marshall Islands, Howland and Baker, Pohnpei, Tokelau, Samoa, the Kermadec Islands, Niue, Cook Islands, and Guam.
Officials are currently determining whether to expand the tsunami threat to the state of Hawaii, according to the PWTC.