OPEC has decided to keep output ceilings steady, Libya's chief oil official said yesterday. The 13-nation group also agreed to meet again at the end of next month to review its decision ahead of a regular March gathering, Nigerian Oil Minister Odein Ajumogobia said.
The announcement by Libya's Shokri Ghanem appeared to reflect OPEC concerns that it would be counterproductive to raise production ceilings at a time when prices have retreated about 10 percent from recent record highs.
There was no immediate formal confirmation. But just hours before Ghanem's comments, a three-nation OPEC advisory panel foreshadowed such a decision by recommending maintaining the status quo.
Reduced demand growth forecasts from both OPEC and the International Energy Agency have pushed prices down recently, along with the extra oil reaching markets from the last OPEC production increase and expectations of increased output from the United Arab Emirates.
A new US intelligence report concluding that Iran halted its nuclear weapons development program in 2003 is also helping to keep a lid on the market.
While oil prices are still up nearly US$40 from the start of the year, they are down about 10 percent from the record near US$100 a barrel established last month.
Oil prices rose yesterday after the OPEC announcement to keep output levels unchanged, rebuffing consumer country calls for more crude to rein in prices now near US$90 a barrel.
US crude was up US$0.50 to US$88.82 a barrel at 0956 GMT. London Brent crude rose US$0.49 to US$90.02 a barrel, after ending above US oil for the first time since Aug. 23 on Monday.
Oil prices have fallen about 10 percent since peaking at US$99.29 on Nov. 21, and analysts questioned whether OPEC holding off on increasing output would lift prices again.
Jan Stuart, an economist with UBS Investment Research, said little has changed fundamentally, adding that "the sell-off appears to be driven by financial players underscoring the notion that it's not physical shortages of OPEC crude oil that drove prices to near US$100 in the first place."
The unfolding implications of the subprime mortgage crisis and its impact on the wider economy are expected to hit demand growth in the US, the world's largest energy consumer.
Traders said the release of US inventory data yesterday would give further price direction. Last week showed a build in stocks at the Cushing, Oklahoma hub that is the delivery point for US crude futures.
A poll of analysts by Reuters ahead of yesterday's release of US inventory data showed crude stockpiles probably fell 800,000 barrels in the week to Nov. 30. Distillate stocks were seen down 300,000 barrels.
Tensions between Tehran and Washington had also supported the record rally that sent prices up 40 percent from August to late last month.
But a report released on Tuesday that grouped the findings of various US intelligence agencies contradicted the Bush administration's earlier assertion that Tehran was intent on developing a bomb.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
RSS