OPEC to Boost Exports 1.6% on Western Demand, Oil Movements Says
OPEC will raise exports by 1.6 percent through to the middle of June as refiners in the U.S. and Europe boost operating rates to meet summer demand for gasoline, according to tanker-tracker Oil Movements.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of global supplies, will ship 23.11 million barrels a day in the four weeks to June 11, up from 22.74 million barrels a day in the period to May 14, the consultant said today in a report. The data exclude Ecuador and Angola. Brent crude traded at $114 a barrel in London today.
“There are signs of an increase in westbound sailings from the Gulf,” said Roy Mason, Oil Movements’ founder, said by phone from Halifax, England. “It’s a seasonal recovery in crude demand, quite a big one. Demand is going up, and it’s going up in the west. It can only be Saudi crude.”
Shipments from Middle Eastern producers, including from non-OPEC members Oman and Yemen, will be 2 percent higher at 17.79 million barrels a day in the period, the report shows.
Crude on board tankers will average 474.7 million barrels in the four weeks, up 1.6 percent from 467.29 million barrels in the period to May 14, Oil Movements said.
Oil Movements calculates shipments by keeping a tally of tanker-rental agreements. Its figures exclude crude held on board ships used as floating storage.
OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Iraq is exempt from the group’s quota system. The organization is next due to meet on June 8 in Vienna.
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