Organisation of Petroleum Exporting Countries (OPEC) will cut crude oil shipment by 2.5 per cent in the four weeks ending May 2.
Organisation of Petroleum Exporting Countries (OPEC) will cut crude oil shipment by 2.5 per cent in the four weeks ending May 2, a development which may put the group short of its reduction target. A report released yesterday by Oil Movements, revealed that OPEC, which produces about 40 per cent of the world"s oil, will load about 22.2 million barrels a day in the four weeks ending May 2, down from 22.8 million a day in the month ended April 4.
The report noted that ?OPEC has completed 80 per cent of the 4.2 million barrels of daily production cuts it announced last year to take affect in 2009. That compliance is unchanged for the last three reports, indicating that OPEC is not getting closer to its target.
?We are heading towards the low point from a crude demand point-of-view. There is no reason at all for shipments to go up before the third quarter,? Oil Movements founder, Roy Mason said on phone yesterday from Halifax, England.
Oil shipments from the Middle East will fall 1.5 percent to 16.15 million barrels a day in the four weeks to May 2, the report said, adding that a total of 430.03 million barrels of crude will be on board tankers on May 2, down 4.1 per cent from the month before, when 448.33 million barrels were on route.
Oil Movements combines reports from shipbrokers on tanker rentals with its own mathematical models, to calculate how much crude is being shipped.
Meanwhile, crude oil futures in New York traded at more than $50 a barrel yesterday, about seven per cent higher than it was before OPEC"s March 15 summit, where the group decided against additional output constraints.