April 11, 2005

THE COMING GLUT:

Opec set to boost supplies in May (Reuters, April 11, 2005 )

OPEC is on track to boost supplies to world markets by 500,000 barrels per day (bpd) next month to help build stockpiles ahead of an anticipated demand surge later this year, the cartel’s president said on Monday.

Six straight days of oil price declines have dropped U.S. oil below $53 a barrel, but Gulf oil producers appear committed to turning up the taps and piling up global inventories. [...]

Some in OPEC, particularly Saudi Arabia and fellow Gulf producers, are keen to boost output now to encourage stockbuilding in the coming months to avoid a potential supply crunch and price spike late this year.

Posted by Orrin Judd at April 11, 2005 12:23 PM
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