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Monday, December 3, 2007

Weekly Report



Shipping rates for oil soaring

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Monday, December 03, 2007

Shipping rates for wet cargo have “strengthened phenomenally” in recent weeks, especially in shipments designed for Asia, suggesting a big jump in OPEC crude oil shipments and prices dipping below $80 (U.S.) a barrel in the next few months, according to Merrill Lynch.
Part of the production hike reflects fields in the United Arab Emirates and Saudi Arabia coming on stream, as well as higher output from Iraqi, contends analyst Francisco Blanch.
He figures OPEC output will reach 32 million barrels a day by March, up from 30 million barrels last June, with non-OPEC production climbing by 1.1 million by March.
All of which could result in supply exceeding demand and prices coming down.

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