Kuwait Open New Oil Storage Center

Sabriya,Kuwait on Thursday opened a new reception center at Sabriya oil fields as part of efforts to encourage the Gulf states to increase oil production to four million barrels per day in 2020. Oil Minister Sheikh Ahmad Abdullah al-Sabah inaugurated the center’s third largest oil fields near Kuwait’s northern border with Iraq. The facility was built by South Korean SK Engineering and Construction Co.. at a cost of 626.7 million dollars, can handle 165 000 barrels of crude per day and 85 million cubic feet of gas.

“The center is one of the facilities that contribute to the strategic direction in 2020,” said Sami al-Rasheed, chairman of the Kuwait Oil Co.., The state-owned company responsible for production. Reception center to the physical separation of crude oil, natural gas, water and other impurities before pumping clean oil, either for export or for gas and oil refineries to power plants.

President SK Choi Kwang-Chul said the project was completed six months ahead of schedule and went online a month ago. Reception center is already scheduled to be completed in September. Original center, about 50 kilometers (30 miles) from the border with Iraq, have been damaged during the invasion of Kuwait in 1990 by Saddam Hussein’s forces. Sheikh Ahmad said the center and a number of other projects are part of a long-term strategy of OPEC member Kuwait to increase production capacity to four million barrels per day.

“Currently, we are able to produce three million barrels per day,” the minister told reporters after the opening ceremony, but declined to say whether this is sustainable for a long time. Kuwait, OPEC’s fourth largest exporter, said that occupy 10 percent of global crude reserves. It had been pumping about 2.2 million barrels per day. (AFP)

Crude oil prices on the New York Stock Exchange is now approaching U.S. $ 84/barrel

Crude oil prices on the New York Stock Exchange is now approaching U.S. $ 84/barrel, even in this time have the highest record in the last 17 months. Significant increase was thanks to the President of the United States (U.S.), Barack Obama, who announced the offshore oil drilling in new areas.

based on the transaction on Wednesday afternoon New York time (Thursday morning GMT), the price of light sweet crude for May rose contract U.S. $ 1.39 to U.S. $ 83.76 per barrel. This is the highest price since October 9, 2008 – which was recorded at U.S. $ 86.59 per barrel.

Among analysts caution that investors reacted positively after Obama announced the licensing of offshore oil drilling at a new location along the Atlantic coast, Gulf of Mexico, and the northern coast of Alaska.

Policies that once lifted the ban on oil drilling along the U.S. coast, except in the Gulf of Mexico. The ban was valid for 20 years. According to Obama, the newly enacted policies that the U.S. is no longer dependent on foreign manufacturers in meeting energy needs.

Meanwhile, before the announcement from Obama, the U.S. Energy Department weekly report revealed crude oil inventories, which this time 2.9 million barrel rise. Similarly, gasoline stockpiles in the U.S., rose 300,000 barrels last week. Surveys of government is greater than expected by economists.

OPEC price hawks like Iran and Venezuela are happy with present prices near $80 a barrel

VIENNA With U.S. demand for oil lackluster, even traditional OPEC price hawks like Iran and Venezuela are happy with present prices near $80 a barrel as they head into Tuesday’s meeting of the 12-nation organization.These two countries traditionally are the greatest advocates of tight OPEC supply. But ahead of their meeting there is informal unanimity among OPEC oil ministers that – with the world’s economic recovery feeble at best and crude prices at preferred levels – it’s best not to rock the boat.

That means the ministers will likely agree to maintain OPEC’s formal production target, now at 26 million barrels a day – a benchmark set over one year ago.OPEC has left its members’ production quotas unchanged since December 2008, when it announced the last of a series of cuts aimed at bringing their output down by 4.2 million barrels per day. The cuts helped engineer a rebound in crude prices, which had collapsed to the low $30s from a mid-2008 high of almost $150 per barrel.

Since the oil ministers last met three months ago, prices mostly have hovered between $70 and $80 a barrel – a range that most OPEC nations have factored into their national budgets this year. That has kept even hardliners Iran and Venezuela on board with other OPEC members.”OPEC should not take any decision to change production,” Iranian oil minister Masoud Mirkazemi told reporters in Tehran on Monday, echoing comments voiced by Rafael Ramirez, his Venezuean counterpart.Still, there will be behind-the-scenes pressure on some members to produce less by honoring their allotted targets.

At close to 27 million barrels a day, OPEC now is producing a daily 600,000 barrels above its official target – a result of cheating by individual nations on their quotas. While OPEC does not reveal which nations are overproducing, the Paris-based International Energy Agency put overall quota compliance within OPEC at only 58 percent in January.World oil demand is expected to rise this year due to surging economic activity in Asian countries, especially China. The IEA, which advises oil-consuming countries, predicts that the world’s appetite for crude will average 86.6 million barrels a day this year, or 1.6 million barrels a day more than 2009’s 86.5 million barrels.Still, oil markets remain concerned about shaky demand in the U.S. Crude consumption there and in other top industrialized nations is expected to contract in 2010 for the fifth consecutive year.(AP)

SINGAPORE Oil prices hovered above $78 a barrel Friday in Asia amid mixed signals about global crude demand

SINGAPORE Oil prices hovered above $78 a barrel Friday in Asia amid mixed signals about global crude demand.Benchmark crude for April delivery was up 16 cents to $78.33 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.83 to settle at $78.17.

Oil prices have bobbed between $70 and $80 for most of the last six months as investors mull growing crude demand in developing countries such as China offset by flagging consumption in developed countries.Even a cold winter in the U.S. has failed to boost demand for heating oil.”The absence of any sustained seasonal draw in heating oil inventories is still striking,” Barclays Capital said in a report. “The inventory overhang remains stubbornly high.””We continue to expect strong demand growth from China in 2010.”

Crude prices were bolstered by a weaker U.S. dollar, as dollar-based commodities such as oil become cheaper for investors with other currencies when the dollar falls. The euro rose to $1.3585 on Friday from $1.3547 the previous day.In other Nymex trading in March contracts, heating oil fell 0.37 cent to $1.9825 a gallon, while gasoline rose 0.87 cent to $2.0457 a gallon. Natural gas prices gained 4.8 cents to $4.815 per 1,000 cubic feet.In London, Brent crude was up 10 cents at $76.39 on the ICE futures exchange.(AP)