The Organisation of Petroleum Exporting Countries, OPEC, is set to increase the export of crude oil to the global market as a result of increased demand.
The surging demand is attributed to the resumption of operations in Chinese refineries that were previously shut for maintenance.
Bloomberg which confirmed the development quoted tanker tracker Oil Movement as stating that increase shipments would continue through late October. “Chinese refiners are pulling out of maintenance so their demand is climbing up,” Roy Mason, the company’s founder, said by phone from Halifax, England.
“The West is in maintenance, and refiners there are in deep trouble, as crude demand in the West is plummeting.” Refiners boost operating rates in the fourth quarter to meet higher demand for heating fuel during the Northern Hemisphere winter. Brent crude was at $109.21 a barrel as of 4:13 p.m. today on the ICE Futures Europe exchange in London, having advanced 6.1 percent in the third quarter.
Middle Eastern shipments will climb 0.6 percent to 17.61 million barrels a day to Oct. 19, compared with 17.51 million in the month to Sept. 21, according to Oil Movements. Those figures include non-OPEC nations Oman and Yemen.
Crude on board tankers will increase 2.3 percent to 487.28 million barrels on Oct. 19, data from Oil Movements show. The researcher calculates volumes by tallying tanker bookings, and excludes crude held on vessels for storage.
OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.
The cartel was established among other things to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.
The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994).