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Page added on September 8, 2015
Arab Gulf countries to discuss unifying oil product pricing
The six oil ministries from the Gulf Cooperation Council (GCC) countries will meet Wednesday to discuss the possibility of unifying the prices of oil products, Kuwait’s oil ministry said in a statement late Sunday.
The meeting, planned for Doha will be attended by undersecretaries from each of the ministries — from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia andthe United Arab Emirates– according to state-run KUNA news agency.
The group will review a memo prepared with the Organization of Arab Petroleum Exporting Countries (OAPEC) to increase cooperation on energy and petroleum strategy.
The Kuwaiti ministry highlighted the importance of the Doha meeting in light of rapid changes in the global oil industry and the need for stability, KUNA reported.
No further details on the plan were given.
Refined product prices in the region vary considerably with different levels of subsidies applied in each. Changing direction remains a political challenge.
The UAE became the first GCC country to move towards de-regulated prices on 1 August to bring domestic fuel prices into alignment with the international market, a long-held government aspiration.
The new prices are set by a newly formed fuel prices committee which reviews fuel prices against average international levels each month before setting a new price with the addition of operating costs, but the formula used has not been revealed.
The fall in international oil prices allows governments to cut subsidies with a lower initial impact on fuel prices than in previous years.
16 Comments on "Arab Gulf countries to discuss unifying oil product pricing"
Plantagenet on Tue, 8th Sep 2015 12:06 pm
The whole purpose of OPEC is to “unify oil pricing” —i.e. set the price of oil.
If OPEC can’t set the price of oil, then this ad hoc group of Arab gulf countries isn’t going to be set oil prices either.
CHEERS!
rockman on Tue, 8th Sep 2015 12:17 pm
“The UAE became the first GCC country…to bring domestic fuel prices into alignment with the international market…” A good move for sure…until prices increase and the natives become restless. Just as it would be a great time for the US govt to bump up the tax on motor fuels. OK now…lets all hold our breaths for that move during this presidential election cycle. LOL.
Boat on Tue, 8th Sep 2015 1:00 pm
Rock,
Everybody knows gasoline tax should be inflation indexed to keep our roads in better shape. Our generation would rather add to the deficit.
Kenz300 on Tue, 8th Sep 2015 2:49 pm
The sooner we wean our selves off oil the better…….. monopolies like to set prices…….. prescription medication is a good example of the high prices people pay when there is no competition.
Bring on the electric, biofuel, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles….
Competition is good for the consumer and good for the economy.
rockman on Tue, 8th Sep 2015 3:05 pm
Boat – IMHO it would be even better to have been bumping up prices better then that for the last 30 or 40 years. That was the only way to really push conservation significantly: make it a tad uncomfortable if not a little painful. Now would be a great time to knock it up $0.10 to $0.20 per gallon given prices have fallen around $1/gal in the last year.
Right…when pigs fly. LOL
Nony on Tue, 8th Sep 2015 4:09 pm
I want cheap gasoline.
https://www.youtube.com/watch?v=MStoUfrsCig
Outcast_Searcher on Tue, 8th Sep 2015 6:21 pm
It’s easy for cartels to be unified and “tough” when prices are high.
Not so much when prices are low and the political and economic pressure on the member governments is high.
I’m with Plant on this — some arbitrary “prices committee” isn’t going to fix this, whatever title they want to bestow on it.
Makati1 on Tue, 8th Sep 2015 7:18 pm
Platts … pimping for big petro again. No changes coming. Gotta pump all out to pay off the sheeple at any price. The race is to the bottom and not the bottom of the wells … lol.
BobInget on Tue, 8th Sep 2015 9:21 pm
Folks who bought SUVs and muscle cars also bought $30. barrel pablum. Don’t feel sorry for them. It’s not your fault.
All the Republican presidential candidates are already saying how Obama mishandled Syria causing a humanity rush into welcoming arms of Germany. ( never thought I would ever say that)
Ralph on Wed, 9th Sep 2015 8:46 am
Europe has been slowly bumping up taxes on petrol and diesel for decades. UK did too until about 15 years ago when Blair was held to ransom by a truck driver’s strike – ‘blockading’ oil refineries and cutting off the national fuel supply almost completely.
(To think that the government would allow the economy be entirely derailed by a couple of thousand non-union truck drivers is ridiculous. I am sure that the ‘blockade’ was stage managed by the oil companies, who ordered their drivers not to try to pass the blockades. )
At that time, UK fuel tax was 81% of the pump price, at 80p/litre. At it’s peak price a couple of years ago fuel was 140p/litre, but tax had fallen to about 65% of that price.
Truth Has A Liveral Bias on Wed, 9th Sep 2015 4:01 pm
OPEC has clearly fractured along geopolitical lines and is dysfunctional. The Arabs in OPEC are clearly on a war footing and perceive an existential from their OPEC partner Iran. Civil war in the worlds oil patch (and NatGas patch) will ensure big changes in the global energy markets.
Makati1 on Wed, 9th Sep 2015 7:12 pm
And then there is this from the questionable Rigzone…
“Move Over Exxon, Russian Drillers Are Oil World’s Top Performers”
“… Russian companies have been the most resilient. Rosneft shares gained 2.9 percent and Gazprom Neft added 0.3 percent in London trading this year. Shell’s B shares, the most widely traded, lost 28 percent and BP 18 percent. … Rosneft has some of the industry’s lowest costs, Chief Executive Officer Igor Sechin told reporters in Beijing on Thursday. The producer’s capital expenditure of $4.20 a barrel is just a sixth of the $27 a barrel Exxon Mobil spends, according to a company presentation. … When asked about the future of oil prices, Sechin declined to make a prediction. “Don’t turn to me, go to some fortuneteller, because there are too many uncertainties,” he said.”
http://www.rigzone.com/news/article.asp?hpf=1&a_id=140493#sthash.cuFeX8FS.dpuf
LMAO At least he is honest about that feature of oil.
Ted Wilson on Thu, 10th Sep 2015 7:00 am
Then they have to create their own benchmark like Brent using different varieties of their Crudes. Interesting.
I think these 6 states produce around 1/6th of the World’s Oil.
BobInget on Thu, 10th Sep 2015 9:59 am
http://indianexpress.com/article/explained/explained-a-fight-for-fuel-in-yemen/
I know, I know, you all are tired of reading about Yemen.
Here’s two facts to mull.
1) Two million Yemenis will die as a result of Saudi insults. Millions more are homeless and displaced. This atrocity would never be tolerated
if the people were white.
Yes, I know, Syrians are white.
In Yemen it it’s naked agression on the part of KSA.
2) In addition to crude off markets, add 400,000
missing Yemeni barrels KSA is pumping like mad to replace.
BobInget on Thu, 10th Sep 2015 10:12 am
EIA Weekly Inventory Repore
(Imports trump, could force oil prices lower once again despite healthy (or unhealthy) consumption gains of over 4% year over year.
Summary of Weekly Petroleum Data for the Week Ending September 4, 2015
U.S. crude oil refinery inputs averaged over 16.1 million barrels per day during the week
ending September 4, 2015, 279,000 barrels per day less than the previous week’s
average. Refineries operated at 90.9% of their operable capacity last week. Gasoline
production decreased last week, averaging 9.6 million barrels per day. Distillate fuel
production decreased last week, averaging 4.8 million barrels per day.
U.S. crude oil imports averaged about 7.5 million barrels per day last week, down by
396,000 barrels per day from the previous week. Over the last four weeks, crude oil
imports averaged over 7.6 million barrels per day, 0.5% above the same four-week period
last year. Total motor gasoline imports (including both finished gasoline and gasoline
blending components) last week averaged 589,000 barrels per day. Distillate fuel imports
averaged 130,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) increased by 2.6 million barrels from the previous week. At 458.0 million
barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at
least the last 80 years.
Total motor gasoline inventories increased by 0.4 million barrels
last week, but are in the middle of the average range. Finished gasoline inventories
increased while blending components inventories decreased last week. Distillate fuel
inventories increased by 1.0 million barrels last week but are in the middle of the average
range for this time of year. Propane/propylene inventories rose 0.2 million barrels last
week and are well above the upper limit of the average range. Total commercial
petroleum inventories increased by 3.2 million barrels last week.
Total products supplied over the last four-week period averaged over 20.2 million barrels
per day, Up by 4.2% from the same period last year. Over the last four weeks, motor
gasoline product supplied averaged over 9.3 million barrels per day, Up by 3.8% from the
same period last year. Distillate fuel product supplied averaged 3.7 million barrels per
day over the last four weeks, Down by 1.2% from the same period last year.
Jet fuel product supplied is Up 7.5% compared to the same four-week period last year.*
*Perhaps the most bullish sentence in repore,
indicating strong economic growth.
Airlines could be predicting a bottom for oil pricing last week. Or, could be Labor Day fell on a different week last year.
BobInget on Thu, 10th Sep 2015 11:45 am
If you have time, ‘skin’ in the game, or simply a pulse, the Washington post has a primer for you.
https://www.washingtonpost.com/news/worldviews/wp/2015/09/09/7-middle-east-crises-that-are-a-bigger-problem-than-irans-nuclear-program/