Cheapest OPEC crude since ’09 still too costly for Indian buyers

Posted: October 16, 2014 in Uncategorized

Great Lakes Energy Blog

Delhi/Tokyo: Organization of the Petroleum Exporting Countries (OPEC) must keep cutting prices to displace competing supplies from Latin America and West Africa, Indian refiners said.
Saudi Arabia, Iran and Iraq, which account for about half the output from the OPEC, will sell crude to Asia next month at the biggest discounts since at least January 2009. Hindustan Petroleum Corp. and Mangalore Refinery & Petrochemicals Ltd. say it’s not enough to undercut the alternatives.
The highest US output in almost 30 years is reducing America’s demand for oil and giving consumers in Asia a greater choice of suppliers, from Venezuela to Alaska and Nigeria.
The glut has driven futures into a bear market and prompted OPEC members to cut prices to defend their market share.
“Obviously the Middle-East producers want to retain market leadership in Asia,” said B.K. Namdeo, refineries director at Hindustan Petroleum, India’s third-biggest state refiner. “Availability is one…

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