• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 3 hours How Far Have We Really Gotten With Alternative Energy
  • 4 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Bankruptcy in the Industry
  • 3 days The United States produced more crude oil than any nation, at any time.
North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

Major North Sea oil-producing countries…

Oil Fund Withdrawals Suggest Extended Price Rally

Oil Fund Withdrawals Suggest Extended Price Rally

Investors are ditching the oil…

Oil Moves Down on Crude Inventory Build

Oil Moves Down on Crude Inventory Build

Crude oil prices moved lower…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

North Sea Oil Producers Cash In On Asian Demand, OPEC Deal

North Sea Jette Field

Crude oil from the North Sea is flowing to Asia at record rates, set to reach 12 million barrels this month, Bloomberg reports, citing shipping data. Tankers carrying 9 million barrels are already on their way to Asian refiners and another 3 million barrels are to be loaded this week.

North Sea producers have been struggling with falling yields due to field depletion and lack of capital for investments in new deposits because of the price crash, in addition to a mini-glut of 12 million barrels of crude accumulated since the start of the price crash. The glut was relieved late last year thanks again to Asian refiners.

The increased demand for North Sea oil from Asia comes on the back of the OPEC production cut agreement that saw many Middle Eastern producers slash their exports in proportion with output cuts. This curb in Middle Eastern supply has made the more expensive North Sea blends inevitably more appealing, hence the record loadings.

These developments, although certainly good for North Sea energy firms, raise the question how long it will take Middle Eastern producers to recapture the market share they will certainly lose over the next five months, until the production cut agreement is in force. Related: Oil Prices Could Reach $60 This Year: Novak

If Chinese demand for oil continues to rise as predicted, to 12 million bpd, this year the hunger for alternative supplies will persist, allowing more players to replace Middle Eastern producers that supply Asian markets. Once there, they are unlikely to go quietly once the Middle East states return.

This prospect could turn the next five months into a nervous game and reduce the willingness of the signatories to the agreement to keep their end of the bargain, despite the recently announced setting up of a monitoring committee to ensure compliance.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News