• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 5 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 10 hours How many drilling sites are left in the Permian?
  • 6 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 10 mins End of Sanction Waivers
  • 3 hours "Undeniable" Shale Slowdown?
  • 2 days Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 7 hours Case against Trans Mountain Begins
  • 6 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 3 hours Climate Change Protests
  • 5 hours Gas Flaring
  • 7 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 6 hours China To Promote Using Wind Energy To Power Heating
  • 1 day Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 8 hours Oil at $40

Breaking News:

Guaido Takes Strides To Topple Maduro

Alt Text

Nigeria Boasts Oil Production Cost of $23 Per Barrel

The average production cost for…

Alt Text

Oil Rallies As OPEC Production Falls

OPEC’s oil production cuts continued…

Alt Text

Oil Rebounds On Bullish Inventory Data

Oil prices recovered somewhat on…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

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

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

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News