Oil demand strong, supplies tighten High prices and supply disruptions are confounding both crude oil and tanker markets. As supply disruptions continue to play havoc with both oil and tanker markets, Saudi Arabia – whose ability to increase crude production is unmatched – holds the key to stabilising markets. The Kingdom increased its crude production to 9.1M/bpd in response to Middle East political turmoil in February, according to Saudi oil minister Ali al-Naimi, but has since throttled back production. Despite the Libyan crisis and the shut-in of its supply of light sweet crude, Saudi Arabia – and other OPEC members – appear convinced the world has sufficient supplies. Others dispute this analysis. The Centre of Global... View more
