Japan oil industry group expects OPEC+ to extend supply curbs
20/11/2023 09:21
TOKYO, Nov 20 (Reuters) - The head of Japan's oil
industry body said on Monday he expects OPEC+ to extend its
supply curbs after December to support oil prices.
OPEC+, which groups the Organization of the Petroleum
Exporting Countries and allies led by Russia, is set to consider
whether to make additional oil supply cuts when it meets on Nov.
26, three OPEC+ sources told Reuters after crude prices dropped
by almost 20% since late September.
"At least, the current production curbs will probably
continue," including additional voluntary curbs from Saudi
Arabia and Russia, Shunichi Kito, president of the Petroleum
Association of Japan (PAJ), told a news conference, noting that
Saudi Arabia wants to keep oil prices above $80 a barrel.
"We don't know if there will be deeper production cuts," he
said.
Saudi, Russia and other members of OPEC+ have already
pledged total oil output cuts of 5.16 million barrels per day,
or about 5% of daily global demand, in a series of steps that
started in late 2022. The cuts include 3.66 million bpd by OPEC+
and additional voluntary cuts by Saudi Arabia and Russia.
The PAJ expects Dubai oil prices to stay in the range of
$80-$95 a barrel for the next month, said Kito, also the
president of oil refiner Idemitsu Kosan 5019.T .
Asked about the seizure of a ship by Yemen's Houthis in the
Red Sea, Kito said it would have no direct impact on oil supply
to Japan which depends on the Middle East for 95% of its crude
oil imports.
Japanese refiners will continue to work with tanker
operators to ensure safe voyages of oil carriers, but the PAJ
has no immediate plans to ask for extra help from the country's
Self-Defense Forces, Kito said.
In 2020, Tokyo sent forces to the Middle East to help ensure
the safety of merchant ships following several attacks on
international merchant vessels and Japanese forces are still
present in the Gulf of Oman, the northern Arabian Sea and the
Gulf of Aden.
(Reporting by Yuka Obayashi; Editing by Susan Fenton)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))