When investors are wary about the crude oil prices in 2014 after seeing the bleak 2013, a statement has come from, Nizar Al-Adsani, chief executive of state-owned Kuwait Petroleum Corp (KPC) that crude oil prices could soften by mid-2014 due to some weakness in demand. This is expected to generate some positive opinion about the current year among investors.
According to Nizar Al-Adsani, chief executive of state-owned Kuwait Petroleum Corp (KPC) the prices are still healthy above $100 and demand is still there. He admits that demand will definitely soften up by the middle of this year. Kuwait which is a leading oil exporter was participating in an energy conference in New Delhi.
Energy Conference in New Delhi
It is to be noted that Brent crude edged lower toward $107 a barrel on Monday. The major reason behind the decline was that six nations struck a fresh six-month deal with Iran to curb its nuclear program and U.S. President Barack Obama urged Congress not to impose additional sanctions on the country. This development is expected to increase global oil supply.
Nizar Al-Adsani who is participating in the energy conference in New Delhi is representing Kuwait, came up with the statement that the country which is also a member of OPEC, agreed in December to renew its 30 million barrels per day (bpd) output cap for the first half of 2014. The supply is expected to increase as Libya will start producing with full capacity.
UAE, Kuwait Bid for Shell’s $2.67bn Australian ops
In the latest development, three consortia that include inter alia UAE and Kuwait are bidding for Shell’s $2.67bn Australian ops. According to media reports Middle Eastern funds, are bidding for Royal Dutch Shell’s Australian service stations in a A$3bn ($2.67bn) auction. Reports say that private equity firm TPG is bidding with Ontario Teachers’ Pension Plan and the Kuwait Investment Authority.
Several Other Major Companies Partnering and Participating in the Bid
Similarly, there is also a bid from Macquarie Group which is partnering with Thailand’s top energy firm, PTT. On the other hand, oil trader Vitol is working with Abu Dhabi Investment Council for the same project. It is to be noted that Shell is looking to sell its refinery in Geelong.
The reports say that it will also be selling several import terminals and 900 branded service stations.
To contact the reporter of this story: Jonathan Millet at email@example.com