China crude output slows
China's crude output has slowed over the last month, and analysts say the reduced output is contributing to shortages.
Crude throughput at China's refineries in October was 6.53 million barrels per day, falling short of production in September, market analysts said.
However, data from the National Bureau of Statistics suggest that production is 6 percent higher than in October 2006.
Increasingly tight supplies and reports of violence at filling stations led the National Development and Reform Commission to scrap plans to freeze oil prices until 2008. The NDRC also encouraged traders to import more.
Prices of diesel, gasoline and jet fuel were raised by $67 per metric ton to encourage more refining, but they're still far below international levels. If refining is not increased, China Petroleum and Chemical Corp. will have to put off maintenance to increase production.
December output at Sinopec's refineries is expected to reach 3.43 million barrels a day; that's 200,000 tons more than originally planned.
Greece, Turkey inaugurate new pipeline
Greece and Turkey inaugurated a new pipeline transporting natural gas.
The new pipeline, from the Caspian Sea region to the rest of Europe, is expected to help diversify energy supplies and improve international relations.
Greek Prime Minister Costas Karamanlis and Turkish Prime Minister Recep Tayyip Erdogan shook hands Sunday at a symbolic meeting on a bridge over the River Evros, which separates the two countries.
"We are forming a bridge as an energy transit country," Erdogan said.
The 300-km pipeline will provide the European Union with its first supply of gas from the Caspian region, bypassing Russia and the Middle East. It will link the Greek and Turkish networks, and eventually carry gas from Azerbaijan to Italy.
"It is a great step forward for relations between the two countries and for stability in the region. By cooperating we can build a better future for all," Karamanlis said.
The United States also welcomed the project, describing it as a "critical new energy bridge" between East and West, but said the European Union ought to open its energy market to more Central Asian states.
"The first link between Azerbaijan and gas suppliers in Central Asia to European consumers ... builds a critical new energy bridge between the East and the West," said U.S. Energy Secretary Samuel Bodman.
OPEC meeting leaves questions unanswered
The just-concluded OPEC summit ended with unanswered questions.
The summit was divided on key issues like whether to leave the dollar and whether production should be increased. A declaration from the Organization of Petroleum Exporting Countries pledged reliable supplies and urged stabilized prices. However, the promise does not mean an increase. Some ministers said the high prices are not OPEC's fault and ignored requests for increases.
Ministers from Iran and Saudi Arabia took center stage in a dispute over whether OPEC should continue trading with the U.S. dollar or switch to the euro.
"The dollar is falling; all heads of state were upset today because of the dollar. The value of their (financial) reserves has dropped," said Iranian President Mahmoud Ahmadinejad. "All leaders taking part in the meeting were willing to convert the pricing of oil into a currency other than the dollar."
Tensions between Iran and the United States also surfaced in comments from Ahmadinejad about the possibility of Iran suspending its oil exports if the United States were to take action against Iran.
"We would never want to use oil as a weapon or take any illegal actions ... but if America takes any action against us we will know how to reply," he said.
The United States is pushing for a third round of U.N. sanctions against Iran because of a nuclear program the United States thinks may be used to develop weapons.
Oil ministers will meet next month in Abu Dhabi to discuss the cartel's output policy.
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Closing oil prices, Nov. 19, 3 p.m. London
Brent crude oil: $91.70
West Texas Intermediate crude oil: $95.86
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