WSJ - Major oil export countries can not satisfy growing demand

/INTERFAX-AFI, New York, May 30, 08/ - Leading oil producers all over the world admit their incapability to supply more oil on the market, notwithstanding high prices, changing traditional logic of the market, The Wall Street Journal informed. The USA Ministry of Energy informed that oil volumes, delivered by world leading countries reduced by 2.5% last year notwithstanding 57 % prices growth, which is supported by macroeconomic tendencies of the current year. Among the reasons of export deliveries reduction we can mark increase in its use inside the Near-Eastern region. Reserves depletion and weak investment became the reasons of decreasing of export deliveries from Mexico, Norway and lately Russia. OPEK also reduced production at the beginning of the last year and didn't try to increase it till the last autumn. According to the data of USA Ministry of Energy, oil net export of 15 major suppliers, the stake of which is 45 % of all supply, reduced by 1 m. a day to 38.7 m. barrels. If not for increasing of deliveries from developing countries such as Libya and Angola, the fall might have been more tangible. Last year 6 major oil suppliers of the Near-Eastern region: Saudi Arabia, United Arab Emirates Iran, Kuwait, Iraq and Qatar reduced export by 544 th. barrels a day. At that, usage in these countries increased by 318 th. barrels a day, as a result net export reduced by 862 th. barrels a day. According to Lehman Brothers` oil analyst Adam Robinson, growing demand in the Middle East turned out to be the main factor at the current moment. He forecast for the oil usage within region to rise by 40 % next year. "One of the reasons why the Middle East uses more oil is lack of gas distillate" - Bill Pharen-Prise, Energy Director of Medley Global Arabia said. While leading exporters have problems, earlier considering as odious participant of the market - Brazil and Kazakhstan - will be likely to have more importance. Three of four suppliers, being in the list of 15 major exporters, not OPEK members, in particular Russia, Norway and Mexico show decrease of production this year. Kazakhstan shows growth of oil export. Analysts consider that one of the reasons for optimism is the decision of the Russian government to reduce CMDP, aiding to develop oil sector in Russia. [2008-06-02]