Mon Mar 22, 2010 3:36pm IST
NEW DELHI (Reuters) - Russian crude exports to the Pacific will not hurt prices of Middle Eastern crude sold to Asia, Qatar Oil Minister Abdullah al-Attiyah said on Monday.
His comments echo what the Organization of the Petroleum Exporting Countries (OPEC) members, including top exporter Saudi Arabia, said last week.
Russia started selling its new ESPO Blend crude from the Far East port of Kozmino from late 2009, a first step towards expanding its exports into Asian markets.
Russia's pipeline monopoly Transneft will boost exports of ESPO crude oil in April by 7.9 percent on a daily basis from March to 1.3 million tonnes.
Asked if ESPO will hurt prices of rival Middle Eastern grades, Attiyah said Middle East crude still has an advantage.
"It is close to the markets, it reduces costs of transportation. The price of crude is determined by market forces."
Saudi Arabian Oil Minister Ali al-Naimi told reporters in Vienna last week that Russia's rising crude shipments to Asian markets via the Pacific Ocean pose no threat to Middle Eastern producers' position as the largest suppliers to the region.
Soaring oil demand from China and other developing Asian economies will absorb rising production from Russia and Iraq over coming years, they said.
However, the head of Libya's delegation said OPEC had less room to raise production as global oil use recovers because of Russia's increasing output.
OPEC ministers agreed last week not to change oil output targets they are already exceeding, anticipating that demand will pick up later in the year to mop up extra barrels the producers may pump.
(Reporting by Nidhi Verma; Writing by Judy Hua in Singapore; Editing by Michael Urquhart)
Source: http://in.reuters.com/article/businessNews/idINIndia-47111920100322?sp=true
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