YEMEN - Marketing/Pricing.The ministry of petroleum and mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature markets its shares of crudes directly. The ministry has term contracts ranging from one year to a quarter. Formula prices for crude oils are set on monthly basis by the ministry's General Department of Crude Oil Marketing (GDCOM), established in September 1987 as part of Yominco. Both Maarib Light and Masila Blend prices blend price the price paid producers for market milk when classified pricing is used. An average of class prices weighted by the quantity of milk used in each class. are based on Dated Brent crude Brent Crude is one of the major classifications of oil consisting of Brent Crude, Brent Sweet Light Crude, Oseberg and Forties. Brent Crude is sourced from the North Sea. The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. oil of the North Sea. The pricing on the basis of Brent, despite the fact that most Yemeni crudes go to Asia, has been objected to by GDCOM's term clients. This is because the differential between Dated Brent and Dubai has widened to more than $2/barrel - at time to more than $3.20/b - since prices rose in March 1999. The term lifters want prices to be based on an average of Oman and Dubai crudes Dubai Crude is a light sour crude oil extracted from Dubai. Dubai Crude is used as a price benchmark or oil marker because it is one of only a few Persian Gulf crudes available immediately. The other two main oil markers are Brent Crude and West Texas Intermediate. , arguing that all other Middle East exporters (except for Egypt and Syria) price their east-bound crudes on Dubai or Oman - with Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. using the Dubai/Oman average. But the pricing panel at the GDCOM still insist on Brent because it has a more active market. Term buyers of Masila Blend have also preferred a discount to Oman, which is a lighter but sour crude Sour Crude The name given to barrels of crude oil that do not meet certain content requirements, such as low levels of sulfur and hydrogen. Notes: Sour crude future contracts are not as popular as sweet crude oil contracts, as this type of oil is harder to refine compared . The GDCOM has resisted such requests. The formula price of Maarib Light for July is Dated Brent plus 25 cents a barrel, compared to 20 cents in June, 5 cents in May, 40 cents in April, 35 cents in March, parity with Dated Brent in February, and 50 cents in January. The price was D. Brent plus 52 cents in December 1999, 50 cents in November, and 30 cents in October, September and August. The formula price of Masila for July is Dated Brent minus 85 cents, down from 25 cents in June, 40 cents in May, 50 cents in April, 38 cents in March, 10 cents in February and 20 cents in January. The price was Dated Brent minus 19 cents in December 1999, 20 cents in November, 35 cents in October, 33 cents in September and 15 cents in August. China has been the biggest market for Yemeni crudes. Chinese companies Chinese owned companies can be defined as enterprises within mainland China, Hong Kong, Macau and the Republic of China (Taiwan):
Independent Petroleum Group (IPG IPG Implantable pulse generator, see there ) of Kuwait used to be GDCOM's main client in 1994, having raised its purchases in the fourth quarter of 1994 to 60,000 b/d - 45,000 b/d of Maarib Light and 15,000 b/d of Masila. IPG has also been buying Shabwa Blend from Nimir and has been in charge of marketing on its behalf. Chevron was GDCOM's second biggest client. The two companies phased their term contracts out in 1995 because of a price dispute. Term clients pulling out have included Mobil, Coastal and Idemitsu Kosan of Japan |
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