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Iran Wants to Double Oil Exports After Sanctions Lifted

Posted on 06 July 2015 by VRS  |  Email |Print

Iran wants to double its crude exports soon after sanctions are lifted and is pushing other members of the Organization of the Petroleum Exporting Countries to renew the cartel’s quota system, a top Iranian official said. Both developments could set up a clash with Saudi Arabia, which is scrambling to raise its own export numbers and has opposed the return of production limits on individual OPEC members.
Iran’s efforts underscore how the country’s full return to the export market would upend the status quo among leading producers if Tehran clinches a deal with six world powers that would lift sanctions in exchange for curbs on its nuclear activities………………………………………..Full Article: Source

Russia Seen as Biggest Oil-Market Loser When Iran Comes Back

Posted on 06 July 2015 by VRS  |  Email |Print

In Iran’s push for a nuclear deal, it’s had few better allies than Moscow. But if an agreement is reached this week, President Vladimir Putin’s regime will have at least one reason to reflect on its support.
Russia, which vies with Saudi Arabia and the U.S. to be the world’s largest oil producer, has the most to lose when Iran returns to the global energy market, according to a dozen analysts and executives at oil companies, banks and trading houses interviewed by Bloomberg. “Iran is going to be competing in Europe head-on with Russia,” said Ed Morse, head of commodities research at Citigroup Inc………………………………………..Full Article: Source

International companies ’seek’ Iranian oil fields

Posted on 06 July 2015 by VRS  |  Email |Print

Some European countries have already started direct talks with Iran’s oil officials regarding future relations after the embargo on Iran is lifted. Shell, Eni and Russian Luke Oil companies have launched discussions both in Vienna and Tehran. American companies have not yet taken a step in this regard but they are on alert waiting by the second for the official announcement of lifting of the embargo on Iran.
The investments of international oil companies in this country dates back to many years. They always had their ups and downs throughout their longstanding history since year 1901 starting with the first concession; then the rest of the major American oil companies poured in followed by Royal Dutch Shell and Total of France………………………………………..Full Article: Source

OPEC output update

Posted on 06 July 2015 by VRS  |  Email |Print

OPEC recorded its highest output since August 2012 in June as the bloc pumped over 32.1 million b/d. Total production is 2 million b/d higher than OPEC’s recently rolled over production target and is 744k b/d higher than a month earlier, according to Emirate NBD.
The biggest increase came from Iraq, where production surged by 567,000 b/d to 4.39 million b/d, its highest ever recorded output. Saudi Arabia raised production by 150k b/d to 10.45m b/d as OPEC’s largest producer maintained its policy of increasing output to secure market share………………………………………..Full Article: Source

New oil bull market in sight as Brazil, Iraq cut output targets

Posted on 03 July 2015 by VRS  |  Email |Print

Massive downward revisions to oil output in Brazil and Iraq have increased the risks for oil markets of going from the current feast to famine within just a few years, leading to a price spike that would give a new boost to the U.S. shale industry.
Brazil and Iraq had been expected to add over 2 million barrels per day to global supply by 2020 and another 2.5 million by 2025, becoming the two biggest contributors to help meet rising global demand, according to the long-term forecast of the International Energy Agency………………………………………..Full Article: Source

Oil Oversupply Meets Rising Demand in Quietest Market Since 2013

Posted on 03 July 2015 by VRS  |  Email |Print

The sleepiest oil market since 2013 will probably limp through the second half of the year as well. Crude traded in a $5 range in June, the narrowest in 19 months. Volume was the lowest since December and open interest - - the number of futures contracts outstanding — was the least since January.
New York-traded futures, which have swirled around $60 a barrel for the past two months, will average about $59 in third quarter and $63 in the fourth, according to forecasts of 22 analysts compiled by Bloomberg. Neither the potential return of Iranian crude to the market nor the long-anticipated decline in U.S. production is stirring a reaction………………………………………..Full Article: Source

Oil Price Forecast: Shale 2.0 Will Keep Supply Abundant

Posted on 03 July 2015 by VRS  |  Email |Print

When we first started getting substantial oil from fracking and horizontal drilling, the news about costs indicated that oil production would decline at a fast rate when prices were low, pushing prices back up. New data, however, argue for rising productivity of shale oil development—meaning plenty of petroleum to keep prices low.
Price cycles vary widely across industries based on how much of total cost is up-front expense versus on-going expense, as I explained in the best book about economics for business. When costs are mostly front-loaded (oil, airlines, ocean shipping) and capital assets last a long time, then price cycles are volatile………………………………………..Full Article: Source

Oil Falters After Rig Count Grows

Posted on 03 July 2015 by VRS  |  Email |Print

The amount of rigs drilling for oil in the U.S. rose for the first time in seven months, triggering a slump in crude oil prices to their lowest settlement in two months. U.S. oil producers added 12 rigs last week, breaking 29 straight weeks of cuts, in response to prices that have rebound to- and stayed at $60 a barrel since late April.
That convinced producers to end months of massive cutbacks that started after the U.S. shale drilling boom flooded the market and sent prices crashing. But the increase in rigs is scaring investors and analysts who have warned that oil could be on the verge of another sharp fall. Production has kept making small gains even as drilling has declined and stockpiles have hit historic levels around the world………………………………………..Full Article: Source

China launches new oil and gas trading platform - Xinhua

Posted on 02 July 2015 by VRS  |  Email |Print

A new trading platform for oil and gas was launched in China on Wednesday, state media reported, as the world’s largest energy consumer looks to extend its influence over global commodity pricing. The Shanghai Petroleum and Natural Gas Exchange (SHPGX), which is registered in the Shanghai free trade zone, will initially only handle natural gas transactions during a test run.
“We expect (gas) trading volumes at SHPGX would range from 5 billion cubic meters to 6 billion cubic meters in second half of 2015 and annual trading volumes at SHPGX would be more than 10 billion cubic meters in 2016,” Guo Xu, an official with SHPGX, was quoted as saying by the official Xinhua News Agency, which is a shareholder in the exchange………………………………………..Full Article: Source

Iran eyes $100bn of western investment in oil industry

Posted on 02 July 2015 by VRS  |  Email |Print

Iran is finalising a contract system to secure about $100bn of new oil and gas deals with western companies if sanctions are lifted. The move marks a big shift for a regime traditionally wary of of foreign groups participating in its energy sector.
Mehdi Hosseini, an adviser to Iran’s oil ministry who has been drafting a new energy contract for the past two years, said he expected President Hassan Rouhani to approve it in the coming months………………………………………..Full Article: Source

U.S. crude prices tumble most since April on surprise stock build

Posted on 02 July 2015 by VRS  |  Email |Print

U.S. crude prices fell 4 percent on Wednesday, posting their biggest daily drop since April after oil stockpiles in the United States rose for the first time in more than two months. The selloff was a jolt to crude traders and investors who have seen U.S. prices in fairly tight trading ranges over the past 10 weeks versus sharper moves down in European oil.
But many were not counting yet on a sustained break lower, pointing to the summer demand for oil in the United States, which seasonally supports prices through August. “I don’t think the transition to another price freefall will happen as quickly this time,” said Scott Shelton, a commodities specialist, who also trades energy, for broker ICAP in Durham, North Carolina. “I see a slower grind lower and I don’t think this the tipping point.”……………………………………….Full Article: Source

Oil Prices Hit Two-Month Low on U.S. Inventory Data

Posted on 02 July 2015 by VRS  |  Email |Print

The U.S. oil glut is growing again, spurred by a sharp ramp up in production and threatening to put renewed pressure on crude prices. U.S. crude-oil stockpiles rose last week for the first time in nine weeks, according to a Wednesday report from the Energy Information Administration.
That unexpected increase comes on the heels of data released Tuesday showing that the nation’s oil producers ramped up output in April to the fastest pace since 1971. The news sent oil prices skidding to their lowest level in two months on Wednesday………………………………………..Full Article: Source

OPEC oil output hits three-year high in June on Iraq: Reuters survey

Posted on 02 July 2015 by VRS  |  Email |Print

OPEC oil supply in June has climbed to a three-year high due to record or near-record output from Iraq and Saudi Arabia, a Reuters survey found, underlining the focus of the group’s top exporters on market share.
The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd) and comes despite outages in Libya and Nigeria that curbed supplies. OPEC supply has risen in June to 31.60 million bpd from a revised 31.30 million bpd in May, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………………..Full Article: Source

Why an Iran deal could mean lower oil prices

Posted on 01 July 2015 by VRS  |  Email |Print

A final accord to curtail Tehran’s nuclear ambitions could lead to a glut of Iranian oil hitting an already “oversupplied market,” which would serve to pressure prices, oil expert John Kilduff said Tuesday, as negotiators in Vienna face a deadline that’s expected to be extended.
Returning to the talks after consultations at home, Iran ’s chief diplomat insisted Tuesday he has a mandate to finalize a nuclear agreement, despite increased signs of backtracking. “Right now the happy talks is flowing … that things are looking good for a deal,” said Kilduff, founding partner of Again Capital, an alternative investment manager specializing energy and metals………………………………………..Full Article: Source

Oil Prices Gain in Second Quarter

Posted on 01 July 2015 by VRS  |  Email |Print

U.S. oil prices rose on Tuesday, posting a 25% quarterly gain, after Iran and six world powers extended the deadline for nuclear talks until July 7. Prices posted their largest single-quarter percentage gain since 2009 on expectations of a drop in U.S. production and growing demand after slumping to near-six-year lows earlier in the year.
So far, however, U.S. oil output hasn’t slowed, and prices have stabilized around $60 a barrel in recent weeks as traders looked for direction. The U.S. benchmark fell 1.4% this month. The Iranian talks, aimed at blocking the country’s path to a nuclear weapon in exchange for lifting international sanctions, could eventually allow Iran to increase its oil exports………………………………………..Full Article: Source

BP’s chief economist sees U.S. shale weathering oil surplus

Posted on 01 July 2015 by VRS  |  Email |Print

Shale output in the United States will prove resilient to low oil prices likely to be prolonged by the prospect of half a million barrels per day of Iranian crude making its way back to the market, BP’s chief economist said on Tuesday.
Talks in Vienna between world powers trying to end sanctions on Tehran in return for limits on Iran’s most sensitive nuclear activities could bring a significant increase in Iranian oil exports. BP’s Spencer Dale, however, told Reuters that it would probably take time for any easing of sanctions to filter through to oil markets if an Iran deal is agreed………………………………………..Full Article: Source

Oil uptrend breakout

Posted on 01 July 2015 by VRS  |  Email |Print

The NYMEX oil price remains bullish and could be headed for $63, technical analysis shows. It’s developed a double bottom pattern near $45 as the downtrend consolidation developed. When the height of the double bottom is measured, this value is projected above the peak of the double bottom pattern near $53. This pattern is also called a W trend reversal pattern.
The upside target for the double bottom rebound is near $63. This target has not been achieved as the price has consolidated between $58 and $61. But this remains a bullish chart pattern because support at $58 is consistent. The consolidation behavior is a pause in the full development of the double bottom pattern so the $63 target remains achievable………………………………………..Full Article: Source

New oil bull market in sight as Brazil, Iraq cut output targets

Posted on 01 July 2015 by VRS  |  Email |Print

Massive downward revisions to oil output in Brazil and Iraq have increased the risks for oil markets of going from the current feast to famine within just a few years, leading to a price spike that would give a new boost to the U.S. shale industry.
Brazil and Iraq had been expected to add over 2 million barrels per day to global supply by 2020 and another 2.5 million by 2025, becoming the two biggest contributors to help meet rising global demand, according to the long-term forecast of the International Energy Agency………………………………………..Full Article: Source

Is there a huge investing opportunity in the oil markets?

Posted on 01 July 2015 by VRS  |  Email |Print

A rare occurrence now happening on oil markets might be a huge opportunity for investors who play it right, says Tim Pickering, president and chief investment officer at Auspice Capital Advisors Ltd.
Pickering said Canadian crude prices are currently in “backwardation,” which means the future price is expected to be lower than the spot price, but every other crude oil market in the world is in contango, meaning the future price is expected to be higher than the spot. “For long-term investors in oil, this is a positive thing because it means they will not lose money as the market rolls over time,” he said in a commentary to clients………………………………………..Full Article: Source

OPEC output surges as Iraq accelerates production

Posted on 01 July 2015 by VRS  |  Email |Print

Iraqi crude production climbed to a record this month, helping send OPEC output to the highest level since August 2012. Output by the Organisation of Petroleum Exporting Countries climbed 744,000 barrels to 32.134 million a day this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 189,000 barrels lower to 31.39 million a day, because of changes to the Saudi, Iraqi, Algerian and Nigerian estimates.
OPEC has been boosting supply as it seeks to force higher-cost producers to cut output. The 12-member group agreed on June 5 to retain its collective output target of 30 million barrels a day, a level that it’s exceeded for 13 months, according to data compiled by Bloomberg………………………………………..Full Article: Source

OPEC oil output hits 3-year high in June on Iraq - Reuters survey

Posted on 01 July 2015 by VRS  |  Email |Print

OPEC oil supply in June has climbed to a three-year high due to record or near-record output from Iraq and Saudi Arabia, a Reuters survey found, underlining the focus of the group’s top exporters on market share.
The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd) and comes despite outages in Libya and Nigeria that curbed supplies. OPEC supply has risen in June to 31.60 million bpd from a revised 31.30 million bpd in May, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………………..Full Article: Source

How Will An Iran Deal Impact The Global Oil Market?

Posted on 30 June 2015 by VRS  |  Email |Print

Analysts at Morgan Stanley Research recently polled 299 investors about the impact that a potential Iranian nuclear deal would have on the global oil market. Analyst Haythem Rashed summarized the survey results and noted important upcoming deadlines for oil investors to watch when it comes to the Iran negotiations.
Morgan Stanley asked poll participants how much Iranian oil exports will increase by the end of 2015 and into 2016. The most popular choice for 2015 was an incremental Iranian export increase of 200kb/d. Nearly 40 percent of respondents anticipate Iranian exports to increase by 200-300kb/d, while 15 percent of those polled see no change to Iran’s oil exports this year………………………………………..Full Article: Source

Will Opec gain with higher production?

Posted on 30 June 2015 by VRS  |  Email |Print

What is common between the production and marketing approaches of the 12-member Organization of the Petroleum Exporting Countries (Opec) and the world’s three largest producers of iron ore - Vale, BHP Billiton and Rio Tinto? The fall in prices of crude oil from $115 a barrel in June 2014 to $64 now and of iron ore from $205 a tonne to $62.5 have not proved enough disincentive for leading producers of the two most globally traded commodities to apply a production brake.
Opec and the ore triumvirate do not see merit in restricting production at lowest cost enterprises, which will allow high-cost producers to stay in business. As big miners remain engaged in commissioning large new capacity and others that cannot abandon projects nearing completion, the seaborne ore glut could rise to 260 million tonnes (mt) by the end of next year………………………………………..Full Article: Source

Oil Speculators Least Bullish in 10 Weeks on Iran Talks

Posted on 30 June 2015 by VRS  |  Email |Print

Hedge funds are the least bullish on crude in 10 weeks as talks resumed on a nuclear accord with Iran that could lift sanctions and swell supply. Money managers trimmed their net-long wagers on West Texas Intermediate by 1.3 percent in the week ended June 23, U.S. Commodity Futures Trading Commission data show.
Shorts rose 8.9 percent while long positions increased 0.7 percent. Speculators curbed bullish bets on Brent crude, the European benchmark, to the lowest in three months. U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammad Javad Zarif met June 27 in Vienna. Iran says it could double oil exports from 1 million barrels a day within six months if sanctions are lifted………………………………………..Full Article: Source

Saudi Kingdom, Russia vie for global oil market foothold

Posted on 29 June 2015 by VRS  |  Email |Print

In the rapidly changing geopolitical environment, Saudi Arabia and Russia are forging ahead - fostering a closer relationship - in major sectors including the all important energy sector. When the Saudi Deputy Crown prince Mohammad bin Salman, accompanied not only by the Foreign Minister Adel bin Jubeir but also the Petroleum Minister Ali Al-Naimi called on Russian President Vladimir Putin in St. Petersburg on June 18, six major deals were signed between the world’s two top crude producers.
The deals ranged from agreement in defense sector to enhanced cooperation in energy development. It also covered greater cooperation on nuclear energy development. Citing unnamed sources, Al-Arabiya reported the kingdom planned to build 16 nuclear reactors and Russia has agreed to play a significant role in operating them………………………………………..Full Article: Source

US becomes biggest oil producer in 2014, surpasses Saudi Arabia

Posted on 29 June 2015 by VRS  |  Email |Print

The United States has overtaken Saudi Arabia as the world’s biggest oil producer in 2014 while India has recorded the highest growth in energy consumption among major economies. The US produced 15.9 per cent more oil in 2014 at 11.6 million barrels of oil per day to topple Saudi Arabia’s 11.5 million bpd production, according to BP Plc’s Statistical Review of World Energy released on Wednesday.
Russia with 10.8 million bpd oil production was placed third. The US surpassed Russia as the world’s largest producer of oil and gas, producing 1,250.4 million tons of oil and oil equivalent natural gas in 2014. This compared with Russia’s 1,062 million tons of oil equivalent. BP said the US shale revolution helped it overtake “Saudi Arabia as the world’s biggest oil producer and surpass Russia as the world’s largest producer of oil and gas.”……………………………………….Full Article: Source

Experts say Iran oil output to rise 500 bpd before 2016

Posted on 29 June 2015 by VRS  |  Email |Print

Many may have already started to speculate when economic sanctions against Iran will be lifted in case the country manages to seal a deal with the P5+1 group of countries. Nevertheless, some have even gone further to speculate when Iran will see the economic objectives it has set for a post-sanctions era become materialized.
Many may agree that the most important objective that Iran has set for itself is to increase its oil production capacity. Iranian officials had already voiced optimism that the country will be able to increase its crude oil production by 500,000 barrels per day before the end of 2015 if anti-Iran sanctions are lifted. However, what many may want to know is what the impacts of an increased Iran oil production will be on the market already under the pressure of excessive supplies………………………………………..Full Article: Source

This could be the tipping point for oil prices

Posted on 29 June 2015 by VRS  |  Email |Print

Record oil production meeting a wave of surprisingly strong demand has reined in world oil prices, creating a delicate balance that could be tipped either way—and the most immediate catalyst may be Iran’s nuclear talks.
The market has been awaiting the outcome of the negotiations ahead of a June 30 deadline, as an agreement could put 1 million barrels of Iranian crude back on the market eventually. U.S. crude futures have been locked between $57 and $62 per barrel—since late April………………………………………..Full Article: Source

OPEC crude market share shrinks to 12-year low

Posted on 29 June 2015 by VRS  |  Email |Print

Booming U.S. shale production helped cut OPEC’s global crude market share to a 12 year low last year. According to OPEC’s Annual Statistical Bulletin, the group’s share of the global crude market sank to 41.8 percent in 2014, down from 43.3 percent the year before.
The 1.5 percent slide marks OPEC’s lowest crude market share level since 2003, Bloomberg News said. According to the bulletin, Libya accounted for over half of OPEC’s output decline as two rival governments continue to fight for control of the oil rich country………………………………………..Full Article: Source

OPEC petroleum exports fall below $1 trillion in 2014 on oil slump

Posted on 26 June 2015 by VRS  |  Email |Print

The value of OPEC members’ petroleum exports fell below $1 trillion in 2014 for the first time since 2010, according to its annual statistical report, illustrating the impact of last year’s slump in oil prices on the producer group.
The data includes some refined fuel and light oil condensate as well as crude oil. Exports from the Organization of the Petroleum Exporting Countries fell in value to $964.6 billion last year from $1.10 trillion in 2013, according to OPEC’s Annual Statistical Bulletin 2015 issued on Wednesday………………………………………..Full Article: Source

Iran Deal’s Sanction Plan Could Affect Oil Prices

Posted on 26 June 2015 by VRS  |  Email |Print

An Iranian nuclear deal could bring an influx of oil, but when and how sanctions are lifted could also affect prices. The deadline for a nuclear deal is June 30, which could lead to the lifting of sanctions on Iran. Oil is believed to make up 80% of Iran’s exports, and current sanctions have chopped those exports in half.
Iran could potentially add another 800,000 barrels of oil a day to the market within six to nine months, according to Robin Mills, an energy strategist for Manaar Energy. Even though the potential for pumping oil in Iran is strong, deal makers are pushing for sanctions to be lifted gradually instead of immediately………………………………………..Full Article: Source

Oil Tankers Are Filling Up and Raking It In

Posted on 26 June 2015 by VRS  |  Email |Print

The oil-tanker market is heating up, a development some analysts say is a warning flare that signals further price declines for crude. The Baltic Dirty Tanker Index, which tracks the rates to hire oil tankers plying 16 routes, has shot up 25% this month, as global oil output continues to grow. The index is now at its highest level since January 2014.
But an increasing number of these oil cargoes have nowhere to go. Oil producers and traders are rushing to lease tankers while they scramble to find buyers, effectively turning these ships into floating storage facilities. The oil-supply glut has worsened since the Organization of the Petroleum Exporting Countries earlier this month decided to maintain crude-output levels………………………………………..Full Article: Source

Oil prices around $60 as demand balances glut

Posted on 26 June 2015 by VRS  |  Email |Print

Crude oil prices steadied on Thursday as strong demand for oil products helped to balance a global overhang of crude oil for immediate delivery. North Sea Brent crude oil traded within a fairly narrow range as investors eyed a weak physical crude market in the Atlantic basin amid reports of stronger demand for gasoline and diesel in the United States and Europe.
Official prices for Nigerian crude have hit their lowest in at least a decade with as much as 10 million barrels of unsold light, sweet crude oil capping Atlantic basin prices. But demand for oil products is fairly strong. U.S. gasoline demand in the week to June 19 hit the highest seasonal level since 1991, according to the U.S. Energy Information Administration (EIA)………………………………………..Full Article: Source

Calculus on oil price changing as Iran talks wobble

Posted on 25 June 2015 by VRS  |  Email |Print

Iran has been a wild card in the oil market, and it looks like it could stay that way for awhile. The deadline for a nuclear agreement with the U.S. and five other countries is Tuesday. But the timing appears to be slipping, as the walkup to that date has been met with negative rhetoric from Iranian hardliners.
“From a geopolitical standpoint, it could add a lot of uncertainty. From a short-term standpoint, I think the oil implications are that anyone who is thinking Iranian oil is getting to the market soon will have to reconsider,” said Greg Valliere, chief political strategist at Potomac Research………………………………………..Full Article: Source

OPEC’s Oil Revenues Have Dropped Below $1 Trillion - Here’s What That Looks Like

Posted on 25 June 2015 by VRS  |  Email |Print

OPEC nations’ oil revenues dropped last year below the psychological $1 trillion mark for the first time since 2010, in the clearest sign yet of the economic impact of lower prices for oil-rich nations.
The Organisation of the Petroleum Exporting Countries said on Wednesday in its annual statistical report that its 12-members earned $964.6 billion selling their petroleum, down 12.7 per cent from $1.1 trillion in 2013 and the lowest amount since 2010. Oil export revenues hit a nominal record of $1.2 trillion in 2012, according to OPEC data………………………………………..Full Article: Source

OPEC’s crude market share fell to lowest since ’03 last year

Posted on 25 June 2015 by VRS  |  Email |Print

OPEC said its share of the global crude oil market last year declined to the lowest level since 2003, underscoring the motive for the group’s current push to defend sales volumes. The Organization of Petroleum Exporting Countries’ share of the global crude market dwindled to 41.8% in 2014, from 43.3% the previous year, according to the group’s Annual Statistical Bulletin.
Libya accounted for more than half the output reduction. OPEC’s 12 members pumped an average of 30.68 MMbopd last year, according to the report by the group’s Vienna-based secretariat………………………………………..Full Article: Source

Oil Prices Fall After Inventory Data

Posted on 25 June 2015 by VRS  |  Email |Print

Oil prices declined Wednesday after data showed that crude-oil supplies shrank last week but inventories of refined products rose. Light, sweet crude for August delivery settled down 74 cents, or 1.2%, to $60.27 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 96 cents, or 1.5%, to $63.49 a barrel on ICE Futures Europe.
U.S. oil prices have gained 13% this year on expectations that the global glut of crude oil is due to shrink. U.S. commercial crude-oil supplies fell by 4.9 million barrels in the week ended June 19, the U.S. Energy Information Administration said Wednesday………………………………………..Full Article: Source

OPEC’s Strategy and Iran’s Sanctions Impact the Crude Oil Market

Posted on 25 June 2015 by VRS  |  Email |Print

OPEC (Organization of the Petroleum Exporting Countries) produces 40% of the global crude oil production. It has a 60% share in global crude oil exports. OPEC member nations produced 31.2 MMbpd (million barrels per day) of crude oil in May 2015—compared to its target of 30 MMbpd.
On June 5, 2015, OPEC decided to maintain its collective output target of 30 MMbpd of crude oil for the next six months. The consensus of a massive production strategy will drive crude oil prices lower. Lower oil prices impact US shale oil producers like Whiting Petroleum (WLL), Continental Resources (CLR), and Marathon Oil (MRO). They also impact oil and gas ETFs like the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Select Sector SPDR Fund ETF (XLE)………………………………………..Full Article: Source

Kuwait oil minister says oil price drop unlikely

Posted on 24 June 2015 by VRS  |  Email |Print

Kuwait’s oil minister said on Tuesday he expected oil prices to continue rising, predicting gains in the final quarter of 2015 on the back of global growth. “All indicators point to an improvement in prices … today we have reached the stage where a fall is difficult, a fall has now become unlikely,” Ali Saleh al-Omair told reporters.
Omair also said costs for the country’s al-Zour refinery were expected to increase by around 1 billion Kuwaiti dinars ($3.31 billion) pushing up total cost to more than 5 billion dinars. A Kuwait National Petroleum Company spokesman had said on Monday the start-up of the refinery would be delayed as the company was seeking more financing on the back of rising construction costs………………………………………..Full Article: Source

Iran may usher a quick return to $50 U.S. oil prices

Posted on 24 June 2015 by VRS  |  Email |Print

The oil market’s mostly focused on U.S. supply data this week, but next week should be all about Iran and the deadline for a final agreement over its nuclear program. If a deal between Iran and six world powers is reached by the June 30 deadline, Iran could soon start dumping millions of barrels of oil into the global market, ushering a quick return of $50 oil prices.
“Iran has at least 34 large tankers full of oil — about 50 million barrels or more — ready to “sell and sail” if sanctions are lifted, said Byron King, editor of investment newsletter Outstanding Investments………………………………………..Full Article: Source

Oil At $60: How Marginal Producers Cope Will Shape Market Direction

Posted on 24 June 2015 by VRS  |  Email |Print

As we approach the midway point of the current trading year, it has become apparent that oil benchmarks would find it hard to escape the $50-$75 per barrel range for the rest of the year, and much of 2016. Macroeconomics of the day also does not point to a dip below $50 barring the occurrence of an unforeseen financial tsunami.
As most producers are looking at non-OECD markets to export to, and demand there is holding up, if not firing on all cylinders, a steep price drop is highly unlikely. Atop the much asserted claim of too much oil coming on the market – in the region of 1.1 to 1.3 million barrels per day (bpd) by some accounts – each time there is minor uptick in price, a swift downward correction follows suit. Trading in recent weeks offers ample proof of this………………………………………..Full Article: Source

Oil price to reach $82 per barrel in early 2016, hedge fund says

Posted on 24 June 2015 by VRS  |  Email |Print

Insch Capital Management, a Swiss hedge fund, said that the market is oversold and projected that crude oil will be trading at more than $80 per barrel by early 2016. Such an increase would equate to a near-50 percent surge in price. The optimistic forecast forms the basis of Insch Capital Management plans to increase its positions in the sector.
The hedge fund said it is looking to add oil properties to its portfolio, as some producers will be forced to sell off assets at bargain prices to cover lower income. “After the recent crude oil price declines, the oil rig count has dropped precipitously,” Insch said. “Many oil companies are being forced to sell properties in order to repay bank debt.”……………………………………….Full Article: Source

Russia Pips Saudi Arabia in Race to Grab China Oil Market Share

Posted on 24 June 2015 by VRS  |  Email |Print

Russia surpassed Saudi Arabia to become China’s top crude supplier as the fight for market share in the world’s second-largest oil consumer intensifies. China imported a record 3.92 million metric tons from its northern neighbor in May, according to data emailed by the Beijing-based General Administration of Customs on Tuesday.
That’s equivalent to 927,000 barrels a day, a 20 percent increase from the previous month. Saudi sales slumped 42 percent from April to 3.05 million tons. China is becoming a key market for global oil exporters as surging output from shale fields from Texas to North Dakota allows the U.S., the biggest crude consumer, to rely less on overseas supplies……………………………………….Full Article: Source

The world is awash in oil — is Canada making it worse?

Posted on 24 June 2015 by VRS  |  Email |Print

Collectively, Canada’s energy sector lost more than $600 million in the first three months of this year, and the Canadian economy shrank in the same period, as the collapse in oil prices took its toll. Now, nearly 18 months after it started, the oil glut continues.
At its worst point this spring, the world was producing four million barrels per day more than was being consumed. And Canada is playing a role in that oversupply. Just last week, in fact, Imperial Oil announced that the second phase of its Kearl oilsands operation had started production ahead of schedule. When it fully ramps up in the coming months, the expansion alone will add 110,000 barrels per day to Kearl’s production. That’s around 40 million barrels in a year just from one expansion………………………………………..Full Article: Source

Oil investors betting on crude hitting $82 per barrel

Posted on 23 June 2015 by VRS  |  Email |Print

European hedge fund believes market for crude is oversold as demand picks up. Investors are beginning to bet on a sharp rebound in the oil price by the end of the year, on the back of rising demand and a slowdown in US production.
Insch Capital Management, a Swiss hedge fund, is predicting that prices will be trading at about $82 per barrel by the beginning of next year, and already claims the market is oversold. The Lugano-based fund says it plans to ramp up investments in the sector in preparation for an expected 50pc uptick in the price of crude by 2016………………………………………..Full Article: Source

Iran has better chance to be a global supplier of gas than oil: expert

Posted on 23 June 2015 by VRS  |  Email |Print

Sara Bazoobandi, a lecturer in international political economy at Regent’s University London, says Iran has a better chance to become a “global gas supplier than oil” by developing its infrastructure. “With developing the infrastructure the country will stand a much better chance to be a global supplier of gas than oil,” Bazoobandi said.
Bazoobandi also says as many other goods the price of oil is “determined by the supply and demand” and “as long as the global production remains unchanged at the current level, the prices will not have dramatic changes.”……………………………………….Full Article: Source

Do not see oil prices going beyond $80-85: CEA Arvind Subramanian

Posted on 23 June 2015 by VRS  |  Email |Print

Chief Economic Advisor Arvind Subramanian today said he does not see oil prices going beyond 80 to 85 dollars, a price which will help India manage its macro economy reasonably.
“… yes oil prices could go up, but given the fundamental changes (in the market), the likelihood of it (oil price) going up to anywhere beyond 80 or 85 dollars I (think) relatively (should be) ignored and as long as oil prices stay, don’t go beyond that I think we can manage our macro economy reasonably,” he said………………………………………..Full Article: Source

Oil markets stable, Russian minister says

Posted on 23 June 2015 by VRS  |  Email |Print

From the Russian perspective, the situation in the global crude oil market is starting to stabilize, the minister of economic development said. Crude oil prices starting in June 2014 began a steady decline, dropping from levels above the $100 per barrel mark to below $50 per barrel in early 2015. A year on, Russian Minister for Economic Development Alexei Ulyukayev said “the oil market has attained certain stability.”
Brent crude oil prices have hovered in a range between $63 per barrel and $65 per barrel for most of June. Oil prices have been responding to signs an oversupplied market scenario was easing in a tepid, but steadily growing, global economy………………………………………..Full Article: Source

Oil Price War Continues As OPEC Tightens The Screws

Posted on 23 June 2015 by VRS  |  Email |Print

As we come towards the end of another trading month, crude oil price remains firmly range-bound as OPEC’s policy of taking on the alternative energy suppliers in a price war continues.
Judging by its recent statements, OPEC is clearly intent on taking the long view to squeeze these companies out of business, and as the rhetoric and oversupply builds, oil prices are likely to continue to remain waterlogged, with intraday movements more likely to be driven either by the US dollar or local fundamentals in the short term. Even the recent transition on the weekly oil inventories from a build to a draw has failed to provide any meaningful momentum for the commodity………………………………………..Full Article: Source

Speculators Retreat From Oil as OPEC Oversupply Crowds Out Shale

Posted on 22 June 2015 by VRS  |  Email |Print

Hedge funds reduced both bullish and bearish bets on oil for a fourth week as rising OPEC output was met with forecasts for a contraction in U.S. supply. Money managers trimmed their short wagers in West Texas Intermediate oil by 4.3 percent and long bets by 0.2 percent, leading to a 0.8 percent gain in the net-long position, U.S. Commodity Futures Trading Commission data for the seven days ended June 16 show.
Trading in futures is falling as WTI swings in a $5 range, the narrowest in 19 months. The Organization of Petroleum Exporting Countries pumped the most oil last month since October 2012, while the U.S. government says output will start falling from this month………………………………………..Full Article: Source

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