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Instability in Libya continues to drag down crude oil prices

Posted on 25 April 2014 by VRS  |  Email |Print

The price for the U.S. crude oil benchmark has moved closer to $102 per barrel in trading in part because of renewed concerns over Libya, once one of North Africa’s top exporters. On concerns Libya has not yet broken rebels’ grip on oil export terminals, West Texas Intermediate was trading at $101.40 per barrel, while the price for Brent moved at $109.10.
Though U.S. crude oil levels may provide some relief to market worries, the protracted stalemate over Libyan crude, coupled with continued unrest in Ukraine, could push oil prices higher through this summer………………………………………..Full Article: Source

4 reasons why gas prices are rising

Posted on 25 April 2014 by VRS  |  Email |Print

Gas prices typically rise in the spring as refineries slow down operations in order to switch from producing winter fuel blends to less polluting summer grades. Gasoline demand is also ramping up as we head into the summer driving season.
This is also the time of year when many refineries schedule their annual maintenance. On Tuesday, Suncor announced a four-week shutdown of its Montreal refinery, taking as much as 137,000 barrels per day offline. During this period the company will be forced to pay higher prices by import supplies from Ontario and the Northeastern United States………………………………………..Full Article: Source

Iraq and Saudi Arabia see rise in crude exports in February 2014

Posted on 24 April 2014 by VRS  |  Email |Print

Iraq and Saudi Arabia crude oil exports rose by 26 per cent and 3.5 per cent respectively in February 2014, according to the Joint Organisations Data Initiative (JODI). Saudi Arabia had reportedly shipped 7.76mn bpd in February compared to 7.5mn in January 2014.
Meanwhile, Iraq increased exports to 2.8mn bpd, up 26 per cent from January 2014, highest since the year 2002………………………………………..Full Article: Source

Shale boom sends U.S. crude supply to highest since 1930s

Posted on 24 April 2014 by VRS  |  Email |Print

The U.S. is stockpiling the most crude since the Great Depression, thanks to the shale boom that has boosted production to the most in 26 years. Inventories rose 3.52 million barrels last week to 397.7 million, the highest level since 1931, according to Energy Information Administration data going back to 1920.
Crude output climbed 59,000 barrels a day to 8.36 million, the most since January 1988, as the combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies from shale formations in the central U.S., including the Bakken in North Dakota and the Eagle Ford in Texas………………………………………..Full Article: Source

Oil and gas industry ‘worth GBP35bln annually’ to UK economy

Posted on 24 April 2014 by VRS  |  Email |Print

The oil and gas industry is worth about £35bn to the UK economy, according to a new study. The research, commissioned by industry body Oil and Gas UK, found more than 3,000 companies were directly involved in the industry.
The number of people employed by UK firms grew by more than 20,000 in the four years to 2012. The report said a key challenge was the availability of skilled and experienced workers. It also suggested the industry needs to increase exports to sustain growth………………………………………..Full Article: Source

Iran’s crude oil, gas condensate exports hit $41.6bln: oil minister

Posted on 24 April 2014 by VRS  |  Email |Print

Iran exported $41.6 billion worth of crude oil and gas condensate in the past Iranian calendar year, which ended on March 20, Oil Minister Bijan Namdar Zanganeh said on Wednesday. Iran’s crude oil was sold at $104 per barrel on the average in the international market, the Mehr News Agency reported.
On March 12, Zanganeh said Iran’s crude oil output is forecast to increase by about 200,000 barrels per day to 4 million barrels per day, and its daily natural gas output is forecast to increase by about 100 million cubic meters per day to 400 million cubic meters per day in the current Iranian calendar year 1393, which began on March 21………………………………………..Full Article: Source

Geopolitical risks to support the oil price – despite demand growth drop

Posted on 23 April 2014 by VRS  |  Email |Print

The boost the energy sector received up until early March is unlikely to be repeated as we move into the second quarter. Oil traders will be keeping an eye on several issues. China, the world’s biggest importer of oil, saw a dramatic reduction in February imports, after a record high in January. If this trend continues, demand growth could eventually have to be revised lower.
Meanwhile, the hope of reaching a comprehensive agreement between Iran and the West over the former’s nuclear intentions may have suffered a setback, given the breakdown in relations between Russia and the US over Ukraine. Iran has been exporting more than allowed under Western sanctions for the past four months, and this increases the risk of a crackdown if Washington feels economic pressure is being relaxed too quickly………………………………………..Full Article: Source

Impact of dramatic increase in US Shale Oil production

Posted on 23 April 2014 by VRS  |  Email |Print

The US energy industry is witnessing a transformation with advances in hydraulic fracturing technology causing huge production growth in natural gas by 35% or 17 bcf/d.
Bank of America-Merrill Lynch (BofAML)in a report said that since 2010 onwards, US domestic crude and liquids production has expanded by 2.5 mn barrels per day or 33%. As a result, America became the largest contributor to increase in oil and natural gas supplies in the world in 2010-13 period………………………………………..Full Article: Source

Iran only OPEC member expert in deep-water exploration

Posted on 23 April 2014 by VRS  |  Email |Print

Iran is the only member of the Organization of Petroleum Exporting Countries (OPEC) that has expertise in deep-water oil and gas exploration, an Iranian oil official said. Director of the Khazar Exploration and Production Company Ali Osouli said exploring the reserves in the deep Caspian basin requires technological expertise only a few countries possess, Iran Focus reported.
“At present, Iran is at the top of Caspian Sea littoral states to that effect,” he said Sunday. Iran is among the world leaders in terms of oil reserves. More than half of its oil is found inland………………………………………..Full Article: Source

Netherlands may become natural gas importer by 2025, IEA says

Posted on 23 April 2014 by VRS  |  Email |Print

The Netherlands, Europe’s second-largest gas exporter, may become an importer by 2025 as output falls from its Groningen province and progress in unconventional sources stalls, the International Energy Agency said.
“It is time to re-assess its energy security and to look at different cost-effective pathways to guide the transition,” Maria van der Hoeven, executive director of the Paris-based adviser to 28 nations, said in the agency’s review of Dutch energy policy………………………………………..Full Article: Source

India more than doubles Iran oil imports

Posted on 23 April 2014 by VRS  |  Email |Print

India more than doubled its crude oil imports from Iran last month from a year ago as sanctions have eased on Tehran, official data show. The figures released on Tuesday indicated that India imported 387,000 barrels per day (bpd) of oil from Iran in March.
The statistics also showed that crude shipments from Iran in the first quarter of 2014 rose about 43 percent from the same period last year. India imported around 358,000 bpd of Iranian crude in the first quarter of this year………………………………………..Full Article: Source

Texas expected to outproduce all but one of the OPEC nations this year

Posted on 23 April 2014 by VRS  |  Email |Print

Benefiting from the booming Eagle Ford Shale and Permian Basin, Texas likely will best the oil output of every OPEC country but Saudi Arabia by year-end, says a top exploration official at ConocoPhillips, a key acreage holder in both of those oil-and-gas formations.
The Lone Star State is expected to end 2014 with 3.4 million barrels per day in oil output, which exceeds that of 11 of the dozen OPEC nations, ConocoPhillips Unconventional Reservoirs Technical Manager Greg Leveille said during a keynote speech at the 3rd Annual Eagle Ford Consortium Annual Conference in San Antonio………………………………………..Full Article: Source

IEA oil forecast revision down, but OPEC countries need not worry

Posted on 22 April 2014 by VRS  |  Email |Print

The International Energy Agency (IEA) has revised upwards its forecast for global oil demand growth in 2014 to a modest 1.5 per cent on the back of a more robust outlook for global economic growth, a report said. The IEA now sees demand rising by 1.4 mbpd (or 1.5 per cent) this year to approximately 92.7 mbpd, from 1.3 mbpd (1.4 per cent) last month, said the latest NBK Economic Update.
This represents a modest acceleration on last year, as global oil demand is estimated to have grown by 1.3 mbpd in 2013. All demand growth is projected to come from emerging economies, with non-OECD Asia accounting for almost half of the global increase………………………………………..Full Article: Source

IEA: Global oil supplies plunge in March on lower OPEC output

Posted on 22 April 2014 by VRS  |  Email |Print

Global crude oil supplies fell month-on-month in March by a steep 1.2 million b/d to 91.75 million b/d, with a decline in output from members of the Organization of the Petroleum Exporting Countries accounting for near 75% of the loss, according to the International Energy Agency’s most recent Oil Market Report.
Due to sharply lower supplies from Iraq, Saudi Arabia, and Libya, OPEC crude oil supplies in March fell 890,000 b/d to just 29.62 million b/d—the lowest level in 5 months. “Libyan and Iraqi outputs were down on worsening civil unrest and operational issues, respectively, while Saudi Arabia curbed supplies last month in the wake of weaker demand from refiners during the peak spring refinery turnaround period,” IEA said………………………………………..Full Article: Source

‘Saudi America’: Mirage?

Posted on 22 April 2014 by VRS  |  Email |Print

At a time when Russia is saber-rattling and the Middle East is in turmoil, a welcome geopolitical trifecta could be in the making. The United States is poised to surpass Saudi Arabia and Russia as the world’s top oil producer. Canada’s oil sands have vaulted the country to energy superpower status.
Mexico is embarking on a historic constitutional energy overhaul that its president promises will propel the country’s economy. And there is no shortage of cheerleaders. “The North American production outlook is incredibly bright,” said Jason Bordoff, a former senior energy adviser in President Obama’s White House. “Everything we see on the ground suggests reasons to be optimistic.”……………………………………….Full Article: Source

GCC budget breakeven oil price creeps up

Posted on 17 April 2014 by VRS  |  Email |Print

Budget breakeven oil prices in most Gulf Arab producers are creeping upwards, as governments continue to push through investment stimulus programs despite flatter production. The budget breakeven price is a useful tool to understand what price of oil is needed to ensure that a budget is in balance for a given level of government spending.
Breakeven prices for Gulf states shot up from an average of USD 43.2 per barrel in 2007 to USD 78.8 by 2011 in the wake of the Arab Spring, as governments unleashed billions of dollars of investment to appease their populations………………………………………..Full Article: Source

Angola is moving into oil’s big leagues as it leaves decades of war behind

Posted on 17 April 2014 by VRS  |  Email |Print

After decades of sporadic growth and political turmoil, Angola is on the verge of catapulting to the top ranks of the world’s energy economy following major deep-water production investments by several top global oil companies.
France’s Total announced that it planned to proceed with a $16 billion ultra-deep-water project 160 miles off Angola’s northern coast to begin production in 2017. About 185 pipelines located 6,200 feet beneath the ocean will connect 59 wells in six oil fields. Advances in drilling technology have enabled primarily large oil companies to produce oil and gas from reserves 4,000 to 5,000 feet underwater, an impossible task a mere generation ago………………………………………..Full Article: Source

U.S. oil Independence by 2020?

Posted on 16 April 2014 by VRS  |  Email |Print

Forecasts that the USA will achieve zero net oil imports by 2020 appear to be on-track. While the U.S. Energy Information Administration (EIA) and a number of media pundits (notably on the left side of the political spectrum) take a more cautious — or even downright negative — view, the US-EIA’s own data gives good reason for hope.
Between 2006 and 2013, the United States cut its net imports in half. If this trend continues, zero net imports will occur in late 2019 or early 2020………………………………………..Full Article: Source

Global oil supplies jump

Posted on 16 April 2014 by VRS  |  Email |Print

Global supplies jumped by 600 kb/d in February to 92.89 mb/d, led by a significant rise in OPEC crude output of 500 kb/d. Compared with a year ago, February production stood 2.03 mb/d higher, with non-OPEC supply up by 2 mb/d and OPEC crude output nearly unchanged (-5 kb/d).
Non-OPEC oil production rose by 100 kb/d to 55.9 mb/d in February, led by marginally higher output in Canada and the US. Output barely rose outside of North America, with a meaningful rise occurring only in Latin American countries, most notably Colombia………………………………………..Full Article: Source

Iran’s oil exports continue to surge despite sanctions cap: IEA report

Posted on 16 April 2014 by VRS  |  Email |Print

Irans global crude oil exports have far-exceeded the one-million barrel-per-day cap set by the West. The Israeli paper referred to a recent IEA report as saying that Irans global oil exports in February made the highest record since June 2012.
The IEA’s monthly report revised February’s global crude imports from Iran upwards by 240,000 barrels per day to 1.65 million barrels per day, the highest since June 2012………………………………………..Full Article: Source

Why Angola may be the next OPEC Darling

Posted on 16 April 2014 by VRS  |  Email |Print

French energy company Total said it was sinking $16 billion into oil projects off the coast of Angola. The French major is following the bread crumbs offshore Angola and now the country aims to re-establish itself as a major oil player by courting investors to onshore fields.
Total said it made a final investment decision to develop the deepwater Kaombo project off the coast of Angola. High costs had delayed the decision, though Total now says it could produce as much as 230,000 barrels of oil per day once operations begin in 2017………………………………………..Full Article: Source

OPEC says Azerbaijan’s oil production to rise by end-2014

Posted on 16 April 2014 by VRS  |  Email |Print

OPEC predicts Azerbaijan’s oil production to amount to 0.87 million barrels per day (bpd) on average in 2014, Azernews reported on April 14. OPEC’s April oil market report said the production in the country will reach 0.89 million bpd in the fourth quarter as the highest production level of the year.
OPEC estimates the country’s oil production in the first quarter of 2014 was steady at 0.83 million bpd. In the second quarter, Azerbaijan’s oil production is predicted at 0.86 million bpd, in the third quarter at 0.88 million bpd, in the fourth quarter at 0.89 million bpd………………………………………..Full Article: Source

Is natural gas no better than coal?

Posted on 16 April 2014 by VRS  |  Email |Print

A new study by scientists from Purdue and Cornell suggests that the methane emissions from shale gas could be much higher than previously thought. The study, published in the Proceedings of the National Academy of Sciences, looked at fugitive methane emissions in Pennsylvania by flying an airplane over drilling sites and collecting samples. What they found was a bit unnerving.
“It is particularly noteworthy that large emissions were measured for wells in the drilling phase — in some cases 100 to 1,000 times greater than the inventory estimates,” said Purdue chemistry professor Paul Shepson………………………………………..Full Article: Source

IEA official predicts global oil demand to hit 92.7 mln bpd

Posted on 15 April 2014 by VRS  |  Email |Print

International demand for oil in 2014 is expected to reach 92.7 million barrels per day (bpd), including 8.1 million from the Middle East, said a senior official of the International Energy Agency (IEA) here on Monday.
In a working paper presented during the first session of the 3rd Kuwait Oil and Gas Summit and Exhibition, Director for Energy Markets and Security at the International Energy Agency (IEA) Keisuke Sadamori said China would become the world’s leading oil importer by 2030………………………………………..Full Article: Source

UAE support for oil price as demand picks up

Posted on 15 April 2014 by VRS  |  Email |Print

Oil prices approaching US$110 a barrel are “acceptable” for producers and consumers, and Opec does not need to change its output target, said the UAE’s deputy energy chief. The group is scheduled to next meet in June in Vienna to debate its 30 million barrel per day (bpd) production ceiling, which has remained unchanged since December 2011.
“I don’t think there will be any change in the quota,” said Matar Al Neyadi, the undersecretary of the UAE Ministry of Energy. “The market is stable, the supply is stable. The price is acceptable and comfortable for the producing countries and the consuming countries.”……………………………………….Full Article: Source

Rising prices for natural gas put pressure on oil sands producers

Posted on 15 April 2014 by VRS  |  Email |Print

Oil sands companies, which have benefited from years of low natural gas prices, are once again facing rising costs as the commodity they need to fuel much of their operations becomes more expensive.
Increasing prices for natural gas hit hardest at projects that use steam to soften oil-rich bitumen deposits to the point where the bitumen can drain into wells from which it can be pumped to the surface. Natural gas is an unavoidable expense in these projects, because it is needed to heat water to create steam………………………………………..Full Article: Source

Oil prices steady as Libya woes ease

Posted on 15 April 2014 by VRS  |  Email |Print

Crude oil prices rose in early Monday trading amid tensions in Ukraine, but fell again after Libyan protesters ended their occupation of an oil port. The price of Brent crude futures briefly rose above $108 a barrel, but later fell back to $107.30.
Libya’s state oil firm said the port of Zawiya and its refinery had reopened and were operating normally. But pro-Russian militants are still occupying buildings in eastern Ukraine, ignoring a deadline to leave by Kiev………………………………………..Full Article: Source

Iran challenges US sanctions with plans to double oil output by 2018

Posted on 14 April 2014 by VRS  |  Email |Print

Country’s new oil minister has set a new output target of 5.7m barrels per day of crude within four years. Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world’s largest natural gas reservoir in the Persian Gulf.
The country’s new oil minister, Bijan Zanganeh, has set a new output target of 5.7m barrels per day (bpd) of crude by 2018, according to the official state-run news agency Shana. The latest figures produced by the Organisation of Petroleum Exporting Countries (Opec), show that Iran is currently pumping about 3m bpd of crude………………………………………..Full Article: Source

Speculators boost bullish oil wagers on OPEC output drop: Energy

Posted on 14 April 2014 by VRS  |  Email |Print

The group, which pumps about 40 percent of the world’s oil, reduced output to the lowest for March since 2011 as a standoff between the Libyan government and rebels kept exports near the lowest level since Muammar Qaddafi was driven from office.
Output from the Organization of Petroleum Exporting Countries fell for the fifth time in seven months, according to a Bloomberg News survey. The International Energy Agency, which advises oil-consuming countries, said April 11 that OPEC will have to pump more crude after a “steep drop” last month………………………………………..Full Article: Source

IEA: Global oil supplies plunge in March on lower OPEC output

Posted on 14 April 2014 by VRS  |  Email |Print

Global crude oil supplies fell month-on-month in March by a steep 1.2 million b/d to 91.75 million b/d, with a decline in output from members of the Organization of the Petroleum Exporting Countries accounting for near 75% of the loss, according to the International Energy Agency’s most recent Oil Market Report.
Due to sharply lower supplies from Iraq, Saudi Arabia, and Libya, OPEC crude oil supplies in March fell 890,000 b/d to just 29.62 million b/d—the lowest level in 5 months………………………………………..Full Article: Source

U.S. crude reserves hit highest levels in nearly 40 years

Posted on 14 April 2014 by VRS  |  Email |Print

New data from the Energy Information Administration shows that crude reserves in the U.S. hit their highest levels since 1976. The EIA released a report on April 10, entitled “U.S. Crude Oil and Natural Gas Proved Reserves (2012),” which indicated that 2012 marked the fourth year in a row that proven oil reserves increased.
Not only that, but 2012 marked the largest increase in oil reserves for a single year – 4.5 billion barrels – since 1970. That is a remarkable feat since 1970 was the year that vast reserves, around 10 billion barrels, were booked in Alaska………………………………………..Full Article: Source

Venezuela needs 2014 brent oil price of $121: Deutsche

Posted on 14 April 2014 by VRS  |  Email |Print

Venezuela, holder of the world’s largest oil reserves, requires the price of Brent crude to average $121 a barrel this year, about $14 more than current prices, for the country’s government to balance its budget, according to Deutsche Bank AG.
The break-even oil price for the South American nation has fallen from about $150 a barrel last year, the bank said, after the government allowed its currency to weaken last month to alleviate shortages of imports including medicine, food and toilet paper. Oil producers Russia, Nigeria and Bahrain also need prices higher than $100 a barrel to balance their budgets this year, Deutsche Bank said………………………………………..Full Article: Source

OPEC oil production fell by 500,000 b/d in March

Posted on 14 April 2014 by VRS  |  Email |Print

The commodities complex was relatively well supported on Thursday despite the wave of risk aversion that swept across other asset classes. Thus, for example, three-month copper futures actually finished the day higher by 0.6% to $6,636/metric tonne mark on the LME despite remarks from China’s Premier that the country will not embark on any significant stimulus to ward off a short-term economic slowdown.
Crude futures also took news of falling oil output from the Organisation of Petroleum Exporting Countries (OPEC) in their stride………………………………………..Full Article: Source

OPEC says its oil output tumbled in March

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC’s oil output tumbled to its lowest level this year in March, the cartel of some of the world’s biggest oil producers said Thursday. Production by the Organization of the Petroleum Exporting Countries—which supplies more than a third of the oil consumed globally each day—fell by over half a million barrels a day last month to 29.6 million barrels a day, the group said in its monthly oil market report.
A steep drop in Iraq’s oil output of nearly 300,000 barrels a day led the decline, though there was also a substantial downturn in Angola, Libya and Saudi Arabia last month………………………………………..Full Article: Source

OPEC cautious on economy, sees lower demand for its oil

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC lowered the expected demand for its crude oil in 2014 and ended a run of upward revisions to global consumption growth, highlighting concerns over the economy and pressure on its market share from rival producers.
In a monthly report on Thursday, the Organization of the Petroleum Exporting Countries forecast demand for its crude oil in 2014 would average 29.65 million barrels per day (bpd), down 50,000 bpd from the previous estimate………………………………………..Full Article: Source

OPEC sees lower demand as U.S. crude output rises

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC trimmed estimates for the amount of crude it will need to pump this year amid rising U.S. supplies, and predicted that a “supply buffer” will accumulate before demand peaks in the summer.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of the world’s oil supply, will need to provide an average of 29.6 million barrels a day of crude this year, according to its monthly market report………………………………………..Full Article: Source

Looking back: Oil market’s future is different from its past

Posted on 11 April 2014 by VRS  |  Email |Print

By 1994, the oil industry had changed irrevocably due to the increased use of derivatives. Oil was once an internationally regulated utility run by the major oil companies and their home governments. The global industry consisted of a core group of vertically integrated oil majors, a large number of ‘national champion’ state-owned oil companies and some independents.
There were practically no trading companies, and their role was marginal. As for oil careers, they were much more like civil service jobs than they are today – any senior executive at a major oil company could count on getting highly paid in a much more secure environment than today’s………………………………………..Full Article: Source

North American oil glut to keep prices low, IMF says

Posted on 11 April 2014 by VRS  |  Email |Print

The International Monetary Fund said global crude oil prices have been relatively lower because of the growth in oil supply from North America. With U.S. oil production on pace to eclipse 9 million barrels per day near term, the trend should continue through next year.
Nearly all of the growth in global oil production is coming from the United States and Canada. Combined, North American production growth is around 1.2 million barrels per day from U.S. shale oil and Canadian oil sands. IMF said this growth was spilling over to the global marketplace. “Crude oil prices have edged lower, mainly as a result of the continued supply surge in North America,” it said………………………………………..Full Article: Source

US LNG will not cause European gas price drop: IEA economist

Posted on 11 April 2014 by VRS  |  Email |Print

Despite the expected growth of US LNG exports, Europe has “no hope” of seeing gas prices near US levels due to transportation costs, Fatih Birol, the International Energy Agency’s chief economist said Thursday.
LNG transportation costs, which include liquefaction, shipping and gasification costs, will add roughly $6/MMBtu and barely close the roughly $7/MMBtu differential between US and European gas prices, Birol said during a Center for Strategic and International Studies event………………………………………..Full Article: Source

Natural gas loses decades-old tie to oil in landmark deal

Posted on 11 April 2014 by VRS  |  Email |Print

A contract for France’s largest natural gas company to buy the commodity from Azerbaijan shows the decades-old structure of Europe’s energy market is starting to crumble.
For the first time, GDF Suez SA (GSZ) signed a 25-year contract to buy gas from BP Plc and partners in the former Soviet republic at prices tied to those in Western Europe’s domestic gas markets, a person with knowledge of the matter said, asking not to be named because the terms are confidential………………………………………..Full Article: Source

IEE can determine regional oil price

Posted on 11 April 2014 by VRS  |  Email |Print

Iran Energy Exchange (IEE) has the potential of playing a key role in determining oil price in the region, Managing Director of Iran Energy Exchange Ali Hosseini said on Wednesday.Talking to IRNA, Hosseini noted that since Iran is an oil-rich country, IEE has the potential of increasing supplies from the current 3,000 barrels per day to 10,000 bpd.
“Iran aims to prepare the ground for the presence of foreign buyers of crude oil in the energy exchange and diversify products supplied to buyers, including gas condensate,” he said.The first crude oil transaction at Iran Energy Exchange took place on April 6………………………………………..Full Article: Source

GCC economies immune to oil price shock

Posted on 10 April 2014 by VRS  |  Email |Print

The International Monetary Fund (IMF) has said that most GCC economies continue to have “substantial buffers” to cope with short-lived oil price shocks despite an expected drop in their current account surpluses.
In its World Economic Outlook, published ahead of its spring conference in Washington, the IMF said economic growth in most of the GCC economies is to hover near the rates registered in 2013, with Saudi Arabia, the largest Arab economy, expanding by 4.1 per cent in 2014, compared to 3.8 per cent in 2013………………………………………..Full Article: Source

US output, potential low demand pose risks to Gulf oil

Posted on 10 April 2014 by VRS  |  Email |Print

A rapid growth in US oil production combined with potentially weaker global demand present a downside risk to Gulf oil output and prices, the International Monetary Fund warned Tuesday.
But despite an expected drop in their current account surpluses, most Gulf Cooperation Council economies continue to have “substantial buffers” to cope with short-lived price shocks, the IMF said in its World Economic Outlook………………………………………..Full Article: Source

Citi vs. Chevron: Two opposing views of the oil price future

Posted on 10 April 2014 by VRS  |  Email |Print

The direction of oil prices is once again a hot topic. In a recent Barron’s article, Ed Morse, Citigroup’s head of global commodity research, forecasts a collapse in global oil prices to $75 /b over the next three to five years.
By contrast, Chevron has announced that it is budgeting with $110/b oil for 2017, with the company’s CEO John Watson stating, “There is a new reality in our business… $100/bbl is becoming the new $20/bbl in our business… costs have caught up to revenues for many classes of projects.” And for good measure, he adds, “If $100 is the new $20, consumers will pay more for oil.”……………………………………….Full Article: Source

OPEC plans to make room for extra oil from Iran, Iraq, Libya

Posted on 10 April 2014 by VRS  |  Email |Print

OPEC, which supplies 40 percent of the world’s oil, will accommodate additional output from members Iraq, Iran and Libya, Secretary-General Abdalla El-Badri said, without explaining how it will do so under the group’s ceiling.
The Organization of Petroleum Exporting Countries will wait until 2015 to discuss output targets with Iraq, which currently operates outside the production-quota system for each of the group’s other 11 member countries, El-Badri told reporters today in Doha, Qatar………………………………………..Full Article: Source

More oil coming from non-OPEC members

Posted on 10 April 2014 by VRS  |  Email |Print

Most of the growth in petroleum and other liquid fuel supplies comes from countries outside of OPEC, the U.S. Energy Information Administration said. EIA said it projects petroleum and other liquids supply to increase by 1.4 million barrels per day in 2014 and 1.3 million bpd in 2015, with most of the growth coming from North America.
In its short-term market report for April, EIA said it expects production from members of the Organization of Petroleum Exporting Countries to fall by 200,000 bpd in 2014 and in 2015, in part because of rising production elsewhere………………………………………..Full Article: Source

Does a US oil boom mean lower gas prices?

Posted on 09 April 2014 by VRS  |  Email |Print

Crude oil sourced in the United States is cheaper and therefore means less pain at the pump for American drivers. When adjusted for inflation, however, the price for a gallon of regular unleaded gasoline is still high because of international dynamics, AAA said Monday.
“Cheaper domestic crude has a significant effect on the price most of us pay at the pump,” AAA spokesman Michael Green told Oilprice. “U.S. refineries have access to cheaper crude oil than their overseas competitors, which provides a lucrative business advantage.”……………………………………….Full Article: Source

OPEC’s El-Badri says crude prices stable

Posted on 09 April 2014 by VRS  |  Email |Print

Crude prices are stable and the market has enough supply to meet demand, even amid geopolitical unrest in Europe and the Middle East, OPEC Secretary-General Abdalla El-Badri said.
The OPEC basket, a weighted average of the main export grade from each of the group’s 12 members, has stayed above $100 for a record 200 days, according to data from the Organization of Petroleum Exporting Countries’ Vienna-based secretariat compiled by Bloomberg………………………………………..Full Article: Source

Oil price to fall in 5-10 years globally

Posted on 09 April 2014 by VRS  |  Email |Print

Azeri analyst Elmur Soltanov thinks that the world price on oil might decrease for the next five years to the margin of $70-80. Many oil-producing countries are increasing oil extraction, which will eventually bring down the world oil price so that the current $100 USD paid for oil might degrease to around $75-80.
Economies of the oil-producing countries may face problems particularly in the countries where export of oil ensures the highest income. This will particularly hurt Russia’s economy if the West refuses to buy Russian gas and oil as a sanction targeted against Moscow for its occupation of Crimea………………………………………..Full Article: Source

EIA raises 2014 forecast on WTI crude-oil prices to nearly $96

Posted on 09 April 2014 by VRS  |  Email |Print

Spot prices for West Texas Intermediate crude oil are expected to average at $95.60 a barrel this year — up from a previous forecast of $95.33 a barrel, according to the monthly Short-Term Energy Outlook report issued Tuesday by the Energy Information Administration.
The EIA also lowered its 2014 price forecast for Brent crude, the European oil benchmark, to $104.88 a barrel from $104.92 in the previous report, and said it expects an average 2015 price of $4.11 per million British thermal units for natural gas, down from the $4.14 previously expected………………………………………..Full Article: Source

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April 2014
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