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Commodities Briefing - Category | Oil more

Don’t set too high a hope of $60 for oil

Posted on 25 August 2016 by VRS  |  Email |Print

The pendulum in the oil market has clearly swung in favour of the producers. Opec members have never pumped so much crude — ditto for Russia — but prices zoomed to a two-month high crossing $50 again.
There are a few forces at play here: demand in China and other Asian import stalwarts like Japan and South Korea is holding up, money is starting to flow back into emerging markets as investors look for a higher return on their money. And there is a wider belief Opec and non-Opec countries may actually do something at their informal meeting at the end of September………………………………………..Full Article: Source

Russia Sees Oil At US$50 Till Late 2017

Posted on 25 August 2016 by VRS  |  Email |Print

The Russian Economy Ministry said in a statement it expected crude oil prices to remain stable at their current range of US$45-50 over the next two years, with a sustainable improvement beginning in late 2017.
The latest rally in prices, according to the ministry’s statement, has “a speculative nature” and will not last long. This was proven yesterday when the American Petroleum Institute released its weekly report on inventories, stunning the market with a 4.46-million-barrel buildup, when almost all analysts expected a draw and the only group – polled by S&P – that forecast an increase was much more modest in its expectations, at a build of 200,000 barrels………………………………………..Full Article: Source

Who Is More Credible – The Fed or OPEC?

Posted on 25 August 2016 by VRS  |  Email |Print

Almost on cue oil prices quickly reversed course and traded higher on Tuesday when news broke that “Iran is sending positive signals that it may support group action to lift the oil market,” according to MarketWatch.
The ​Organization Of Petroleum Exporting Countries (OPEC) is due to hold an informal meeting next month to discuss stabilizing the oil market. This has left investors bewildered in the last few weeks as oil volatility increases. Earlier in the day, oil traded lower when Goldman Sachs reportedly said that both the oil prices and the crude market’s fundamental recovery remain fragile………………………………………..Full Article: Source

Oil could take another dive, just in time for new round of OPEC rumors

Posted on 25 August 2016 by VRS  |  Email |Print

The next trough in oil prices could come just as OPEC members gather in Algeria next month — and that could make for an interesting, and more unpredictable outcome. While most analysts say OPEC members are all talk, and no action, some say there is an outside chance members could feel pressured enough to act if crude prices are in free fall.
Members of the Organization of the Petroleum Exporting Countries have said they would discuss at their late September meeting whether a freeze or some other action is needed to stabilize oil prices, after a number of high-profile failures to reach an agreement………………………………………..Full Article: Source

Saudi Arabia Holds China Market Share Lead on Record Oil Output

Posted on 25 August 2016 by VRS  |  Email |Print

Saudi Arabia kept its spot as China’s biggest oil supplier for the first seven months this year after pumping record output in July, even as Russia threatens to overtake the kingdom in their contest for sales to the world’s largest energy consumer.
The biggest crude exporter shipped an average of 1.05 million barrels a day to China in the year through July 31, giving it a market share of 14 percent, according to Bloomberg calculations based on data that China’s General Administration of Customs published Wednesday. Russia’s share was 13.6 percent, the data show………………………………………..Full Article: Source

Iraq has not yet reached its full oil market share: PM Abadi

Posted on 25 August 2016 by VRS  |  Email |Print

Iraqi Prime Minister Haider al-Abadi on Tuesday said Iraq had not yet reached its full oil market share, suggesting that the country would prefer not to restrain its crude output as part of any possible OPEC agreement to lift prices.
“Iraq is still below what it should produce,” Abadi told a news conference in Baghdad, in response to a question on whether his government would be open to such an agreement………………………………………..Full Article: Source

Oil prices will stall below $50 a barrel for another year, says Goldman Sachs

Posted on 24 August 2016 by VRS  |  Email |Print

Oil prices continued to fall on Tuesday and may struggle to climb back over $50 a barrel for another year, Goldman Sachs has warned. The price of Brent crude has tumbled more than 3pc so far this week to $48.58, reversing a rapid $10 ascent from around $41.60 a barrel in early August to highs of almost $52 a barrel last week.
The fall reflects growing concern that August’s rapid rise was overdone as oversupply continues to drag on the market. Goldman Sachs told investors that oil prices could remain at between $45 and $50 a barrel for the next year, and could even fall lower if supply from politically volatile countries ramps up faster than expected………………………………………..Full Article: Source

Iraq may base 2017 draft budget on $35/barrel oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq may base its public budget for 2017 on an oil price of $35 per barrel, about the same level as this year, Prime Minister Haider al-Abadi told a news conference on Tuesday in Baghdad. Iraq, which depends on oil sales for 95 percent of its public spending, lowered this year its crude price assumption to about $32 a barrel from an initial forecast of $45 a barrel.
The price assumption for 2017 could still change by parliament which has to approve it, a spokesman of Abadi said separately after the press conference. Iraq is OPEC’s second-largest producer after Saudi Arabia with an output of 4.6 million barrels per day………………………………………..Full Article: Source

Not even OPEC can save the struggling oil market now, Goldman Sachs warns

Posted on 24 August 2016 by VRS  |  Email |Print

OPEC production freeze or not, the oil market is not going to recover anytime soon, as troubled oil-producing nations prepare to ramp up production and pave the way for hundred of thousands of barrels to be released into an already oversupplied market, Goldman Sachs warned.
Libya, Iraq and Nigeria — which all have suffered from severe supply disruptions — last week started to show the first signs of ramping up production, seen as posing a risk to oil’s nascent recovery, according to the bank………………………………………..Full Article: Source

Iran signals more willingness for OPEC action to boost oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in OPEC and the oil industry said, potentially aiding efforts to revive a global deal on freezing production levels at talks next month.
OPEC’s third-largest producer has been boosting output after the lifting of Western sanctions in January. Tehran refused to join a previous attempt this year by OPEC plus non-members such as Russia to stabilize production, and talks collapsed in April………………………………………..Full Article: Source

Oil sector shares jump on Iran-Opec hopes

Posted on 24 August 2016 by VRS  |  Email |Print

Oil companies broadly advanced on Tuesday as crude rebounded, buoyed by speculation that Iran will attend a meeting of Opec producing countries next month. Members of the oil producing cartel are expected to meet to discuss actions to support the crude market, which despite Brent rallying 34 per cent this year remains 57 per cent below a 2014 peak.
Brent crude, the global benchmark, reversed earlier losses and rose 1.6 per cent to $49.96 a barrel after Reuters said Iran was “sending positive signals” about supporting joint efforts, citing unnamed sources in Opec and the oil industry………………………………………..Full Article: Source

Saudi Arabia isn’t flooding oil market ahead of freeze talks: Kemp

Posted on 24 August 2016 by VRS  |  Email |Print

Saudi Arabia’s oil production hit a record in July, according to published statistics, and is likely to hit another in August, according to industry sources. Some analysts have interpreted the increases as an aggressive demonstration of the kingdom’s ability to ramp up output ahead of an informal meeting of oil ministers in Algeria next month.
In this view, Saudi Arabia is increasing output as a warning to rivals that if there is no agreement on a production freeze it has the means to continue raising its output and intensify the pain for all oil exporters……………………………………….Full Article: Source

Iraq has not yet reached its full oil market share, says PM

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq’s prime minister said the country has not yet reached its full oil market share, suggesting his government would not restrain crude output as part of any possible OPEC agreement to lift prices.
“And the capping, we are not open to that because Iraq is still below what it should produce,” Haider al-Abadi told reporters, responding to a question about whether the second-largest OPEC producer would be open to such a deal………………………………………..Full Article: Source

Oil prices: Crude will be stuck in a back-and-forth market, analyst says

Posted on 23 August 2016 by VRS  |  Email |Print

Traders have bid up oil futures on speculation that producers will take measures to prop up crude prices, but any such deal might do little to quickly bring supply and demand into balance, ClearView Energy Partners Managing Director Jacques Rousseau said. As a result, crude prices could continue swinging back and forth, he said.
A rally that lifted benchmarks about 16 percent and pushed Brent above $50 a barrel during the last seven sessions lost steam on Monday as market watchers including Morgan Stanley said the gains were overdone. The bank said it was “highly unlikely” OPEC members and Russia would be able to overcome the many headwinds to striking a deal………………………………………..Full Article: Source

Oil price retreats as speculative shake-out eases

Posted on 23 August 2016 by VRS  |  Email |Print

Analysts warn that much of the impetus for the rebound of the past 2 weeks has faded. Oil retreated 3 per cent on Monday to back below $50 a barrel, as reports Iraq is increasing exports and signs hedge funds have rapidly switched positions raise doubts about the strength of the recent rally.
Brent crude, the international benchmark, has surged by almost 15 per cent in the 10 days since Saudi Arabia said it would participate in talks aimed at securing a production freeze with other leading producers………………………………………..Full Article: Source

Oil Reverses Gear Into a Bear Market (Video)

Posted on 23 August 2016 by VRS  |  Email |Print

Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bull to a bear market in less than three weeks.
Oil fell after the longest run of gains in four years as Iraq seeks to increase exports amid a global overhang of crude inventories and as Nigerian militants call an end to hostilities. UBS Head of UK Investment Office Geoffrey Yu discusses with Bloomberg’s Anna Edwards on “Countdown.”……………………………………….Full Article: Source

Is Oil in a Bull or Bear Market? Depends on the Day

Posted on 23 August 2016 by VRS  |  Email |Print

Oil has been in a bull market recently. Or was that a bear market? It can be tough to keep track when crude shifts as much as it does. West Texas Intermediate has gone from a bull market into a bear market, or vice versa, five times this year, according to WSJ Market Data Group.
That’s the most times since 1998, when it also crossed five times, according to the data, which is based on continuous front-month futures contracts. A gain or loss of 20% typically signals the start of a bull or bear market, respectively. After entering one, it takes a 20% move in the opposite direction to switch courses. A move of that size is big, so it typically doesn’t happen all that often — except in 2016………………………………………..Full Article: Source

Morgan Stanley throws cold water on hopes of any OPEC freeze deal

Posted on 23 August 2016 by VRS  |  Email |Print

Energy investors got all excited last week on hints of a freeze deal among major oil producers, but anyone hoping for coordinated action to boost the struggling oil market is bound for disappointment, according to Morgan Stanley.
In a note out on Monday, strategists led by head of energy commodity research Adam Longson warned that an output agreement between members of the Organization of the Petroleum Exporting Countries remains “highly unlikely” as the cartel members battle for market share………………………………………..Full Article: Source

Oil Enters a Bull Market (Video)

Posted on 22 August 2016 by VRS  |  Email |Print

Oil has capped its strongest weekly gains in five months after WTI and Brent entered a bull market. Bloomberg’s Anthony DiPaola reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

Oil Companies Need Prices to Keep Rising Past $50 a Barrel

Posted on 22 August 2016 by VRS  |  Email |Print

A rally that pushed international crude-oil prices above $50 a barrel Thursday is a welcome sign for many energy companies but not enough to kick-start an industry in the midst of a two-year slump, executives said.
“We’re in a little bit of an upswing at the moment and everybody’s got a smile on their face because we might be at $50 a barrel,” said Tony Durrant, chief executive of Premier Oil PLC, a British oil company with operations from the North Sea to the Falkland Islands………………………………………..Full Article: Source

Arabian Gulf markets remain quiet amid oil’s return to $50 mark

Posted on 22 August 2016 by VRS  |  Email |Print

Arabian Gulf shares began the week in quiet fashion on Sunday, with a return to US$50 oil proving little stimulus for investors. Brent crude futures closed the week at above $50 per barrel despite drifting lower on Friday, ahead of Opec talks next month to discuss production levels.
Analysts are sceptical about the chances of such talks producing a cut in production, with further significant price gains unlikely in the short term. “We see the upside as being limited from here and expect Brent crude will find resistance in the $50 to $52 [per barrel] area before correcting lower back into our preferred third-quarter range between $45 and $50 [ per barrel],” wrote Ole Hanson, the head of commodity strategy at Saxo Bank………………………………………..Full Article: Source

Saudi Arabia shows its ability to move oil markets

Posted on 22 August 2016 by VRS  |  Email |Print

Saudi Arabia demonstrated its ability to move oil markets last week with Brent crossing $50 following comments by Oil Minister Khalid Al-Falih that the kingdom was “ready to take action”, said a leading analyst.
Following the Brexit vote on June 23, oil dropped more than 20 per cent, thereby moving into a technical bear market. Within the past few weeks, however, a 22 per cent rally has taken it straight back into bullish territory, said Ole Hansen, head of commodity strategy at Saxo Bank, in a commentary………………………………………..Full Article: Source

‘Well-Timed’ OPEC Talk Forces Oil Bears Into Record Reversal

Posted on 22 August 2016 by VRS  |  Email |Print

OPEC has done it again. Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bull to a bear market in less than three weeks.
OPEC is on course to agree to a production freeze because its biggest members are pumping flat-out, said Chakib Khelil, the group’s former president. Saudi Energy Minister Khalid Al-Falih said that the talks may lead to action to stabilize the market………………………………………..Full Article: Source

Opec likely to cap production at meeting

Posted on 22 August 2016 by VRS  |  Email |Print

Oil nations meeting next month may be more willing to cap production at current levels rather than cut output, according to Suhaimi Ilias, group chief economist, Maybank Investment Bank.
“It is possible that the Organisation of Petroleum Exporting Countries (Opec), perhaps together with the likes of Russia, may cap output at current levels at next month’s meeting (in Algeria from Sept 26-28) but we are less optimistic of a cut in output,” said Suhaimi. While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, former Opec president……………………………………….Full Article: Source

Oil swings back into bull market

Posted on 19 August 2016 by VRS  |  Email |Print

Brent crude rises above $50 a barrel on hopes of Opec production cap and drop in US stockpiles. The main global oil benchmark rose above $50 a barrel on Thursday afternoon, taking crude back into bull market territory, as hopes of an Opec production cap and a surprise drop in US crude stockpiles helped power a recovery in prices.
Less than three weeks after falling into a bear market — defined as a drop of more than 20 per cent from the recent peak — oil has now gained for six straight days and is up over 20 per cent from this month’s low………………………………………..Full Article: Source

Why oil prices just stampeded into bull-market territory

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices officially charged into a bull market Thursday as the prospect of an output freeze by major producers, data showing the first weekly fall in U.S. crude supplies in a month, and a decline in the dollar boosted prices.
Crude-oil prices have advanced more than 20% from their Aug. 2 low over the past several sessions, signifying a bull-market run. September West Texas Intermediate crude climbed by $1.43, or 3.1%, to settle at $48.22 a barrel on the New York Mercantile Exchange………………………………………..Full Article: Source

Oil prices break back above $50 a barrel

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices broke above $50 a barrel for the first time in five weeks as hope that the world’s largest suppliers may act to cut the glut in global supply continues to drive prices higher for a sixth consecutive day.
Brent crude moved above $50 a barrel for the first time since early July on Thursday morning before dipping back to $49.70 later in the day. But by the afternoon the market surged well above the key earlier highs to around $50.80 a barrel………………………………………..Full Article: Source

Oil Price Recovery Likely to Continue

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices, which earlier Thursday broke through a key psychological level of $50 a barrel, are likely to continue recovering into next year as supplies tighten, but that recovery is still fragile and the path ahead is rocky, the chief executive of Premier Oil PLC said.
“We’re in a little bit of an upswing at the moment and everybody’s got a smile on their face because we might be at $50 a barrel. But two weeks ago we were at $40 and falling. It’s not a very helpful backdrop to plan a long-term business,” Tony Durrant said……………………………………….Full Article: Source

New OPEC Freeze Wouldn’t Be So Potent as Gulf Rivals Pump More

Posted on 19 August 2016 by VRS  |  Email |Print

Even if OPEC strikes a deal with Russia next month in Algiers to freeze oil production, success will mean a lot less than when they tried and failed four months ago. Oil has rallied more than 10 percent since the Organization of Petroleum Exporting Countries said that it will hold informal meeting in the Algerian capital, fanning speculation the group could complete a supply agreement with rival producers that sputtered in April.
Iran may now drop its refusal to join a freeze after restoring most of the crude output curbed by sanctions, a development analysts say makes a deal more likely, but also less worthwhile………………………………………..Full Article: Source

Crude prices may stay near $50/bbl on supply worries: JP Morgan

Posted on 18 August 2016 by VRS  |  Email |Print

Ian Hui of JP Morgan Asset Management says there is talk of the Organization of the Petroleum Exporting Countries (OPEC) considering a production freeze which might weigh down crude supply numbers. Expectations of changes in supply are more likely to be driving crude prices higher right now feels Ian Hui of JP Morgan Asset Management.
Hui says there is talk of the Organization of the Petroleum Exporting Countries (OPEC) considering a production freeze which might improve oil balances and weigh down supply numbers. Hui expects crude prices to float around the USD 50 per barrel mark by the end of the calendar year. ……………………………………….Full Article: Source

Oil futures end higher after a choppy session

Posted on 18 August 2016 by VRS  |  Email |Print

Oil futures finished higher Wednesday, getting a lift from bigger-than-expected declines in U.S. supplies of crude and gasoline as well as a retreat in the dollar following minutes from the Federal Reserve’s July meeting.
Shortly before oil prices finished a choppy session on Nymex, minutes from the July Fed meeting showed officials at the central bank were split over whether an interest rate hike would be needed soon. That damped expectations for an interest rate hike before the end of the year, and put pressure on the dollar offering support for dollar-denominated commodities such as oil………………………………………..Full Article: Source

Saudi Arabia has oil traders hanging on every word

Posted on 18 August 2016 by VRS  |  Email |Print

Kingdom offers a reminder that well-chosen words can move the oil market. Central bankers have long understood that a few well-placed words can wield nearly as much power as pulling the actual levers of monetary policy. It is a lesson that Opec and Saudi Arabia has started to heed.
Just a few short sentences from Saudi Arabia’s energy minister Khalid al-Falih last week sent hedge funds scrambling to cover large bets against the oil price, subsequently propelling Brent crude 10 per cent higher and largely silencing fears the market was on the cusp of another rout………………………………………..Full Article: Source

Oil Era Not Over Yet, OPEC Will Help Rebalance Market

Posted on 18 August 2016 by VRS  |  Email |Print

It is premature to say that the oil era is nearing its end, Saudi researcher and economic adviser Yousef Al-Zamel told Sputnik. According to him, meetings between OPEC members and non-OPEC producers would help the oil market.
“Oil is still the main energy source in the world. I think that alternative energy sources are too expensive and not very popular so far,” the expert pointed out.”It is too early to say that the oil era is coming to an end,” Al-Zamel added………………………………………..Full Article: Source

OPEC’s Former Head Says Conditions Right for Oil-Freeze Deal

Posted on 18 August 2016 by VRS  |  Email |Print

OPEC is on course to strike an output-freeze deal with fellow oil producers in Algiers next month because its biggest members are already pumping flat-out, the group’s former president said.
While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year………………………………………..Full Article: Source

Prickly Iran Defies, Then Keeps OPEC Guessing

Posted on 18 August 2016 by VRS  |  Email |Print

Iran is trying to make a comeback after years of crushing economic and financial sanctions placed against its energy sector by Western powers over Tehran’s nuclear ambitions.
In January, Iran’s deal with the so-called P5+1 (the U.S., U.K., France, Germany, Russia and China) came into effect, effectively reopening international markets to hundreds of thousands of barrels of Iranian oil and returning billions of dollars in frozen oil money to Iran………………………………………..Full Article: Source

Will OPEC agree to freeze output in Sept? Kemp

Posted on 17 August 2016 by VRS  |  Email |Print

OPEC and non-OPEC countries are again flirting with the idea of a production freeze to accelerate oil-market rebalancing, according to recent statements by several oil ministers. “Rebalancing is already taking place,” Saudi Energy Minister Khalid Al-Falih observed in comments published on Saturday, which had already leaked on Thursday.
“We are on track and prices should reflect that,” the minister explained. Current prices were unsustainably low and the minister blamed the “large short positioning” in the oil market for causing prices to “undershoot”………………………………………..Full Article: Source

Iran Undecided on Joining OPEC Meeting

Posted on 17 August 2016 by VRS  |  Email |Print

Iran has made no decision about joining an OPEC meeting on oil output next month and doesn’t expect to reach the production levels that its government has previously said are required before it can make an output agreement, an oil-ministry spokeswoman said Tuesday.
Oil prices have been gaining since last week when Saudi Arabia signaled it would work with other oil producers to stabilize prices. The statements cast a doubt on the success of informal talks due next month in Algiers to revive efforts to tighten output, report Benoit Faucon and Summer Said………………………………………..Full Article: Source

Drop in Venezuela investment could have impact on world’s oil supply

Posted on 17 August 2016 by VRS  |  Email |Print

Venezuela’s oil crisis goes far beyond a simple problem of low prices and threatens the world’s supply of oil because of mismanagement of the country’s state-run oil company, a new report from Columbia University concludes.
Oil production in Venezuela, which boasts the world’s largest oil reserves, has plunged to alarmingly-low levels, the report found, worsening the country’s dire economic crisis that already has led to food and medicine shortages………………………………………..Full Article: Source

OPEC production may slip in August after July’s record-high, warns UBS

Posted on 17 August 2016 by VRS  |  Email |Print

OPEC crude oil production hit an eight-year peak in July, but may fall this month amid turmoil in major member countries, UBS said on Tuesday.
OPEC output rose by 150,000 barrels per day (kb/d) to 33.39 million barrels per day (mb/d) last month, as Saudi Arabia pushed its production to a new high and Iraq pumped more, according to the International Energy Agency. However, UBS forecasts a drop in Iraqi oil production following militant attacks at the Bai Hassan field in northern Iraq on July 31………………………………………..Full Article: Source

Will Rising Oil Boost the Global Economy? (Video)

Posted on 16 August 2016 by VRS  |  Email |Print

All it took was a few words from OPEC to encourage oil bulls. Money managers increased wagers on rising crude prices by the most since January as futures rebounded from a three-month low.
Prices jumped after OPEC’s president said Aug. 8 the group will hold informal talks in Algiers next month and Saudi Arabia signaled Aug. 11 it’s prepared to discuss taking action to stabilize markets. RBC Europe Chief European Macro Strategist Peter Schaffrik discusses oil and the outlook for the European economy with Bloomberg’s Francine Lacqua on “The Pulse.”……………………………………….Full Article: Source

The next phase of the oil crash will be bad for everybody: economist

Posted on 16 August 2016 by VRS  |  Email |Print

“We are now approaching what will be a very dark part of the global commodity price crash,” High Frequency Economics’ Carl Weinberg said. In a note to clients on Monday, Weinberg warns that the consequences of low oil prices will go from ambiguous to unambiguously bad.
Specifically, he argues that the initial beneficiaries of low oil prices will themselves become losers economically. “Regardless of whether the drop in oil prices has been good or bad for the global economy on balance, what happens next is sure to be bad,” he said………………………………………..Full Article: Source

Saudi Arabia may be ready to budge on its punishing 2-year oil price policy

Posted on 16 August 2016 by VRS  |  Email |Print

Saudi Arabia may finally be willing to work with producer nations to put a floor under oil prices after allowing market forces to determine the cost of a barrel of crude since November 2014, according to Jan Stuart, global energy economist at Credit Suisse.
In fact, the nearly 2-year-old policy, which has sent benchmark crude prices as low as $26 a barrel and hammered the kingdom’s competitors, is not incompatible with intervening in oil markets, Stuart said………………………………………..Full Article: Source

Russia warms to discussions with Saudi Arabia ahead of OPEC meeting in Algeria

Posted on 16 August 2016 by VRS  |  Email |Print

Russia’s Energy Minister Alexander Novak said his country was cooperating with Saudi Arabia to achieve of international oil market stability. He added that the ongoing dialogue between Moscow and Riyadh was witnessing concrete progress in this regard and expressed Russia’s readiness to adopt common measures to reach the aspired goals.
In an interview with Asharq al-Awsat newspaper, Novak said that Saudi-Russian bilateral cooperation was not only focused on building nuclear energy, but further covers wider areas such as nuclear medicine and radio-logic technology………………………………………..Full Article: Source

OPEC Could Still Tip Next Year’s Oil Deficit Into Surplus

Posted on 16 August 2016 by VRS  |  Email |Print

The re-balancing of oversupplied oil markets is on track as demand climbs and U.S. shale production falters, according to the International Energy Agency. The world will face a 560,000 barrel-a-day supply deficit in 2017 if OPEC members pump at the same rate as this year, IEA data show.
If Iran and Iraq add just some of the new capacity they’re planning, Libya recoups a fraction of the supplies lost to political conflict and Nigeria restarts oil fields halted by militant attacks, there’ll be an 810,000 barrel-a-day excess — a fourth year of oversupply………………………………………..Full Article: Source

OPEC deal a tough task, as oil output freeze expectations rise

Posted on 16 August 2016 by VRS  |  Email |Print

OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month as top exporter Saudi Arabia appears to want higher prices, according to OPEC sources, although Iran, Iraq and Russia present obstacles to a deal.
OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month as top exporter Saudi Arabia appears to want higher prices, according to OPEC sources, although Iran, Iraq and Russia present obstacles to a deal………………………………………..Full Article: Source

Oil Bulls Take Heart as OPEC Rekindles Hopes of Output Freeze

Posted on 15 August 2016 by VRS  |  Email |Print

All it took was a few words from OPEC to encourage oil bulls. Money managers increased wagers on rising crude prices by the most since January as futures rebounded from a three-month low.
Prices jumped after OPEC’s president said Aug. 8 the group will hold informal talks in Algiers next month and Saudi Arabia signaled Aug. 11 it’s prepared to discuss taking action to stabilize markets. “The statement certainly achieved its purpose,” said Daniel Yergin, vice chairman of IHS Markit. “The Saudis saw bearish bets had really driven down the prices.”……………………………………….Full Article: Source

Chakib Khelil is optimistic about OPEC meeting in Algiers

Posted on 15 August 2016 by VRS  |  Email |Print

Former Algerian Minister of Energy and former president of the Organization of Petroleum Exporting Countries OPEC, Chakib Khelil, is optimistic about the informal meeting of OPEC, to be held in Algiers on the sidelines of the International Forum on Energy on September 26 to 28, especially after the statements of Saudi oil Minister that shows a willingness to move towards market stabilization.
Chakib Khelil believes in his statement to Ennahar TV that OPEC members will fail to rebalance the market as supply remains high compared to demand. Former Algerian Energy Minister added that during the last meeting, “almost all oil producers had reached their maximum production level, they therefore had nothing to lose by deciding a freez.”……………………………………….Full Article: Source

Saudi oil witnessing high demand, says Al-Falih

Posted on 15 August 2016 by VRS  |  Email |Print

Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih has stressed that the Kingdom’s production of crude oil is witnessing high demand in most parts of the world. It has gone up in part to meet the increase in seasonal demand during summer and in part to meet higher demand from our customers.
Despite the bearish sentiment engulfing the market, we still see strong demand for our crude in most parts of the world, especially as supply outside OPEC has been declining fast, supply outages increasing, and global demand still showing signs of strength………………………………………..Full Article: Source

Why oil companies must look beyond oil

Posted on 15 August 2016 by VRS  |  Email |Print

Persistently low oil prices have had a devastating effect on the economies of all major oil producers/exporters who are accustomed to a price regime of over $100/b. The lifting of sanctions on Iran and its ability to quickly ramp up to pre-sanction (2012) levels of production and exports has made the market even more liquid and exerted downward pressure on oil prices.
Suddenly when oil prices collapsed, the major oil producers and exporters found themselves in a challenging situation, as falling oil revenues were not sufficient to balance government budgets………………………………………..Full Article: Source

Oil demand likely rising in sweltering Middle East: Kemp

Posted on 12 August 2016 by VRS  |  Email |Print

Saudi Arabia raised its oil production to a record last month while much of the kingdom sweltered in record temperatures that have also hit neighbouring countries across the Middle East.
There is not enough statistical data to draw a direct connection between the two but it is likely most if not all the extra oil production was burned in the kingdom’s power plants to meet electricity demand. Saudi Arabia’s power generators rely heavily on burning unrefined crude as well as residual fuel oil and diesel to meet electricity demand………………………………………..Full Article: Source

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