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Commodities Briefing - Category | Oil more

Opec bid to throw US out of oil market seems to have backfired

Posted on 29 April 2016 by VRS  |  Email |Print

Crude oil prices continued to trend higher for the second consecutive fortnight in a row, as Brent rose more than 7.5 per cent while WTI gained 10.10 per cent over the same period.
On MCX, oil prices have risen by around 11.85 per cent in the same time frame. The rally in oil prices is triggered by a combination of factors such as increased optimism that prices may have bottomed out and also increased speculative behaviour by fund managers………………………………………..Full Article: Source

Oil market to face lack of supply in 3 years: Total CEO

Posted on 29 April 2016 by VRS  |  Email |Print

The global oil market will face a lack of supply in three years’ time due to expenditure cuts and postponements in mega projects, Patrick Pouyanne, chairman of the Board and CEO of French oil giant Total said.
Speaking at 2016 Columbia Global Energy Summit, Pouyanne talked about the difficulties that oil companies are facing under low oil prices. “Fifteen days after I became the CEO of Total, oil prices collapsed … and we lost $10 billion in cash flows in two months,” he said. “Due to the huge drop in oil prices, most of the players had to squeeze their cash flows and investments,” he added………………………………………..Full Article: Source

Oil’s Rise Chugs On

Posted on 29 April 2016 by VRS  |  Email |Print

Crude prices increase as many traders become more confident that oversupply will wane. Oil’s rally chugged ahead on Thursday, with the U.S. benchmark closing above $46 a barrel for the first time since November, again thwarting analysts who have repeatedly called for a retreat.
Global supply remains strong and U.S. stockpiles are increasing, but many traders are convinced the oversupplied market is on its way to balancing, brokers said. Their hopes are buoyed by steadily declining U.S. production and intermittent supply disruptions around the globe. And they got an extra boost Thursday from currency markets that lifted several commodity prices………………………………………..Full Article: Source

Rising oil prices throw lifeline to shale producers: Kemp

Posted on 29 April 2016 by VRS  |  Email |Print

Brent prices for 2017 ended trading above $50 per barrel on Wednesday for the first time since mid-December following the largest and most sustained rally in prices since the oil slump started.
The average for the 12 futures contracts expiring in 2017, called the calendar strip, has risen by 34 percent from its recent low of $37.45 on Jan. 20 to $50.26 on April 27.Spot prices, represented by the nearest futures contract, dominate the headlines and are of most interest to analysts and financial investors………………………………………..Full Article: Source

Did OPEC Just Start Preparing for the End of the Oil Era?

Posted on 29 April 2016 by VRS  |  Email |Print

Sunday, April 17, was the designated moment. The world’s leading oil producers were expected to bring fresh discipline to the chaotic petroleum market and spark a return to high prices.
Meeting in Doha, the glittering capital of petroleum-rich Qatar, the oil ministers of the Organization of the Petroleum Exporting Countries (OPEC), along with such key non-OPEC producers as Russia and Mexico, were scheduled to ratify a draft agreement obliging them to freeze their oil output at current levels………………………………………..Full Article: Source

Analysts Just Aren’t Buying the Oil Rally

Posted on 29 April 2016 by VRS  |  Email |Print

Questions remain about current high oil stockpiles and the potential for increased supply. Even as oil rallies, analysts have barely nudged up their price forecasts as they worry that crude’s recent gains might not be sustainable.
The price of oil has jumped 76% from the decade-low it hit earlier this year. That is mainly on hopes that dwindling U.S. oil production will help take crude out of an oversupplied market………………………………………..Full Article: Source

Saudi Arabia will struggle to kick its addiction to oil: Kemp

Posted on 28 April 2016 by VRS  |  Email |Print

“King Abdulaziz and the men who worked with him for the establishment of the state did not depend on oil and they established the kingdom without oil, and they ran this state without oil, and they lived in this state without oil,” Saudi Deputy Crown Prince Mohammed bin Salman said in an televised interview on Monday.
The deputy crown prince criticised the kingdom’s subsequent “addiction” to oil which has “disrupted the development of many sectors in the past years” implying this was a relatively recent problem………………………………………..Full Article: Source

World Bank optimistic on oil averaging at $41 this year

Posted on 28 April 2016 by VRS  |  Email |Print

World Bank boosted its forecast for oil prices this year, projecting that refinery demand will pick up and United States production cuts will steepen in the second half of 2016.
Crude prices will average $41 per barrel this year, which is still down 19 per cent from 2015, the Washington-based development bank said on Tuesday in its quarterly commodity-markets outlook. The bank in January had predicted a price of $37 per barrel, which represents a composite of projections for the Brent, West Texas Intermediate and Dubai Fateh blends………………………………………..Full Article: Source

Oil tops $45 a barrel for first time since November

Posted on 28 April 2016 by VRS  |  Email |Print

Oil climbed above $45 a barrel in New York today for the first time since November after U.S. industry data showed a decline in crude stockpiles. West Texas Intermediate futures rose as much as 2.6 percent, extending a 3.3 percent gain Tuesday.
Supplies fell by 1.07 million barrels last week, the industry-funded American Petroleum Institute was said to report. The World Bank boosted its forecast for oil prices this year, projecting that demand will pick up and U.S. output cuts will steepen in the second half of 2016………………………………………..Full Article: Source

World Bank sees US$41 oil this year, but cuts outlook for other commodities

Posted on 27 April 2016 by VRS  |  Email |Print

The World Bank is raising its 2016 forecast for crude oil prices to US$41 per barrel, up from the US$37 per barrel forecast at the start of this year, in view of “improving market sentiment and a weakening dollar”.
This forecast of firming energy prices, made in the World Bank’s latest edition of its Commodity Markets Outlook, is thus positive for producing countries in Asia and elsewhere, and also for central banks struggling to reverse persistent deflationary trends in their economies. The bank’s outlook for other commodities, however, is less bright………………………………………..Full Article: Source

Saudi reforms could be low oil price’s cure

Posted on 27 April 2016 by VRS  |  Email |Print

A major obstacle holding back economic reform in Saudi Arabia has been removed. And with it goes one of the main barriers to a rising oil price. Saudi’s cabinet approved an economic reform plan on April 25 aimed at ending the country’s addiction to crude.
The plan’s author, Deputy Crown Prince Mohammed bin Salman, could plausibly argue that after the price of oil had fallen 60 percent in two years, it was time to radically overhaul the economy and open up new sources of non-oil income. Now that his strategy has won official backing, the 31-year-old prince has a chance to get the best of both worlds by moving ahead with reforms while letting oil prices - which Saudi effectively drives as the swing producer - climb at the same time………………………………………..Full Article: Source

Oil hits 2016 high after U.S. crude draw report, gasoline rally

Posted on 27 April 2016 by VRS  |  Email |Print

Crude oil prices hit 2016 highs on Tuesday on the back of a rally in the gasoline market and after an industry group reported a surprise draw in U.S. crude stockpiles. Brent and U.S. crude’s West Texas Intermediate (WTI) futures finished regular trading about 3 percent higher, riding on the coattails of a gasoline rally that hit August highs after a series of refinery hikes.
In post-settlement trade, both benchmarks rose more than 4 percent after the American Petroleum Institute reported a drawdown of nearly 1.1 million barrels in U.S. crude inventories last week versus a 2.4 million-barrel build expected by analysts in a Reuters poll………………………………………..Full Article: Source

Venezuela formally proposes non-OPEC producers attend Vienna meeting

Posted on 27 April 2016 by VRS  |  Email |Print

Venezuela has proposed that non-OPEC oil producers attend the group’s June meeting in Vienna to continue “dialogue and coordination,” according to a letter sent by the South American country’s oil minister to the Qatari energy minister, who is also the current OPEC president.
“We’ve formally proposed to continue Doha discussions in Vienna,” Venezuelan Oil Minister Eulogio Del Pino told Reuters on Tuesday………………………………………..Full Article: Source

Indonesia sees oil price of $50 to $60 as ideal

Posted on 26 April 2016 by VRS  |  Email |Print

The recent meeting in Doha may not have yielded positive results in freezing production but it was successful in terms of participation and engagement from oil producing countries to stabilise oil prices, Indonesia Governor for Opec (Organisation of the Petroleum Exporting Countries) told reporters in Abu Dhabi.
“If the expectation is to freeze production, of course it was not achieved. But by having communication and engagement and getting participation from more countries it is a success. That was never done before,” said Widhyawan Prawiraatmadja Indonesia Governor for Opec and Special Advisor to Minister of Energy and Mineral Resources………………………………………..Full Article: Source

Saudi Arabia’s Break-Even Oil Price Plunges as Spending Drops

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia will see the biggest drop this year in the oil price needed to balance its budget as Riyadh curbs spending amid the crude-market rout. The kingdom’s fiscal break-even will fall to $66.70 a barrel from $94.80 in 2015, the International Monetary Fund said on Monday.
The 30 percent drop is the steepest among a group of Middle East and North African OPEC members reviewed by the IMF. While that break-even remains above current market prices, the trend shows Saudi Arabia is adjusting to the slump in crude triggered by its November 2014 decision to push the Organization of Petroleum Exporting Countries to change strategy and fight for market share. ……………………………………….Full Article: Source

OPEC’s grip might loosen, but it still has pull

Posted on 26 April 2016 by VRS  |  Email |Print

OPEC counts 13 countries among its membership, but one of them has long reigned as a first among equals. Saudi Arabia, with its production of around 10.2 million b/d representing about a third of the group’s output — and about 11% of world supply — has served as OPEC’s de facto leader, its swing capacity traditionally leading the organization’s efforts to manage the market.
But last week’s failed talks in Doha to enact a production freeze saw a potential new oil producer group emerge with another player in the room that could have changed the dynamics of the market and challenged Saudi political eminence in world oil affairs………………………………………..Full Article: Source

Without alliance with Russia, OPEC is powerless

Posted on 26 April 2016 by VRS  |  Email |Print

The failure at the Doha talks that were supposed to help put an end to oil price crisis showed to the whole world how divided the OPEC is. The agreement, that seemed to be almost there, was shattered, undermined by a longstanding Saudi-Iran rivalry.
Now, with a consensus once again pushed back, will the oil producers be able to find common ground? Why Saudi Arabia is putting its own economic wellbeing on the altar of political bickering? And finally, is the age of oil going through its final agony, or will the price for black gold rise again?……………………………………….Full Article: Source

Why cheap oil hasn’t saved the US economy

Posted on 25 April 2016 by VRS  |  Email |Print

Cheaper oil boosts an economy. It’s Econ 101. But while growth has been chugging along in America, it hasn’t been as vigorous as you’d expect with a 60% drop in oil prices since 2014. Former US Treasury secretary Larry Summers has called the lack of a big bounce one of the biggest economic puzzles of our time.
Somehow, it may even turn out to be bad for the economy. The economy should get a lift through several channels. One of the most significant is that lower fuel prices mean people have more money to spend on other things………………………………………..Full Article: Source

Oil price corridor of $40-60/bbl new reality for next 5 years

Posted on 25 April 2016 by VRS  |  Email |Print

The oil price corridor of $40-60 a barrel is the new reality for the coming five years, Russian Deputy Minister of Economic Development Alexei Vedev said. “We assume the oil prices range of $40-60 [a barrel] is the new reality and the new normal situation for the next five years. The crisis also involves varying response of economic branches to the Russian ruble devaluation and change of environment. A natural structural transformation is taking place in our industry under influence of external factors,” the official said.
It was reported earlier the Ministry of Economic Development set the Urals oil price of $40 per barrel in the scenario conditions for the Russian economy in 2016-2019………………………………………..Full Article: Source

Iran backs any move to stabilize oil market

Posted on 25 April 2016 by VRS  |  Email |Print

Minister of Petroleum Bijan Zangeneh says Iran will support any initiative to stabilize the oil market after recent talks in Qatar failed to freeze production. Zangeneh told reporters on the sidelines of a meeting with his South African counterpart in Tehran on Saturday that the meeting between OPEC and non-OPEC producers in Doha was a “good step.”
“Despite failing to have a result, the start of the negotiation was good for OPEC and non-OPEC to cooperate and for big OPEC producers to accept that they have to do something to change the situation,” he added………………………………………..Full Article: Source

Balanced oil market seen latest by 2017

Posted on 25 April 2016 by VRS  |  Email |Print

Crude market sentiments appear upbeat, despite the Doha debacle. Speculators are back in play, reports are asserting, betting that the worst is over and the glut may be easing. Strong gasoline consumption in the United States, increasing signs of declining production around the world and oilfield outages have underpinned a return to investment in the sector, traders are now insisting.
Oil prices were higher Friday as investors continued to buy back into commodities, betting oversupplied markets will ease later this year, Wall Street Journal said, quoting brokers and analysts. The rally now has oil up oil about 65% in two months, confounding all those who expected it to lose steam after OPEC failed to reach a deal to cap production………………………………………..Full Article: Source

After Doha, what next for Opec?

Posted on 25 April 2016 by VRS  |  Email |Print

Opec has had some infamous meetings in its history. An ill-timed hike in quotas in Jakarta in November 1997 led to a crash in prices, while the June 2011 “worst ever” meeting in Vienna, as the Saudi oil minister termed it, failed to stop prices from rising. Doha last week was, perhaps, not in that league but still blended tedium, surprise and dysfunction, even more embarrassingly for including key non-Opec players.
Most Opec countries attended along with non-Opec leaders such as Russia and Oman. It seemed that the previously announced deal to freeze production at January levels was a formality, especially as most countries involved could not or would not increase output anyway………………………………………..Full Article: Source

Low Crude Prices to Spur More M&A Deals in Oil & Gas After Slump

Posted on 25 April 2016 by VRS  |  Email |Print

Low oil prices will spur more mergers and acquisitions in the oil and gas industry this year with some companies forced to sell to avoid bankruptcy, according to consultants A.T. Kearney. Private equity firms are probable buyers, Richard Forrest, global lead partner for the company’s energy practice, said in an interview in Dubai.
The number of oil and gas transactions declined 37 percent in 2015 as their value fell 2.5 percent to $469 billion, led by Royal Dutch Shell Plc’s acquisition of BG Group Plc and Energy Transfer Equity LP’s purchase of Williams Cos. This year, the number of transactions will go up but the value will probably decline without any big deals, he said………………………………………..Full Article: Source

So investors, what if the oil price heads south again?

Posted on 22 April 2016 by VRS  |  Email |Print

Strong oil and weak dollar influence shares, EM, junk debt and FX. We are all oil traders at the moment. The resilience of crude prices in the wake of a failed production freeze deal in Doha firmly illustrates the importance of black gold for sentiment across the broader financial system at the moment.
Talk of a freeze in recent weeks propelled the robust recovery in oil prices. However, the lack of an agreement and the crackling tension between Iran and Saudi Arabia is being downplayed by energy traders. They are looking ahead to the prospect of supply and demand becoming balanced during the second half of the year, thus supporting crude prices………………………………………..Full Article: Source

Why $80 could be ‘new normal’ for oil: Advisor

Posted on 22 April 2016 by VRS  |  Email |Print

The “new normal” for U.S. oil prices could be as much as double the current $40 per barrel, but don’t expect $65 to $80 crude until around 2018, long-time industry advisor Tom Petrie said Wednesday.
“We overshot on the downside, when we penetrated $30 [per barrel],” Petrie said, referring to the Feb. 11 bottom of $26.05 per barrel. Since then, WTI has surged about 45 percent. “Some of that recovery, shock though it was, was getting back into a more normal adjusted price.”……………………………………….Full Article: Source

Oil price builds on rally to hit five-month high

Posted on 22 April 2016 by VRS  |  Email |Print

Oil prices held firm following Wednesday’s surprise 6.5pc rally to reach a five-month high of just over $46 a barrel in early London trade.
The international Brent crude benchmark hit its highest level for the year after a closely watched US oil stock report showed lower than expected growth in an otherwise oversupplied market. On Wednesday, Brent closed at $45.80 a barrel………………………………………..Full Article: Source

Oversupplied oil market to rebalance by next year, says IEA

Posted on 22 April 2016 by VRS  |  Email |Print

International Energy Agency expects production outside Opec cartel to fall sharply this year. The International Energy Agency (IEA) said it expects the oversupplied oil market to rebalance by next year, as non-Opec production records its biggest decline in a generation.
An oil glut has prompted a slump in crude prices from a peak of $115 (£80) a barrel in June 2014, but the IEA executive director, Fatih Birol, said on Thursday that production outside tOpec would fall sharply this year, by almost 700,000 barrels a day. He expects oil markets, and prices, to rebalance at the turn of this year, or by 2017 at the latest………………………………………..Full Article: Source

OPEC Officials: May Discuss Oil Freeze at June Meeting

Posted on 22 April 2016 by VRS  |  Email |Print

OPEC is ‘still alive’ as a force in the oil market, says secretary-general Abdallah Salem el-Badri. OPEC spoke on Thursday, but the market wasn’t listening. The Organization of the Petroleum Exporting Countries could revive talk of freezing oil production along with nonmembers at its next meeting in June, said top oil officials on Thursday.
A production freeze was an idea that had helped send prices rallying more than 50% from 12-year lows last winter. But after the 13-nation producer group ultimately failed to strike a production deal with Russia in Qatar over the weekend, investors didn’t react much to the news that freeze talks could soon be renewed………………………………………..Full Article: Source

IEA predicts biggest non-Opec output fall in a quarter century

Posted on 22 April 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) expects non-Opec output to fall this year by the most in 25 years. IEA chief, Faith Birol, added that low oil prices had cut investment by around 40 per cent over the past two years, particularly in the US, Canada, Latin America and Russia.
In its medium-term report released earlier this month, the IEA said that the oil market would gradually rebalance by 2017. Oil prices have tumbled around 60 per cent from over $110 per barrel in the middle of 2014………………………………………..Full Article: Source

Hedge funds bet on tightening oil market despite Doha debacle

Posted on 21 April 2016 by VRS  |  Email |Print

Brent futures prices are signaling the market expects a rapid tightening of the supply-demand balance in the second half of 2016. The spread between futures prices for oil delivered in June and July has moved into a backwardation of 17 cents per barrel from a contango of almost 50 cents at the end of last month.
Contango tends to be associated with an oversupplied market and high and rising stocks, while backwardation is associated with the opposite……………………………………….Full Article: Source

Why the oil market didn’t need the Doha freeze after all

Posted on 21 April 2016 by VRS  |  Email |Print

When markets opened Monday morning, the price of oil dropped like a rock, as the market absorbed the news that the much anticipated oil production freeze meeting in Doha, Qatar didn’t amount to much. But oil soon recovered and traded Tuesday above $42 US a barrel.
Why? Is it because of a strike by oil workers in Kuwait? Or pipeline sabotage in Nigeria? Partly. But energy analysts say it’s also because the global oil market didn’t really need the Doha agreement. It’s already in the midst of re-balancing itself………………………………………..Full Article: Source

Oil market rebounds to 2016 highs as US data offers bullish surprise

Posted on 21 April 2016 by VRS  |  Email |Print

The oil market staged a dramatic rebound in late trade to return to 2016 highs after unexpectedly low US supply data trumped market concerns over the abrupt end to strike action in Kuwait.
The anticipated increase in Kuwaiti supply following the sooner than expected end to a three-day oil worker strike late on Tuesday pushed the benchmark Brent crude price down more than 2.5pc to lows of $43 a barrel by Wednesday morning. But a surprising weekly US oil stock report triggered a late 4.5pc surge to just over $45 by 18:00 BST………………………………………..Full Article: Source

Russia Energy Minister Unsure OPEC Will Agree to Freeze Oil Output

Posted on 21 April 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak told news agencies Wednesday that he wasn’t sure oil-producing countries would be able to reach a deal to freeze production, but that the need to do so might decrease in the coming months.
“I wouldn’t say now that we are sure they will be able to agree among themselves, because there are very diverse positions,” Mr. Novak said. He cautioned against dubbing the inconclusive meeting with the Organization of the Petroleum Exporting Countries in Doha last week a failure, but said Saudi Arabia had been “unauthorized” to change its position at the last minute………………………………………..Full Article: Source

Iraq Says OPEC, Others to Meet on Oil Freeze, Perhaps in May

Posted on 21 April 2016 by VRS  |  Email |Print

Major OPEC and other crude producers will meet in Russia, possibly next month, in a new push to agree on an output freeze to shore up oil prices, Iraq’s Deputy Oil Minister Fayyad Al-Nima said.
Iraq sees oil prices rising slowly despite the failure of OPEC and other producers including Russia to reach an agreement on an output freeze in Doha on April 17, Al-Nima, who assumed the duties of oil minister after Adel Abdul Mahdi suspended his participation in the cabinet last month, said in a phone interview on Wednesday. There is still no agreement on an oil meeting in May, Russian Energy Minister Alexander Novak said after Al-Nima’s comment………………………………………..Full Article: Source

Oil price above $38 is a rally traders will sell into, not a trend change

Posted on 21 April 2016 by VRS  |  Email |Print

The OPEC meeting confirmed that the era of cheap oil has not come to an end. Chart analysis of the Nymex oil chart in March suggested the rise in the oil price from $28 was a rally and not a trend change. The strong rally gain was a gift to traders but it was not enough to revitalize the oil industry because the rally faced significant resistance barriers.
However, oil is establishing a pattern of longer-term trend reversal with price oscillation around the $38 level. Price activity at this level will be the most significant factor in oil behavior in the next few weeks. If the price remains near to the $38 level, the longer-term outlook for oil is bullish………………………………………..Full Article: Source

Oil market in temporary balance as supply disruptions buoy price

Posted on 20 April 2016 by VRS  |  Email |Print

Strike in Kuwait and news of outages in Nigeria and Venezuela bolster crude market. A workers’ strike in Kuwait that has temporarily halved its crude output and a string of global supply disruptions propelled oil prices higher on Tuesday.
Brent, which had sunk to almost $40 a barrel on Monday after talks between some of the biggest producers in Doha collapsed, rose as much as $1.34 to $44.25 on Tuesday. West Texas Intermediate, the US benchmark, rose $1.49 to $41.26 a barrel………………………………………..Full Article: Source

Oil prices: which countries have the largest supplies of oil?

Posted on 20 April 2016 by VRS  |  Email |Print

Oil prices plunged after the world’s top producers failed to reach an agreement on capping output aimed at easing a global supply glut, sparking fears it could set off another round of price falls.
Brent crude, the global benchmark, has lost 34pc over the past 12 months. We look at the countries that are sitting on the largest supplies of oil and are most susceptible to the tumbling price of crude………………………………………..Full Article: Source

Fumbled talks reveal much about OPEC, oil market

Posted on 20 April 2016 by VRS  |  Email |Print

​It’s difficult to see what purpose the once-mighty OPEC serves following Sunday’s spectacular flop of much-anticipated talks to freeze oil production and drive up prices. This was the first substantial effort in a decade and a half to co-ordinate both OPEC and non-OPEC countries in a freeze that would boost prices, yet it ended in only more confusion across energy markets.
Prices have been battered since late 2014 after OPEC rejected calls to rein in an oversupply of 1.3 million barrels a day — but they began rising sharply in recent weeks on rumours that top producers Saudi Arabia and non-OPEC Russia would push for the freeze………………………………………..Full Article: Source

Iraq Says OPEC Will Pursue Output-Freeze Talks at June Meeting

Posted on 20 April 2016 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will resume talks at a meeting in June to reach an agreement on freezing oil output, Iraq’s governor to OPEC said just days after politics thwarted a deal to cap production and curb the global glut.
No deal will be possible without a change in “political positions,” Falah Al-Amri said on his Facebook page. Negotiations among 16 oil producers in Doha on Sunday ended without any accord after Saudi Arabia demanded all producers take part in a freeze………………………………………..Full Article: Source

Oil is headed to $30 after Doha

Posted on 19 April 2016 by VRS  |  Email |Print

Oil prices are under pressure following the failure of OPEC and major non-OPEC producers to agree on a production freeze at Sunday’s meeting in Doha. We expect Brent crude prices to drop toward $30 a barrel during the current quarter but recover to $55 a barrel in 12 months as the oversupply of oil dissipates towards the end of this year.
Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman reiterated before the Doha talks that the Kingdom would not freeze its output without Iran’s participation………………………………………..Full Article: Source

Oil market confidence shaken as Opec talks collapse

Posted on 19 April 2016 by VRS  |  Email |Print

Global oil prices slumped on Monday after rising tensions between the world’s largest crude producers derailed plans to tackle the market’s crippling oversupply by freezing oil production levels.
Brent crude tumbled from almost $45 a barrel late last week to under $41 on Monday after the third high-profile failure of the Organisation of Petroleum Exporting Countries (Opec) to agree on a deal to manage the global glut of oil………………………………………..Full Article: Source

Why Oil Prices Aren’t Dropping More After Doha Talks

Posted on 19 April 2016 by VRS  |  Email |Print

The Doha oil meetings yielded no news of a production freeze. So why aren’t oil prices down more? Oil prices are down Monday after major crude producers failed to reach a deal to freeze production. But they’re not actually down by that much.
The U.S. crude oil benchmark fell more than 6% when the market opened, but it’s since walked back those losses and was recently down by just 2.4% at $39.41 a barrel. If it settles at that level, it wouldn’t even be one of the 10 biggest daily drops this year, in percentage terms………………………………………..Full Article: Source

Saudis are going for the kill but the oil market is turning anyway

Posted on 19 April 2016 by VRS  |  Email |Print

The collapse of OPEC talks with Russia over the weekend makes absolutely no difference to the balance of supply and demand in the global oil markets. The putative freeze in crude output was political eyewash.
Hardly any country in the OPEC cartel is capable is producing more oil. Several are failed states, or sliding into political crises. Russia is milking a final burst of production before the depleting pre-Soviet wells of Western Siberia go into slow run-off. Sanctions have stymied its efforts to develop new fields or kick-start shale fracking in the Bazhenov basin………………………………………..Full Article: Source

What Doha Couldn’t Do for Oil Market, Kuwait Does by Accident

Posted on 19 April 2016 by VRS  |  Email |Print

After months of preparation, talks between producers in Doha failed to deliver anything to end the global oil glut. Yet, Kuwait has managed that by itself in just a few days.
A labor strike that began Sunday has slashed the Persian Gulf nation’s output by 60 percent, shuttering 1.7 million barrels a day — slightly more than the surplus sloshing around world markets in the first half of the year. That oversupply caused prices drop to a 12-year low in January………………………………………..Full Article: Source

What Doha Couldn’t Do for Oil Market, Kuwait Does by Accident

Posted on 19 April 2016 by VRS  |  Email |Print

After months of preparation, talks between producers in Doha failed to deliver anything to end the global oil glut. Yet, Kuwait has managed that by itself in just a few days.
A labor strike that began Sunday has slashed the Persian Gulf nation’s output by 60 percent, shuttering 1.7 million barrels a day — slightly more than the surplus sloshing around world markets in the first half of the year. That oversupply caused prices drop to a 12-year low in January………………………………………..Full Article: Source

OPEC’s next move might be an oil production hike

Posted on 19 April 2016 by VRS  |  Email |Print

Several of the world’s largest oil producers failed to reach an agreement to freeze output to help alleviate a glut of global crude supplies, but the Organization of the Petroleum Exporting Countries may soon need to start discussing an increase in output instead.
The logic is a bit hard to grasp, but not that difficult if you look at some of the reasons why producers couldn’t come up with a deal to cap production—and why oil prices didn’t end up taking that big of a hit on Monday………………………………………..Full Article: Source

Gold Prices ‘Buoyed’ by Failed Opec Oil Cuts

Posted on 19 April 2016 by VRS  |  Email |Print

Gold Prices rose Monday morning in London as oil prices stabilized from a sharp plunge following news that major producer nations had failed to reach an agreement on cutting output this weekend in Doha, Qatar, writes Steffen Grosshauser at BullionVault.
European stock markets recovered early losses but Asian equities closed sharply lower, plummeting from the highest weekly close in four months as Shanghai’s SSE Composite and Tokyo’s Nikkei 225 lost 1.4% and 3.4% respectively. Silver retreated to around $16.22 from Friday’s peak of $16.37 per ounce, its highest level since June 2015………………………………………..Full Article: Source

Oil producers fail to agree output freeze

Posted on 18 April 2016 by VRS  |  Email |Print

The world’s top oil producers failed to reach agreement on capping output in Doha Sunday amid a standoff between Saudi Arabia and Iran and raising fears about how markets will react.
Qatari energy minister Mohammed bin Saleh al-Sada said oil producers concluded after six hours of negotiations that they needed “more time”. “The general conclusion was that we need more time to consult among ourselves in Opec and non-Opec producers,” Mr Sada said………………………………………..Full Article: Source

Oil meeting in Qatar collapses without freeze as Iran absent

Posted on 18 April 2016 by VRS  |  Email |Print

Oil-rich nations gathered in Qatar ended their summit Sunday just hours after it began, saying they need “more time” before agreeing to a production freeze. A meeting of oil-rich countries in Qatar that had been expected to boost crude prices by freezing production fell apart Sunday as Iran stayed home and vowed to increase its output despite threats by Saudi Arabia.
Oil prices, which hit a 12-year low in January by dipping under $30 a barrel, had risen above $40 in recent days, buoyed by the bullish talks surrounding the Doha summit………………………………………..Full Article: Source

How oil prices could have big impact on your portfolio

Posted on 18 April 2016 by VRS  |  Email |Print

Global equity markets could see a huge correction in the event oil prices fail to carry on their recovery and tumble to $10 per barrel, according to Raghu Suryanarayanan, executive director of risk and regulation research at MSCI.
The oil price has staged a partial recovery since it began to plummet in June 2014 but is still down more than 65 per cent from its last high. The trend downward in the oil price and ongoing wild fluctuations have been a huge driver of market sentiment, economies and asset prices around the globe over this near two year period, says Suryanarayanan………………………………………..Full Article: Source

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