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Oil Prices Fall, and the Global Economy Wins

Posted on 30 September 2014 by VRS  |  Email |Print

Oil is in the midst of one of its steepest selloffs since the financial crisis, with prices falling 16 percent since mid-June. This has the Saudis contemplating even deeper cuts in oil production to keep prices from declining any further. The world’s biggest crude exporter told OPEC recently that in August it reduced output by more than 400,000 barrels a day.
It’s not yet clear how well that’s working. The Saudi cuts were offset in part by more oil from Iran, Iraq, and Nigeria—not to mention the continued record increase in U.S. oil production thanks to the shale boom………………………………………..Full Article: Source

Shale oil eases the economic pain of Middle East military action

Posted on 30 September 2014 by VRS  |  Email |Print

There was a time when headlines about jets bombing Middle Eastern refineries would have sent oil prices soaring. Granted, Islamic State’s facilities aren’t exactly world class. But it is telling that such violence is doing little to lift the price of crude. Brent is down 13 per cent this year and looks set to post its weakest yearly average price since 2010, before the Arab Spring really got going.
The big culprit for this disconnect is shale. US-led growth in oil output from the industrialised world since the start of 2011 has offset supply disruptions in the Organisation of the Petroleum Exporting Countries, according to Citigroup………………………………………..Full Article: Source

Speculators Slash Bets on Rising Crude Oil Price

Posted on 30 September 2014 by VRS  |  Email |Print

Speculators slashed bets on a rising Brent crude oil price by 34% in the week ended Sept. 23, the biggest weekly cut in their net long position in three years, as the oil price continued to slide lower.
In the week to Sept. 23, speculators reduced their net long position—the total number of bets that the price of oil would rise minus the number of bets that it would fall—by 33.7%, according to exchange data released Monday. The last time speculators made a cut this sharp was in October 2011………………………………………..Full Article: Source

Shale, Saudi Arabia and Islamic State Leave Oil Bulls Sweating

Posted on 29 September 2014 by VRS  |  Email |Print

There was a time when headlines about jets bombing Middle Eastern refineries would have sent oil prices soaring. Granted, Islamic State’s facilities aren’t exactly world class. But it is telling that such violence is doing little to lift the price of crude. Brent is down 13% this year and looks set to post its weakest yearly average price since 2010, before the Arab Spring really got going.
The big culprit for this disconnect is shale. U.S.-led growth in oil output from the industrialized world since the start of 2011 offsets supply disruptions in the Organization of the Petroleum Exporting Countries, according to Citigroup………………………………………..Full Article: Source

The worrying slide in oil prices and demand

Posted on 29 September 2014 by VRS  |  Email |Print

While the price slide has slowed and some crude oils witnessed a rise due to a sudden and unexpected stock drawdown in the US, analysts still see the price direction as headed downward. The price of Brent oil rose to $97 (Dh356) a barrel on September 25 while the Opec basket of crude oils declined slightly to $94.25 a barrel. The US Energy Information Administration (EIA) now expects oil prices to stay below $100 a barrel until the end of the decade.
The signals that Opec may reduce its production ceiling by 0.5 million barrels a day (mbd) at the next ministerial meeting in November may not be enough to stabilise the market, especially if further declines are seen from now up to the date of the C meeting. If Opec is serious about price maintenance at some level — and thereby arrest further price erosion — it would be a good idea to start now to seek co-operation from other producers………………………………………..Full Article: Source

Iran Urges OPEC To Stop Oil Slide, Gulf Members Relaxed

Posted on 29 September 2014 by VRS  |  Email |Print

Iran on Friday urged OPEC members to make joint efforts to keep oil prices from falling further, highlighting a split with other members such as Saudi Arabia who face lower budget pressures despite a slide in prices towards $95 a barrel. Oil has fallen from $115 in June, pressured by concern about slowing global demand and higher supplies as Libyan output recovers, raising concern among some oil exporters of lower revenues.
“Considering the downward trend in prices, OPEC members should try to temper production to avoid further price instability”, Iran’s oil minister, Bijan Zanganeh, was quoted by the Iranian oil ministry website Shana as saying………………………………………..Full Article: Source

Why Peak-Oil Predictions Haven’t Come True

Posted on 29 September 2014 by VRS  |  Email |Print

Have we beaten “peak oil”? For decades, it has been a doomsday scenario looming large in the popular imagination: The world’s oil production tops out and then starts an inexorable decline—sending costs soaring and forcing nations to lay down strict rationing programs and battle for shrinking reserves.
U.S. oil production did peak in the 1970s and sank for decades after, exactly as the theory predicted. But then it did something the theory didn’t predict: It started rising again in 2009, and hasn’t stopped, thanks to a leap forward in oil-field technology………………………………………..Full Article: Source

Overheard: Falling Prices Hit OPEC

Posted on 26 September 2014 by VRS  |  Email |Print

Oil cartel struggles to cope with falling prices—the heart bleeds, surely. Sympathizing aside, OPEC’s fiscal health is a big factor in arresting the slide in oil prices, down 15% in three months. In a report published Wednesday, Citigroup estimated oil prices at which various major exporters balance their books. These range from $44 a barrel for Kuwait up to $184 for Libya.
Some big producers are squarely in deficit territory. Iran’s price is $130, for example, while Venezuela’s is $161. Brent’s average so far this year—the key metric rather than the current price—is $107………………………………………..Full Article: Source

Iran: OPEC Should Balance Production to Stabilize Crude Prices

Posted on 26 September 2014 by VRS  |  Email |Print

Iran’s Oil Minister said the Organization of the Petroleum Exporting Countries, OPEC, should balance its crude production to stabilize oil prices in the market. “OPEC should definitely balance its production to avoid crude price volatility in the market,” Bijan Namdar Zanganeh said.
Asked about the possible impact of the results of the nuclear negotiations between Iran and six world powers on crude prices, the Iranian oil minister said the prices are “reasonable enough” not to be affected by such issues. Zanganeh’s comments come against the backdrop of the recent sharp drop in crude prices………………………………………..Full Article: Source

Oil prices plunging despite ISIS

Posted on 26 September 2014 by VRS  |  Email |Print

Oil prices have fallen sharply over the past few months — even though the terrorist organization ISIS has taken control of some refineries in Syria and Iraq. Prices haven’t shot up since the United States and its allies have started to conduct airstrikes against ISIS oil targets in Syria either.
It may seem strange that prices haven’t skyrocketed. Typically, tension in the Middle East has caused serious concerns about oil supply being taken off the market. But experts say there are several reasons why the ISIS situation has not pushed energy prices up … and that the trend should continue………………………………………..Full Article: Source

Geopolitics and the oil price: Why the disconnect?

Posted on 25 September 2014 by VRS  |  Email |Print

Geopolitical tensions between Russia and the West and troubles in Middle East have dominated headlines all summer, but investors so far have managed to shrug off fears, with the market reaction remaining fairly contained.
The Organisation of Petroleum Exporting Countries (OPEC) basket of 12 crude oils slid to $94.31 on Tuesday, the lowest level since July 2012 even as the U.S. confirmed 14 air strikes against ISIS, with large explosions confirmed in eastern Syria………………………………………..Full Article: Source

Oil price slips to two-year low

Posted on 25 September 2014 by VRS  |  Email |Print

Oil fell below $96 a barrel on Wednesday to its lowest in over two years as rising supply from Africa and Iraq offset mounting tensions in the Middle East and stronger-than-expected growth expectations in China. Weak European economic data and a rise in oil exports from Iraq, Libya and Nigeria have eroded the oil price, which is down around 14 percent this quarter, the biggest quarterly drop since the second quarter of 2012.
Brent crude for November delivery fell $1.07 to $95.78 a barrel by 1500 GMT after hitting $95.72, its lowest since July 2012. It was down more than 6.5 percent for the month so far, the biggest monthly drop since April 2013………………………………………..Full Article: Source

OPEC: Breakeven Bad

Posted on 25 September 2014 by VRS  |  Email |Print

Oil cartel struggles to cope with falling prices–the heart bleeds, surely. Sympathizing aside, OPEC’s fiscal health is a big factor in arresting the slide in oil prices, down 15% in three months. In a report published Wednesday, Citigroup estimated oil prices at which various major exporters balance their books. These range from $44 a barrel for Kuwait up to $184 for Libya.
Some big producers are squarely in deficit territory. Iran’s price is $130, for example, while Venezuela’s is $161. Brent’s average so far this year—the key metric rather than the current price—is $107………………………………………..Full Article: Source

Too early for OPEC to decide on slashing output: UAE Energy Minister

Posted on 25 September 2014 by VRS  |  Email |Print

It is too early for OPEC countries to make a decision on lowering the organization’s output target, United Arab Emirates Energy Minister Suhail Al-Mazroui told reporters on Tuesday, despite oil prices falling below the critical 100 US dollar per barrel mark in recent months amid weak global demand and steady supply boosted by the US shale oil boom.
Speaking at a news conference in Abu Dhabi, Mazroui said it was “premature to decide” on lowering the group’s output in order to stabilize prices, saying OPEC would “meet to discuss and agree on measures” in November. This comes one week after OPEC Secretary-General Abdullah Al-Badri said the group would discuss lowering its daily output of 30 million barrels per day (bpd) by 500,000 bpd during its November meeting………………………………………..Full Article: Source

Iran Sees Oil Prices Falling to $90 a Barrel By Late March

Posted on 24 September 2014 by VRS  |  Email |Print

Oil prices will likely fall to $90 a barrel by the end of the winter, Iran’s head of oil sales was quoted as saying Tuesday, countering views by other producers that expect prices to rebound. The remarks come after members of the Organization of the Petroleum Exporting Countries said in recent days they expect oil prices to rebound after it fell below $100 a barrel earlier this month.
But in remarks carried by Iran’s oil ministry website Shana, Mohsen Ghamsari, the director at the National Iranian Oil Company in charge of international oil sales, said that “if the oil market only looks at supply and demand, the oil price will further decline in the global market.”……………………………………….Full Article: Source

Why the fall in the oil price won’t last

Posted on 24 September 2014 by VRS  |  Email |Print

The impact of tensions in the Middle East and Eastern Europe on future oil production and OPEC’s ability to step in and manage the market are two major reasons why the oil price is nearing its floor, according to Lombard Odier’s Pascal Menges.
Geo-political risk has been one of the most used phrases in financial markets over recent months as ongoing tensions between Russia and Ukraine and the escalating conflict in Iraq have been seen by many as reasons to take a cautious stance in their portfolios. However, despite those potentially catastrophic macroeconomic headwinds, out-and-out safe havens such as gold bullion and crude oil have failed to spike………………………………………..Full Article: Source

OPEC Yet to Decide on Supply Cuts as Crude Prices Extend Retreat

Posted on 24 September 2014 by VRS  |  Email |Print

OPEC has yet to decide to cut its production target, the United Arab Emirates’ energy minister said, as crude prices extend a slide since June amid a boom in U.S. shale oil and signs of slower demand growth in China.
All 12 members of the group must agree before any decrease in its official limit of 30 million barrels a day, the U.A.E.’s Suhail Al Mazrouei said today, a week after OPEC’s secretary-general said it may lower the ceiling in 2015………………………………………..Full Article: Source

All Eyes On Kenya: The Next Big Oil Exporter

Posted on 24 September 2014 by VRS  |  Email |Print

Not even the specter of a spillover of Islamic extremism from Somalia can dampen the atmosphere in Kenya, where commercial oil production is expected to begin in 2016 and discovery after discovery has made this the hottest and fastest-paced hydrocarbon scene on the continent.
When it comes to new oil and gas frontiers, today it’s all about Africa. And more specifically, it’s all about the eastern coast, with Kenya the clear darling–not just because it’s outpacing neighboring Uganda by leaps and bounds, but also because despite some political instability hiccups and the threat of militant al-Shabaab, it’s still one of the safest venues in the region………………………………………..Full Article: Source

High Oil Prices Are No Defense Against Risk Of Stranded Assets

Posted on 23 September 2014 by VRS  |  Email |Print

There has been much concern in the financial community recently about the risk of “stranded assets” in the oil industry, particularly if governments introduce strict carbon regulations to fight climate change and therefore reduce demand for oil, which would reduce the price.
At the same time, developing new oil wells is becoming more and more expensive. Most of the easy oil has already been discovered and much of it is under the control of national oil companies in countries ranging from Russia to Iran to Venezuela………………………………………..Full Article: Source

Why Oil Prices Are Dropping Despite Mideast Unrest

Posted on 23 September 2014 by VRS  |  Email |Print

Canada’s oilpatch is basking in an extended sweet spot of sorts. Commodity prices aren’t spiking in a way that’s sure to sink the global economy, nor are they plumbing depths that would force small producers out of business and big players to start tightening their belts and cutting jobs.
The global oil market, however, is changing and nowhere are the signs more evident than the reaction to what’s happening in the Middle East. In the past, military conflicts in the Middle East and the attendant threat of supply disruptions would send oil prices soaring. Today, oil prices are falling even as the region is seemingly unraveling………………………………………..Full Article: Source

Moody’s cuts price assumptions for natural gas, oil through 2015

Posted on 23 September 2014 by VRS  |  Email |Print

Moody’s Investors Service last week reduced its assumptions for average spot prices for North American natural gas after a mild summer cut demand for gas-powered electricity. Moody’s also cut its assumption for the spot prices for the two benchmark barrels of crude, European Brent and West Texas Intermediate (WTI). Oil prices dropped this past summer due in part to slower economic growth in some of the world’s major economies, a strengthened U.S. dollar, and growing non-OPEC supply, Moody’s said.
The rating agency lowered its price assumption for North American benchmark Henry Hub natural gas to $3.75 per million British thermal units (MMBtu) through 2015, a 50-cent decrease from its earlier assumption of $4.25/MMBtu set in June. However, its assumptions for 2016 and beyond are unchanged at $4/MMBtu………………………………………..Full Article: Source

Russia and OPEC look like they are in a slump, but it is only a phase

Posted on 23 September 2014 by VRS  |  Email |Print

Russia and OPEC are under challenge from Western-led sanctions and the surge of US oil production, but it’s only a pause: both will be back stronger, according to a new report.
Since 2006, Russia has roared back from a post-Soviet plunge in oil production, producing a steady 10 million barrels a day, which in turn supports more than 40% of the state budget. A halt to drilling in the Russian Arctic announced Sept. 19 by ExxonMobil shows how Western sanctions could hurt Moscow’s ambitions to maintain at least that level of production for decades to come………………………………………..Full Article: Source

Oil prices fall on sluggish demand, ample supply

Posted on 23 September 2014 by VRS  |  Email |Print

Crude oil futures fell on Monday as ample supply and slowing economic growth in Europe and China outweighed expectations of a cut in oil output from the Organization of the Petroleum Exporting Countries (OPEC).
Concerns over extended stagnation in Europe, which could pull down other economies, were highlighted at the G20 meeting in Australia on Sunday. China will not dramatically alter its economic policy because of any one economic indicator, Finance Minister Lou Jiwei said on Sunday………………………………………..Full Article: Source

Why Cheaper Oil Is Not A Big Threat For Gulf Economies

Posted on 22 September 2014 by VRS  |  Email |Print

The price of Brent crude has sunk by nearly $20 from its June peak to as low as $96 a barrel in recent weeks, its lowest level since mid-2012. Falling oil prices may prove the best medicine for economies in the Arab world, rebalancing growth towards countries struggling to recover from the Arab Spring uprisings without doing major damage to the oil exporters of the Gulf.
The price of Brent crude has sunk by nearly $20 from its June peak to as low as $96 a barrel in recent weeks, its lowest level since mid-2012. Behind the drop is soft economic data from top consumers such as China; a plentiful supply outlook points to further price declines in the next two years………………………………………..Full Article: Source

With LNG Export Battle Won, Are Oil Exports Next?

Posted on 22 September 2014 by VRS  |  Email |Print

Building on its success in getting the U.S. government to approve exports of natural gas, the oil and gas industry has moved on to the export of crude oil. To be sure, the campaign has been underway for quite a while. The four-decade old ban has been under attack over the past year because of the glut of oil that has come onto the market.
Increased supplies in places like North Dakota and Texas have led to a significant price discount between the Brent benchmark, which largely reflects international prices, and the West Texas Intermediate (WTI) benchmark based in Cushing, Oklahoma………………………………………..Full Article: Source

Rather than boon for Japan, U.S. shale oil is still rip-off

Posted on 22 September 2014 by VRS  |  Email |Print

The oil industry in the United States is booming with the shale gas revolution — a major technical breakthrough for extracting oil and gas trapped within shale formations. This led President Barack Obama on June 24 to lift the 39-year-old ban on petroleum exports.
In August, Cosmo Oil Co. of Japan started shipping shale oil to Japan from the U.S. Gulf of Mexico coastal area. Volume is expected to reach 300,000 barrels in October. Thereafter, Japanese trading firms will fall in line, boosting the volume to half a million barrels per month………………………………………..Full Article: Source

Saudi Arabia plays a complicated game with oil prices

Posted on 22 September 2014 by VRS  |  Email |Print

The recent sharp fall in oil prices shows a game within a game. Brent crude has lost nearly US$20 since June to fall below $100 a barrel, its lowest level for two years, even as Saudi Arabia cut 400,000 barrels per day from its production. The Saudis compete against non-Opec producers, while playing both with and against their Opec peers.
Saudi Arabia has a particularly complicated task at the moment. It firstly has to take the lead in deciding on a reasonable overall Opec production level. This never-ending question is one in which it is well versed in answering………………………………………..Full Article: Source

OPEC Supply Risks Mount as Biggest Libyan Field Is Halted

Posted on 19 September 2014 by VRS  |  Email |Print

A reduction in OPEC crude output deepened as Libya’s biggest producing oilfield stopped pumping amid supply cuts from Saudi Arabia and potential disruptions to Nigerian exports. Libya halted the Sharara oilfield as a precaution after a rocket attack on the connected Zawiya refinery three days ago, closing down about 30 percent of national output.
In Africa’s largest oil producer, state-owned Nigerian National Petroleum Corp. was in talks yesterday to prevent a strike that threatened to disrupt exports. Saudi Arabia told the Organization of Petroleum Exporting Countries that in August it made the deepest production cut in 18 months……………………………………..Full Article: Source

Oil-Price Quirk Sends Crude Out to Sea

Posted on 19 September 2014 by VRS  |  Email |Print

Big oil companies and traders are stashing millions of barrels of crude on massive tankers bobbing in the ocean, in a bid to profit from a quirk in oil markets. Instead of moving crude from one port to another, a growing number of tankers are serving as floating warehouses for companies including Sinopec Ltd. and Vitol Group, according to people with knowledge of their operations.
Other companies such as Mercuria Energy Group are using the tankers to haul crude to on-shore storage facilities, these people said. In a rare split, crude is cheaper in the spot market than in the futures market, where bets are made on where prices will be in the months ahead. By buying physical stocks of oil and immediately selling futures, traders can lock in a profit……………………………………..Full Article: Source

Falling oil prices no big threat to Gulf economies

Posted on 19 September 2014 by VRS  |  Email |Print

Falling oil prices may prove the best medicine for economies in the Arab world, rebalancing growth toward countries struggling to recover from the Arab Spring uprisings without doing major damage to the oil exporters of the Gulf.
The price of Brent crude has sunk by nearly $20 from its June peak to as low as $96 a barrel in recent weeks, its lowest level since mid-2012. Behind the drop is soft economic data from top consumers such as China; a plentiful supply outlook points to further price declines in the next two years. It is potentially the biggest shift for the Gulf Arab economies since the global financial crisis five years ago. But the huge financial reserves that they have built since then mean they are likely to cope fairly comfortably with cheaper oil……………………………………..Full Article: Source

OPEC Members See Cut in Output Ceiling as Unlikely

Posted on 18 September 2014 by VRS  |  Email |Print

OPEC members other than Saudi Arabia are unlikely to cut production or agree to a collective cut to the cartel’s output ceiling when it meets in November, several of the group’s delegates said Wednesday. They were speaking after Abdalla Salem el-Badri, the secretary-general of the Organization of the Petroleum Exporting Countries, said Tuesday that the group may lower its production by 500,000 barrels a day to adjust to lower demand for its crude oil next year, according to press reports.
His remarks were widely interpreted as a signal OPEC will cut its output ceiling of 30 million barrels a day, which has been in place since late 2011, when it meets in November…………………………………….Full Article: Source

Oil slips on scepticism over Opec cuts

Posted on 18 September 2014 by VRS  |  Email |Print

Oil prices eased as traders paused to consider recent news from Opec and Libya as well as official data that showed a larger than expected increase in US stocks.
Brent, the international crude marker, rose sharply on Tuesday after Abdalla El-Badri, the secretary-general of Opec, said the cartel could trim production by 500,000 barrels a day next year, and fighting between militia groups also hit output at a key field in Libya…………………………………….Full Article: Source

OPEC’s Badri expects OPEC to lower output target

Posted on 18 September 2014 by VRS  |  Email |Print

OPEC’s secretary general said he expected the group to lower its oil output target when it meets in late November, which would be its first formal output cut since the 2008 financial crisis.
Abdullah al-Badri was speaking after meeting Russian Energy Minister Alexander Novak on Tuesday. Oil dropped below OPEC’s preferred level of $100 a barrel last week, which also marks the pain threshold for top world oil producer Russia’s faltering economy…………………………………….Full Article: Source

The U.S. Oil And Gas Industry By The Numbers

Posted on 18 September 2014 by VRS  |  Email |Print

Have you ever wondered about the impressive numbers behind the U.S. oil and gas industry? The following infographic has all the answers. Even though oil production reached nearly 9,000,000 barrels per day in 2012, most people in the US are talking about “fracking”, slang for hydraulic fracturing, the controversial method for extracting shale gas.
There were about 45,000 fracking wells in the US in 2012 and the production of shale gas is skyrocketing as a result. Back in 2004, US shale gas production amounted to 0.6 trillion cubic feet and nearly 10 years on, that number has soared to 8.6 trillion…………………………………….Full Article: Source

Free Market Oil Price Decreases as US Oil Inventories Grow

Posted on 18 September 2014 by VRS  |  Email |Print

The free market oil price is declining as US commercial crude oil inventories grow, trading information revealed Wednesday. As of 6:51 p.m. Moscow time (14:51 GMT) the price of November futures on Brent Crude Oil decreased by 0.39 percent to $98.67 per barrel. The October futures price on WTI crude oil went down by 0.83 percent to $94.1 per barrel.
Earlier on Wednesday, the US Energy Information Administration reported that the volume of US commercial crude oil inventories increased over the week ending September 12 by 3.7 million barrels and stood at 362.3 million barrels…………………………………….Full Article: Source

OPEC’s Badri sees oil prices rising again by year-end

Posted on 17 September 2014 by VRS  |  Email |Print

OPEC secretary general Abdalla el-Badri said Tuesday he expected world oil prices to stage a recovery from two-year lows by the end of this year. The oil producer group’s crude basket, which dipped below the $100/barrel level in mid-August and has been falling since, stood at $94.68/b on Monday.
“The oil price has been falling over the past two months but we believe that the price will grow again by the end of the year,” Russian news agency Prime quoted Badri as saying after talks with Russian energy minister Alexander Novak in Vienna. A joint statement said the talks had reached “a general consensus that the market is well-supplied with healthy stock levels and adequate spare capacity.”……………………………………..Full Article: Source

OPEC Secretary-General Says Group May Pump Less Oil in 2015

Posted on 17 September 2014 by VRS  |  Email |Print

OPEC, the group supplying about 40 percent of the world’s oil, may cut production next year, its Secretary-General Abdalla El-Badri said.
The Organization of Petroleum Exporting Countries’ daily output target could fall by 500,000 barrels to 29.5 million barrels in 2015, El-Badri said at OPEC’s secretariat in Vienna after talks with Russian Energy Minister Alexander Novak today. The group’s monthly report on Sept. 10 showed demand for its oil will drop to 29.2 million barrels a day in 2015 from 29.5 million this year………………………………………Full Article: Source

OPEC May Lower Oil Production to 29.5Mln Barrels Per Day in 2015

Posted on 17 September 2014 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) may decide to lower its oil output from 30 million barrels per day to 29.5 million, OPEC Secretary General Abdalla El-Badri, said on Tuesday. “I think our target next year will be lower, may be by 500,000 barrels,” El-Badri told reporters at the group’s headquarters in Vienna.
“This is an outlook, this is not a decision,” he said, adding that the decision could be made at the next regular OPEC ministerial meeting scheduled for November 27. El-Badri reiterated he was not overly concerned about the current drop in oil prices and said he expected them to rebound by the end of this year………………………………………Full Article: Source

Russian Central Bank Fears Weak Oil Price Could Threaten Economy

Posted on 17 September 2014 by VRS  |  Email |Print

The Bank of Russia said that the ruble and the Russian economy could be hit by sliding prices for commodities—the country’s key exports—if oil prices fail to recover in the midterm.
The ruble hit fresh all-time lows on Tuesday, weakening to 38.93 against the dollar, as banks and companies bought foreign currencies and external markets remained largely closed to Russian borrowers. A drop in the price of Brent crude to $98 per barrel from above $115 three months ago has added to downward pressure on the ruble………………………………………Full Article: Source

Global oil demand sinks but lower Australian dollar pushing up the price of fuel

Posted on 17 September 2014 by VRS  |  Email |Print

The falling Australian dollar may be good news for exporters, but it will drive up the price of fuel. After hitting a 15-month low earlier in September, petrol and diesel prices are expected to head upwards, despite a much lower oil price on the back of rapidly dropping demand.
The International Energy Agency has described the sudden drop in global demand as nothing short of remarkable. Forecaster OPEC has recently cut its forecast and says output will exceed demand by more than one million barrels a day by 2015………………………………………Full Article: Source

Russia’s energy minister to meet OPEC as oil price falls more

Posted on 16 September 2014 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak will meet OPEC officials on Tuesday in Vienna, his spokeswoman said, as oil’s price fall piled pressure on Moscow’s budget. The annual meeting had been planned long before oil fell below the $100 per barrel level critical for Russia’s oil sales which account for 40 percent of state budget revenues.
Russia suffered from a decline of oil production and prices this year and has cut its outlook for oil output as core Western Siberian fields become more depleted………………………………………..Full Article: Source

Oil Prices Fall as China Data Fuel Demand Concerns

Posted on 16 September 2014 by VRS  |  Email |Print

Global oil prices deepened their slide Monday after weak industrial and retail data from China raised concerns about demand for crude. The global Brent crude contract on the ICE Futures Europe exchange fell 46 cents, or 0.5%, to $96.65 a barrel, the lowest settlement since June 28, 2012. Brent is down 17% from the 2014 high reached in mid-June. The October Brent contract expired with the close of trading Monday.
Analysts cited disappointing data from China in oil’s selloff on Monday, with industrial production in the world’s second-largest oil consumer slowing to the lowest rate since 2008 and new-car sales also decelerating………………………………………..Full Article: Source

Libya, Iraq Insecurity May Hit Future OPEC Supply Prospects

Posted on 16 September 2014 by VRS  |  Email |Print

Amid a continuing slide in global oil prices, the head of OPEC has said political insecurity in Iraq and Libya could affect the oil-producing cartel’s future output prospects.
In an interview at the Organization of the Petroleum Exporting Countries’ headquarters, Secretary-General Abdalla Salem el-Badri said that while Iraq has great potential to grow oil production, it needs to solve its security problems. “If there is no security, there will be no investment,” he said. “If there is no investment, there will be no additional supply.”……………………………………….Full Article: Source

Russia’s challenge to an oil-hungry world

Posted on 16 September 2014 by VRS  |  Email |Print

The oil price may be falling and global demand is “remarkably” subdued, according to a report last week from the International Energy Agency. But this has not stopped the former chief executive of BP, Tony Hayward, from issuing an uncomfortable warning.
In an interview with the FT, Mr Hayward, who these days runs an oil company in Iraqi Kurdistan, worries that international sanctions against Russia’s oil sector are storing up trouble for the west. They risk cutting investment and damaging supplies from the world’s third-largest producer. The threat may have been masked by increases in American liquid petroleum production, which has surged above its 1970 zenith………………………………………..Full Article: Source

Oil price slide sets the stage for M&As

Posted on 15 September 2014 by VRS  |  Email |Print

As the oil price slides, nervous oil executives are wondering how low it can go. Brent crude hit its lowest level in two years last week, raising questions about how the industry – and the large international oil groups in particular – would cope with a sustained period of weakness.
Nick Butler of King’s College London, a former strategist for BP, noted in the Financial Times last week that he knew of at least three major oil and gas companies that had ordered “full scale strategic reviews.”……………………………………….Full Article: Source

OPEC Chief Sees Oil Price Rebounding by Year End

Posted on 15 September 2014 by VRS  |  Email |Print

OPEC’s chief said on Friday that no emergency meeting is being considered as he expects oil prices to rebound by the end of the year. The Brent oil price—the most widely used international benchmark—fell below $100 a barrel this week and remained around $98 a barrel on Friday.
But in an interview with The Wall Street Journal at the group’s headquarters in Vienna, OPEC secretary-general Abdalla Salem el-Badri said that “the price will come back.” An emergency meeting of the Organization of the Petroleum Exporting Countries “isn’t on our radar,” Mr. el-Badri said………………………………………..Full Article: Source

Current oil price level satisfies OPEC

Posted on 15 September 2014 by VRS  |  Email |Print

The current level of oil price is satisfying to the Organization of Petroleum Exporting Countries (OPEC), Parviz Mina, the international petroleum consultant says. The price of $95 to $100 per barrel satisfies the OPEC producers as well as the main crude oil buyers, Mina, who served as a member of OPEC Long-Term Strategy Committee, told Trend Sept. 12.
He went on to add that the both sides consider the current crude price as suitable and the parties do not want to make change on it. So, the OPEC countries have not decided yet to lower their export level to increase the price, he said………………………………………..Full Article: Source

Brent Crude Oil may fall to $96.75, 95 levels: Barclays|

Posted on 15 September 2014 by VRS  |  Email |Print

Brent crude oil prices fell below $100 per barrel last week and there is a likelihood of prices faling to $96.75 and $95 per barrel, Barclays Research said. The market is adjusting to a situation when there is ample light sweet oil supplies amidst a relatively softer global oil demand growth, Barclays added.
As the OPEC basket price touches $96/bbl (levels last seen in June 2012), the clarion call for balancing the market from the supply side is growing louder. The resolve from individual OPEC members, and the pace of their reaction, looks set to be tested over the coming months as they choose to collectively defend $100/bbl or individually maintain market share………………………………………..Full Article: Source

IEA Cuts 2015 Oil Demand Forecasts

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency Thursday trimmed its forecast for the rise in oil demand this year for the third month in a row, calling the recent slowdown in demand “nothing short of remarkable.” In its closely watched monthly oil market report, the Paris-based energy watchdog said it expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month’s forecast and down by 300,000 barrels a day since July.
According to the IEA, oil demand growth in the second quarter was at its lowest in 2½ years, dented by economic weakness in Europe and China, a trend the agency expects will continue to weigh on demand………………………………………..Full Article: Source

IEA Cuts Demand Estimate as Saudi Exports Drop to 2011 Low

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency cut its global oil demand forecasts for 2015 and said Saudi Arabia exported the least in almost three years as purchases slowed from China and Europe.
Global demand will increase by 1.2 million barrels a day, or 1.3 percent, to 93.8 million barrels a day next year, the Paris-based adviser to 29 nations said in a report today. The expansion is 165,000 barrels a day less than it predicted a month ago. Second-quarter growth in consumption slid to a 2 1/2-year low, spurring Saudi Arabia’s shipments to the lowest since September 2011………………………………………..Full Article: Source

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