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Oil price to average above $50 a barrel in 2017, ratings agency says

Posted on 23 September 2016 by VRS  |  Email |Print

Oil prices are likely to average more than $50 (US) a barrel next year after reaching a low point last winter, according to a report released Wednesday by DBRS. The cost per barrel of West Texas Intermediate (WTI) has risen to roughly $43 (US) from $26 (US) since January and is likely to stay in that range for the next few months as global supply continues to exceed demand, the credit rating agency says.
Although OPEC countries and Russia are planning to meet before the end of the month to discuss freezing production at current levels, DBRS feels there’s little likelihood they’ll reach an agreement………………………………………Full Article: Source

Here’s what to expect from OPEC oil-output-freeze talks

Posted on 23 September 2016 by VRS  |  Email |Print

One day major oil producers support a production cap, and the next day they don’t. Members of the Organization of the Petroleum Exporting Countries and Russia will meet on the sidelines of the International Energy Forum in Algeria on Sept. 28 and it could end just like the summit in Doha did last spring—without an agreement to limit production—as producers haggle over who makes the first move.
As was the case ahead of the April meeting, comments from big oil producers have fed volatility in the market, with large price swings for crude oil in either direction becoming the norm since early August, when OPEC announced plans for the gathering………………………………………Full Article: Source

What Happens to Energy Investments if Oil Prices Don’t Recover?

Posted on 23 September 2016 by VRS  |  Email |Print

A rebound in crude oil prices lifted energy investments this year, with names of super-major oil producers like Exxon Mobil Corp. and Chevron Corp. (CVX) sporting double-digit gains so far in 2016 after sharp losses in 2015.
That also goes for the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG), which many crude-oil market watchers use as a proxy for energy-debt investments since many energy companies operating in the shale-oil boom areas used high-yield debt for funding………………………………………Full Article: Source

Oil Price Likely to Rally in 2018

Posted on 23 September 2016 by VRS  |  Email |Print

Morningstar analysts have raised their price forecast for oil to $65 a barrel as fundamentals post 2017 are looking particularly bullish for prices. Strong demand growth and supply issues have pulled forward the oil price recovery by about a year relative to our previous outlook. Fundamentals after 2017 are looking particularly bullish for prices, and an oil price rally in 2018 is looking more and more likely. We’ve raised our 2018 forecast to $65 per barrel.
Even so, the strength of U.S. shale is lurking beneath the surface. Our analysis shows that the recent uptick in rigs and falling shale decline rates together are enough to stabilise U.S. crude production within six months. If activity isn’t scaled back, U.S. production will begin growing in 2017, albeit barely………………………………………Full Article: Source

Iraq OPEC governor says market circumstances right for global oil deal

Posted on 23 September 2016 by VRS  |  Email |Print

Iraq’s OPEC governor Falah Alamri said on Thursday that oil market circumstances are now more favorable for OPEC and other oil producers to reach a deal to support the market when they meet next week in Algeria.
“This time I think a little bit different (than in Doha) because circumstances are little bit better, helping (producers) to reach a deal,” Alamri said, when asked about the prospect of a global oil production pact in Algeria. OPEC and non-OPEC producers are expected to revive a production freeze deal when they meet in Algeria on Sept. 26-28 after a similar initiative collaped in Doha in April because Iran refused to restrict its supplies………………………………………Full Article: Source

Is OPEC All Talk?

Posted on 23 September 2016 by VRS  |  Email |Print

Global oil market still moves on cartel’s communication, but fewer oil traders and analysts take it seriously. A now-familiar pattern ensued Monday after Venezuelan President Nicolás Maduro said the world’s big oil producers were close to clinching an output deal—oil prices rose more than 1% early that day, and then quickly fell, posting losses by Tuesday.
It was among the most recent in a series of optimistic assessments about a potential deal by members of the Organization of the Petroleum Exporting Countries. But oil traders and analysts increasingly see the statements as an OPEC ploy to prop up prices short term………………………………………Full Article: Source

Russian Energy Minister Says Hopes for Constructive OPEC Dialogue in Algeria

Posted on 23 September 2016 by VRS  |  Email |Print

The Russian Energy Ministry is hoping for a constructive dialogue within the framework of the member states of the Organization of the Petroleum Exporting Countries (OPEC) in Algeria, Russia is ready to coordinate its actions with other oil producers in order to coordinate their actions on the market, Energy Minister Alexander Novak said Thursday.
OPEC member states are expected to renew talks on a possible oil output freeze with non-member states at the September 26-28 International Energy Forum (IEF) in Algiers, Algeria………………………………………Full Article: Source

OPEC Oil Freeze? Investors Beware

Posted on 22 September 2016 by VRS  |  Email |Print

Algeria’s new energy minister, Noureddine Bouterfa, confidently said on Monday that if next week’s talks at the International Energy Forum in his native Algeria go well, then a follow up OPEC meeting could be scheduled before November 4 to head toward a freeze. He also believes a freeze could balance the oil market for at least 6 months.
On Tuesday, Bouterfa went even further and suggested that the informal OPEC meeting planned for September 28 may turn into a formal meeting at which he will suggest that OPEC producers cut crude oil supplies by one million barrels a day…………………………………….Full Article: Source

McKinsey Energy Insights: Oil market glut will extend into 2017

Posted on 22 September 2016 by VRS  |  Email |Print

The persistent oil glut has now pushed a price recovery into the second half of 2017, a new report from McKinsey Energy Insights found. McKinsey modeled four possible scenarios: a fast recovery, a slow recovery, under-investment and supply abundance.
The report found that the latest trends indicate that a slow market recovery scenario is the most likely outcome. In a slow market recovery scenario, McKinsey found that it will take another six months for the market to clear the current oversupply. Once the oversupply disappears, McKinsey expects that another six to 12 months will be required to work through excess inventories…………………………………….Full Article: Source

Oil price slump is a good thing for explorers, says report

Posted on 21 September 2016 by VRS  |  Email |Print

The oil price slump will make major explorers more profitable as they are forced to focus on lower-cost, better-quality prospects, industry experts Wood Mackenzie have forecast.
Energy giants have ditched “high-cost, high-risk” exploration plays such as “elephant hunting in the Arctic” as the economics of lower oil prices make them concentrate on their best drilling prospects, Dr Andrew Latham, Wood Mackenzie’s vice-president of exploration research, said. Oil majors’ profits have been hammered by the collapse in prices since summer 2014 amid global oversupply………………………………………Full Article: Source

Iran Committed to Building Oil-Market Consensus, OPEC Head Says

Posted on 21 September 2016 by VRS  |  Email |Print

Iran is committed to building a consensus on stabilizing the oil market between OPEC and non-member countries, the group’s new Secretary-General Mohammed Barkindo said. Iranian Oil Minister Bijan Namdar Zanganeh and President Hassan Rouhani “assured me that Iran will do everything possible in joining hands with members within the OPEC group as well as outside OPEC,” Barkindo said in a Bloomberg Television interview in Rome.
“I am quite satisfied with the assurances” given during talks this month in Tehran, he said. The Organization of Petroleum Exporting Countries will hold informal discussions on Sept. 28 in Algiers………………………………………Full Article: Source

OPEC chief: oil market stabilization deal may last one year

Posted on 21 September 2016 by VRS  |  Email |Print

A possible deal to support oil prices by the world’s leading producer countries may last for one year, the secretary-general of OPEC said on Tuesday, longer than other officials have indicated. OPEC and non-member producers including Russia are discussing a deal to stabilize the market by at least freezing output, although key details such as the timing and baseline for any deal have yet to emerge.
“One year, we are looking at one year,” OPEC Secretary General Mohammed Barkindo said, RIA news agency reported. Russia and members of the Organization of the Petroleum Exporting Countries hold an informal meeting in Algiers on Sept. 28. Algeria’s energy minister said on Monday any OPEC move to freeze output would help balance the market for at least six months………………………………………Full Article: Source

Oil Rebounds on Talk of Russia-Iran-OPEC Cooperation

Posted on 21 September 2016 by VRS  |  Email |Print

Oil prices rebounded from a new one-month low Tuesday after further talk of cooperation to cap output among the world’s largest oil exporters. Russia supports a deal that would stabilize oil markets for a year, Russia’s permanent representative to the Organization of the Petroleum Exporting Countries told Interfax news agency Tuesday.
“A year-long agreement would satisfy this criteria,” said Vladimir Voronkov. OPEC Secretary-General Mohammed Barkindo also said that Iranian officials have told him they are committed to negotiating, according to a Bloomberg report. ……………………………………..Full Article: Source

Oil Rises as Dollar Dip Bolsters Investor Demand for Commodities

Posted on 20 September 2016 by VRS  |  Email |Print

Oil advanced as the dollar’s decline against its peers increased investor appetite for commodities. Futures rose 0.6 percent in New York. The greenback fell as investors largely ruled out a Federal Reserve hike in September.
Futures retreated from the day’s high as a tanker returned to Libya’s Ras Lanuf export terminal to load oil after clashes halted what will be the first overseas crude shipment from the terminal since 2014. OPEC may call an extraordinary meeting if ministers reach consensus at informal talks next week, Secretary General Mohammed Barkindo said, according to the Algerian Press Service………………………………………..Full Article: Source

McKinsey Energy Insights predicts oil market oversupply into 2017

Posted on 20 September 2016 by VRS  |  Email |Print

McKinsey Energy Insights (MEI), the data and analytics specialist that provides distinctive insight and support to the global energy industry, forecasts that it will take more than six months for the oil markets to fully rebalance. In its latest research, MEI suggests that the pace and timing of an oil price recovery depends on four key drivers in the short-term: GDP growth, decline in producing fields, slowdown in US light tight oil (LTO) production and OPEC Gulf state behaviour, in particular, Iran and Saudi Arabia.
MEI modelled four scenarios – fast recovery, slow recovery, under-investment and supply abundance – and the latest trends point towards a slow market recovery scenario……………………………………….Full Article: Source

Big Oil Was Never That Big a Money-Maker, Goldman Sachs Says

Posted on 20 September 2016 by VRS  |  Email |Print

Oil companies longing for the glory days of ultra-high crude prices might wish to think again. The rising oil prices that came to characterize energy markets in the mid-2000s, and which culminated in a record near-$150 a barrel in 2008, were not the windfall investors might have imagined, according to a new note from Goldman Sachs Group Inc.
Instead, returns for major oil companies such as BP Plc, Royal Dutch Shell Plc, and Exxon Mobil Corp., actually declined between 2005 and 2014 as measured by cash return on capital invested………………………………………..Full Article: Source

OPEC ‘Very Close’ to Agreement to Stabilize Market, Maduro Says

Posted on 20 September 2016 by VRS  |  Email |Print

OPEC members are close to reaching an agreement on how to stabilize the market, Venezuelan President Nicolas Maduro said after speaking to his counterparts from Iran and Ecuador.
Maduro held “positive discussions” with fellow members of the Organization of Petroleum Exporting Countries who attended the Summit of the Non-Aligned Movement, he said Sunday at a press conference following the event, in which 15 heads of state gathered in the South American country………………………………………..Full Article: Source

OPEC Chief: Cartel Won’t Cap Output at Upcoming Meeting

Posted on 20 September 2016 by VRS  |  Email |Print

OPEC Secretary-General Mohammed Barkindo said next week’s meeting in Algeria won’t produce an agreement among cartel members to cap production, reports The Wall Street Journal’s Benoit Faucon and Summer Said.
OPEC has been pumping high volumes of crude despite falling oil prices, aiming to squeeze U.S. shale producers out of the market. The Organization of the Petroleum Exporting Countries’ member nations want oil prices to go back up, but countries including Iraq, Iran, Nigeria and Libya, which are in the process of trying to boost output, have balked………………………………………..Full Article: Source

Oil Investors Flee as OPEC Freeze Hopes Face Supply Reality

Posted on 20 September 2016 by VRS  |  Email |Print

Oil speculators headed for the sidelines as OPEC members prepare to discuss freezing output in the face of signs the supply glut will linger.
Money managers cut wagers on both falling and rising crude prices before talks between OPEC and other producers later this month. The meeting comes after the International Energy Agency said that the global oversupply will last longer than previously thought as demand growth slows and output proves resilient………………………………………..Full Article: Source

Global Oil Glut Belies Risk From OPEC’s Dwindling Output Cushion

Posted on 16 September 2016 by VRS  |  Email |Print

As most of the world focuses on how unfettered oil production will weigh on prices, a few say a rebound is on the cards as the market starts to reflect a growing risk of shortages. OPEC’s strategy of keeping its taps open is leaving a smaller cushion if there’s an unexpected need for more oil.
The group’s spare capacity has dwindled to the least since 2008, U.S. government data show, while global spending cuts have diminished prospects for new output. Prices may jump more than 35 percent from current levels as they start to reflect the risk of a supply squeeze, according to Citigroup Inc. and trader Gunvor Group………………………………………..Full Article: Source

Goldman Sachs Crushes Hopes Of Oil Price Recovery

Posted on 16 September 2016 by VRS  |  Email |Print

Goldman Sachs has been extremely pessimistic about the oil market over the last year and a half, and the latest from their head of commodity research, Jeff Currie, is no exception. According to Currie, crude will continue to trade within the US$45-50 band over the next 12 months. Any improvement above US$50 is highly unlikely.
The analyst noted that the primary reason for the gloomy forecast is the simple lack of any upside potential for oil at present. He also suggested that the market may have already balanced itself at the current price levels, comparing the overall environment to that in the early 1990s when a barrel of crude sold for US$20………………………………………..Full Article: Source

Oil’s price slide creates slippery slope for Russia

Posted on 16 September 2016 by VRS  |  Email |Print

There were some happy campers in Moscow recently when the price of crude oil pushed past $50 a barrel. The Kremlin seems to have successfully talked up the market by signaling it was ready for a production ceiling deal with OPEC. You could hear the collective sigh of relief from those controlling the Russian federal budget.
But that euphoria ebbed once again as American shale producers picked up the slack to boost production and reduce prices. Brent crude is now back down to the mid-$40s because of a supply glut of oil and natural gas………………………………………..Full Article: Source

Oil downturn nearly over, Norway says

Posted on 16 September 2016 by VRS  |  Email |Print

Though crude oil prices aren’t expected to hit the $60 range until 2019, the Norwegian government said its economy has started to move out of a standstill. The Norwegian government’s statistics office said weak economic growth in the latter half of 2016 has replaced an economic standstill, with gains in home-building and exports expected to provide a lift through early 2017.
“The fall in oil prices that began in summer 2014 has exacerbated the downturn in petroleum industry investments, which had already begun before the end of 2013,” the government said Thursday. “The downturn that followed may now be coming to an end.”……………………………………….Full Article: Source

OPEC Freeze Feels Heat of Libya, Nigeria Oil Exports (Video)

Posted on 16 September 2016 by VRS  |  Email |Print

Phillip Streible, senior market strategist at RJO Futures, and Bloomberg’s Alix Steel examine the prospect of an OPEC oil production freeze as Libya and Nigeria add to the global oil glut. They speak in today’s “Futures in Focus” on “Bloomberg.………………………………………Full Article: Source

Oil Glut Bomb: New Data Suggests Global Economy Too Weak To Hold Up Oil Prices

Posted on 15 September 2016 by VRS  |  Email |Print

IEA and EIA dropped an oil-glut bomb this month. Their September monthly reports indicate that the world continues to have a glut of oil with little hope of a balanced market in the near future.
IEA’s Oil Market Report focused on weakening demand growth for oil. Their quarterly data shows that year-over-year demand growth has decreased consistently from 2.3 mmb/day in the third quarter of 2015 to 1.4 mmb/day for the second quarter of 2016 (Figure 1). The forecast for the third quarter is only 1.2 mmb/day………………………………………..Full Article: Source

Persistence of instability in the oil market: Kemp

Posted on 15 September 2016 by VRS  |  Email |Print

Volatility has always been the defining characteristic of oil and other commodity markets, defying repeated attempts to stabilise prices. Volatility is present at all timescales from seconds, minutes and hours to days, weeks, months and years.
At the macro-scale, the oil market has been characterised since its inception in the 1860s by a series of booms and busts lasting for years at a time. Efforts to tame the boom-bust cycle through the control of prices and production have repeatedly broken down………………………………………..Full Article: Source

OPEC and IEA say prices will stay lower for longer

Posted on 15 September 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) has said that the pace of global oil demand growth is dropping more quickly than initially predicted. In its latest monthly outlook, the agency lowered its forecast for oil demand growth in 2016 by 100,000 barrels per day, to 1.3 million b/d. It forecast the growth rate would be even lower in 2017, at 1.2 million b/d.
With OPEC producers pumping at close to record-high levels, the stock overhang that has stymied oil price rallies in recent months looks set to continue. Non-OPEC production has been dropping because of low prices, but not by enough to eat into bloated inventories. The IEA estimated that oil inventories in OECD countries hit a new record high in July, of 3.1 billion barrels, a rise of 32.5 million bbl from the previous month………………………………………..Full Article: Source

OPEC under political pressure - minister

Posted on 15 September 2016 by VRS  |  Email |Print

The U.S. high ranking officials repeatedly said that if Russia, OPEC and non-OPEC countries freeze the output, we are able to increase the output and prevent price rise, Energy Minister Natig Aliyev told APA-Economics.
Answering the question “Do you agree with the opinions that speculations on oil prices come from other side of the ocean?”, the minister said that it is difficult to say what the US aims………………………………………..Full Article: Source

How to trade the oil market right now

Posted on 15 September 2016 by VRS  |  Email |Print

Oil prices dropped 36 percent during the fourth quarter of 2015 and the first quarter of 2016, only to rebound back to roughly $53 just six months later. More recently, oil dropped 23 percent only to rebound back to nearly $50 again. With all the up and down volatility, traders have been eyeing the $45 mark as fair value for oil where supply meets demand.
With oil above $45, traders begin to focus on the Federal Reserve tightening, a stronger dollar, potential weaker demand globally and oil producers turning on the spigots - all the things that would be a reason to sell oil. With oil below $45, the reasons to buy oil surround the talks about OPEC production cuts and Chinese demand picking up………………………………………..Full Article: Source

As global investment in new oil projects plummets, crude’s share of the energy mix grows

Posted on 15 September 2016 by VRS  |  Email |Print

Oil’s share of the global energy mix grew in 2015, the International Energy Agency said Wednesday, as new investment in oil and gas production and exploration fell for the second straight year.
In its annual report on global energy investment, the Paris-based IEA found that oil investment made up the largest portion of total spending at 45 per cent, compared to 37 per cent on electricity generation, the second-highest. Oil’s share of total global consumption also grew over the year, despite a rise in the popularity of electric cars and higher fuel efficiency vehicles………………………………………..Full Article: Source

Iran and the oil freeze enigma

Posted on 15 September 2016 by VRS  |  Email |Print

The upcoming event has increased discussions between OPEC and non-OPEC members in recent weeks, while Iran, Saudi Arabia, and Russia stand in the center of attention as the main role players. On one hand, Saudi Arabia, the world’s largest oil exporter, has reportedly made an agreement to collaborate with Russia, the world’s top oil producer, on stabilizing the international oil market by setting up a working group to monitor it and come up with ways to promote stability.
Saudi Arabia’s Energy Minister Khalid Al-Falih has expressed hope that this month’s meeting between producers in Algiers would lead to an agreement although “there’s no need to freeze production now”. His Russian counterpart, Alexander Novak, has affirmed that the two nations were seeking ways to ease oil market volatility………………………………………..Full Article: Source

Global upstream oil and gas spending to fall 24 percent in 2016: IEA

Posted on 14 September 2016 by VRS  |  Email |Print

Global upstream oil and gas investments are expected to plummet 24 percent this year, with little signs of improvement for 2017, the International Energy Agency (IEA) said. This year’s dip will come on top of a 25 percent drop in spending in the sector recorded in 2015 with its total of $583 billion, the IEA said in a report.
“The total fall exceeds $300 billion over the two years – an unprecedented occurrence,” the report said, adding two consecutive years of reduced upstream oil and gas investment had not been seen for 40 years. “Furthermore, there are no signs that companies plan to increase their upstream capital spending in 2017,” it said………………………………………..Full Article: Source

IEA Changes View on Oil Glut, Sees Surplus Enduring in 2017

Posted on 14 September 2016 by VRS  |  Email |Print

The surplus in global oil markets will last for longer than previously thought, persisting into late 2017 as demand growth slumps and supply proves resilient, the International Energy Agency said. World oil stockpiles will continue to accumulate through 2017, a fourth consecutive year of oversupply, according to the IEA.
Consumption growth sagged to a two-year low in the third quarter as demand faltered in China and India, while record output from OPEC’s Gulf members is compounding the glut, it said. Just last month the agency predicted the market would return to equilibrium this year………………………………………..Full Article: Source

Waiting for the oil market to rebalance? It may still be a while, warns IEA

Posted on 14 September 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) has warned that the global oil market’s rebalancing after its two year battle against a chronic glut of supply will continue for at least another year.
The agency said that slowdown in oil demand growth will fail to mop up the steady supply of fresh flows from countries within the Organisation of Petroleum Exporting Countries (Opec) and the growing output from those outside the cartel. Although non-Opec producers, including the US, have produced less oil this year than the one before, the IEA says that surging Opec production has offset the decline………………………………………..Full Article: Source

Slowdown in oil demand growth will cap prices, says energy agency

Posted on 14 September 2016 by VRS  |  Email |Print

Alongside gloomy forecast by Opec, IEA report sent oil prices down to $47 a barrel. A sharp slowdown in global oil demand growth will put a lid on prices, according to the International Energy Agency, which said ballooning oil stocks and rising supply would also mean the crude market is likely to be oversupplied through the first six months of 2017.
The IEA report published on Tuesday tallied with a gloomy forecast by the Opec oil cartel about the prospects for demand over the next year, sending oil prices down to $47 (£35) a barrel………………………………………..Full Article: Source

Saudi Arabia Reclaims Spot as Top Global Oil Producer

Posted on 14 September 2016 by VRS  |  Email |Print

U.S. output down 460 MBOPD since May, making Saudi Arabia the largest global oil producer for now. U.S. output in August stood at 12.2 million barrels a day, including natural gas liquids, according to the IEA.
The drop in U.S. production came as the number of rigs drilling for oil and gas fell to a record low of 404 on May 20, according to data from Baker Hughes Inc. That number has since recovered to 508 as of Sept. 9………………………………………..Full Article: Source

OPEC points to larger 2017 oil surplus as rivals keep pumping

Posted on 14 September 2016 by VRS  |  Email |Print

OPEC raised its forecast of oil supplies from non-member countries in 2017 as new fields come online and U.S. shale drillers prove more resilient than expected to cheap crude, pointing to a larger surplus in the market next year, Reuters reported.
Demand for crude from the Organization of the Petroleum Exporting Countries will average 32.48 million barrels per day (bpd) in 2017, OPEC said in a monthly report on Monday. That is down 530,000 bpd from the previous forecast………………………………………..Full Article: Source

Nickel Leads Drop in Metals as Crude Oil Slide Saps Commodities

Posted on 14 September 2016 by VRS  |  Email |Print

Nickel capped its biggest two-day drop in a month, leading declines in industrial metals, as a decline in crude oil dragged down commodities and equities. A gauge of mining-company shares sagged to the lowest since July, paced by Freeport-McMoRan Inc.
Crude fell as much as 3.3 percent as the International Energy Agency said a surplus will last longer than previously thought. Lower energy prices help reduce production costs, deterring miners from trimming output amid ample supply of some metals. Equities also retreated following gains on Monday, which came after Federal Reserve Governor Lael Brainard damped expectations for an interest-rate increase at next week’s Fed meeting………………………………………..Full Article: Source

Oil market glut to continue as Opec rivals resist an output slowdown

Posted on 13 September 2016 by VRS  |  Email |Print

The global oil market glut which has pressured prices for over two years will continue into 2017 as oil production from outside the Organisation of Petroleum Exporting Countries (Opec) proves more resilient than earlier forecasts.
In its monthly report the Opec, which controls more than a third of the world’s oil supply, said that oil flows from countries beyond its cartel continue at higher than expected rates. Non-Opec oil is set to slow by about 610,000 barrels a day this year, slower than the 790,000 barrel a day cut expected by the market………………………………………..Full Article: Source

OPEC: The Fed’s next move will impact oil markets

Posted on 13 September 2016 by VRS  |  Email |Print

Central banks such as the U.S. Federal Reserve will be crucial in determining the state of global growth and the overall health of the energy sector, according to the latest monthly report from oil producer group OPEC.
In its latest September report, the 14-member oil producing cartel said that the trend of “moderate” global growth was likely to continue in 2016 and 2017 and that imminent central bank decisions and political developments were likely “to be influential.”……………………………………….Full Article: Source

Here’s One Sign That ‘Peak Oil’ Is Dead

Posted on 13 September 2016 by VRS  |  Email |Print

Peak Oil: gone and forgotten? Google Inc. searches for the idea that once helped propel oil prices to nearly $150 per barrel have dwindled to almost nothing, according to a Sanford C. Bernstein analysis.
The theory that oil prices would have to rise as supply inevitably declined gained hold on popular imaginations in the mid- to late 2000s, but has since languished in internet obscurity, as new discoveries and technology, including the shale revolution that helped push U.S. oil production to a 40-year high, have ensured plentiful amounts of crude in recent years………………………………………..Full Article: Source

OPEC revises Russian oil output estimate higher

Posted on 13 September 2016 by VRS  |  Email |Print

With oil production on pace to increase through the year, economists at OPEC said Russia’s economy is already on a clear road to modest recovery. In its monthly market report for September, economists at the Organization of Petroleum Exporting Countries said the Russian economy remains in recession through the year, though recovery is expected in 2017.
“It has been confirmed that GDP declined by 0.6 percent year-on-year in the second quarter, after seeing a 1.2 percent drop in the first quarter,” the report read. “This represents the smallest contraction in the economy since it fell into recession in first quarter 2015.”……………………………………….Full Article: Source

Why $50 Is The Right Price For Oil

Posted on 13 September 2016 by VRS  |  Email |Print

Crude oil prices: time spent above and below $50 – chart: EnerCom Analytics. The current price of oil may feel low given the fading memories of $100 per barrel oil back in 2014. But in a longer term historical context, we are on the high end of the curve at today’s prices.
EnerCom Analytics looked at historical monthly crude oil prices between 1974 and August 2016. The chart shows the histogram of prices for three time periods—1974 to 2016, 1990 to 2016 and 2008 to 2016, with the closing West Texas Intermediate crude oil (WTI) price on September 8, 2016 of $47.32 marked for comparison………………………………………..Full Article: Source

OPEC now sees non-cartel oil output in 2017

Posted on 13 September 2016 by VRS  |  Email |Print

OPEC said Monday that oil production by countries outside the exporters’ cartel was now expected to rise in 2017, revising its previous expectations of a drop. In its monthly report, the Organization of the Petroleum Exporting Countries said Kazakhstan, Norway and Britain were now all expected to produce more next year than forecast earlier.
This means production outside the cartel is expected to rise by 200,000 barrels per day, against previous projections of a 150,000 b/d decline. Global oil demand is projected to continue growing………………………………………..Full Article: Source

Oil Bears Dominate Market as Skepticism Grows Over Output Limits

Posted on 12 September 2016 by VRS  |  Email |Print

The longer OPEC and other producers talk about a ceiling on crude output, the more doubts grow in the market. Money managers increased wagers on falling prices by the most in three months as a meeting between Russia and Saudi Arabia ended without specific measures to support prices. Producers have pledged to discuss action in Algiers later this month.
“The more they talk, the less people listen,” said Michael D. Cohen, an analyst at Barclays Plc in New York. “If you look at the actual statements from the Saudis, there’s not a lot of enthusiasm. They’re saying that either they don’t believe a substantial intervention is needed right now or that if other producers want a freeze, they’ll go along.”……………………………………….Full Article: Source

Saudi and Russia finally ‘agree’ to work together – Bid to stabilize oil market

Posted on 12 September 2016 by VRS  |  Email |Print

The two biggest oil producers in the world last week signed an oil agreement to cooperate for stabilizing the oil prices. This is what every oil producer has been waiting for, as some sort of understanding was required to try stabilizing the oil market particularly the oil prices. The two oil producers have finally agreed in principle to freeze oil production and persuade other producers to follow suit. So far so good!
They also agreed to form joint committees to work on other details for the meeting which will be held in Algeria before the end of this month. It seems all OPEC members as well as Russia are in agreement to freeze production, and for the super producers to iron out the details in order to produce the final binding agreement………………………………………..Full Article: Source

Saudi likely to name new OPEC governor

Posted on 12 September 2016 by VRS  |  Email |Print

Saudi Arabia is likely to appoint a new OPEC governor and national representative, a source familiar with the matter said. Adeeb al-Aama will replace Mohammed al-Madi as OPEC governor while Ayad al-Qahtani will become the new national representative replacing Nasser al-Dossari.
Aama works as deputy managing director at Saudi Aramco’s office in London, according to his Linkedin profile. Qahtani heads Aramco’s global economic and energy outlooks and scenarios………………………………………..Full Article: Source

OPEC to Trump Adviser: No Chance

Posted on 12 September 2016 by VRS  |  Email |Print

Energy adviser to Donald Trump, CEO of Continental Resources, Harold Hamm has history with OPEC. Back in 1999, he led a group of independent U.S. oil producers calling on the government to impose duties of as much as 240 percent on crude oil imports from a number of OPEC countries, and Mexico too, for good measure.
He claimed the producers were selling their oil in the U.S. at unfairly low prices: WTI crude oil had fallen to as little as $10.35 a barrel in December 1998. U.S. oil production outside Alaska is back at 8 million barrels a day after peaking near 9.2 million……………………………………….Full Article: Source

New Reality for Oil: Steadier Prices Reflecting Role of Shale Producers

Posted on 12 September 2016 by VRS  |  Email |Print

Investors shift to shorter-term bets on crude, as price range of roughly $40 to $50 a barrel has held for months. After a long period of boom or bust, the new reality for oil prices is a narrower trading range that is frustrating many longer-term investors but has eased some pressure on big oil companies.
U.S. oil prices are entering their sixth month of trading roughly between $40 and $50 a barrel. Many investors are betting the market may be choppy but will remain in that range through year’s end………………………………………..Full Article: Source

Oil prices surge as US burns through crude supply at record rate

Posted on 09 September 2016 by VRS  |  Email |Print

Tropical storms and Hurricane Hermine combined to slow the movement of oil tankers and shut in offshore drilling, forcing the U.S. oil industry to dip into its massive oversupply at the highest rate for this time of year.
In the past week, the industry used 14.5 million barrels in storage, largely from the East Coast and Gulf Coast, according to government data. Analysts blamed wind and rough seas resulting from Gaston, Hermine and other storms that have impeded ships with cargoes headed for U.S. refineries………………………………………..Full Article: Source

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