Wed, Dec 7, 2016
A A A
Welcome vaishu
RSS

Commodities Briefing - Category | Oil more

OPEC, Russia Expand Diplomatic Push to Secure Oil-Cuts Deal

Posted on 16 November 2016 by VRS  |  Email |Print

OPEC embarked on a final diplomatic effort to secure an oil-cuts deal, with its top official heading on a tour of member states as Russia scheduled informal talks in Doha this week with nations including Saudi Arabia.
The behind-the-scenes diplomacy follows an unannounced meeting in London between OPEC Secretary-General Mohammed Barkindo and Saudi Minister of Energy and Industry Khalid Al-Falih, said one OPEC delegate. Just two weeks before the group’s Nov. 30 ministerial meeting in Vienna, Saudi Arabia, Iraq and Iran are still at odds over how to share output cuts, said another delegate………………………………….Full Article: Source

No OPEC deal could see oil price fall to $30

Posted on 15 November 2016 by VRS  |  Email |Print

Jeremy Baker, commodity and alternative investment product manager at Vontobel, has warned the price of Brent crude could fall to $30 a barrel if OPEC’s proposed deal to limit oil supply falls through.
With Brent crude trading at $46 a barrel (as at 9 November), this would mark a significant drop for the commodity, which briefly came under pressure last week following the unexpected result of Donald Trump winning the US Presidential Election, before rebounding……………………………………..Full Article: Source

OPEC Expects Crude Oil Prices to Hit $60 by 2020

Posted on 15 November 2016 by VRS  |  Email |Print

The EIA (U.S. Energy Information Administration) estimates that crude oil supply could outstrip demand by 730,000 bpd (barrels per day) in 1Q17. High US crude oil, gasoline, and distillate inventories, the strengthening dollar, and rising US crude oil rigs could also pressure crude oil prices.
The failure of OPEC’s (Organization of the Petroleum Exporting Countries) plan to cap production and successful implementation of Donald Trump’s energy policies would mean a period of lower crude oil prices. Goldman Sachs (GS) expects that the failure of OPEC’s meeting could see US crude oil prices test $40 per barrel in the short term……………………………………..Full Article: Source

Are Low Oil Prices Good for the Economy?

Posted on 15 November 2016 by VRS  |  Email |Print

Some say yes because low prices give consumers more money and cut manufacturing costs. Others say the damage to the oil sector cancels out the benefits. Oil prices have been on a wild ride lately.
From late 2010 to late 2014, U.S. crude traded between roughly $80 and $110 a barrel. Then came a plunge. Earlier this year, they were down to around $26—but then soared to $50 in early June, signaling that a longstanding oil glut might be waning……………………………………..Full Article: Source

Oil rebounds from three-month lows on renewed hopes for OPEC cut

Posted on 15 November 2016 by VRS  |  Email |Print

Oil prices were largely steady on Monday, rebounding from three-month lows, on a report saying that OPEC members were seeking to resolve their differences on a deal to cut production ahead of a meeting later this month.
OPEC kingpin Saudi Arabia and fellow exporters Iran and Iraq have been at odds over how to rein in supply to reduce a glut in global markets. The lack of agreement within the Organization of the Petroleum Exporting Countries following a tentative deal in September has put pressure on benchmark prices……………………………………..Full Article: Source

Is OPEC Still Relevant in Energy Markets?

Posted on 15 November 2016 by VRS  |  Email |Print

The group recently agreed to production cuts to try to prop up low oil prices, but left details for later. For two years, the Organization of the Petroleum Exporting Countries has appeared powerless to stop a slide in prices that has punished the economies of oil-dependent members, including Saudi Arabia.
Such a state of affairs calls into question whether the once-powerful cartel is still a relevant force in today’s market. The group reasserted itself in September in Algiers, saying its members agreed to cut production……………………………………..Full Article: Source

Oil Is Heading Back To $20s

Posted on 14 November 2016 by VRS  |  Email |Print

Oil bulls had a good ride in the last eight months. The black gold rallied, from mid-$20s in January to the mid-$50s in late October. But economic fundamentals have turned bumpy for oil bulls in the last couple of weeks, with oil heading towards the $40-mark rather than the $60-mark as some had expected.
And things will continue to be bumpy in the near future. Oil is heading back to the January lows, as hopes of an OPEC output freeze have been fading…………………………………….Full Article: Source

Saudi oil minister says OPEC production cut ‘imperative’

Posted on 14 November 2016 by VRS  |  Email |Print

An agreement between OPEC nations over a cut in oil production is “imperative”, Saudi Arabia’s oil minister said, according to media reports on Sunday. Khaled al-Faleh called on cartel members to stick to the surprise cut deal, reached in Algiers in September, during a meeting with his Algerian counterpart Noureddine Boutarfa on Saturday.
“In this period marked by unstable oil prices it is imperative to reach a consensus between OPEC nations and to agree on an effective mechanism and precise figures to activate the historic Algiers accord,” Falih was quoted as saying by Algeria’s APS news agency…………………………………….Full Article: Source

Iran Pumps More Oil as Saudi Minister Calls for OPEC Output Cuts

Posted on 14 November 2016 by VRS  |  Email |Print

Iran boosted oil output at three western fields faster than it expected as rival OPEC producer Saudi Arabia called for a collective output cut later this month to help rebalance the market.
Output at the fields west of the Karoun River, near Iran’s border with Iraq, rose to about 250,000 barrels per day from 65,000 barrels in 2013, the Oil Ministry’s news service Shana reported Sunday, citing President Hassan Rouhani at a ceremony to formally open the project. Iran had expected to reach that output target by the end of the year, Mohsen Ghamsari, director for international affairs at the National Iranian Oil Co., said in September…………………………………….Full Article: Source

OPEC plays the chicken game while oil prices fall: Kemp

Posted on 14 November 2016 by VRS  |  Email |Print

OPEC members are making the task of oil market rebalancing harder by maximizing their production ahead of a ministerial conference at the end of November.
OPEC output is actually increasing, putting downward pressure on oil prices, even while the organization’s members are in talks designed to reduce output in future, with the intention of pushing prices up. Not for the first time, OPEC’s members are engaged in a high stakes game of chicken…………………………………….Full Article: Source

Trump’s policies can scale up oil market volatility

Posted on 14 November 2016 by VRS  |  Email |Print

When the final result of the US elections was announced and Donald Trump won, markets around the world went into a tailspin where commodities and stock markets fell precipitously.
But the market meltdown soon fizzled out and prices recovered to near previous levels regardless of the election result. Brent crude prices fell to $43 (Dh158) a barrel on November 9, but recovered to $45.5 a barrel the next day as the focus shifted from Trump’s victory to expectations from Opec…………………………………….Full Article: Source

Oil surplus may continue in 2017 without OPEC cut, IEA says

Posted on 11 November 2016 by VRS  |  Email |Print

The oil market surplus may run into a third year in 2017 without an output cut from OPEC, while escalating production from exporters around the globe could lead to relentless supply growth, the International Energy Agency said on Thursday.
In its monthly oil market report, the group said global supply rose by 800,000 barrels per day in October to 97.8 million bpd, led by record OPEC output and rising production from non-OPEC members such as Russia, Brazil, Canada and Kazakhstan. The Paris-based IEA kept its demand growth forecast for 2016 at 1.2 million bpd and expects consumption to increase at the same pace next year, having gradually slowed from a five-year peak of 1.8 million bpd in 2015…………………………………..Full Article: Source

EIA: Brent crude oil price to go over $50 in 2017

Posted on 11 November 2016 by VRS  |  Email |Print

The US Energy Information Administration’s (EIA) Short-Term Energy Outlook forecasts that North Sea Brent crude oil prices will average $43 per barrel in 2016 and $51/b in 2017. EIA expects that West Texas Intermediate (WTI) prices will average $43/b in 2016 and $50/b in 2017.
A range from $35/b to $66/b encompasses the market expectation of WTI prices in February 2017 with 95 percent confidence, according to the report. The 95 percent confidence interval for market expectations widens over time, with lower and upper limits of $27/b and $96/b for prices in December 2017, said EIA…………………………………..Full Article: Source

How Trump’s victory complicates OPEC’s oil output plans

Posted on 11 November 2016 by VRS  |  Email |Print

Republican Donald Trump’s surprise win in the U.S. presidential election just three weeks ahead of the Organization of the Petroleum Exporting Countries’ meeting in Vienna poses a unique dilemma for the oil-producer plan to curb crude production.
Trump, who will take office in January, has said he wants to make the U.S. completely energy independent and remove restrictions on oil drilling on federal land. That could lead to a larger glut of supplies and lower prices, both of which are why OPEC reached a proposal in late September to curb member production. But Trump’s energy plans could also help the U.S. grow its oil market share, which is also a notorious worry for OPEC…………………………………..Full Article: Source

How will Trump’s energy policy affect global oil market?

Posted on 11 November 2016 by VRS  |  Email |Print

The ability of Donald Trump as the US president to influence the oil market will not be concentrated in the US but in three other places - Libya, Venezuela and Russia, Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS), a Washington based think tank focused on energy security, and a senior adviser to the United States Energy Security Council, said.
“Trump will re-engage with Libya and bring about to its reconstruction. This will mean, among other things, restoring Libyan production which alone could easily bring one million barrels a day to the market,” he said…………………………………..Full Article: Source

The oil price: what to watch at the end of a volatile year

Posted on 10 November 2016 by VRS  |  Email |Print

Opec meeting will be critical but there are other factors at play. Since the production cartel Opec provisionally agreed to work towards cutting oil output in late September, prices rallied to a year-high of close to $54 a barrel before slipping all the way back to almost $45.
As the group attempts to hammer out a deal to finalise the implementation of the cut ahead of its next official meeting on November 30, here are the things that should define the next move in a volatile year for the crude price………………………………………Full Article: Source

Oil price expected to rise to $65 within five years, says OPEC

Posted on 10 November 2016 by VRS  |  Email |Print

The average price of a barrel of oil is expected to stand just above $65 in 2021 as compared to $45 today, according to OPEC’s World Oil Outlook 2016. The report was unveiled on the second day of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
It came after industry leaders expressed optimism about recovery on Monday. Record-low oil prices have hit the finances of oil-developing countries hard. OPEC Secretary-General Mohammed Sanusi Barkindo said oil producers had hit the “bottom” and survived, but warned they had to stop cutting and invest in research and exploration again………………………………………Full Article: Source

Trump win could signal return of oil price volatility

Posted on 10 November 2016 by VRS  |  Email |Print

A Donald Trump presidency could mean the return of a risk premium for oil prices, said Tim Pickering, founder and chief investment officer of trading firm Auspice Capital advisors.
During his campaign, Trump cast himself as fossil-fuel friendly. He’s talked about increasing oil and gas production in the United States, reducing dependence on Middle East oil, and approving the Keystone XL pipeline from Alberta to refineries in the U.S. gulf. But he’s provided few details, which could lift oil prices because of the potential for dramatic changes, Calgary-based Pickering said………………………………………Full Article: Source

OPEC Deal Becomes More Urgent, Harder to Reach on Trump Win

Posted on 10 November 2016 by VRS  |  Email |Print

OPEC was already struggling to finalize a deal on production cuts this month. And then Donald Trump was elected President of the U.S. The Organization of Petroleum Exporting Countries faces increasing urgency to take measures that will support oil prices as Trump’s surprise victory threatens to deepen a market sell-off, said UBS Group AG.
Yet the uncertainty arising from the President-Elect’s policies — from climate change to the U.S. shale industry and sanctions on Iran — will make resolving differences between producers even harder………………………………………Full Article: Source

OPEC Has No Reason to Be Happy About a Donald Trump Presidency

Posted on 10 November 2016 by VRS  |  Email |Print

OPEC’s job of trying to prop up oil prices has just got much harder. With Donald Trump winning the U.S. presidential election, the 14-country oil-producing cartel may have to battle a sourer outlook for the global economy and weaker demand for crude.
It also faces the prospect of increased U.S. oil output—a major bugbear for the Organization of the Petroleum Exporting Countries—given Trump’s pledge to open all federal land and waters for fossil fuel exploration………………………………………Full Article: Source

Oil to hit over $150 within 25 years – OPEC

Posted on 09 November 2016 by VRS  |  Email |Print

The average price for crude will reach $155 per barrel in nominal terms by 2040, which is the equivalent of $92 in real prices in 2015, according to OPEC’s annual World Oil Outlook report released on Tuesday.
The producer group assumes that the price for the OPEC Reference Basket (ORB), the blend benchmark used by the cartel’s members, will be around $40 this year. The price recovery will continue with $5 increments every year, reaching over $60 a barrel up to 2021…………………………………….Full Article: Source

OPEC Raises Oil-Demand Forecast on Outlook for Cheaper Crude

Posted on 09 November 2016 by VRS  |  Email |Print

OPEC raised its forecast for global oil demand next year and through the end of the decade, anticipating that cheaper crude will spur consumption even as economic growth slows.
Demand will reach 95.3 million barrels a day in 2017, according to the producer group’s annual World Oil Outlook report released Tuesday. That’s an increase of 300,000 barrels a day from last year’s forecast. The Organization of Petroleum Exporting Countries also raised its outlook for oil use in 2018, 2019 and 2020, when it sees demand reaching 98.3 million barrels a day, or 900,000 more than the group projected in its previous annual outlook…………………………………….Full Article: Source

Oil market to mark a ‘turning point’ in 2016: OPEC

Posted on 09 November 2016 by VRS  |  Email |Print

This year marks a “turning point” for oil toward a more balanced market, but the lower oil-price environment, market instability and uncertainties surrounding environmental policies will continue to muddle the long-term outlook for the market, the Organization of the Petroleum Exporting Countries said in an annual report issued Tuesday.
“The oil market has shown signs that it is heading toward a more balanced situation” since the previous outlook report was released in December of last year, said OPEC, but it added that volatility continues and challenges remain on “several fronts.”……………………………………Full Article: Source

OPEC Boss Warns of Oil-Market Instability If No Deal on Output

Posted on 09 November 2016 by VRS  |  Email |Print

OPEC’s chief warned of prolonged instability in the oil market if the producer group and other major crude suppliers fail to act jointly to limit output and curb a global glut.
An inability of the Organization of Petroleum Exporting Countries to implement the deal it reached in Algiers in September will have “negative consequences on the already fragile state of the industry,” OPEC Secretary-General Mohammed Barkindo said Tuesday at a briefing in Abu Dhabi. Markets are “eagerly awaiting” combined action by OPEC and non-OPEC producers, he said…………………………………….Full Article: Source

Opec says climate effort won’t quench oil thirst

Posted on 09 November 2016 by VRS  |  Email |Print

A global pact to battle global warming entered into force last week, but the latest long-term look into the energy market by the Opec oil cartel sees climate change measures failing to quench the world’s thirst for crude.
Each year Opec releases a report that looks at how the energy market will evolve in the coming two decades, and Tuesday’s report slashed estimates of coal and gas use due to efforts to limit climate change, but left oil unscathed…………………………………….Full Article: Source

Trump dump or bump for gold and oil?

Posted on 08 November 2016 by VRS  |  Email |Print

UK’s Brexit vote offers clues as to how to commodities could fare if Trump is elected. Will it be a “Trump bump” or “Trump dump” for commodities if the Republican nominee wins the US presidential election?
In the event of a surprise win for Donald Trump this week trader’s say June’s Brexit vote will offer clues as to how commodity markets will move. As a haven asset, gold is already seeing a slight Trump bump. Although the precious metal fell sharply at the start of October, as the polls have narrowed it has been creeping up. Since the start of the month, gold has climbed more than 2 per cent, regaining the $1,300-a-troy ounce level it first rose above this year after the Brexit vote………………………………………Full Article: Source

Oil investor impatience grows over global surplus

Posted on 08 November 2016 by VRS  |  Email |Print

Oil investors are growing increasingly disgruntled with the pace at which supply and demand are rebalancing, cutting their bullish bets and pushing the benchmark price to its biggest discount relative to future prices in nine months.
The premium of Brent crude futures for delivery in six months over those for prompt delivery, one measure of confidence in the market outlook, on Monday shot to its largest since February, the point at which Opec first floated the idea of a possible deal on output to erode a two-year-old global surplus………………………………………Full Article: Source

Oil Market: It Could Turn Bloody, Again

Posted on 08 November 2016 by VRS  |  Email |Print

Crude oil could be heading back down to the $20s again, if Saudi Arabia makes good on its threat to raise oil output – and if the Federal Reserve hikes interest rates in December. After talking the oil market up for three months, OPEC and its new ally Russia has been unable to execute on Saudi kingdom’s s output freeze strategy.
That was obvious in the OPEC experts meeting last week, where the old animosities between Riyadh and Teheran resurfaced, spoiling the chances of a final deal, according to a Reuters report………………………………………Full Article: Source

Deal Or No Deal? An OPEC Oil Cut Looks Increasingly Unlikely

Posted on 08 November 2016 by VRS  |  Email |Print

At its meeting in Algiers last month OPEC said it intended to work together to figure out how to reduce the oversupply of crude oil sloshing around global markets. The announcement of the mere intention to work together on a deal drove benchmark oil prices up to $55 a barrel, the highest level in months.
It was just the kind of reassuring move that Saudi Arabia needed to get investors keen on its $17.5 billion bond issue. And a golden opportunity for America’s frackers to lock in the higher prices they needed to keep right on drilling………………………………………Full Article: Source

Will Oil Producers Outside OPEC Join the Cause to Freeze?

Posted on 08 November 2016 by VRS  |  Email |Print

Eni SpA’s chief executive officer called for oil producers outside OPEC to join the group in cutting production to stabilize the market and said his company could still make money with crude at $50 a barrel.
OPEC, which pumps about 40 percent of the world’s oil, agreed in Algiers last month to trim output for the first time in eight years, and is trying to persuade producers from outside the group, such as Russia, to join the cuts………………………………………Full Article: Source

Oman feels oil market oversupplied

Posted on 08 November 2016 by VRS  |  Email |Print

Small non-OPEC oil producer Oman said on Monday the petroleum market remained oversupplied. “I think … the fundamental problem is still there that we are oversupplying the market with this product that is finite and difficult to find,” Minister of Oil and Gas Mohammad bin Hamad al-Rumhy told an oil conference in Abu Dhabi.
“I am concerned although optimistic… Maybe we have seen the bottom, but we don’t know how long this bottom will last.” He added he was looking forward to talks between OPEC and non-OPEC about how to shore up the market………………………………………Full Article: Source

World Bank raises oil price forecast for 2017

Posted on 08 November 2016 by VRS  |  Email |Print

The World Bank is raising its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel. It explained that this was the case as members of the Organization of the Petroleum Exporting Countries (OPEC) prepared to limit production after a long period of unrestrained output.
It said in its Online Media Briefing Centre (OMBC) available to the Ghana News Agency that energy prices, which included oil, natural gas and coal, were projected to jump almost 25 percent overall next year, a larger increase than anticipated in July………………………………………Full Article: Source

OPEC’s game of ‘Deal or No Deal’ could push oil prices below $30

Posted on 04 November 2016 by VRS  |  Email |Print

NBC used to air a fast-paced television game show called “Deal or No Deal.” The oil markets have been playing a version of that with OPEC and certain non-OPEC members who, in a desperate attempt to save their economies, are trying to forge a deal on limiting oil production.
As is usually the case, when Saudi Arabia speaks, the oil market listens, and, in a departure from their previous position of engaging in a bare-knuckle brawl for global market share, they have been leading the charge to reign in oil production………………………………………Full Article: Source

No Oil Price Rebound on Horizon

Posted on 04 November 2016 by VRS  |  Email |Print

Banks in WSJ survey predict Brent crude will average $56 a barrel next year. With oil prices trading near multiweek lows, analysts believe next year won’t be much better.
A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017. Last summer, many of the same banks were predicting oil prices would rise to more than $70 a barrel this year—a level that has now been deferred to 2018. Brent, the international oil-price gauge, traded at $47.28 a barrel midday Thursday………………………………………Full Article: Source

The Wave of Imports Crushing the Oil Market

Posted on 04 November 2016 by VRS  |  Email |Print

OPEC’s increased output is still on its way into the world market, and foundering oil prices may have further to fall. A record amount of oil just went into U.S. storage last week. Some of it is probably only an accounting snag. But a lot of it appears to be from a wave of oil still on the way to U.S. shores.
All the pressure is pushing U.S. crude to plumb new one-month lows Thursday. It’s the second-straight day of declines tied to the data showing more crude went into storage last week than any other in 34 years of government records. Imports hit a four-year high, and international exporters are still pumping full tilt, loading up more and more oil into ships for sale around the world………………………………………Full Article: Source

Sinking oil prices could deflate industry hopes for 2017

Posted on 04 November 2016 by VRS  |  Email |Print

Falling oil prices may dash the industry’s hopes for a steady recovery after energy company executives spent the past few weeks reassuring investors they’re on the mend after a crushing downturn.
U.S. oil prices tumbled 3 percent Wednesday following a report that the nation’s commercial stockpiles of oil jumped by 14.4 million barrels last week, the biggest weekly increase in the 34 years the Energy Department began tracking storage levels………………………………………Full Article: Source

Kurds Reveal Oil Data as Iraq Output Row Threatens OPEC Deal

Posted on 04 November 2016 by VRS  |  Email |Print

Iraq’s Kurds say their oil production in September was 290,000 barrels a day lower than the federal government’s figures for the semi-autonomous region, as OPEC’s second-biggest member tries to resolve accounting differences with the producer group over its output.
Iraq’s central government says its crude oil output is several hundred thousand barrels a day higher than market analysts and the Organization of Petroleum Exporting Countries acknowledge………………………………………Full Article: Source

Why Saudi, OPEC Cuts May Not Bring $60 Oil

Posted on 04 November 2016 by VRS  |  Email |Print

At their late November meeting, OPEC leaders headed by Saudi Arabia are likely to formalize oil production cuts agreed to in September and quota ranges for individual countries that allow “sufficient headroom to increase production if warranted by demand.”
So says J.P. Morgan Cazenove in a lengthy report following recent meetings in Saudi Arabia. JPM analysts think the Saudis can be happy with oil prices between $40 and $60 per barrel while they balance fiscal constraints and regional conflicts with the need to expand market share in Asia………………………………………Full Article: Source

Falling oil prices could crack $40 and get OPEC talking deal

Posted on 03 November 2016 by VRS  |  Email |Print

Bottom line, the U.S. data show a world that is still oversupplied with oil. Oil prices plunged after a record 14.4-million barrel jump in U.S. crude supply, and they could continue to fall toward $40 a barrel or lower, unless OPEC and global producers make progress on a production deal.
“In the absence of stronger statements or better weekly stats, you’ll see it trending down. The problem is the market is really long at this point,” said Helima Croft, head of global commodities strategy at RBC…………………………………….Full Article: Source

The worst of the oil price downturn is over, says ATB

Posted on 03 November 2016 by VRS  |  Email |Print

Two years after the oil price collapse sent Alberta’s economy into a tailspin, ATB Financial suggests the downturn is over and the province’s fortunes will rise in 2017. The Alberta bank says the provincial economy will turn the corner next year.
“Our research suggests that the worst of the 2015-16 oil price downturn is now behind us,” said Todd Hirsch, ATB’s chief economist in a statement. “Oil prices should continue to grow modestly in 2017. That will bring stability to our province’s petroleum sector, but not growth. Hiring and resumption of investment will be weak in 2017.”……………………………………Full Article: Source

Oil Market Turns Skeptical About OPEC’s Ability to Deliver Cuts

Posted on 03 November 2016 by VRS  |  Email |Print

Oil bulls struck gold in late September, when prices surged due to an unexpected OPEC agreement in Algiers to cut crude production in an effort to steady global markets. Now the bulls are looking for more help from the producer club as prices slide.
Here are signs of the market’s growing skepticism that a meaningful accord can be achieved. Futures surged after the outline of a deal to limit collective production was set out in Algiers on Sept. 28…………………………………….Full Article: Source

Next OPEC meeting not to change situation on oil market

Posted on 03 November 2016 by VRS  |  Email |Print

The next OPEC meeting is facing a number of same challenges as from the last meeting, namely disagreement on the path forward, Theodore Karasik, senior advisor at Gulf State Analytics, Washington DC, told Trend Nov. 2.
“Politics, of course, are increasingly playing a critical factor given that oil is fluctuating near $50 a barrel amid uncertainty over whether OPEC can implement meaningful supply cuts for the first time in eight years,” said Karasik. The expert noted that OPEC Secretary-General Mohammad Sanusi Barkindo warned of the consequences if producers don’t follow through on an agreement to reduce output further as was reached temporarily in last week’s Geneva…………………………………….Full Article: Source

OPEC is a cheating cartel: Dennis Gartman

Posted on 03 November 2016 by VRS  |  Email |Print

When it comes to the word of OPEC, Dennis Gartman is urging investors to question everything coming out of the cartel. “If I’ve learned anything in 40 years, it’s that OPEC cheats. Every one of the members cheat. They cheat on themselves. They cheat on each other. It is extraordinary.
To think otherwise is naive,” the so-called commodities king said Tuesday on CNBC’s “Futures Now” when discussing expectations that OPEC will not arrive at a deal for a production freeze. For context, the cartel indicated in September that the framework for a deal had been agreed upon. Then OPEC member Saudi Arabia issued $17.5 billion worth of bonds in October…………………………………….Full Article: Source

Oil industry teetered ‘close to bankruptcy,’ but experts see signs of hope

Posted on 02 November 2016 by VRS  |  Email |Print

‘The industry doesn’t work under $50 oil,’ says veteran energy investor who sees better days ahead. As the Canadian oilpatch slowly emerges from a two-year price collapse, one investor suggests the industry would have gone belly up if the downturn dragged on for another year.
Energy financier Rick Grafton is confident the worst is over. “The last two years has been among the most challenging in the history of the Canadian oil and gas industry. The energy business was close to bankruptcy,” said Grafton, the CEO of Grafton Asset Management and co-founder of FirstEnergy……………………………………Full Article: Source

U.S. Oil Output Set to Decline as OPEC Deal Up in Air, EIA Says

Posted on 02 November 2016 by VRS  |  Email |Print

U.S. crude production is set to decline this year as the Organization of Petroleum Exporting Countries struggles to put a dent in global oversupply, according to the head of the U.S. Energy Information Administration.
Output in the U.S. will fall 800,000 barrels a day this year, Adam Sieminski, administrator for the EIA, said in an interview in Riyadh. That would be the first drop since 2008, data compiled by Bloomberg show. OPEC’s attempts to carry out an agreement on limiting production are still “very much up in the air,” he said……………………………………Full Article: Source

Oil market will be in balance soon, Saudi Aramco boss says

Posted on 02 November 2016 by VRS  |  Email |Print

The global oil market should be balanced early next year, the president of Saudi Aramco said on Tuesday, after oversupply drove prices to multi-year lows in 2016. “The gap between supply and demand is closing,” Amin Nasser, who is also the state-owned oil company’s chief executive, told an international energy forum.
He said Aramco’s analysis sees the market “balanced by the first half of 2017.” Last week, the chief of the International Energy Agency said the market would rebalance earlier than expected if major crude producers implement a deal to cap output when they meet next month……………………………………Full Article: Source

Oil prices are heading to $40 if OPEC deal fails, Goldman Sachs warns

Posted on 02 November 2016 by VRS  |  Email |Print

Crude oil prices could crash more than 10% if the Organization of the Petroleum Exporting Countries fails at implementing a plan to curb output when it meets later in November, Goldman Sachs warns.
In a note dated Oct. 31, the Wall Street analysts said a coordinated deal to limit oil production is looking increasingly unlikely, “with weakening oil fundamentals warranting oil prices in the low $40s/bbl in our view if OPEC is unable to deliver a convincing agreement.” The bank didn’t specify whether it was looking at prices for Brent LCOF7, -0.66% or West Texas Intermediate……………………………………Full Article: Source

Iran still resolved to regain lost oil market

Posted on 02 November 2016 by VRS  |  Email |Print

As OPEC is preparing for a crucial summit to discuss a plan to freeze crude oil output, Iran says its resolve to regain the share of the global oil market that it lost as a result of multiple years of sanctions remains unchanged.
Ali Kardor, the managing director of the National Iranian Oil Company (NIOC), told the domestic media that Iran’s oil production has reached the pre-sanctions level of around 4 million barrels per day (mb/d). Kardor added that the country’s exports also stand at 2.44 mb/d……………………………………Full Article: Source

BofA’s Blanch Sees OPEC Deal This Month

Posted on 02 November 2016 by VRS  |  Email |Print

Francisco Blanch, Bank of America Merrill Lynch head of global commodities & derivatives research tells Alix Steel and David Westin he expects OPEC to deliver a production deal when it meets later this month. He speaks on “Bloomberg Daybreak: Americas.”.………………………………….Full Article: Source

Oil prices retreat as market waits for OPEC details: Kemp

Posted on 02 November 2016 by VRS  |  Email |Print

Oil prices are set to remain under pressure until Saudi Arabia and the rest of OPEC prove they can show how they will remove enough barrels from the market to accelerate the rebalancing process.
Benchmark Brent futures prices surged more than $8 per barrel over the course of nine trading sessions after OPEC members announced a surprise framework agreement on Sept. 28 to cut production. The agreement caught hedge funds and other money managers off guard with an unusually large number of short positions, which helped squeeze the market higher in a blistering short-covering rally……………………………………Full Article: Source

banner
banner
banner
banner
December 2016
S M T W T F S
« Nov    
 123
45678910
11121314151617
18192021222324
25262728293031