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Saudi oil minister says falling oil price is ‘purely business’

Posted on 13 November 2014 by VRS  |  Email |Print

Don’t be fooled by falling crude prices says Saudi Arabia’s oil minister, it’s all part of the plan. Saudi Arabia’s oil minister Ali Naimi has finally broken his silence on falling oil prices declaring it’s “purely business” and that recent declines are not a scheme engineered by the kingdom to either bankrupt Russia, or shut down the US shale industry.
Speaking to Reuters in Mexico, Mr Naimi said: “Saudi oil policy has been constant for the last few decades and it has not changed today.” He added that: “We do not seek to politicise oil…for us, it’s a question of supply and demand, it’s purely business.” However, his remarks did little to settle the market with Brent crude falling almost 1pc lower at just under $81 per barrel………………………………………..Full Article: Source

EIA Slashes Oil-Price Forecasts for 2015

Posted on 13 November 2014 by VRS  |  Email |Print

Government forecasters sharply lowered their projections for oil prices this year and next, reflecting higher global supply expectations. The U.S. Energy Information Administration, in its monthly short-term energy outlook released Wednesday, called for benchmark U.S. crude-oil prices to average $95 a barrel this year and $77.75 a barrel next year, below its previous forecasts of $97.72 a barrel this year and $94.58 a barrel next year.
For Brent, the global benchmark, the EIA expects prices to average $101.04 a barrel in 2014 and $83.42 a barrel in 2015. In October, the agency called for price averages of $104.42 a barrel this year and $101.67 a barrel next year………………………………………..Full Article: Source

Do something about gas prices? Why?

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices are plunging. Gasoline is now cheaper than milk. Why doesn’t Washington do something already? Since peaking in June, the price of oil has tumbled by 25 percent. Texas light sweet crude futures have fallen to around $77.40 a barrel, a three-year low, while Brent oil, the global benchmark, sank on Monday to its lowest price in four years.
With cheaper oil has come cheaper gasoline. The national average price for a gallon of regular is now just $2.926. Drivers haven’t seen pump prices this low since December 2010. Nor have they seen such a sustained decline — the price has dropped for 46 days in a row — since 2008. According to AAA, “the national average could fall another 5-15 cents in the coming weeks, which could make for the cheapest Thanksgiving gas in half a decade.”……………………………………….Full Article: Source

Here’s What A Sustained $20 Drop In Oil Prices Does To The World’s Major Economies

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices have been tumbling in recent weeks. The price of brent crude fell below $80 per barrel today for the first time in since September 2010. That’s down from around $115 earlier this summer.
A research note from Societe Generale’s Michala Marcussen takes a look at the possible effects of a drop in oil prices on the world economy. She plugged a sustained $20/barrel drop in oil prices into Britain’s National Institute of Economic and Social Research’s NiGEM software, a sophisticated global macroeconomic model, and saw what would happen to global GDP in the following years………………………………………..Full Article: Source

Low oil prices to bite into 2015 US shale growth: IEA

Posted on 13 November 2014 by VRS  |  Email |Print

Falling oil prices may cut investment in U.S. shale oil by 10 percent next year, the International Energy Agency (IEA) said on Wednesday, slowing growth in a sector that has turned the U.S. into a major global producer.
“A well-supplied oil market in the short-term should not disguise the challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries,” Fatih Birol, the IEA’s chief economist, stated in the agency’s 2014 “World Energy Outlook” published on Wednesday………………………………………..Full Article: Source

OPEC sees lower 2015 demand for its oil, Saudi output still high

Posted on 13 November 2014 by VRS  |  Email |Print

Global demand for oil from OPEC next year will be far below its current output level because of the U.S. shale boom, the group said on Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.
A lack of public comment from Saudi Arabia on the fall in oil prices to their lowest since 2010 has prompted industry watchers to wonder whether the kingdom may be moving away from a policy of simply managing the market and instead pursuing geopolitical goals………………………………………..Full Article: Source

Analysts sceptical Opec will halt fall in oil prices

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices will continue to fall even if Opec countries agree to cut production later this month, according to one of the market’s most influential analysts. Gary Ross, chief executive of Pira Energy Group, said there was an “imbalance” between supply and demand that would force prices down next year regardless of any output cuts that could be announced by the oil exporters’ group at its meeting in Vienna on November 27.
“Opec cannot and will not take the pain necessary to correct the imbalance,” he said. Other market watchers are also predicting further falls in prices, including Philip Verleger, an energy economist who wrote at the weekend that he expected the cash price of internationally-traded Brent crude to drop to about $70 a barrel or lower………………………………………..Full Article: Source

Oil at $80 Is No Bar for BP, Total to Look for More Crude

Posted on 12 November 2014 by VRS  |  Email |Print

Oil at $80 a barrel won’t stop BP Plc (BP/) or Total SA (FP) from exploring and developing crude deposits. Oil has dropped into a bear market this year, with prices falling almost 30 percent since June amid a global glut.
OPEC won’t cut its collective output when it meets this month and global oil prices will stabilize once the surplus is absorbed, Kuwait Oil Minister Ali Al-Omair said at an oil conference in Abu Dhabi, the capital of United Arab Emirates………………………………………..Full Article: Source

Brent Crude Hits Fresh Four-Year Low on Oversupply Concerns

Posted on 12 November 2014 by VRS  |  Email |Print

Brent crude prices slid to another four-year low Tuesday on expectations that the Organization of the Petroleum Exporting Countries wouldn’t take action to rein in ample global oil supplies. The U.S. benchmark ended slightly higher on the day.
Oil prices have tumbled for months, as moderate demand growth appeared insufficient to absorb growing crude supplies. Many market watchers expect OPEC, which controls more than one-third of global oil production, to maintain its collective output target at its Nov. 27 meeting………………………………………..Full Article: Source

OPEC feeling pain as oil slides to new 4-year low

Posted on 12 November 2014 by VRS  |  Email |Print

Expectations of growing U.S. crude supplies sent world oil prices sliding to a new four-year low and is turning up the heat on OPEC members to cut production when they meet later this month. OPEC convenes in Vienna, Austria, on Nov. 27, and the market is highly focused on whether members of the Organization of the Petroleum Exporting Countries will get over their differences and cut production.
Saudi Arabia, the biggest producer, has indicated it does not want to go it alone with a production cut, and it has been adjusting its official selling price to maintain market share, particularly in Asia………………………………………..Full Article: Source

OPEC’s Kuwait Sees No Oil-Output Cut at November Meeting

Posted on 12 November 2014 by VRS  |  Email |Print

OPEC won’t cut its collective crude output when it meets this month in Vienna and global oil prices will stabilize once the surplus is absorbed by the market, Kuwait Oil Minister Ali Al-Omair said.
OPEC, which supplies about 40 percent of the world’s oil, meets Nov. 27 to debate supply. The 12-member Organization of Petroleum Exporting Countries, which has a production target of 30 million barrels a day, pumped 30.974 million barrels a day in October, according to data compiled by Bloomberg………………………………………..Full Article: Source

UAE Oil Minister Says OPEC Has Not Contributed To Oversupply

Posted on 12 November 2014 by VRS  |  Email |Print

United Arab Emirates energy minister Suhail bin Mohammed al-Mazrou said on Tuesday that oil market fundamentals had not changed, and the Organisation of the Petroleum Exporting Countries (OPEC) had not contributed to oversupply.
Speaking at an energy conference in Abu Dhabi, he said: “Fundamentals in the market didn’t change, OPEC didn’t contribute to an oversupply … We shouldn’t panic.” Asked who was oversupplying the market, the United States or Russia, he replied: “We all know that this supply in the past years came from the revolution in shale oil and (if) you look at numbers you will find this.”……………………………………….Full Article: Source

Oil price plummet won’t help U.S. with Iran or Russia

Posted on 12 November 2014 by VRS  |  Email |Print

Plummeting oil prices — down more than 25 percent since June to three-year lows — should relieve pressure on consumers at the pump. But is it pushing oil-exporting regimes past the breaking point?
The answer is no. Despite their reliance on oil revenue, the governments of Russia, Iran, Saudi Arabia, and Venezuela are not teetering. This is no “oil Arab Spring,” where cratering prices topple governments, spreading like wildfire from one dependent authoritarian state to another. In fact, the price drop won’t even change their stances on the geopolitical issues Washington cares most about………………………………………..Full Article: Source

Shale Boom Masks Multiple Threats to World Oil Supply, IEA Says

Posted on 12 November 2014 by VRS  |  Email |Print

The U.S. shale boom masks threats to global oil supply including Middle East turmoil, conflict in Ukraine and the difficulty of unconventional oil production beyond North America, the International Energy Agency said.
“The global energy system is in danger of falling short of the hopes and expectations placed upon it,” the IEA said in its annual World Energy Outlook today. “The short-term picture of a well-supplied oil market should not disguise the challenges that lie ahead as reliance grows on a relatively small number of producers.”……………………………………….Full Article: Source

Six reasons why the crash in oil prices is nothing to worry about

Posted on 11 November 2014 by VRS  |  Email |Print

Oil prices are falling! Oil prices are falling! But don’t run into that bunker just yet. Oil prices are plummeting. The US price for a barrel of crude has fallen to less than $78 a barrel, the lowest level in years. That comes hard on the heels of a summer-long 25% dip in prices that pushed gas at the pump below $3 a gallon – the lowest level since 2010.
It’s not a real crash: the world doesn’t really need more oil. Much of the drop is Saudi Arabia’s latest pricing shenanigans in negotiating with Opec. A crash in oil prices looks dire. But this may make less difference than you might imagine to your day-to-day finances………………………………………..Full Article: Source

Kuwait Oil Minister Sees No OPEC Output Cut This Month

Posted on 11 November 2014 by VRS  |  Email |Print

OPEC won’t cut its collective crude output when it meets this month and global oil prices will stabilize once the surplus is absorbed by the market, Kuwait Oil Minister Ali Al-Omair said.
OPEC, which supplies about 40 percent of the world’s oil, meets Nov. 27 to debate supply. The 12-member Organization of Petroleum Exporting Countries, which has a production target of 30 million barrels a day, pumped 30.974 million barrels a day in October, according to data compiled by Bloomberg………………………………………..Full Article: Source

OPEC Calls for Calm in Global Oil Markets

Posted on 11 November 2014 by VRS  |  Email |Print

OPEC Secretary-General Abdalla Salem el-Badri on Monday called for calm in global oil markets following the commodity’s recent slump and ahead of a much-anticipated meeting of the key oil-producing group on Nov. 27.
“It is two weeks before the OPEC meeting so I’m telling media to relax and not to panic.. I’m telling the market please don’t panic. Things will fix [themselves],” Mr. el-Badri said at an oil conference in Abu Dhabi. Earlier, Kuwait’s oil minister Ali al-Omair said he didn’t expect the Organization of the Petroleum Exporting Countries to call for a cut to its production output ceiling when it meets later this month………………………………………..Full Article: Source

Global Oil Benchmark Slumps to Four-Year Low

Posted on 11 November 2014 by VRS  |  Email |Print

Brent oil prices slid from early gains to hit a fresh four-year low Monday as a stronger dollar and ample global supplies pressured prices. Oil prices have dropped for months on concerns that the global market is oversupplied and on signs that the Organization of the Petroleum Exporting Countries isn’t likely to cut output. OPEC’s next meeting is Nov. 27.
Brent, the global benchmark, fell $1.05, or 1.3%, to $82.34 a barrel on ICE Futures Europe, the lowest settlement price since Oct. 21, 2010. In the U.S., light, sweet crude for December delivery fell $1.25, or 1.6%, to $77.40 a barrel on the New York Mercantile Exchange………………………………………..Full Article: Source

An Oil Price ‘Cold War’ With Saudi Arabia? Experts Disagree

Posted on 11 November 2014 by VRS  |  Email |Print

Some analysts contend that Saudi Arabia’s latest price cut targets U.S. producers. Others argue it’s aimed at other exporters. It’s an oil-wrestling match – but it might only be as real as the WWE. Last week, Saudi Arabia slashed its crude oil prices for the second month in a row – and unlike the last discount, this was exclusively for the U.S. market.
Some experts declared it the start of a “cold war” with Saudi Arabia, as described by two University of Texas professors in an op-ed in the Dallas Morning News. Other analysts, however, contend that the Saudis are merely trying to defend against other exporters to the U.S………………………………………..Full Article: Source

What plummeting oil prices mean for renewable energy

Posted on 11 November 2014 by VRS  |  Email |Print

Oil’s slippery price slope could get even slipperier as winter approaches. It’s simple supply-and-demand economics: a worldwide slowdown in demand for oil, combined with the ongoing expansion of global production, thanks largely to aggressive extraction from US shale-rock formations, has sent the price of crude oil tumbling like a stone.
Where the bottom is and when it will be reached, nobody really knows. Goldman Sachs, which last week raised the specter of oil market oversupply in a report, slashed its price forecast for next year to $70 per barrel. Research analysts at the investment bank said they expect prices to recover to $80 per barrel in 2016 and beyond – which would remain well below west Texas prices over the last five years………………………………………..Full Article: Source

OPEC Concerned, Not Panicking About Oil Price – Badri

Posted on 10 November 2014 by VRS  |  Email |Print

Fundamental factors do not justify the sharp drop in oil prices, OPEC Secretary-General Abdullah al-Badri said on Thursday, forecasting a price rebound by the second half of 2015. “We are concerned but we are not panicking,” he told reporters at a news conference on the group’s 2014 World Oil Outlook.
“We don’t see that much of change in fundamentals. The decline is 28 per cent, it’s a little bit too much,” he said, adding the group was evaluating the situation to gauge how events might develop. OPEC meets on Nov 27 and Badri said OPEC had not invited any other producers to attend………………………………………..Full Article: Source

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Oil price falls? Why you should relax: OPEC head

Posted on 10 November 2014 by VRS  |  Email |Print

Those panicked by the recent plunge in oil prices should “sit and relax,” according to the head of the Organization of the Petroleum Exporting Countries (OPEC) - the group of the world’s biggest oil exporters.
“The media is really panicking and the market is panicking, the consumer is panicking and the producers are panicking. We really should sit and relax and look into the situation,” Abdalla Salem el-Badri, secretary general of OPEC, told CNBC………………………………………..Full Article: Source

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Bullish Oil Wagers Cut in Sign of Growing OPEC Skepticism

Posted on 10 November 2014 by VRS  |  Email |Print

Speculators are the least bullish on U.S. crude in 20 months as they lose faith in OPEC’s willingness to ease a global supply glut. Money managers reduced net-long positions in West Texas Intermediate by 8 percent in the week ended Nov. 4, U.S. Commodity Futures Trading Commission data show. Long positions retreated to the least since May 2013 while short holdings rose.
WTI tumbled into a bear market this year as crude supply expanded from the U.S. to Libya and demand sputtered from Europe to China. Saudi Arabia cut its export charges to the U.S. this month, signaling a preference for market share over prices. The kingdom accounts for almost a third of OPEC’s output and the 12-nation group meets in about two weeks to debate supply………………………………………..Full Article: Source

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Price of crude oil: how low can it go?

Posted on 10 November 2014 by VRS  |  Email |Print

Woody’s Smokehouse, a restaurant and fuel station in Centerville, Texas, halfway between Dallas and Houston, posted a petrol price of $1.999 per gallon on Wednesday. It was only a one-day promotion, but it was a sign of a more sustained trend: fuel prices in the US have been falling fast.
This week the average retail price of petrol in the US fell below $3 per gallon, down more than 70 cents since June. Texas is an oil-producing state, but Centerville is in farming country, and the 25 per cent drop in the price of crude oil in the past four months is welcome. “It’s great news for farmers, great news for truckers and great for the economy in general,” says Diana Wood, one of the owners of Woody’s………………………………………..Full Article: Source

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Vladimir Putin: oil price decline has been engineered by political forces

Posted on 07 November 2014 by VRS  |  Email |Print

As slumping oil prices dampen Russia’s economic outlook, the country’s President has said that “at some moments of crisis it starts to feel like it is the politics that prevails in the pricing of energy resources”. Recent tumbles in the value of oil on global markets have been the creation of politicians, Vladimir Putin, President of Russia, suggested on Thursday.
The Russian state has been heavily exposed to slumping oil values, widely viewed to be the result of a supply glut. “The obvious reason for the decline in global oil prices is the slowdown in the rate of [global] economic growth which means consumption is being reduced in a whole range of countries”, Mr Putin said………………………………………..Full Article: Source

Oil Price at $70 a Barrel Would Likely Trigger Cut in OPEC Output Ceiling

Posted on 07 November 2014 by VRS  |  Email |Print

As oil prices slid further downward Thursday, OPEC signaled that it isn’t ready to hit the panic button—yet. Oil’s more-than-25% decline since the summer has led to speculation that the Organization of the Petroleum Exporting Countries—whose crude accounts for around a third of global oil supply—would cut its output to try to support prices, especially as some of the group’s members grow fearful of the likely hit to their government budgets.
At a news conference in Vienna on Thursday, OPEC secretary-general Abdalla Salem el-Badri said the group is “concerned, but we are not panicking.” Mr. el-Badri blamed market speculators for the sharp oil price drop, saying “fundamentals don’t deserve this price decline.”……………………………………….Full Article: Source

OPEC cuts oil price forecasts as ‘price war’ bites

Posted on 07 November 2014 by VRS  |  Email |Print

The group of the world’s biggest global oil exporters has cut its forecasts for the price growth and global demand for oil. In its annual World Oil Outlook, published Thursday afternoon, the Organization of the Petroleum Exporting Countries (OPEC) said there would be a “small decline in real values” over this decade together with a “constant nominal price” of $110 per barrel between now and 2020.
Economic forecasts for the U.S. were raised, while predictions for the “BRIC” countries (Brazil, Russia, India and China) were cut in the medium term. The group added that there was a danger of “substantial over-capacity in the sector.”……………………………………….Full Article: Source

Oil at $70? ‘Panic in OPEC’

Posted on 07 November 2014 by VRS  |  Email |Print

OPEC would likely lower the ceiling on its collective production if oil prices fall to $70 a barrel, a level most of the group’s members don’t expect to see this year, according to several of the group’s officials.
“At $70 a barrel, there will be panic in OPEC. We have become used to living with $100 a barrel,” said one OPEC official, speaking on the sidelines of a meeting of governors and other officials from the 12 members of the Organization of the Petroleum Exporting Countries………………………………………..Full Article: Source

OPEC: Energy demand to increase by 60 pct by 2040

Posted on 07 November 2014 by VRS  |  Email |Print

By 2040, energy demand is expected to increase by 60 percent to 256 million barrels oil equivalent per day (mb/d), according to OPEC’s report: World Oil Outlook for 2014. The Organization of the Petroleum Exporting Countries, or OPEC, released its outlook for 2014, examining the main issues and drivers that could affect oil and energy markets in the medium to long term between 2014 and 2040, on Thursday.
While energy demand is expected to increase by 60 percent by 2040, global oil demand is expected to increase by over 21 mb/d by 2040, to reach 111 mb/d, the report said………………………………………..Full Article: Source

A price battle in the oil market

Posted on 07 November 2014 by VRS  |  Email |Print

Brent crude, the benchmark oil future, slumped to a four-year low around $80 a barrel this week; US futures fell to a three-year trough of $77. This was due to Saudi Arabia, the key producer in the oil-exporting cartel Opec, reducing the price it charges US customers. It also raised prices slightly for Europe and Asia.
Brent has now fallen by almost 30% since June. Conflict in the Middle East did not, as initially feared, disrupt Iraqi exports. Libyan production has recovered, US shale output has soared, and demand has slowed amid sluggish growth in Europe and Asia………………………………………..Full Article: Source

Ongoing Oil Market Turmoil Isn’t a ‘Crude’ Sequel to 2008

Posted on 06 November 2014 by VRS  |  Email |Print

As the oil price slumped to a four-year low earlier this week, immediate market chatter on whether it is going to be 2008 all over again followed suit. The first quarter of that year saw the oil price spike above $140 per barrel only to plummet below $40 as the global financial crisis began to bite. Being candid, in my opinion what we are seeing at the moment isn’t and (in all likelihood) won’t be a repeat of 2008-09.
While macroeconomics always plays a part, the circumstances of both price declines are quite different. Over the first quarter of 2008, malaise of the US housing market had begun weighing on the dollar’s performance as a currency………………………………………..Full Article: Source

OPEC Oil Basket Price Falls Below $80 to Least in 4 Years

Posted on 06 November 2014 by VRS  |  Email |Print

OPEC members’ average crude price fell below $80 for the first time in four years as Saudi Arabia and other members of the group supplying 40 percent of the world’s oil maintained output amid slowing demand growth.
The OPEC basket, the best measure of what the oil exporters earn per barrel, fell to $78.67 yesterday, the group said by e-mail today. That’s the lowest since October 22, 2010, according to data compiled by Bloomberg………………………………………..Full Article: Source

Saudi oil price cut likely to stimulate world economy

Posted on 06 November 2014 by VRS  |  Email |Print

Oil prices slumped to multiyear lows on Tuesday after Saudi Arabia cut the price of oil sold to the U.S., a move that is shaking an already volatile market but is likely to give the world economy an unexpected stimulus. The 25 percent or so slide in oil prices since the summer could boost consumer spending and business investment in economies around the world as fuel bills fall.
But not everyone’s a winner. Oil-producing countries such as Russia and Venezuela, which have high extraction costs and whose budgets rely on assumptions of relatively high energy prices, stand to lose out. And lower prices could eventually slow booming production in the United States, offsetting the benefit of lower energy costs for consumers and businesses………………………………………..Full Article: Source

Iran Ranks OPEC’s Third-Largest Oil Producer

Posted on 06 November 2014 by VRS  |  Email |Print

Iran has increased crude oil production in 2014, elevating its rank to the third-largest crude producer in the Organization of Petroleum Exporting Countries (OPEC) during the first half of 2014, reports said. Iran’s oil output in the first seven months of the year exceeded 3.2 million barrels per day (mb/d), increasing 131,000 barrels per day compared with the same period of last year, the Iranian students’ news agency reported.
In 2013, Iran dropped from being the second-largest producer in OPEC to the fourth, standing behind Saudi Arabia, Iraq and the United Arab Emirates………………………………………..Full Article: Source

Falling Oil Prices Hurt Some, Help Others in Canada

Posted on 06 November 2014 by VRS  |  Email |Print

The falling price of oil threatens to thump parts of Canada, whose fortunes are the most tied to oil of any Group of Seven country. But oil’s swoon isn’t all bad news for a country that has the world’s third-biggest oil reserve, underscoring the complex role the resource can play in a modern economy.
An estimated 7.5% of Canada’s gross domestic product is directly tied up in the oil sector. A sustained fall in the commodity’s price would hit government coffers, corporate profits and investment spending. A pullback in the country’s oil patch would cost jobs and could knock a housing market that some analysts say is overvalued………………………………………..Full Article: Source

Is There a Price War Going on Within Opec?

Posted on 05 November 2014 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries is supposed to act in a unified fashion to defend prices. Yet, as international oil futures have fallen by over 25% in recent months, its members have done the opposite, competing with price cuts in Asia as they seek to keep market share.
That market has become overcrowded after OPEC countries’ exports to the U.S. shrank due to a shale production boom there. More broadly, U.S. production, combined with returning Libyan oil production—which had been shut for a year—and uncertain economic prospects have led to a global oil glut………………………………………..Full Article: Source

Don’t rule out OPEC cut, say top oil traders

Posted on 05 November 2014 by VRS  |  Email |Print

Forget conspiracy theories and be prepared for OPEC to cut output in November because this is what they need to do and have done in the past, veteran oil traders who run and co-own some of the world’s biggest trading firms told the Reuters Commodities Summit.
The views from the top executives of Vitol, Gunvor and Mercuria go against expectations that the 12-member Organization of the Petroleum Exporting Countries is unlikely to step in and support prices………………………………………..Full Article: Source

OPEC Stumbles Intentionally

Posted on 05 November 2014 by VRS  |  Email |Print

ESAI Energy wrote in its October 2‐Year Global Crude Oil Outlook, released on October 30, that we believe there could be some kind of agreement or joint OPEC statement in November, if for no other reason than to show some organizational cohesion to counter critics who say OPEC is unimportant. But, the intention, whether stated or not, will be to prevent further price decline rather than lift prices.
After an intentionally modest effort to reduce output in early 2015, does OPEC go further later in 2015 or in 2016? Absent a new supply disruption somewhere, the fundamentals will only get worse in 2016. ESAI Energy expects the call on OPEC crude to fall to 28.3 million b/d in 2016 from roughly 28.8 million b/d in 2015………………………………………..Full Article: Source

Saudi oil-price cut takes market by surprise

Posted on 05 November 2014 by VRS  |  Email |Print

Oil prices tumbled to their lowest point in more than two years after Saudi Arabia unexpectedly cut prices for crude sold to the U.S., likely paving the way for further declines and adding to pressure on American energy producers. The decision by the world’s largest oil exporter sent the Dow industrials DJIA, +0.10% into negative territory for the day amid concerns about the pace of global growth.
The move heightened worries over the resilience of the U.S. oil industry, which has expanded rapidly in recent years. But that growth, driven largely by new production technology used to extract oil from shale-rock formations, has never been tested by a prolonged slump in prices……………………………………….Full Article: Source

Crude oil at four-year low after Saudi Arabia price cut

Posted on 05 November 2014 by VRS  |  Email |Print

Crude oil prices have hit a four-year low after Saudi Arabia unexpectedly cut the price of oil sold to the US. Brent crude fell to near $82 (£51.24) a barrel as worries about global growth also spooked investors.
Earlier, the European Commission reduced its growth forecasts for the eurozone. Investors are concerned about the US oil industry in the face of slowing growth and lower prices. Some worry that low oil prices could hurt domestic US producers dependent on high prices for profitability………………………………………..Full Article: Source

Crude oil production will grow 400 kb/d-900 kb/d by 2015 end: Barclays

Posted on 05 November 2014 by VRS  |  Email |Print

Despite the recent price drop, US production will continue to grow at a swift pace through 1H 15 and those additional barrels will need to find a home in the North American market due to export restrictions. US tight oil producers will likely take a long-term view with regards to their capex decisions, according to Barclays.
As a result, lower oil prices are unlikely to have an immediate impact on production growth. From September levels, Barclays forecast shows production growth of over 400 kb/d by the end of March and close to 900 kb/d by the end of 2015. Even opportunities to export to Canada or to export ANS internationally have limited upside from current levels………………………………………..Full Article: Source

Some Hedge Funds Profit From Steep Decline in Oil Prices

Posted on 05 November 2014 by VRS  |  Email |Print

Some nimble energy investors are making money off the steep slide in oil prices, dodging the hit that financial markets and oil producers have suffered.
Hedge-fund managers including the team of George “Beau” Taylor and Trevor Woods, and Pierre Andurand are among those who have reaped profits during the selloff by correctly predicting that rising global crude-oil output would overwhelm the market and send prices lower. ……………………………………….Full Article: Source

What is pushing oil and gas prices lower?

Posted on 04 November 2014 by VRS  |  Email |Print

When it comes to lower gas and oil prices, should American consumers believe the hype? AAA reports the national average of a gallon of gasoline dropped below $3.00 per gallon for the first time in nearly four years.
“The steep decline in gas prices has helped to make driving less expensive for the vast majority of Americans who use their car every day,” Bob Darbelnet, CEO of AAA, said in a press statement on Friday. “Many Americans are spending $10-$20 less to fill up the cars on every trip to the gas station compared to what they paid during the summer driving season.”……………………………………….Full Article: Source

Saudi raises prices for crude customers

Posted on 04 November 2014 by VRS  |  Email |Print

Saudi Arabia has increased the price it charges customers for its crude oil for the first time in five months, undermining the argument that the kingdom has launched a price war with fellow members of the Opec oil cartel.
Saudi Aramco, the state-owned oil company, said it would sell its benchmark Arab light to customers in Asia at a discount of 10 cents a barrel to the Dubai/Oman contract in December, up from a discount of $1.05 in November………………………………………..Full Article: Source

Oil Skids as Saudis Adjust Prices

Posted on 04 November 2014 by VRS  |  Email |Print

U.S. oil prices tumbled to a fresh two-year low Monday on news that Saudi Arabia cut its selling price for oil to the U.S., suggesting that the kingdom is trying to compete with U.S. shale oil. Saudi Arabia raised the prices for its oil in other locations, including Asia, where the country has cut its prices for four straight months.
When the Saudis sharply cut their November selling prices at the beginning of October, oil prices weakened, as the market interpreted the lower prices as a signal that Saudi Arabia was more concerned with maintaining market share than with cutting production to keep prices high………………………………………..Full Article: Source

US oil ends below $79 after brief spike amid supply fears

Posted on 04 November 2014 by VRS  |  Email |Print

Global oil prices reversed a rally on Monday, with benchmark Brent returning to the red after a big hike in Saudi Arabia’s monthly export prices was viewed as a signal OPEC’s largest producer may be seeking to curb output.
State oil firm Saudi Aramco said it would raise the price of its flagship Arab light crude in December for customers in Asia and Europe, reversing some price cuts the previous month. It will cut prices for U.S. buyers………………………………………..Full Article: Source

Venezuela, Ecuador to present OPEC with plan to defend oil prices

Posted on 04 November 2014 by VRS  |  Email |Print

Venezuela and Ecuador are working on a joint proposal to defend oil prices that the two countries will present at the next OPEC meeting, Venezuelan President Nicolas Maduro said. Venezuela was the first country to request an extraordinary meeting of Organization of the Petroleum Exporting Countries to discuss the sharp drop in crude prices that began in October, but the idea got little support.
“Our Foreign Minister Rafael Ramirez was in Ecuador today coordinating with the government of President (Rafael) Correa, and we are going to take a proposal to OPEC,” Maduro said during a televised broadcast. “We’re working internationally to defend, as we should, the price of oil.”……………………………………….Full Article: Source

Is a secret ‘oil war’ raging?

Posted on 03 November 2014 by VRS  |  Email |Print

Oil prices have been falling for the past two months. The OPEC basket price has ranged between $80 and $90 a barrel compared to the $100-$115 range of the past four years. This recent drop happens at a time when oil-producing countries will draft their 2015 budget and try to adopt an average oil price for the upcoming year.
The drop in oil prices is expected to adversely affect their budgets. Markets usually expect OPEC countries to cut production when prices fall. This time, however, OPEC is looking to US shale oil to contribute to price stability, because the increase in shale oil production has impacted the markets………………………………………..Full Article: Source

Putin feels the pinch as falling oil price sees Russia’s growth downgraded

Posted on 03 November 2014 by VRS  |  Email |Print

Deutsche Bank revises down its estimates for Russia’s economic as Brent crude oil slides towards $80 per barrel. Russia’s economy is being hammered by falling oil prices but analysts are warning that the financial pain for the Kremlin has only just begun.
“The Russian economy is heavily reliant on oil revenues, with energy and energy-related production amounting to a substantial share of total economic output, half of the federal budget revenues and almost two-thirds of export revenues,” wrote Deutsche Bank’s research team in a note to investors………………………………………..Full Article: Source

Regan: Why OPEC is fine with falling oil prices

Posted on 03 November 2014 by VRS  |  Email |Print

Chances are you’ve been feeling a bit better about the economy in the last couple of months — and that optimism may have nothing to do with the stock market. Instead, you can thank lower prices at the gas pumps, a welcome boost to consumer spending power.
Despite increasing tensions in the Middle East, the nationwide average for a gallon of gas stands below $3 for the first time in four years — a roughly 20% drop from June levels. And OPEC, the oil-producing group that controls an estimated 40% of world supply and aims to keep oil prices as high as it can, seems to be just fine with that………………………………………..Full Article: Source

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