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Commodities Briefing - Category | Oil more

Hopes For An Oil Price Recovery Appear Exaggerated

Posted on 29 January 2016 by VRS  |  Email |Print

The new debate in petroleum markets appears to be over when prices will recover and to what level. When the price was $100 a barrel, many argued that any drop would be only temporary because higher costs had put a new, higher floor under prices.
And before that, the argument was that the market had entered a “new paradigm” where strong demand in countries like China would be bumping up against the “end of easy/cheap oil” and keep pressure on prices to rise. These arguments were all very appealing and eventually became widespread, as persistently high prices quieted most of the voices that argued for caution………………………………………..Full Article: Source

Believe it or not, oil is back in a bull market

Posted on 29 January 2016 by VRS  |  Email |Print

It may have been wrong to call oil’s rise a dead cat bounce last week. Everyone’s favorite cratering commodity has actually been having a pretty good run since Jan. 20. Brent crude today (Jan. 28) rose above $35 per barrel for the first time in about three weeks on news that OPEC and Russia might finally curtail their contribution to the overproduction that has the world awash in oil.
That was enough to technically put oil in a bull market, trading at 20% higher than its recent lows. Spurring today’s rally: Reuters is reporting that Russia’s oil minister said Saudi Arabia proposed cutting production by 5%………………………………………..Full Article: Source

Oil price: ‘we’re going to see more fireworks’

Posted on 28 January 2016 by VRS  |  Email |Print

Oil has steadied at a still-low $31 a barrel, with a major report on US inventories due later. The oil price endured wild swings on Tuesday, rising more than six per cent at one point to above $32 a barrel and touching session lows below $29.
Both the international and US benchmarks are extremely volatile at the moment as the determination of many analysts that painfully low and loss-making prices must soon turn higher runs up against stubborn negative sentiment on excess supplies. A sustained recovery remains unlikely until there is at least some movement from larger producers on output………………………………………..Full Article: Source

Crude oil price to surpass $100 US by 2040, National Energy Board says

Posted on 28 January 2016 by VRS  |  Email |Print

The National Energy Board says crude oil prices are projected to rise to more than $100 US a barrel by 2040. Peter Watson, the board’s chairman and CEO, says in a prepared text of a speech that the regulator is taking a long-term view of the country’s energy future in a report.
Watson, who is set to speak before the Toronto Region Board of Trade, says the outlook is a challenging undertaking given the current, uncertain economic environment. Since mid-2014, the global price of crude has fallen about $80 US a barrel down to about $30 US a barrel………………………………………..Full Article: Source

World Bank and Credit Suisse slash oil price forecast for 2016

Posted on 28 January 2016 by VRS  |  Email |Print

Both the World Bank and Credit Suisse recently reduced its oil price forecast for 2016. This is amid increasing supply of oil and low demand prospects from emerging markets.
While the Washington-based institution forecast crude oil prices at $37 (£26, €34) a barrel for 2016 by using an average of Brent, Dubai and West Texas Intermediate (WTI) oil prices equally weighted, Credit Suisse projected that Brent will average $36.25 a barrel and WTI Crude will trade at a premium of $1.50 to Brent in 2016………………………………………..Full Article: Source

Saudis battle for oil market supremacy

Posted on 28 January 2016 by VRS  |  Email |Print

By abandoning the tight rein it held for decades on the oil market, OPEC heavyweight Saudi Arabia launched a battle for control that sent crude prices plummeting. It has been a painful fight, experts say, but with its vast resources the Gulf kingdom is showing no signs of giving up.
The huge drop in oil prices since mid-2014, from more than $110 a barrel to around $30, followed a decision by the Saudi-influenced Organization of the Petroleum Exporting Countries not to cut output as it had in the past to keep prices high………………………………………..Full Article: Source

Russians want to talk to OPEC about output, pipeline chief says

Posted on 28 January 2016 by VRS  |  Email |Print

Russian officials have decided they should talk to Saudi Arabia and other OPEC countries about output cuts to bolster oil prices, the head of Russia’s pipeline monopoly said on Wednesday, remarks that helped spur a sharp rise in world prices.
Oil futures surged more than 5 percent after the comments by Nikolai Tokarev, head of oil pipeline monopoly Transneft, which gave the strongest hint yet of possible cooperation between the top non-OPEC oil producer and the cartel to try to reverse a record glut………………………………………..Full Article: Source

Oil prices to stay near current level throughout 2016, World Bank says

Posted on 27 January 2016 by VRS  |  Email |Print

Bank forecast plays down likelihood of further collapse with average price of oil expected to stabilise below $40 a barrel. The World Bank has slashed its forecast for oil prices this year, saying the cost of a barrel of crude will stay near its current lows for the rest of 2016.
The Washington-based institution said a glut of oil that sent prices crashing by almost half last year and another 27% this month will continue to dominate the market for the next year………………………………………..Full Article: Source

World Bank slashes oil price forecast to $37 a barrel

Posted on 27 January 2016 by VRS  |  Email |Print

The World Bank on Tuesday dramatically revised down its forecast for crude oil prices, predicting they would average just $37 a barrel this year and warning commodity markets to brace themselves for the possibility of a much sharper than expected slowdown in emerging economies.
The new forecast — down from a predicted $52 average for 2016 just three months ago — underlines how rapid the recent fall in oil prices has been and the growing concerns at the World Bank and elsewhere over the link between tumbling oil and the health of emerging economies………………………………………..Full Article: Source

Global oil prices to remain low throughout 2016: analyst

Posted on 27 January 2016 by VRS  |  Email |Print

Global oil prices are expected to remain low in the near future according to analysts, even though the price has lately climbed to about 30 U.S. dollars a barrel. On Monday, the West Texas Intermediate for March delivery moved down 1.85 U.S. dollars to settle at 30.34 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery decreased 1.68 dollars to close at 30.5 dollars a barrel on the London ICE Futures Exchange.
Crude oil prices began to recover when the United States faced a patch of extreme cold weather last week, while Europe raised hopes of more economic stimulus measures………………………………………..Full Article: Source

Kuwait hints OPEC ready to ‘cooperate’ to stabilize oil market

Posted on 27 January 2016 by VRS  |  Email |Print

Kuwait’s OPEC Governor Nawal al-Fuzaia hinted on Tuesday that the Organization of the Petroleum Exporting Countries is ready to cut production in an effort to stem the persistent slump in oil prices. The governor told an energy forum in Kuwait that the cartel is ready to “cooperate” with others to stabilize the oil market, according to media reports.
“OPEC is willing to cooperate with producers outside the group if they show that they are serious about cooperating with OPEC. Non-OPEC producers keep on making statements that they are willing to cooperate, but the reality is different,” she said, according to Dow Jones Newswires………………………………………..Full Article: Source

More bad news from investor who called $30 oil a year ago

Posted on 27 January 2016 by VRS  |  Email |Print

Early last year, Mark Yusko, founder and CEO of Morgan Creek Capital Management, predicted crude oil would approach $30 a barrel and deflation would become the main economic headwind for the developed world, rather than the inflation with which the market had been obsessing.
Yusko, whose dour market views were prescient, doesn’t have any brighter view of economic or market conditions now. The easing of sanctions on Iran and Saudi Arabia’s reluctance to cut production are among the factors that will continue to crush energy prices………………………………………..Full Article: Source

Commodities stocks sink as oil resumes downward slide

Posted on 26 January 2016 by VRS  |  Email |Print

Oil prices are sinking again, fast, and miners and commodities stocks are once again finding themselves in that all-too familiar position at the bottom of the FTSE 100. As fastFT reported earlier, oil prices are once again heading south after a short-lived rally last week.
Brent crude is falling 3.7 per cent at publication time to $30.99 a barrel while WTI, the US benchmark, is down 3.91 per cent at $30.93 a barrel. There had been hopes that the worst may be over for oil prices but clearly the market didn’t get the memo today………………………………………..Full Article: Source

Oil Prices Rebound Above $30—Is a Rally Finally Here?

Posted on 26 January 2016 by VRS  |  Email |Print

Oil prices plumbed new lows last week, dropping below $28 per barrel. But oil also closed out the week on a positive note, with huge gains on Thursday and Friday, rallying back above $30 per barrel. The price increase could be a sign that the markets think that oil has been far oversold, that trading this low has been “irrational,” as the head of Saudi Aramco put it last week.
Adding to the upsurge was growing speculation that central banks around the world will take additional action to provide some monetary stimulus amid worrying signs of faltering growth. EU central bank chief Mario Draghi provided the clearest indication yet that his institution may act as soon as March………………………………………..Full Article: Source

Oil price: recovery predicted - but it’s still ‘one for the brave’

Posted on 26 January 2016 by VRS  |  Email |Print

Friday’s oil price rally recommenced overnight in Asia, buoying hopes of a more sustained recovery. International benchmark Brent crude had risen strongly to above $30 a barrel at the end of last week, amid a broader-based market rally prompted by hopes of European Central Bank stimulus.
The worsening cold weather in the US, which saw violent blizzards across the east coast, added to the upward momentum, fuelling the sense that demand for heating oil would increase and pushing the price towards $33………………………………………..Full Article: Source

Why Iran is a problem for the oil market

Posted on 26 January 2016 by VRS  |  Email |Print

An Iranian oil tanker, moored at the port of Assaluyeh for more than a year, set sail for South Korea last week, heralding a new period of uncertainty for world crude prices.
The global oil market, already suffering a supply glut, has been anticipating the arrival of Iranian crude for months, and now that sanctions against its nuclear program have been lifted, Iran is free to sell more of its oil into a market already oversupplied by 1.5 million barrels or more a day………………………………………..Full Article: Source

OPEC officials see oil market begin to start rebalancing

Posted on 26 January 2016 by VRS  |  Email |Print

OPEC officials said on Monday the oil market was poised to start rebalancing itself after prices sank to their lowest since 2003, a sign the exporter group will stick to its policy of not cutting supplies without help from rival producers. Oil prices have collapsed to below $28 a barrel this month from $100 in mid-2014 on a supply glut.
The drop gained impetus after the Organization of the Petroleum Exporting Countries in late 2014 shifted strategy to defend market share, not prices. The price drop has started to slow the development of relatively expensive supply sources such as U.S. shale oil and forced companies to delay or cancel billions of dollars worth of projects, putting some future supplies at risk………………………………………..Full Article: Source

Nigeria’s currency in free fall due to oil slump

Posted on 26 January 2016 by VRS  |  Email |Print

Food wholesaler Chioma Oluwaseun was sorting through the inventory in her warehouse to hike prices for imports, in line with a Nigerian currency that has lost a third of its value on unofficial “parallel markets” since last month.
Even though the naira is plunging on the street, a result of the collapse of global prices for oil exports, which Nigeria depends on for state revenue, the official exchange rate has yet to budge. But few think that situation can last much longer………………………………………..Full Article: Source

Oil price swings expected to continue as market sends mixed messages

Posted on 25 January 2016 by VRS  |  Email |Print

The oil price is expected to remain volatile throughout trading this week after recording massive swings over the last week. Supplies remain high around the world as analysts continue to slash their outlook on the oil price, though industry leaders have remained bullish on a price rise.
The oil price staged its biggest two day rally in over seven years at the end of last week, topping off a week of volatility that saw the price of a barrel of Brent crude slip to 12 year lows of just $27.14………………………………………..Full Article: Source

Opec emergency meeting ‘may hurt market’

Posted on 25 January 2016 by VRS  |  Email |Print

Iran’s oil minister said on Friday any emergency meeting of the Organization of Petroleum Exporting Countries (Opec) would hurt the crude oil market if it made no decision to shore up falling prices.
Venezuela has been calling for an emergency meeting to discuss steps to prop up prices, which are at their lowest since 2003. But Iran and Gulf members of the Opec have been rebuffing Venezuela’s push for a special meeting………………………………………..Full Article: Source

Will OPEC Be Able to Make Oil Precious Again?

Posted on 25 January 2016 by VRS  |  Email |Print

OPEC has announced it would hold an emergency session due to falling prices in the global oil market. The participants will discuss countering the poor market conditions.
The Organization of the Petroleum Exporting Countries (OPEC) may hold an emergency session in March, Nigerian Minister of State for Petroleum Emmanuel Ibe Kachikwu said recently. According to him, with oil below $35 a barrel, oil producers have enough reasons to be worried………………………………………..Full Article: Source

Russia Can ‘Cope With Oil Price Under 20 Dollar Better Than US’

Posted on 25 January 2016 by VRS  |  Email |Print

The chief analyst at Bremer Landesbank, Folker Hellmeyer, published an analysis, according to which Russia and Saudi Arabia will be able to avoid crisis even if the oil price drops up to 20 dollars per barrel.
At the same time, Western countries will find it difficult to cope with such low prices and are likely to find themselves facing certain hardships, German newspaper Deutsche Wirtschafts Nachrichten wrote, citing the expert………………………………………..Full Article: Source

Saudis ‘will not destroy the US shale industry’

Posted on 25 January 2016 by VRS  |  Email |Print

Energy guru Daniel Yergin says rich investors have $60bn war chest to buy up distressed fracking assets after Opec war of attrition. Hedge funds and private equity groups armed with $60bn of ready cash are poised to snap up the assets of bankrupt US shale drillers, almost guaranteeing that America’s tight oil production will rebound as soon as prices start to recover.
Daniel Yergin, founder of IHS Cambridge Energy Research Associates, said it is impossible for OPEC to knock out the US shale industry though a war of attrition even if large numbers of frackers fall by the wayside over coming months………………………………………..Full Article: Source

The world economy: Who’s afraid of cheap oil?

Posted on 22 January 2016 by VRS  |  Email |Print

Low energy prices ought to be a shot in the arm for the economy. Think again. The world is drowning in oil. Saudi Arabia is pumping at almost full tilt. It is widely thought that the Saudis want to drive out higher-cost producers from the industry, including some of the fracking firms that have boosted oil output in the United States from 5m barrels a day (b/d) in 2008 to over 9m b/d now.
Saudi Arabia will also be prepared to suffer a lot of pain to thwart Iran, its bitter rival, which this week was poised to rejoin oil markets as nuclear sanctions were lifted, with potential output of 3m-4m b/d………………………………………..Full Article: Source

Commodities explained: Iran’s return to the global oil market

Posted on 22 January 2016 by VRS  |  Email |Print

The prospect of Iranian crude oil returning to the market has heaped further pressure on prices this week. Brent, the international oil benchmark, sank to 2003 lows of less than $28 a barrel. But just how quickly can these additional Iranian barrels make their way to customers?
Once the second-largest producer in Opec, Iran’s output has averaged 2.8m barrels a day — from 3.6m b/d in 2011 — as a result of the western sanctions aimed at reining in the country’s nuclear activities. Iranian officials have vowed in recent months to increase output by 500,000b/d immediately after the lifting of restrictions and a further 500,000b/d within seven months………………………………………..Full Article: Source

Moody’s cuts oil price estimates as supply glut continues

Posted on 22 January 2016 by VRS  |  Email |Print

Moody’s Investors Service has reduced its price estimates for Brent crude and West Texas Intermediate crude amid continued oversupply in the oil markets and the risk of additional supply from Iran. Moody’s has lowered its price estimate in 2016 for both Brent crude oil, the international benchmark, and West Texas Intermediate (WTI) crude, the North American benchmark, to $33/barrel (bbl). For Brent, this marks a $10/bbl reduction from the rating agency’s previous estimate, and for WTI, a $7/bbl reduction. Moody’s expects that both prices will rise by $5/bbl on average in 2017 and 2018.
“OPEC countries continue high levels of production in the battle for market share, contributing to the current oil glut despite moderate consumption growth by key consumers such as China, India and the US,” said Terry Marshall, a Moody’s Senior Vice President. “In addition, we expect the rise in Iranian oil output this year to offset or exceed production cuts in the US.”……………………………………….Full Article: Source

Oil price: fall to $10 a barrel ‘not impossible’, admits BP boss

Posted on 22 January 2016 by VRS  |  Email |Print

Independent analysts predicting the oil price could fall to painful lows is one thing, but when an oil major admits an ultra-bearish forecast is likely, people sit up and take notice. zzzzthe boss of BP, Bob Dudley, told the BBC’s Kamal Ahmed it was “not impossible” the price of oil could fall to $10 a barrel - a forecast made earlier this month by emerging-markets lender Standard Chartered.
In fact, he has predicted “a price $30 to $40 by the middle of the year” and eventually “towards the end of the year, it could be into the $50s”………………………………………..Full Article: Source

Nigeria Seeks Emergency OPEC Meeting

Posted on 22 January 2016 by VRS  |  Email |Print

For some of the world’s biggest oil-producing nations, the pain of more than a year and a half of falling prices is forcing increasingly desperate measures. Nigeria’s top oil official used a panel at the World Economic Forum in Davos, Switzerland, to bluntly plead for an emergency meeting of the Organization of the Petroleum Exporting Countries.
Other member states of OPEC, a cartel of some of the world’s biggest producers, have quietly lobbied for such a meeting for months. But on Thursday, Nigerian Oil Minister Emmanuel Ibe Kachikwu made one of the strongest, public calls yet by an OPEC member………………………………………..Full Article: Source

Chart shows oil not only commodity suffering from global glut

Posted on 21 January 2016 by VRS  |  Email |Print

It seems everyone knows the world is flooded with crude oil, but black gold is far from the only commodity that is saddled with a global glut. It’s the downside of the commodity supercycle. On the way up, ravenous demand led by China sent prices of everything from crude to soybeans to iron ore soaring. Producers responded in classic supply-demand fashion: Churning out more to meet demand.
But China’s economy has slowed and global demand has weakened, leaving many commodities grossly oversupplied. And while there’s a lot to the old saying that the “best cure for low prices is low prices,” demand has been slow to respond. China’s economy is slowing and global manufacturing is in less than stellar shape………………………………………..Full Article: Source

Oil prices are at the mercy of geopolitics

Posted on 21 January 2016 by VRS  |  Email |Print

Geopolitics and geoeconomics are pounding down on the oil market, and the price seems to have no place to hide. The latest barrage comes this week from the re-entry of sanctioned Iranian oil to the world market, triggered by Tehran’s compliance with the nuclear agreement.
The lifting of sanctions, originally expected to happen in March or April, was sped up to bolster support for President Rouhani in Iran’s upcoming parliamentary elections. As a result, the returning oil will arrive in an already glutted market at a time of maximum seasonal weakness — and when geoeconomic pressures are mounting………………………………………..Full Article: Source

Iran’s Return to the Global Oil Market Is No Cause for Panic

Posted on 21 January 2016 by VRS  |  Email |Print

As Iran ramps up production, it will be countered by a decrease in activity in places where oil is more expensive to produce. The lifting of economic sanctions against Iran this past week is no reason for the oil markets to panic.
While the addition of somewhere between 500,000 and 1 million barrels of Iranian crude per day to an already oversupplied market may seem like the end of the world to those bullish on oil prices, the reality is far less dramatic………………………………………..Full Article: Source

Venezuela Said to Request Emergency OPEC Meeting in Letter

Posted on 21 January 2016 by VRS  |  Email |Print

Venezuela wrote to fellow OPEC producers requesting an emergency meeting as the collapse in oil prices hurts the group’s most vulnerable members, according to five people with knowledge of the matter.
The letter was sent to the 12 other members of the Organization of Petroleum Exporting Countries, the people said, asking not to be identified as the document isn’t public. Venezuela has repeatedly called for OPEC members to meet as slumping oil prices sap government revenue. De facto leader Saudi Arabia, which has insisted it won’t cut production unless non-OPEC exporters cooperate, signaled again on Jan. 17 that it will stick to its strategy of defending market share………………………………………..Full Article: Source

Oil price to fall further as market could drown in over-supply: IEA

Posted on 20 January 2016 by VRS  |  Email |Print

The oil price is set to fall further this year as supply vastly exceeds demand, with major oil exporter Iran’s return to the market offsetting any production cuts from other countries, the IEA said on Tuesday.
“Can it go any lower?” the International Energy Agency asked in its monthly oil market report. “Unless something changes, the oil market could drown in over-supply. So the answer to our question is an emphatic yes. It could go lower.” The oil price this week hit lows not seen in 12 years, and is currently trading at or below 29 dollars per barrel………………………………………..Full Article: Source

Iran Follows Saudi Oil-Price Cut in Europe

Posted on 20 January 2016 by VRS  |  Email |Print

Iran said it will cut crude prices to Europe next month in line with similar reductions by Saudi Arabia, signaling that it wants to compete with its largest rival but without making deep discounts after international sanctions were lifted on its oil.
In a price list published on its website in recent days, the National Iranian Oil Company said it will reduce its official prices in North West Europe by $0.55 a barrel for its light crude and by $0.15 a barrel in the Mediterranean for delivery next month………………………………………..Full Article: Source

Oil price falls below $28 a barrel - less than cost of an actual barrel

Posted on 20 January 2016 by VRS  |  Email |Print

The use of oil in every part of our daily lives means consumers are dependent on the market. Oil prices affect our daily lives, as consumers, drivers and commuters - but the new 12-year low in the cost of a barrel is an unusual situation.
With the lifting of sanctions against Iran, the market, already oversupplied, is expected to be flooded. It’s the anticipation of this which pushed the price of Brent crude down below $28 - or £19.60 - on Monday………………………………………..Full Article: Source

Why Are Oil Prices So Hard To Forecast?

Posted on 20 January 2016 by VRS  |  Email |Print

For the oil forecasting community, the most recent collapse in oil prices marks one more failure. The long trail of forecast errors includes the market implosions of 1982 and 1986, not seeing the run-up in commodity prices after 2004 and now missing the end of the same commodity boom. For those of us who depend on oil price forecasts, this is a big problem.
Try to forecast the economic outlook for Houston or the Gulf Coast, for example, without a good handle on oil prices. Right now, I am coping with oil price uncertainty by preparing several scenarios for Houston’s economic outlook, mostly conditioned by guessing when and how fast oil prices might recover………………………………………..Full Article: Source

Oil Market Could Recover Within One Year Of Global Economic Growth

Posted on 20 January 2016 by VRS  |  Email |Print

Bahrain’s Energy Minister Abdulhussain Ali Mirza said that at the moment, oil supply exceeds demand by about 2 million barrels due to stagnation in the Chinese and other economies. The global oil market could recover within a year of the world economy returning to growth, Bahrain’s Energy Minister Abdulhussain Ali Mirza said.
“In a year, for example, the economy can return to growth and thus the situation in the oil market will be balanced,” he said………………………………………..Full Article: Source

Crude oil could rally more than 35% from here: Societe Generale

Posted on 20 January 2016 by VRS  |  Email |Print

The International Energy Agency renewed concerns about a global oil glut after it said crude oversupply should continue through the end of 2016. The announcement follows the lifting of U.S. sanctions on Iran over the weekend, which experts project will add more crude to the market. Oil prices fell more than 3 percent Tuesday, settling at their lowest level since September 2003.
Despite the overwhelmingly bearish picture for the energy space, one expert maintains his view that we will see oil back above $40 by the end of the year………………………………………..Full Article: Source

Compass CEO Andrew Su says risk of Arab Spring may force Saudi Arabia, OPEC to cut oil output

Posted on 20 January 2016 by VRS  |  Email |Print

Holding on to around 30-million-barrel-a-day production ceiling could land OPEC’s powerbroker with its own Arab Spring, one industry expert has warned. The prolonged slump in oil prices has eaten away the huge cash pile of Saudi Arabia, forcing the oil giant to introduce austerity measures such as cuts to subsidies it offers its citizens that can potentially fuel social unrest.
Andrew Su, chief executive of Australian brokerage Compass Global Markets, told CNBC, “When the Saudis and OPEC moved to push prices lower last year, they were trying to keep pressure on Russia and the US shale producers. That has happened.”……………………………………….Full Article: Source

Non-OPEC crude production projected to drop in 2016

Posted on 20 January 2016 by VRS  |  Email |Print

Crude oil production in 2016 outside the Organization of Petroleum Exporting Countries (OPEC) will plunge by 660,000 barrels a day (BPD), the group said Monday in its monthly market report, a 270,000 BPD drop from its December estimate. The bulk of the production drop outside OPEC this year will come from the U.S., 380,000 BPD, OPEC projected in its January report, averaging 13.5 million barrels per day (MMBPD), Kallanish Energy finds.
The drop was revised down by 210,000 BPD compared to December’s projection due to the steep drop in global oil prices which could endanger output of marginal barrels from unconventional sources (tight crude and unconventional natural gas liquids)………………………………………..Full Article: Source

Oil price could still be as low as $25 in a year’s time

Posted on 19 January 2016 by VRS  |  Email |Print

Oil prices fell sharply overnight and touched a near 13-year low as the US and EU prepared to lift international sanctions on dormant oil power Iran earlier than expected.
In a market already flooded with excess supply that has pushed onshore reserves to record levels and driven prices ever lower, Iranian exports ramping up – it has pledged to add 500,000 barrels a day immediately and a million within six months – is seen as an extremely bearish signal. International benchmark Brent crude fell to $27.70 overnight, its lowest level since 2003………………………………………..Full Article: Source

Falling oil prices: How are countries being affected?

Posted on 19 January 2016 by VRS  |  Email |Print

Oil prices have fallen to their lowest level since 2003, sinking below $28 a barrel before recovering slightly on Monday. Analysts say the drop has been driven by oversupply, coupled with a fall in demand because of a slowdown in economic growth in China and Europe.
There are fears that the lifting of Western sanctions on Iran could worsen the existing problem, as the country prepares to pump more oil into the market. The effects of falling prices are being felt by economies around the world………………………………………..Full Article: Source

OPEC sees oil market rebalancing in 2016

Posted on 19 January 2016 by VRS  |  Email |Print

OPEC forecast on Monday that oil supply from non-member countries will post a larger-than-expected decline this year due to the collapse in prices, boosting the need for crude from the producer group.
Supply outside the Organization of the Petroleum Exporting Countries (OPEC) would decline by 660,000 barrels per day (bpd) in 2016, led by the United States, OPEC said in a report. Last month, OPEC predicted a drop of 380,000 bpd………………………………………..Full Article: Source

Oil market will take time to stabilize, says Al-Naimi

Posted on 19 January 2016 by VRS  |  Email |Print

S. Arabian Minister of Petroleum and Mineral Resources Ali Al-Naimi said on Sunday it would take “some time” to restore stability to the global oil market in the midst of a glut, but he remained optimistic about the future.
Al-Naimi’s comments come at a time when OPEC member Iran is preparing to raise oil exports after international sanctions were lifted on Saturday. Brent plunged to $28.94 a barrel on Friday, its lowest in 12 years, on the prospect of additional Iranian barrels………………………………………..Full Article: Source

Iranian oil likely to push prices lower

Posted on 18 January 2016 by VRS  |  Email |Print

When it comes to oil, the question becomes how low can prices go. And with Iran back as a full player in world oil markets, the previously unthinkable — sub-$20-a-barrel crude — is looking more possible.
Iran’s oil ministers say they intend to boost their oil production and ship 500,000 barrels a day initially, now that sanctions have been lifted in light of nuclear inspections deal, the Islamic Republic News Agency reported. Iran’s goal is 2 million barrels a day. Those levels alone are big enough to further depress the price of oil, especially since Saudi Arabia has refused to cut its production levels………………………………………..Full Article: Source

Iran to boost oil exports by 500,000 bpd after sanctions

Posted on 18 January 2016 by VRS  |  Email |Print

Iran is ready to increase its crude oil exports by 500,000 barrels a day, the deputy oil minister said on Sunday, hours after international sanctions on Tehran were lifted, removing an obstacle to exports.
The Islamic Republic emerged from years of economic isolation on Saturday when world powers lifted sanctions after confirming that Tehran had curbed its nuclear programme. “With consideration to global market conditions and the surplus that exists, Iran is ready to raise its crude oil exports by 500,000 barrels a day,” Deputy Oil Minister Amir Hossein Zamaninia was quoted as saying by the Shana news agency………………………………………..Full Article: Source

Why the falling oil price may not lead to boom

Posted on 18 January 2016 by VRS  |  Email |Print

An economic boom usually follows a big drop in the oil price but this time maybe different – indicative not of oversupply but weakness in demand. There was a time when Blue Monday meant a song by New Order. These days it is the third Monday in January, allegedly the most depressing day of the year.
Whether there is any scientific basis for this claim is debatable, but for what it’s worth the argument is that people feel miserable because Christmas is over, the credit card bills are arriving, it’s dark when you go to work in the morning and it’s dark when you head home………………………………………..Full Article: Source

Saudi minister optimistic oil market will stabilize

Posted on 18 January 2016 by VRS  |  Email |Print

Saudi Oil Minister Ali Al-Naimi said on Sunday that it would take “some time” to restore stability to the global oil market but he remained optimistic about the future. Al-Naimi’s comments came even as Iran said it was ready to increase its crude oil exports by 500,000 barrels a day, hours after international sanctions on Tehran were lifted, removing an obstacle to exports.
“As you know, the oil market has witnessed over its long history, periods of instability, severe price fluctuations, and petro-economic cycles,” Al-Naimi said in a speech at an energy event in Riyadh attended by the Mexican president and energy minister………………………………………..Full Article: Source

Oil at $30 a barrel

Posted on 18 January 2016 by VRS  |  Email |Print

Don’t thank Obama, the man who makes war against fossil fuels. The big fall off your chair moment during President Obama’s State of the Union address came when he proclaimed: “We’ve cut our imports of foreign oil by nearly sixty percent, and cut carbon pollution more than any other country on Earth. Gas under two bucks a gallon ain’t bad, either.”
Sure, Mr. President. Take a bow for the smashing success of the very domestic oil and gas industry that you have tried to destroy. Even Mr. Obama couldn’t carry this off. The smirk on his face as he sang the praises of an oil and gas industry was unmistakable………………………………………..Full Article: Source

Cooperation Among Oil Producers Will Take Time

Posted on 18 January 2016 by VRS  |  Email |Print

Oil-market stability will be achieved through cooperation among major producers but this will likely take time, Saudi oil minister Ali al-Naimi said Sunday, signaling the world’s top petroleum exporter is still not prepared to take sole responsibility for propping up the oil price.
“As you know, the oil market has witnessed over its long history periods of instability, severe price fluctuations and petro-economic cycles. This is one of them,” Mr. Naimi told an energy gathering in Riyadh. “Market forces, as well as the cooperation among the producing nations, always lead to the restoration of stability. This, however, takes some time.”……………………………………….Full Article: Source

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