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Saudi likely to name new OPEC governor

Posted on 12 September 2016 by VRS  |  Email |Print

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

OPEC to Trump Adviser: No Chance

Posted on 12 September 2016 by VRS  |  Email |Print

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

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

Posted on 12 September 2016 by VRS  |  Email |Print

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

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

Posted on 09 September 2016 by VRS  |  Email |Print

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

Russian-Saudi Deal on Oil Market Not to Have Long Term Effect - Sberbank CEO

Posted on 09 September 2016 by VRS  |  Email |Print

The Russia-Saudi Arabia agreement aimed at stabilization of global oil prices will not have a long term effect, CEO of Russia’s Sberbank Herman Gref said. “I think it will not be a long term trend,” Gref said.
On Monday, Russian Energy Minister Alexander Novak and his Saudi counterpart Khalid bin Abdulaziz Al Falih signed a declaration in Hangzhou, China aiming to calm the volatile energy market, which has been rocked by slumping oil prices and a massive production glut. The agreement provides that the sides will establish a monitoring group to track oil market indexes and to give recommendations on market regulation………………………………………..Full Article: Source

Saudi Oil Output Said to Drop as OPEC Debates Production Freeze

Posted on 09 September 2016 by VRS  |  Email |Print

Saudi Arabia told OPEC that its oil production dropped by 40,000 barrels a day in August to 10.63 million barrels as the group debates a deal to curb output to shore up prices.
The figures were submitted to the Organization of Petroleum Exporting Countries, according a person with knowledge of the data, who asked not to be identified because the information hadn’t yet been made public. The country’s output declined from an all-time high of 10.67 million barrels a day in July, according to OPEC submissions………………………………………..Full Article: Source

Donald Trump’s oil man urges Russia and Opec to cut output

Posted on 09 September 2016 by VRS  |  Email |Print

Harold Hamm, Donald Trump’s top energy adviser, has urged Russia and Opec to rein in oil production in an effort to raise prices, saying US companies have already lowered output during a two-year price war that has upended the energy industry.
Hamm, a billionaire pioneer of the North American shale boom who has been tipped as a potential energy secretary should Mr Trump win the US presidential election, said Opec and Russia should agree to freeze production when they meet this month to discuss ways to stabilise the market………………………………………..Full Article: Source

Cramer: Drop in oil inventories signals a treacherous market

Posted on 09 September 2016 by VRS  |  Email |Print

The market’s reaction to oil inventories on Thursday told Jim Cramer that it really only has the ability to focus on one bullish idea at a time and dumps everything else.
“When you have a market that decides only one thing is working, and it doesn’t bother with anything else, you have a market that is a lot more treacherous than it seems,” the “Mad Money” host said. The price of crude shot up on Thursday after oil inventories indicated a large drawdown of 14.5 million barrels………………………………………..Full Article: Source

Oil market faces supply crunch within a year, warns HSBC

Posted on 08 September 2016 by VRS  |  Email |Print

The global oil market should brace itself for a looming supply crunch as early as next year, which could lead to price shocks and a growing dependence on exports from the Middle East.
HSBC analysts have warned that demand for oil will help to balance the oversupplied market by the year’s end. But as demand continues to climb against a backdrop of low investment in new reserves the global market runs the risk of supply shocks and rocketing prices within the next two years………………………………………..Full Article: Source

Here’s what could lead to an oil price spike

Posted on 08 September 2016 by VRS  |  Email |Print

Oil prices have continued to languish below $50 per barrel as a glut of crude oil and gasoline persist even as global demand continues to rise. The IEA still predicts that oil consumption will expand by another 1.4 million barrels per day in 2016, while production stagnates.
That dynamic suggests that the market is converging towards some sort of balance, although the speed with which that takes place is hotly debated. But in the short-term the record levels of crude oil and refined products sitting in storage have prevented oil prices from rebounding………………………………………..Full Article: Source

Iraq needs to review upstream contracts in line with oil prices: Oil minister

Posted on 08 September 2016 by VRS  |  Email |Print

As Iraq continues to pump record crude oil levels, oil minister Jabbar al-Luaibi, stressed Wednesday the need to review its upstream contracts with international oil companies to account for changes in the oil price.
Luaibi met a delegation from Italian oil company Eni led by head of exploration, Antonio Villa, in Baghdad, to discuss his plans for the sector in 2016 and 2017, which he said would focus on the small undeveloped fields in the south of the country. He emphasized that his office is working to overcome the obstacles and difficulties faced by oil companies operating in Iraq, adding that it “will open a new page in the development of the oil sector” in a statement released Wednesday………………………………………..Full Article: Source

Oil deals keep slipping through OPEC’s fingers

Posted on 08 September 2016 by VRS  |  Email |Print

The initial excitement over the G20 agreement between Saudi Arabia and Russia to co-operate in a bid try to stabilise the oil market started to evaporate overnight, as a more realistic assessment of the implications of the agreement started to emerge.
In effect, the market concluded that the co-operation agreement, which includes the establishment of a working group between the world’s two largest producers, was not that much different to the succession of failed attempts to agree to freezes or caps on production that have been put forward ever since the oil price cracked in 2014………………………………………..Full Article: Source

OPEC’s dire finances fuel oil freeze talks

Posted on 08 September 2016 by VRS  |  Email |Print

Price wars can be painful — even for the mighty OPEC. That’s why the oil cartel, along with Russia, is once again entertaining a freeze in production aimed at putting a floor beneath low prices.
The goal is to keep prices high enough to give oil-reliant countries a financial boost, but not so high that they encourage their chief rival — American shale oil producers — to start pumping aggressively again………………………………………..Full Article: Source

Are Oil Prices Poised to Go Higher Next Year? (Video)

Posted on 07 September 2016 by VRS  |  Email |Print

Jason Schenker, Prestige Economics president and chief economist, discusses the outlook for OPEC output and oil prices with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………………Full Article: Source

Talks by Russia’s Putin and Saudi prince could be big deal for oil market

Posted on 07 September 2016 by VRS  |  Email |Print

Russian President Vladimir Putin’s seemingly cozy talks with Saudi Arabia could put a floor under oil prices, possibly limiting what could have been a sharp drop later this month. In a surprise move over the long Labor Day weekend, Russia and Saudi Arabia agreed to cooperate in world oil markets.
There was no immediate deal to act but they say they are moving toward a strategic energy partnership and could take action in the future. The joint statement was signed by both countries’ oil ministers on the sidelines of the G-20 summit in China, after a meeting between Putin and Saudi Deputy Crown Prince Mohammed bin Salman………………………………………..Full Article: Source

Iran Supports Any Measure to Stabilize Oil Market, Minister Says

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC’s third-largest producer, the Islamic Republic signals willingness to support the possible revival of a global deal on freezing oil production levels. Iran supports an oil price of $50-60 per barrel and any measure to stabilize the market, state TV quoted the country’s oil minister as saying on Tuesday. 
“Iran wants a stable market and therefore any measure that helps the stabilization of the oil market is supported by Iran,” Bijan Zanganeh said after meeting OPEC Secretary-General Mohammed Barkindo in Tehran………………………………………..Full Article: Source

OPEC’s Crude Is Too Sour for This Oil-Market Upstart

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC’s biggest producers are playing second fiddle to smaller suppliers in a coveted corner of the oil market. Crude with a lot of sulfur, including supply from Saudi Arabia and Iran, is too sour to be processed easily at its plants, said Zhang Liucheng, director and vice-president at Shandong Dongming Petrochemical Group, the biggest among China’s private refineries.
Most of the independent companies, which have been courted by sellers since they were granted access into international oil markets last year, are instead seeking ‘sweeter’ cargoes with lower sulfur content, he said………………………………………..Full Article: Source

OPEC Likely to Be Cautious on Output Cap

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC members face a dilemma in the run-up to a new round of oil-production talks later this month: They want to boost crude prices to raise their revenue, but they don’t want to send prices so high that North American shale-oil producers will lift their output.
The result, say officials from members of the Organization of the Petroleum Exporting Countries, is that the cartel is unlikely to make aggressive efforts to curb output when it meets in Algiers beginning Sept. 26………………………………………..Full Article: Source

The pieces of Putin’s grand plan to remake the global oil market are falling into place

Posted on 06 September 2016 by VRS  |  Email |Print

Step by step, Russian President Vladimir Putin is making advances in his grand plan to become the major player in the oil market by co-ordinating the conflicting forces in the Middle East.
And, at the G20 conference, Putin made it clear to all participants where he was headed as he re-signed with Saudi Arabia. Significantly, the Saudi’s greatest supporter, the United States of America, was not part of the game and Russia replaces US influence………………………………………..Full Article: Source

Saudi, Russia Pledge Oil Cooperation Without Agreeing Freeze

Posted on 06 September 2016 by VRS  |  Email |Print

The world’s top two crude-oil producers pledged to cooperate to stabilize global markets, while failing to announce any specific measures to bolster prices. “We have a number of tools at our disposal for joint actions,” Russian Energy Minister Alexander Novak said following a meeting with his Saudi counterpart Khalid Al-Falih. Both agree that an output freeze would be the most constructive instrument, he said.
Despite promise of a “significant” announcement — leading to a 5.5 percent jump in oil prices — no concrete actions were revealed at the joint press briefing in Hangzhou………………………………………..Full Article: Source

Oil market rocked by Russia-Saudi co-operation pact

Posted on 06 September 2016 by VRS  |  Email |Print

Saudi Arabia and Russia have forged a deal to use their combined market dominance to help stabilise the oil market as it recovers from its two year downturn. The oil giants, which together contribute over 20pc to global supply, agreed on the sidelines of the G20 summit in China to form a ‘working group’ which will track the market’s recovery and make recommendations on how to ensure stability.
The pact did little to help steady the market on Monday morning as prices swung wildly - first spurred by hope that the pact would include a supply freeze deal before retreating after it emerged that the pact would not result in immediate action………………………………………..Full Article: Source

Iran’s Ready to Pump More as OPEC Faces ‘Prisoner’s Dilemma’

Posted on 06 September 2016 by VRS  |  Email |Print

As speculation swirls over whether oil producers will reach a deal to coordinate output and aid a recovery in prices, Iran says it’s ready to pump more. The OPEC member can raise production to 4 million barrels a day in two to three months from the current daily level of about 3.8 million, Mohsen Ghamsari, director of international affairs at state-run National Iranian Oil Co., said.
The company faces no technical or operational reasons to restrict or cut output, state news agency Mehr cited Managing Director Ali Kardor as saying………………………………………..Full Article: Source

Qatar hopes OPEC members to overcome challenges

Posted on 06 September 2016 by VRS  |  Email |Print

Qatar’s Prime Minister Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani and OPEC Secretary General Mohammad Sanusi Barkindo discussed global oil market situation, the cartel reported September 5.
The meeting in Doha was also attended by Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and current OPEC Conference President. The Qatari Prime Minister expressed confidence that Barkindo would work closely with OPEC member countries to overcome the current challenges in the interest of all oil producers and consumers………………………………………..Full Article: Source

OPEC’s Indonesia is ‘comfortable’ with crude oil prices at $40-45 per barrel

Posted on 05 September 2016 by VRS  |  Email |Print

Indonesia’s finance minister Sri Mulyani Indrawati told CNBC she was optimistic her country could receive a ratings upgrade this year — despite oil being pinned below $50, levels at which she said her country is generally “comfortable.”
Despite the low price of crude walloping other OPEC nations, Indonesia, which is part of the G-20 group of the world’s biggest economies, is managing to ride out the crisis. It has a coveted investment grade credit rating from Moody’s Investors Service and Fitch Ratings, but not yet from Standard & Poor’s………………………………………..Full Article: Source

Here’s Why Oil Could Rally Back to $100 per Barrel

Posted on 05 September 2016 by VRS  |  Email |Print

A combination of waning oil discoveries, a decline in new projects, and a big spike in demand over the next ten years should fuel a massive bounce in oil prices. Don’t give up on crude oil.
I know black gold’s roller-coaster ride has been a frustrating one for many investors. Oil crept back toward $50 per barrel in mid-August only to tumble lower again at the close of the month, but cost-saving decisions made over the past couple years as the commodity languished well below its peak are going to send oil roaring back in a big way over the long term………………………………………..Full Article: Source

Saudi Arabia raises oil prices amid signs of growing demand

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia, the world’s largest crude exporter, has raised pricing for October oil sales to Asia and the United States in a sign of strengthening demand.
The state-owned Aramco increased its official selling price for Arab Light crude to Asia by 90 cents a barrel, to 20 cents below the regional benchmark, it said on Sunday. The company had been expected to raise Arab Light prices by 50 cents a barrel, to 60 cents less than the benchmark for Asian buyers, according to the median estimate in a Bloomberg survey of seven refiners and traders in the region………………………………………..Full Article: Source

Oil Market: Saudi Arabia’s New Game Plan

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia has a new game plan: to confuse oil traders and investors. That’s the impression one gets by listening to Saudi Arabia’s new oil minister – who is talking markets up one day, down the next day, and up the day after.
Ever since Saudi Arabia succeeded the US and became the world’s largest oil producer back in the 1970s, the Kingdom has played many games to master the oil market. Sometimes it was “swing” producer, filling occasional gaps created by production shortfalls by major oil producers to soothe the oil market………………………………………..Full Article: Source

Russia and Saudi Arabia Agree to Work for Oil-Market Stability

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia and Russia agreed to work together to ensure oil market stability even as leaders from the world’s two biggest crude producers stopped short of offering detailed proposals.
Oil-market stability is impossible without Saudi-Russian cooperation, the kingdom’s influential Deputy Crown Prince Mohammed bin Salman said after meeting on Sunday with President Vladimir Putin in Hangzhou, China. Prince Mohammed made his comments three days after Putin said he’d like OPEC and Russia to agree to freeze crude supply to steady the market………………………………………..Full Article: Source

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Posted on 02 September 2016 by VRS  |  Email |Print

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.
The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions. “The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified………………………………………..Full Article: Source

Saudis Seen Bolstering Oil Market Defense With Asia Storage

Posted on 02 September 2016 by VRS  |  Email |Print

Saudi Arabia is poised to expand use of oil storage tanks in Japan and China, strengthening ties with its two largest Asian buyers as it fends off competitors for market share.
The world’s biggest exporter plans to increase the amount of storage capacity it uses on Japan’s Okinawa islands, where it’s been leasing tanks since 2010, Amin Nasser chief executive officer of Saudi Arabian Oil Co., said Thursday in Tokyo………………………………………..Full Article: Source

Mexico Locks in Oil Price for 2017 at $42 Per Barrel

Posted on 02 September 2016 by VRS  |  Email |Print

Prescient hedge or foolish waste of money? Recent history has been on Mexico’s side on that one. As a significant oil producer, Mexico’s oil price hedging program has been the worst kept secret in the market recently, although it has been going on for a dozen years according to Reuters.
When it started, disclosure requirements were more lax and the volumes were lower making it easier to keep it under wraps, but the Dodd-Frank Act and success of the program has resulted in larger volumes that just can’t be kept under wraps. The 2015 hedge netted Mexico a record windfall of more than $6 billion last year as oil prices continued a three-year slide………………………………………..Full Article: Source

Oil price outlook cut as doubts grow over output freeze: Reuters poll

Posted on 01 September 2016 by VRS  |  Email |Print

Oil analysts have cut their price forecasts for the first time since February, as the prospect of the world’s largest producers agreeing to freeze output dims and U.S. production shows signs of gradually picking up.
After five consecutive months of upward revisions, the 34 analysts and economists polled by Reuters forecast Brent would average $45.44 a barrel in 2016, slightly lower than last month’s forecast of $45.51. The North Sea benchmark has averaged $42.59 so far this year, having ricocheted from a near-13-year low of $27.10 in January to an eight-month high of $52.86 in June this year………………………………………..Full Article: Source

Saudi Arabia Says It Won’t Flood Oil Market Before OPEC Meet

Posted on 01 September 2016 by VRS  |  Email |Print

Saudi Arabia, the world’s biggest oil exporter, won’t boost output to capacity and flood the market, the kingdom’s Energy Minister Khalid Al-Falih said as OPEC members plan to meet next month to discuss ways to stabilize crude prices.
Saudi Arabia isn’t concerned about global demand in spite of a drop in prices and a slower economy, Al-Falih said in an interview with Al-Arabiya television. The country is able to pump as much as 12.5 million barrels a day of oil, he said in comments broadcast during an official visit to buyers in Asia, its biggest market, including China………………………………………..Full Article: Source

Saudi Arabia Burns Through Foreign Reserves As Oil Prices Tank

Posted on 01 September 2016 by VRS  |  Email |Print

The Saudis are also running budget deficits attributed to the prolonged oil price down turn. Saudi investors monitor stocks at the newly opened exchange market department at the National Commercial Bank (NCB) in Riyadh on November 12, 2014. The Saudi stock market rebounded last week as markets in the rest of the region fell.
However, the real problem for Saudi Arabia is the more than two year free-fall in global oil prices and a massive loss of revenue. You have to hand it to Saudi Arabia. The Kingdom ruled global oil markets for nearly 40 years, increasing or decreasing production as it willed, playing the role of global oil markets swing producer………………………………………..Full Article: Source

Here’s the big mistake oil investors can’t stop making

Posted on 01 September 2016 by VRS  |  Email |Print

Goodbye, August, and don’t let the door hit you on the way out. The S&P 500 index could be in for a whopping 0.3% gain this month, which means the beach bums didn’t miss much.
Bring on September and some big losses as well? Michael Brush, writing for MarketWatch, rattles off seven reasons why stocks are primed for a 5% to 10% drop. Some of those sound familiar — interest rate worries, politics, investors and the media (whaaaaaat?) are too bullish — but he also offers up some ideas on how to prepare………………………………………..Full Article: Source

OPEC, Oil Producers Walk Fine Line on Supply, Demand (Video)

Posted on 01 September 2016 by VRS  |  Email |Print

Libby Toudouze, partner at Cushing Asset Management, discusses OPEC’s role in oil markets, the impact of lower global production, and what she sees as the best investment opportunities in energy. She speaks with Bloomberg’s Alix Steel on “Bloomberg ‹GO›.”.………………………………………Full Article: Source

Oil market cheers EIA changes to weekly statistics

Posted on 01 September 2016 by VRS  |  Email |Print

The Energy Information Administration has made some changes to the way it reports figures on weekly U.S. oil production, exports and petroleum demand — and analysts say the moves mark a significant improvement to the data the market heavily relies on.
“The improvements to the EIA data will definitely offer a better read for those tracking the fundamentals of the energy markets compared to the less accurate estimates’ that were previously published,” said Tyler Richey, co-editor of The 7:00’s Report………………………………………..Full Article: Source

Commodities struggle and oil declined - ANZ

Posted on 31 August 2016 by VRS  |  Email |Print

Analysts at ANZ explained that commodities struggled as a stronger USD and weak fundamentals saw investor appetite wane. Oil declined as doubts emerged that producers will agree to a production freeze.
“The UAE oil minister hinted that the oil market should achieve stability soon. According to reports on Bloomberg, Iran also reiterated it wouldn’t participate in a freeze in output until it regained its share of OPEC production seen three years ago. The physical iron ore market remained quiet, with prices relatively unchanged……………………………………….Full Article: Source

CEO of global energy firm is not ruling out an oil price surge to $100

Posted on 31 August 2016 by VRS  |  Email |Print

Global oil markets could see an increased risk of another major jolt if prices continue to remain at current levels, Tom Albanese, the chief executive of Vedanta Resources told CNBC Tuesday. Recent reports show that discoveries of new oil reserves have dropped to their lowest level for more than 60 years.
The chief of one of the world’s largest diversified natural resources companies implied that this could potentially cause supply shortages. “People are saying there’s no such thing as $100 oil coming again but the longer the prices stay low for this period of time you could see increased risk of a price shock coming in the future,” Albanese said……………………………………….Full Article: Source

Why Oil Market Bulls May Be Misguided

Posted on 31 August 2016 by VRS  |  Email |Print

The dollar strengthened and stocks in Europe and Asia mostly gained as investors continued to digest recent comments from Federal Reserve officials on the prospects for a U.S. interest rate increase this year.
The WSJ Dollar Index, which measures the greenback against a basket of 16 currencies, rose 0.2% Tuesday, putting it on track for its third consecutive session of gains. Higher interest rates tend to make a currency more attractive to investors seeking returns……………………………………….Full Article: Source

Oil executives say crude market volatility is here to stay

Posted on 31 August 2016 by VRS  |  Email |Print

Crude markets will continue to be plagued by volatility in the short and medium term after suffering the biggest downturn in a generation over the past two years, according to oil-company executives gathering for one of the industry’s biggest conferences in Norway.
Oil declined on Monday amid doubts producers will agree on a deal to stabilise the market when suppliers meet next month for informal talks. Iran’s plan to continue boosting crude output until it regains its pre-sanctions Opec market share is dimming prospects of collective action, according to Patrick Allman-Ward, the chief executive of Sharjah’s Dana Gas, at the ONS conference in Stavangar, Norway……………………………………….Full Article: Source

India to be hit by economic crisis if oil price crosses $60: Subramanian Swamy

Posted on 31 August 2016 by VRS  |  Email |Print

India will be hit by an economic crisis if crude oil price crosses USD 60 per barrel, BJP MP Subramanian Swamy said. “Given the state of our economy, if crude oil price per barrel rises above $60 then we will be hit by an economic crisis,” he tweeted.
US benchmark West Texas Intermediate is trading around $47 per barrel while Brent is at $49 currently. The slump in oil prices last year is one of the factors that helped Indian economy notch up big gains by cutting its import bill and reining in inflation……………………………………….Full Article: Source

Iraq to support oil output freeze at OPEC meeting: PM

Posted on 31 August 2016 by VRS  |  Email |Print

Iraq would support a decision by OPEC to freeze oil output to prop up prices, Iraqi Prime Minister Haider al-Abadi told a news conference in Baghdad on Tuesday. “We are with freezing production at the OPEC meeting,” he said, in the clearest indication yet about the position Iraq will support when the oil exporters’ group meets next month.
Members of the Organization of the Petroleum Exporting Countries are due to meet informally in Algeria on the sidelines of the International Energy Forum (IEF) on Sept. 26-28……………………………………….Full Article: Source

Oil market rebalancing could take until end 2017: Shell

Posted on 30 August 2016 by VRS  |  Email |Print

The huge global oil oversupply that has weighed on prices for the past two years may not clear until the second half of 2017, Shell’s chief energy adviser Wim Thomas told Reuters.
The potential return to the market of some 1.5 million barrels per day of supply from Libya and Nigeria and uncertainty about Iranian and Iraqi production levels could push a rebalancing further away than many in the oil industry are hoping. “All these things when they come back on the market can again postpone the true balancing,” Thomas said in an interview on the sidelines of the ONS oil conference in Stavanger, Norway………………………………………..Full Article: Source

Oil prices are poised for a 2010-style rally, says BofA Merrill Lynch analyst

Posted on 30 August 2016 by VRS  |  Email |Print

Crude prices could rise to as much at $70 a barrel during the peak summer driving season next year as the oil market swings from a surplus to a significant deficit, said Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch.
In recent weeks traders have been hanging on every word from ministers of petro-states after officials confirmed earlier this month they would speak on the sidelines of the International Energy Forum next month about taking measures to prop up oil prices………………………………………..Full Article: Source

OPEC revenue to plunge further to $341 billion in 2016

Posted on 30 August 2016 by VRS  |  Email |Print

Based on United States (U.S.) Energy Information Administration (EIA) price forecasts, revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC), is expected to fall to $341 billion in 2016.
The agency, which believed that the revenue could still increase to $427 billion in 2017, put the cartels earnings in 2015 at $404 billion in net oil export revenue in 2015, representing a 46 per cent decline from $753 billion earned in 2014………………………………………..Full Article: Source

Oil Market Pessimists Exit as OPEC Talk Spurs Bets Glut Easing

Posted on 29 August 2016 by VRS  |  Email |Print

Oil investors are turning the car around. For a second week, money managers slashed bets on falling prices by a record and boosted wagers on a rally. Futures have climbed 23 percent in less than three weeks as some OPEC members raised the possibility of an output freeze amid signs the global glut is easing.
“This is a lot of running from one side of the boat to the other,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “Speculators were selling with both hands in July and buying with both hands this month.”……………………………………….Full Article: Source

Saudi energy minister: Oil market ‘moving in the right direction’

Posted on 29 August 2016 by VRS  |  Email |Print

Saudi Arabian Energy Minister Khalid Al-Falih tempered expectations that the world’s major oil producers would look to freeze production next month, telling Reuters last week that the “market is moving in the right direction” already. “We don’t believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us,” he said.
Al-Falih said there have not yet been any specific discussions of a production freeze by OPEC, even though world supply remains high. His comments suggest the chances of a pact are minimal, as he pointed to a market rebalancing and steady demand………………………………………..Full Article: Source

Iran and Venezuela cooperate to boost oil prices

Posted on 29 August 2016 by VRS  |  Email |Print

Venezuela’s president said he expects new measures to stabalise oil markets and strengthen OPEC to be announced soon. Nicolas Maduro was meeting with Iran’s foreign minister and said the two nations agreed to cooperate to boost oil prices.
“We continue to build common ground and a new consensus on stabilising oil markets, strengthening industries, strengthening OPEC, to strengthen the closeness and alliance with the production countries of OPEC,” said Maduro in a televised address………………………………………..Full Article: Source

Iraq Can Crush OPEC’s Oil Freeze Believers

Posted on 29 August 2016 by VRS  |  Email |Print

When the OPEC nations last met with Russia to agree an output freeze, back in April, it was Saudi Arabia that shot down the deal — refusing to take part without Iran. This time both countries may be more accommodating; the stumbling block is more likely to be Iraq.
OPEC members are planning an informal meeting in Algeria in late September, where discussions of a freeze could be revived. In April, the Saudis refused to limit output unless Iran did the same. Not surprisingly, as it was still raising production after the easing of sanctions, Iran refused and the Saudis walked away………………………………………..Full Article: Source

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