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Russia’s Novak: Global oil market won’t balance before H1 2017

Posted on 13 May 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak told reporters on Thursday that the global oil surplus stood at 1.5 million barrels per day (bpd) and that the market might not balance out until the first half of 2017.
A deal to freeze oil output by OPEC and non-OPEC producers fell apart last month after Saudi Arabia demanded that Iran join in, ruining any chance of sealing what would have been the first such cooperation plan in 15 years. “This (the forecast that the market won’t balance until the first half of 2017) is an optimistic forecast as oversupply persists and the decline in production volumes is slower than analysts expected,” he said………………………………………..Full Article: Source

Saudi Arabia’s oil policy: Beyond OPEC

Posted on 13 May 2016 by VRS  |  Email |Print

Khalid Al-Falih is a busy man. When he met The Economist in Riyadh in April, he was sitting in the sprawling office from which he was running the health ministry. But the subject was the part-privatisation of Saudi Aramco, the world’s biggest oil company, whose board he also chairs. And then there was the big football match—Manchester City v Real Madrid—to rush home to watch.
Since then his focus has narrowed a little. On May 7th the 55-year-old was moved from the health ministry to what had been known as the oil ministry, but is being renamed the Ministry of Energy, Industry and Mineral Resources. That gives him oversight of the kingdom’s ambitious drive to take its economy beyond oil………………………………………..Full Article: Source

Iran’s Speedy Oil Revival Unlikely to Mean Change in OPEC Stance

Posted on 13 May 2016 by VRS  |  Email |Print

Iran’s success in boosting crude output to the most since late 2011 is no incentive for it to join OPEC partners in curbing production to shore up prices. With crude rallying, analysts see no immediate need for action.
Oil Prices are near the highest since November as supply interruptions in Nigeria, Libya and Venezuela balance an increase of 600,000 barrels a day in Iran’s April crude exports, according to data from the International Energy Agency………………………………………..Full Article: Source

Iraq overtakes Saudi Arabia as biggest oil exporter to India in April

Posted on 13 May 2016 by VRS  |  Email |Print

Iraq overtook Saudi Arabia as the top crude exporter to India in April for the first time since December, according to data compiled by Reuters, as the two biggest OPEC producers fight for market share in Asia’s fastest growing oil market.
Saudi Arabia also lost its top spot in China, Asia’s biggest oil consumer, last month when Russia overtook the world’s biggest crude exporter due to strong purchases by Chinese independent refineries. Overall, April oil imports by India rose 6 percent from March and are up 9.9 percent in the first four months from a year ago………………………………………..Full Article: Source

Iran, Saudi in oil price war

Posted on 12 May 2016 by VRS  |  Email |Print

Iran on Wednesday blamed its biggest rival Saudi Arabia for the “collapse” of the recent Doha talks on capping oil output but the Kingdom appeared to shrug off the allegation and instead said it would boost production in 2016.
Iran, which did not attend the talks amid a diplomatic row and continuing Middle East proxy wars with Saudi Arabia, also said it would not curb its oil production. Earlier this week, Iran announced that it increased its output to pre-sanctions levels, fulfilling its 2015 pledge to boost production by as much as 1.1 million barrels a day. Iranian President Rouhani says his country is pumping as much as 2.5 million barrels a day………………………………………..Full Article: Source

Natural Gas, Oil Prices to Rise by 2017 - US Energy Info Administration

Posted on 12 May 2016 by VRS  |  Email |Print

Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid an ongoing glut in global oil supply. The prices have since recovered to around $40-45 per barrel for the Brent crude benchmark.
“We’ll see gas moving up toward the end of the year,” Sieminski stated on Wednesday. “It’s the winter time and you always get higher natural gas prices in the winter time, but we see natural gas prices moving back up overtime because there is more industrial demand, there is more demand for fertilizers and other products that are made from natural gas.”……………………………………….Full Article: Source

Oil price to be dragged down by more Saudi pumping

Posted on 12 May 2016 by VRS  |  Email |Print

The oil price remaining “lower for longer” is now “highly likely”, says CNBC, after Saudi Arabia ramped up its reform agenda. The kingdom has replaced its veteran oil minister, Ali al-Naimi, with Khalid al-Falih, the chairman of state-owned oil company Saudi Aramco, who is close to reforming Crown Prince Mohammad bin Salman and has already indicated the kingdom will continue to prioritise market share over prices.
Yesterday, Aramco itself, which has a monopoly on all Saudi oil reserves, announced it will expand its output ahead of a planned minority flotation that would make it the largest quoted company in the world, with a valuation of as much as £1.39trn………………………………………..Full Article: Source

OPEC oil production to rise - EIA

Posted on 12 May 2016 by VRS  |  Email |Print

OPEC oil production will rise reaching 32.43 million barrels per day in 2016 and 33.09 million barrels per day in 2017, according to the forecasts published in the US Energy Information Administration’s (EIA) Short-Term Energy Outlook.
In 2015, OPEC oil production amounted to 31.55 million barrels per day, according to the EIA’s estimates. The highest OPEC production is expected by the EIA in fourth quarter of 2017 - at 33.19 million barrels per day………………………………………..Full Article: Source

Saudi Arabia’s reshuffle: challenges and implications for oil market

Posted on 12 May 2016 by VRS  |  Email |Print

Last week Saudi Arabia’s King Salman announced a major government reshuffle and a reorganization of key ministries. The Kingdom’s oil minister Ali al-Naimi was replaced by former health minister and the chairman of the state-owned oil company Aramco Khalid Al-Falih.
The reshuffle has raised a question about the possibility of changes in Saudi Arabia’s oil strategy and its implications for the world oil market. Cyril Widdershoven, Middle East geopolitical specialist and energy analyst, partner at Dutch risk consultancy VEROCY and SVP MEA-Risk believes that the oil strategy of Saudi Arabia is not going to be changed for the foreseeable future………………………………………..Full Article: Source

Saudi Arabian Fight for Oil Market Intensifies

Posted on 11 May 2016 by VRS  |  Email |Print

Saudi Arabia’s economic battle over the oil market with Iran, Russia and others is intensifying even as it attempts to reduce its dependence on oil, Benoit Faucon, Selina Williams and Summer Said report.
Officials with the Organization of the Petroleum Exporting Countries, or OPEC, say the contest won’t settle down until geopolitical rifts in the Middle East cool. Saudi Arabia’s rivalry with Iran has contributed to violent conflicts in Syria and Yemen and made it nearly impossible for OPEC to agree on tactics to raise crude prices. Russia has managed to keep its European market share steady in 2014 and 2015, while Saudi Arabia has slipped………………………………………..Full Article: Source

Saudi ouster will send oil prices ‘lower for longer’

Posted on 11 May 2016 by VRS  |  Email |Print

The recently announced changing of the guard in the Saudi oil ministry and the news spin around it says it is time to separate political banter and political reality. The banter is about a big surprise in the dismissal of Ali al-Naimi as Saudi energy minister. The reality is that this move has been preordained for some time now. Why?
At 80 years old, a relic of the prior King Abdullah, King Salman having sacked most of the appointees of that regime and the plans for taking state oil giant Aramco to an IPO all put the handwriting on the wall………………………………………..Full Article: Source

What OPEC Has To Fear From The New Saudi Oil Minister

Posted on 11 May 2016 by VRS  |  Email |Print

In a surprise move, Saudi Arabia sacked its long-time oil minister over the weekend, an event that illustrates the near-total control that the new young Saudi prince has obtained over the country’s energy industry.
For many years, Ali al-Naimi, the outgoing Saudi oil minister, was the voice of Saudi Arabia’s oil industry and policy. Even seemingly insignificant remarks from al-Naimi could move oil prices up or down. But the 80-year old oil minister has seen his power eclipsed by the 30-year old Deputy Crown Prince Mohammed bin Salman………………………………………..Full Article: Source

Oil Market `Rebalancing’ for Qatar as OPEC Heads for Vienna

Posted on 11 May 2016 by VRS  |  Email |Print

Global oil demand is catching up with supply and the market should see a “rebalancing” in the second half of the year as cheaper crude has forced some production to close, Qatar’s Energy Minister Mohammad Al Sada said.
The rate of production shutdowns is accelerating and global demand is increasing, especially for products such as gasoline, Al Sada said in an e-mailed statement on Tuesday. “This trend is likely to increase further from next month due to the onset of the summer driving season,” the minister said………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

Oil and Gas Drag Down Canada Investment Plans for Second Year

Posted on 11 May 2016 by VRS  |  Email |Print

Oil and gas companies hurt by low prices are leading a drop in Canadian investment plans for a second year, a government survey found. Planned spending by companies and governments on non-residential construction and machinery and equipment will fall.
4.4 percent in 2016 to C$241.6 billion, Statistics Canada said Tuesday from Ottawa. The survey backs up recent statements from Bank of Canada policy makers, who say the country is undergoing a complex adjustment as an oil-price shock and slower global demand hamper growth………………………………………..Full Article: Source

Oil Market Erases Gains as Fears of Fire Threat Fade

Posted on 10 May 2016 by VRS  |  Email |Print

U.S. and global oil benchmarks fell Monday as reports said Canada’s wildfires that have curtailed oil output there have slowed and moved away from key production facilities. After jumping more than 2% as the markets opened with Asian trading Sunday night, both major contracts fell as reports emerged that the threat from the fires was diminishing, at least for the moment.
The market’s losses deepened midmorning Monday as private energy data forecaster Genscape Inc. said inventories at the key U.S. delivery hub in Cushing, Okla., rose 1.4 million barrels last week, according to reports………………………………………..Full Article: Source

Saudi oil price hike justifiable, possibly perspicacious: Russell

Posted on 10 May 2016 by VRS  |  Email |Print

Saudi Arabia’s decision to hike crude oil prices to Asian customers by the most in more than a year is both understandable and curious. Saudi Aramco, the kingdom’s state oil company, lifted its official selling price (OSP) for June-loading cargoes for the main Arab Light grade to a premium of 25 cents a barrel to the Oman-Dubai benchmark, up $1.10 from a discount of 85 cents for May deliveries.
This was the biggest one-month jump since April 2015 and took the OSP to its highest since September last year. The increase was more than the market expected, but it is understandable in the context of how the Saudis calculate their OSPs………………………………………..Full Article: Source

Stable non-OPEC output decline key to oil price recovery: Goldman Sachs

Posted on 10 May 2016 by VRS  |  Email |Print

The key to a sustainable recovery in oil prices will be stable declines in non-OPEC production, top commodities bank Goldman Sachs said on Monday. In its base case scenario, Goldman said it expects a sustained deficit in the third quarter of the year, until which oil prices are seen trading around current levels.
Crude oil futures were trading around $44 a barrel on Monday after the market shrugged off a cut of 1 million barrels per day in Canadian oil production due to a wildfire………………………………………..Full Article: Source

Saudis hand oil market the one thing it really hates

Posted on 10 May 2016 by VRS  |  Email |Print

The removal of Ali al-Naimi as Saudi Arabia’s oil minister ushers in a new age of uncertainty, and more erratic prices. Naimi was a major architect of Saudi’s current policy of forcing oil prices lower through higher supply of crude, but he was also a trusted voice within government and a respected figure at the Organization of the Petroleum Exporting Countries.
His successor Khalid al-Falih is unlikely to command the same influence over output decisions that his 80-year-old predecessor had once enjoyed. The son of a Bedouin who climbed through the ranks of Saudi oil industry technocrats, Naimi commanded the respect of successive rulers in the oil-rich kingdom………………………………………..Full Article: Source

Oil ouster: Three things Saudi Arabia needs to do now

Posted on 10 May 2016 by VRS  |  Email |Print

Ali al-Naimi, who was Saudi Arabia’s oil minister for more than 20 years, was virtually the face of the oil markets during that time. His ouster over the weekend roiled the oil market.
For many in the industry, al-Naimi represented stability and moderation in the inherently chaotic ebbs and flows of oil markets. The minister championed Saudi interests, but always within an eye to balancing the needs of OPEC producers and the world’s consumers………………………………………..Full Article: Source

The 15 Biggest Oil Bankruptcies (So Far)

Posted on 10 May 2016 by VRS  |  Email |Print

The pace of oil patch bankruptcies is picking up. According to a new count from Houston law firm Haynes & Boone, April saw 11 bankruptcy filings, the most of any month in the past two years. The headline failures that month were Ultra Petroleum, which buckled under $3.9 billion in debt, and Energy XXI, which carried debt of $2.9 billion.
All told, 69 oil and gas producers with $34.3 billion in cumulative secured and unsecured debt have gone under. Since share prices peaked in 2014, the oil bust has wiped out about $1 trillion in equity, with the Dow Jones U.S. Oil & Gas Index off 40%………………………………………..Full Article: Source

Oil price lows to drag on after Saudi minister is ousted

Posted on 09 May 2016 by VRS  |  Email |Print

Saudi oil minister Ali al-Naimi, who was leading calls to help rebalance the struggling oil market, has been ousted by the government in a move which could signal a slower price recovery. The highly influential Mr Naimi will be replaced after twenty years by the chairman of the state oil company Saudi Aramco, Khalid al-Falih, scuppering hope that the world’s major oil producing nations might agree to freeze output in a bid to raise prices in the oversupplied global oil market.
Earlier this year oil prices rallied almost 40pc from twelve year lows after Mr Naimi said that members of the Organization of Oil Producing Countries (Opec) would meet with non-Opec oil producers in Doha to thrash out a production freeze deal………………………………………..Full Article: Source

Saudi Shift Brings Uncertainty on Oil

Posted on 09 May 2016 by VRS  |  Email |Print

The dismissal of Saudi Arabia’s long-serving and influential oil minister ushered in a new wave of uncertainty for oil prices, which have rallied lately but could change course depending on the kingdom’s policies.
To some, the removal of Ali al-Naimi after 20 years as oil minister cemented the grip of 31-year-old Deputy Crown Prince Mohammed bin Salman on Saudi Arabia’s energy policy. Some officials at the Organization of the Petroleum Exporting Countries said that could mean a deeper politicization of oil-production strategy as the kingdom looks to neutralize its rival Iran, which is trying to come back from years of Western sanctions with a surge of output………………………………………..Full Article: Source

Adieu to Al Naimi

Posted on 09 May 2016 by VRS  |  Email |Print

After 20 years, OPEC bids adieu to Saudi Arabia oil supremo. Saudi Arabian Oil Minister Ali al-Naimi, the architect of the 2014 switch in OPEC policy that’s since roiled the energy market, companies and entire economies from Mexico to Nigeria, is leaving his post.
An 80-year-old who rose from modest Bedouin roots, al-Naimi headed the ministry for almost 21 years, steering the world’s largest crude exporter through wild price swings, regional wars, technological progress and the rise of climate change as a key policy concern. “During my seven decades in the industry, I’ve seen oil at under $2 a barrel and $147, and much volatility in between,” al-Naimi said. “I’ve witnessed gluts and scarcity. I’ve seen multiple booms and busts.”……………………………………….Full Article: Source

The most powerful man in oil is out - here’s what comes next

Posted on 09 May 2016 by VRS  |  Email |Print

Ali al-Naimi was the most powerful man in the oil business for two decades - until this weekend. As the oil minister of Saudi Arabia, in control of the largest proven crude reserves in the world, al-Naimi was the de-facto leader of OPEC.
At one point he held three key positions at the same time: Minister of petroleum, chairman of Saudi Aramco and chairman of Saudi’s Supreme Petroleum Council. In a word, he called the shots, and he let other OPEC ministers know just that. The past year and a half had been particularly important, as oil prices crashed and oil-dependent countries looked to Saudi Arabia to lead the effort to support prices………………………………………..Full Article: Source

Saudi Arabia Is Getting Ready For “Peace” In The Oil Market, For Now

Posted on 09 May 2016 by VRS  |  Email |Print

A shake-up in the Saudi government over the weekend, which included the replacement of oil minister Ali al-Naimi by Khaled al-Faleh, signals that the Kingdom is ready for peace in the oil market.
Long serving oil minister Ali al-Naimi was the architect of Saudi Arabia’s policy to flood world markets with oil in an effort to halt the American fracking revolution and to undermine Iran’s re-entry into world markets after the lifting of sanctions………………………………………..Full Article: Source

OPEC Set to Hold Fast on Policy Following Saudi Oil Minister’s Exit

Posted on 09 May 2016 by VRS  |  Email |Print

The dismissal of Ali al-Naimi as Saudi Arabia’s oil minister puts the country’s deputy crown prince firmly in control of energy policy and makes an agreement to freeze oil production less likely when the Organization of the Petroleum Exporting Countries meets next month, OPEC officials said.
Prince Mohammed bin Salman, second in line to the throne, has taken a hard line on Saudi oil policy, doubling down on the kingdom’s strategy of maintaining high crude output in the face of collapsed prices………………………………………..Full Article: Source

OPEC Leaves Us Exposed to Oil Shock

Posted on 09 May 2016 by VRS  |  Email |Print

OPEC’s strategy to lock down its share of the oil market comes with a worrying by-product: rising production means the world is less able to cope with a big supply disruption than at any time since the financial crisis.That may not seem a cause for fear when the world’s awash with oil. But it could become much more of a problem once the market re-balances and demand outstrips supply again.
Global spare capacity — defined by the IEA as the volume of oil that can be brought into production within 90 days and sustained for an extended period — stands at 3.44 million barrels per day, according to data compiled by Bloomberg. But much of that may not be available as quickly as you’d hope………………………………………..Full Article: Source

Oil discoveries slump to 60-year low

Posted on 09 May 2016 by VRS  |  Email |Print

Slowdown in exploration activity as energy companies seek to conserve cash. Discoveries of new oil reserves have dropped to their lowest level for more than 60 years, pointing to potential supply shortages in the next decade.
Oil explorers found 2.8bn barrels of crude and related liquids last year, according to IHS, a consultancy. This is the lowest annual volume recorded since 1954, reflecting a slowdown in exploration activity as hard-pressed oil companies seek to conserve cash………………………………………..Full Article: Source

Don’t Underestimate the Power of an Oil Market Rally

Posted on 06 May 2016 by VRS  |  Email |Print

A big move in oil prices still goes a long way in the markets these days. Crude is up more than 3% Thursday, pushing prices back over $45 a barrel. That’s setting up a risk-on day, with the S&P 500 index climbing 0.3%. It’s overshadowing recent mixed U.S. economic readings and weaker China services data.
Oil’s been a big driver of stocks for much of the year, and crude’s 67% rally off its February lows was seen as a big driver of recent stock gains. The correlation between stocks and oil had shown some signs of breaking down recently, but big rises in crude are still having a positive effect on shares………………………………………..Full Article: Source

Oil Market at Crossroads as Big Rally Masks Risks Lurking Ahead

Posted on 06 May 2016 by VRS  |  Email |Print

If the oil market needed a theme song for now, it might turn to the one where Taylor Swift nervously sings: “Are we out of the woods yet?” A slump in U.S. production, unexpected cuts in output from Nigeria to Colombia and rising gasoline demand have helped drive a major rally since mid-February. As investors boost their bullish bets, analysts from UBS Group AG to Morgan Stanley and Goldman Sachs Group Inc. see pitfalls ahead.
The global crude glut has spread to diesel and will threaten gasoline after the peak summer driving season. Unplanned outages may be resolved in coming months, boosting supplies as Iran seeks to regain market share and Saudi Arabia defends its turf………………………………………..Full Article: Source

Oil Pulls Back After Approaching 2016 Highs

Posted on 06 May 2016 by VRS  |  Email |Print

U.S. oil briefly reached some of its highest prices of the year Thursday as Canadian wildfires threatened a major oil producer, but the rally faded throughout the day with traders still confident of heavy stockpiles.
U.S. oil breached $46 a barrel for only the fourth time in 2016 and the day’s gains have rivaled some of the largest in the last month. The jolt helped revive a rally that has brought oil’s sharpest gains in years, but analysts and traders kept up their warnings of oversupply that has tugged that rally back throughout the week………………………………………..Full Article: Source

Oil And Gas: Change And Prosper? A New Growth Scenario In A 2-Degree World

Posted on 06 May 2016 by VRS  |  Email |Print

In a global business world facing unprecedented challenges, leadership often seems to come from unexpected quarters. Institutional investors have increasingly been making their views known, and their power felt at the AGM’s of publicly listed businesses. As environmental, social and governance (ESG) issues become mainstream, it becomes harder and harder for businesses to suffer from “willful blindness.”
The players who are now calling for a change of strategy in the direction for many listed businesses vary from the United Nations, to a host of not-for-profit organizations, to think-tanks. Are their insights just that — real insights — because they do not operate in the same silos as independent commercial business?……………………………………….Full Article: Source

Shift in Saudi oil thinking deepens OPEC split

Posted on 06 May 2016 by VRS  |  Email |Print

As OPEC officials gathered this week to formulate a long-term strategy, few in the room expected the discussions would end without a clash. But even the most jaded delegates got more than they had bargained with.
“OPEC is dead,” declared one frustrated official, according to two sources who were present or briefed about the Vienna meeting. This was far from the first time that OPEC’s demise has been proclaimed in its 56-year history, and the oil exporters’ group itself may yet enjoy a long life in the era of cheap crude………………………………………..Full Article: Source

Iran May Be Ready for Joint Action With Opec Within Months

Posted on 06 May 2016 by VRS  |  Email |Print

Iran said it may be ready for joint action with members of the Organization of Petroleum Exporting Countries in as little as one or two months, once it regains the market share it had before sanctions were imposed.
Iran, which refused to join other nations in a push to freeze output last month, could reach pre-sanctions export levels of 2.2 million barrels in one to two months or by the end of the summer, National Iranian Oil Co. Managing Director Rokneddin Javadi said in Tehran. Exports averaged 2.1 million barrels daily last month out of total production of 3.7 million, he said………………………………………..Full Article: Source

World Bank Raises 2016 Oil Price Forecast

Posted on 05 May 2016 by VRS  |  Email |Print

Oil prices seen rising as oversupply diminishes, Amid improving market sentiment and a weakening dollar, the World Bank is raising its 2016 forecast for crude oil prices to $41 per barrel from $37 per barrel in its latest Commodity Markets Outlook, as an oversupply in markets is expected to recede.
The crude oil market rebounded from a low of $25 per barrel in mid-January to $40 per barrel in April following production disruptions in Iraq and Nigeria and a decline in non-Organization of the Petroleum Exporting Countries production, mainly U.S. shale. A proposed production freeze by major producers failed to materialize at a meeting in mid-April………………………………………..Full Article: Source

Why oil prices have nowhere left to go but down

Posted on 05 May 2016 by VRS  |  Email |Print

Looking for a letup in the selling that has walloped markets over the past 24 hours? This morning at least, you’re about to be as disappointed as Ted Cruz. Economic worries drove investors into the dollar and out of commodities, with oil taking an additional hit on fresh fears of a supply glut. It stands to reason that investors are probably wondering if this is the start of a stock-market selloff — it’s May, GET OUT.
“We’ve seen a slight pullback in commodity markets, which appears to be leading the declines in equity markets,” Craig Erlam, senior market analyst at Oanda, speaking for the no-panic side. “We’re probably seeing a little profit-taking following what has been a decent run since the middle of February.”……………………………………….Full Article: Source

OPEC’s Iran Eyes Crude Oil Production at 3.8 Mil Bpd and No Signs of Slowing Down

Posted on 05 May 2016 by VRS  |  Email |Print

It’s been less than half a year after the sanctions were lifted and Iran has already recovered its pre-sanction output volume of 3.8 million barrels per day. According to data out of the International Energy Agency (IEA), Iran produced 3.5-3.7 million bpd in 2011 and was the second largest producer within OPEC. Daily oil exports equaled 2.5 million barrels.
Nonetheless, Iranian authorities are looking to go even further and ramp up production to 4 million bpd………………………………………..Full Article: Source

Iran’s return to the oil market turned out to be quicker than anticipated

Posted on 05 May 2016 by VRS  |  Email |Print

Iran’s return to the global oil market turned out to be quicker than anticipated but it will not affect the market in 2017, Neil Atkinson, who is head of the International Energy Agency’s (IEA) Oil Industry & Markets Division, said Wednesday.
“The real numbers, we are starting to see, do suggest the pace of return has been a bit quicker than we anticipated but it is not that much quicker and I don’t think it is affecting the balances materially for 2016. And there is an upper limit because Iran can only go back to where it was when sanctions were imposed,” Atkinson told the Bloomberg media outlet………………………………………..Full Article: Source

Record oil and gas companies in US file for bankruptcy

Posted on 05 May 2016 by VRS  |  Email |Print

The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt after this week’s filings for creditor protection by Midstates Petroleum and Ultra Petroleum.
The number of US energy bankruptcies is closing in on the staggering 68 filings seen during the depths of the telecom bust of 2002 and 2003, according to Reuters data, the law firm Haynes & Boone and bankruptcydata.com. Charles Gibbs, a restructuring partner at Akin Gump in Texas, said the US oil industry is not even halfway through its wave of bankruptcies………………………………………..Full Article: Source

OPEC to Head for June Talks Without Plan for Supply Limits

Posted on 05 May 2016 by VRS  |  Email |Print

There are currently no proposals on the table for OPEC to revive limits on crude output at its June meeting after the failure of talks to freeze production last month, according to six delegates from the group.
A meeting of representatives from the Organization of Petroleum Exporting Countries in Vienna Wednesday discussed how the fundamentals of oil supply and demand are improving, according to two delegates, who asked not to be named because the talks were private. The proposal to freeze output has been overtaken by changes in the market and may no longer be necessary, said two delegates from nations that had supported the idea last month………………………………………..Full Article: Source

Risks rise as hedge funds place record bet on oil: Kemp

Posted on 04 May 2016 by VRS  |  Email |Print

Hedge funds increased their net long positions in Brent and WTI derivatives by 7 million barrels to a record 663 million barrels in the week ending April 26. Even though oil prices have already risen by roughly $20 per barrel (70 percent) from their low in January, hedge funds are more bullish than at any time since oil prices started slumping in the summer of 2014.
Hedge funds and other money managers held futures and options contracts equivalent to 791 million barrels of crude betting on a further rise in prices and just 128 million barrels gambling on a fall……………………………………….Full Article: Source

Careful, this oil price rally isn’t as deep rooted as it looks at first glance

Posted on 04 May 2016 by VRS  |  Email |Print

At first glance, oil prices have rallied — a lot. Look closer, however, and the market is still pricing the “lower-for-longer” mantra, much as it did at the beginning of the year.
Front-month futures for West Texas Intermediate, the U.S. benchmark, have risen 21 per cent this year, but the recovery looks very different if you focus on the longer term. The five-year-forward WTI contract fell 2.6 per cent over the same period, reflecting the view that shale oil production could rebound as prices recover, capping any rally………………………………………..Full Article: Source

Slowing China pushes oil prices lower

Posted on 04 May 2016 by VRS  |  Email |Print

Crude oil prices retreated Tuesday for the second straight day after Chinese data showed a contraction in the nation’s manufacturing sector. A January collapse in the Chinese stock market helped push crude oil prices into the $30-per-barrel range as global economic recovery developed too slowly to take in the glut of oil on the market.
Prices recovered substantially in April as market watchers said balance was returning, though recent sentiments have pulled on enduring optimism. Financial group Caixin reported Tuesday its view of the Chinese Manufacturing Purchasing Managers’ Index showed a reading of 49.4 for April, a figure that represents a formal contraction for the sector………………………………………..Full Article: Source

Cramer - Ignore the Reports, Oil is Going to $50

Posted on 04 May 2016 by VRS  |  Email |Print

Oil prices fell again Tuesday, hovering between $43 and $44 per barrel around midday. The decline has reportedly been sparked by fears of a supply glut and decreased global demand.
Oil below $45 per barrel worries TheStreet’s founder Jim Cramer, yet he is not wavering in his $50 price target. While the West Texas Intermediate crude oil forward strip does not predict prices near $50 through the end of 2017, analysts have often lamented that the strip is never right………………………………………..Full Article: Source

Oil Price Upheaval Finally Hits Refiners

Posted on 04 May 2016 by VRS  |  Email |Print

U.S. refiners, which posted robust profits the last 18 months even as other parts of the oil business were racked by low crude prices, finally saw their roll come to a halt in the first quarter. Many refining businesses reported earnings for the period that were down roughly by half from a year earlier.
That decline helped sour results for oil giants such as Exxon Mobil Corp., which has counted on refining to offset profit declines in energy production, and for Valero Energy Corp., the world’s largest stand-alone refiner by output, which on Tuesday reported its lowest first-quarter profit in four years………………………………………..Full Article: Source

Saudi-Iran split muddies OPEC long-term strategy: Sources

Posted on 04 May 2016 by VRS  |  Email |Print

OPEC has yet to agree on a long-term strategy as Saudi Arabia objects to a proposal from arch-rival Iran that the exporter group aim for tighter control of the oil market, sources said, pointing to deep divisions over the way forward.
The OPEC board of governors met on Monday in Vienna to discuss the latest draft of its LTS. While they made progress on some issues, OPEC kingpin Riyadh disagreed with Tehran’s proposal to include “effective production management” as a challenge for the group, two OPEC sources said………………………………………..Full Article: Source

Is $50 Oil The New $100? (Depends On What You Think $100 Was)

Posted on 03 May 2016 by VRS  |  Email |Print

The rise in the price of oil to $45 from a low of $25 is probably not seeing champagne corks popping in Houston (and definitely not in Riyadh), but it is probably letting a lot of producers (and their bankers) breathe easier.
And various pundits have started to suggest that this is the point where markets will stabilize (a sustainable price, as the kids say), allowing just enough for many companies to invest and, if not expand, at least maintain production, while not drowning the oil market in light crudes from U.S. shales………………………………………..Full Article: Source

Oil Price Rally Isn’t as Deep Rooted as It Looks at First Glance

Posted on 03 May 2016 by VRS  |  Email |Print

At first glance, oil prices have rallied - a lot. Look closer, however, and the market is still pricing the “lower-for-longer” mantra, much as it did at the beginning of the year. Front-month futures for West Texas Intermediate, the U.S. benchmark, have risen 21 percent this year, but the recovery looks very different if you focus on the longer term.
The five-year-forward WTI contract fell 2.6 percent over the same period, reflecting the view that shale oil production could rebound as prices recover, capping any rally. “The markets may be getting ahead of themselves,” Michael Wittner, oil analyst at Societe Generale SA in New York, said in a note to clients………………………………………..Full Article: Source

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