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Current oil price level satisfies OPEC

Posted on 15 September 2014 by VRS  |  Email |Print

The current level of oil price is satisfying to the Organization of Petroleum Exporting Countries (OPEC), Parviz Mina, the international petroleum consultant says. The price of $95 to $100 per barrel satisfies the OPEC producers as well as the main crude oil buyers, Mina, who served as a member of OPEC Long-Term Strategy Committee, told Trend Sept. 12.
He went on to add that the both sides consider the current crude price as suitable and the parties do not want to make change on it. So, the OPEC countries have not decided yet to lower their export level to increase the price, he said………………………………………..Full Article: Source

Brent Crude Oil may fall to $96.75, 95 levels: Barclays|

Posted on 15 September 2014 by VRS  |  Email |Print

Brent crude oil prices fell below $100 per barrel last week and there is a likelihood of prices faling to $96.75 and $95 per barrel, Barclays Research said. The market is adjusting to a situation when there is ample light sweet oil supplies amidst a relatively softer global oil demand growth, Barclays added.
As the OPEC basket price touches $96/bbl (levels last seen in June 2012), the clarion call for balancing the market from the supply side is growing louder. The resolve from individual OPEC members, and the pace of their reaction, looks set to be tested over the coming months as they choose to collectively defend $100/bbl or individually maintain market share………………………………………..Full Article: Source

IEA Cuts 2015 Oil Demand Forecasts

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency Thursday trimmed its forecast for the rise in oil demand this year for the third month in a row, calling the recent slowdown in demand “nothing short of remarkable.” In its closely watched monthly oil market report, the Paris-based energy watchdog said it expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month’s forecast and down by 300,000 barrels a day since July.
According to the IEA, oil demand growth in the second quarter was at its lowest in 2½ years, dented by economic weakness in Europe and China, a trend the agency expects will continue to weigh on demand………………………………………..Full Article: Source

IEA Cuts Demand Estimate as Saudi Exports Drop to 2011 Low

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency cut its global oil demand forecasts for 2015 and said Saudi Arabia exported the least in almost three years as purchases slowed from China and Europe.
Global demand will increase by 1.2 million barrels a day, or 1.3 percent, to 93.8 million barrels a day next year, the Paris-based adviser to 29 nations said in a report today. The expansion is 165,000 barrels a day less than it predicted a month ago. Second-quarter growth in consumption slid to a 2 1/2-year low, spurring Saudi Arabia’s shipments to the lowest since September 2011………………………………………..Full Article: Source

Oil slumps to two-year low on IEA demand downgrade

Posted on 12 September 2014 by VRS  |  Email |Print

Global oil prices hit a two-year low today after the International Energy Agency cut its forecasts for world demand, with the market also weighed down by plentiful supplies, analysts said.
In earlier London trade, Brent North Sea crude for October sank to USD 96.72 per barrel — the lowest point since July 2, 2012. And US benchmark West Texas Intermediate (WTI) for October delivery slid to USD 90.43 — a level last seen on May 1, 2013………………………………………..Full Article: Source

No need for urgent OPEC meet on lower oil price: Kuwait

Posted on 12 September 2014 by VRS  |  Email |Print

OPEC member Kuwait said on Thursday there was no need to call an emergency meeting for the producers` cartel to discuss sliding oil prices after crude hit a 17-month low. “We do not believe there is a need to call an emergency OPEC meeting” to discuss the drop in prices, Oil Minister Ali al-Omair told reporters at the end of a regular meeting of the oil ministers of the Gulf Cooperation Council (GCC).
“So far, we are confident that prices have not dropped to the extent that makes us call for an emergency meeting,” Omair said. Oil prices fell in Asia Thursday after coming under pressure due to weak global demand and a supply glut, even as US President Barack Obama vowed to destroy jihadist militants in Syria and oil-rich Iraq………………………………………..Full Article: Source

Saudi oil minister plays down drop in oil price

Posted on 12 September 2014 by VRS  |  Email |Print

Saudi Oil Minister Ali Al Naimi on Thursday played down the drop in oil prices saying this is not the first time crude prices slumped. “Prices of oil always go up and down so I really don’t know why the big fuss about it this time,” Al Naimi told reporters ahead of a regular meeting for oil ministers of the Gulf Cooperation Council (GCC) states in Kuwait City.
The Saudi minister, whose country pumps over 9.5 million barrels per day, said any measures the Organisation of Petroleum Exporting Countries (Opec) needs to take regarding the price slump “should be discussed when Opec meets” in November………………………………………..Full Article: Source

Saudi Arabia can cope with $85 Oil and create global demand

Posted on 12 September 2014 by VRS  |  Email |Print

Traditionally, lowering prices of Crude oil lead to a supply response from major OPEC producer, Saudi Arabia. However, this time around, it hasn’t done so but raised production since June.
With an annual budget of $230 bn and a running surplus of $ 40 bn, Saudi Arabia can easily cope with $85 bn Crude Oil for years, according to an assessment by Bank of America-Merrill Lynch (BofAML). However, the strategy carries risks including a ramp up in global demand and further turmoil in oil producing countries as prices decline………………………………………..Full Article: Source

Sub-$100 Oil Is Just A Price, Not A Signpost

Posted on 12 September 2014 by VRS  |  Email |Print

The fall in Brent prices below $100 for the first time in months is, to some, a startling development, especially given the insistence in some quarters that $150 is the next ‘target’ as economic recovery increases demand and shale oil production shows signs of weakness.
Needless to say, predicting short-term oil prices will make you very humble (well, at least a little humble) and given the fluctuations from $10 to $137 in the past decade and a half, it is hard to argue that there is a price level that is not possible to reach. However, $150 seems close to impossible without another major supply disruption. As Damon Runyon said, “…but not the way to bet.”……………………………………….Full Article: Source

Increase in Iran oil storage to increase export flexibility

Posted on 12 September 2014 by VRS  |  Email |Print

A substantial increase in Iranian oil storage capacity will give the sanctions-hit country more flexibility to export crude, the International Energy Agency (IEA) said on Thursday.
The United States and the European Union have imposed sanctions on the Islamic Republic over its nuclear programme, preventing it from reaching production capacity. Limited storage capacity has forced it to keep crude on National Iranian Tanker Co (NITC)-controlled tankers at sea………………………………………..Full Article: Source

Saudi Arabia slashes oil output to defend $100 price

Posted on 11 September 2014 by VRS  |  Email |Print

World’s biggest exporter of oil reacts to slide in prices by trimming 400,000 barrels per day of output in August. Saudi Arabia, the world’s biggest oil exporter, has slashed its production of crude in an apparent attempt to prevent the price falling further below $100 per barrel.
The kingdom, which has the capacity to pump 12.5m barrels per day (bpd) of crude at full choke, trimmed 400,000 bpd from its output last month as prices began to weaken, according to a monthly market report issued by the Organisation of Petroleum Exporting Countries (Opec). That is equal to about half the UK’s total oil output at present levels………………………………………..Full Article: Source

OPEC Splits on Response to Falling Oil Prices

Posted on 11 September 2014 by VRS  |  Email |Print

A split in response to falling oil prices emerged among members of the Organization of the Petroleum Exporting Countries after Saudi Arabia cut its oil production sharply last month while other leading members raised their output.
Saudi Arabia, the cartel’s kingpin, said Wednesday it had cut its crude production by about 400,000 barrels a day in August. An industry official said the drop was tied to lower exports to the kingdom’s core Asian markets. But Iran and Nigeria have told OPEC they increased their crude output by 10,000 barrels a day and 152,000 barrels a day last month, respectively………………………………………..Full Article: Source

OPEC says world will need less of its oil next year

Posted on 11 September 2014 by VRS  |  Email |Print

OPEC said demand for its crude oil will be lower than expected next year, with a surge in US output potentially bringing its production to levels not seen since the past decade.
In its monthly oil-market report, the Organization of the Petroleum Exporting Countries said it had lowered the estimate of demand for its crude by 200,000 barrels a day for 2015 and by the same amount for this year. As a result, markets will need 300,000 barrels a day less of OPEC crude next year, it said………………………………………..Full Article: Source

US EIA: Trims 2014 Oil Demand Outlook, Upgrades Non-OPEC

Posted on 10 September 2014 by VRS  |  Email |Print

The U.S. Energy Information Administration Tuesday lowered its forecast for how much it sees world oil demand growing in 2014, while upgrading its expectation regarding the amount of supply that will come from non-OPEC producers this year. The agency reported in its September Short Term Energy Outlook that U.S. oil output in 2015 will likely average its highest level in 44 years, but cut it’s projection for U.S. gasoline prices and international oil prices.
“The recent inventory builds are somewhat atypical for this time of year and signal a relatively loose global crude oil market compared with conditions over the past three years,” the EIA said, adding that, “Weaker oil demand and lower refinery runs in European and Asian countries within the Organization for Economic Cooperation and Development (OECD) this year have reduced market tightness.”……………………………………….Full Article: Source

Platts Survey: OPEC Pumped 30.2 Million Barrels of Crude Oil Per Day in August

Posted on 10 September 2014 by VRS  |  Email |Print

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) climbed 70,000 barrels per day (b/d) to 30.2 million b/d in August from 30.13 million b/d in July as Libyan output surged despite the downward spiral of political chaos in the country, a Platts survey of OPEC and oil industry officials and analysts showed Tuesday.
The OPEC total in August represents the highest volume from the oil producer group since August 2013, when output averaged 30.28 million b/d. The increase from Libya, supplemented by a 50,000 b/d rise in Angolan output and smaller 20,000 b/d boosts from the United Arab Emirates (UAE) and Venezuela, more than offset decreases of 80,000 b/d and 50,000 b/d from Iraq and Saudi Arabia, respectively. Iranian output remained steady at 2.85 million b/d………………………………………..Full Article: Source

Oil market pricing escapes linkage to financial benchmark regulations

Posted on 10 September 2014 by VRS  |  Email |Print

The oil market’s price setting agencies have avoided being linked to the kind of regulation trained on financial benchmarks, in a report by international regulators.
The decision by the International Organization of Securities Commissions (IOSCO) comes as the European Union is investigating allegations of oil price manipulation, which has involved searching the offices of major oil companies and pricing agencies………………………………………..Full Article: Source

If oil prices stay low for long, Putin and OPEC are headed for trouble

Posted on 10 September 2014 by VRS  |  Email |Print

Oil plunged today below $100 a barrel, a psychological threshold that, if it holds, threatens the rulers of Russia and numerous OPEC states that rely on higher prices to mollify their populations. A critical question, then, is whether we are looking at a sustained period of lower prices or a blip before a swing back up.
The price of Brent crude—the type that dominates international trade—fell as low as $99.36 today, its lowest price in 14 months. (West Texas Intermediate, the oil produced in the United States, plummeted to $91.70 a barrel, frighteningly close to its own $90 threshold.)……………………………………….Full Article: Source

Brent oil falls below $100 to 17-month low as supply weighs

Posted on 10 September 2014 by VRS  |  Email |Print

Brent crude oil prices fell to a 17-month low below $100 per barrel in volatile trade on Tuesday, a fourth straight daily decline as ample supplies weighed, while U.S. crude rose on the expectation of dwindling fuel stockpiles.
Brent crude fell as feared cuts to supply due to violence in the Middle East have failed to materialize, and production resumed at Britain’s North Sea Buzzard oilfield after a series of shutdowns and failed restarts………………………………………..Full Article: Source

Oil prices below most OPEC producers’ budget needs

Posted on 09 September 2014 by VRS  |  Email |Print

Oil prices are now too low for most OPEC countries to cover their spending needs, a Reuters survey shows. Although the cost of getting oil out of the ground is low in most countries in the cartel, growing social spending and ambitious infrastructure plans mean many oil producers now earn less from their oil sales than they need to fund their budgets.
The weighted average of oil prices collected by members of the Organization of the Petroleum Exporting Countries was $106 a barrel last year - just enough to cover the average budget requirements of the group, according to figures compiled by one team of analysts, who declined to be identified. But oil prices are falling, and the OPEC crude oil basket price was just $98.36 a barrel on Friday, the OPEC Secretariat calculates………………………………………..Full Article: Source

Oil below $100 tightens OPEC budgets, prompts signs of concern

Posted on 09 September 2014 by VRS  |  Email |Print

Oil’s slide below $100 a barrel on Monday adds to financial worries for OPEC members, prompting some in the producer group to voice concern about too much oil in the market even if they see the current fall as short lived.
Brent crude fell below $100 a barrel for the first time in 14 months, hit by concerns about slower economic growth and ample supply. Top OPEC exporter Saudi Arabia favors oil at $100, which many others in the 12-member group also support………………………………………..Full Article: Source

Crude Prices Close at Lowest Level in More Than a Year

Posted on 09 September 2014 by VRS  |  Email |Print

Global oil prices ended Monday at the lowest level in more than a year as Chinese and U.S. data spurred investors to bet demand wouldn’t rise fast enough to absorb new supply. Oil markets have been in decline since mid-June, with booming production, primarily in the U.S., outweighing worries that crises in the Middle East and Eastern Europe could disrupt supply distribution.
Now traders are concerned demand won’t keep up. Data from the world’s top oil consumers—the U.S. and China—suggest their economies aren’t growing as quickly as some had hoped………………………………………..Full Article: Source

Oil price drops below $100 a barrel as GCC producers are close to curbing supply

Posted on 09 September 2014 by VRS  |  Email |Print

Oil prices on Monday dipped below the US$100-a-barrel mark, threatening to pinch oil-dependent states’ budgets and getting closer to the level where Arabian Gulf swing producers feel pressured to curb supply. The European benchmark Brent fell below the psychological barrier for the first time in 14 months.
Already last Friday, the Opec crude oil basket price was at US$98.36 a barrel. While prices are still comfortably above the break-even point for the budgets of most Gulf countries, the majority of Opec’s 12 members require higher oil prices to meet their budget obligations. That includes countries that have the additional strain of internal conflict or external pressures, such as Iraq, Nigeria and Iran………………………………………..Full Article: Source

Hedge Funds Reduce Bullish Gas Bets as Volatility Slides

Posted on 09 September 2014 by VRS  |  Email |Print

Hedge fund bulls accelerated their withdrawal from U.S. natural gas markets as volatility and prices declined on abundant supply. Speculators cut their net-long position across four benchmark contracts by 11 percent in the week ended Sept. 2, the most in three weeks, U.S. Commodity Futures Trading Commission data show. Bullish wagers have declined for six consecutive months, the most in data compiled by Bloomberg since 2010. Short positions rose to a nine-month high.
Prices have swung in the narrowest range for this time of year since 2009 as output and stockpiles increased at a record pace. The producers and consumers who trade with speculators have cut their holdings in gas by 25 percent from a record in April 2013, a sign they’re less concerned about price movements………………………………………..Full Article: Source

Global oil industry needs to ramp up on its human resources

Posted on 08 September 2014 by VRS  |  Email |Print

The oil and gas industries, whether upstream or downstream, are so important to the well-being of the global economy in general and the producing countries in particular.
They are characterised by high capital and operating costs, the risk of life- and property-threatening incidents, the high degree of technology involved, impact on the environment and the need to develop the necessary workforce for profitable, risk-free and environmentally safe industries………………………………………..Full Article: Source

Investors should monitor oil price as key market indicator

Posted on 08 September 2014 by VRS  |  Email |Print

Investors have been advised to watch the oil price as a key indicator of fear levels in markets about geopolitical tension. Apollo Multi Asset Management has said investors have been “far too complacent” in spite of the “severity” of recent events.
The group’s Ryan Hughes said central bank support had been a buffer to markets, which have continued to march higher with only brief spells of mild weakness amid tensions in Russia and Ukraine and the growing conflict linked to Islamic State militants………………………………………..Full Article: Source

Shell expects oil and gas prices to be ‘robust’

Posted on 08 September 2014 by VRS  |  Email |Print

Royal Dutch Shell plc expects oil and gas prices to stay “robust” for oil companies to continue their investments in the sector, said the company’s upstream international director Andy Brown. He said there would always be an enormous need to invest in new oil and gas production.
This is because the world’s energy demand including prices would still be driven by oil and gas requirements. “We think that from 2000 to 2050 there will be a doubling of energy requirements………………………………………..Full Article: Source

The Big Shift In US Oil Markets

Posted on 08 September 2014 by VRS  |  Email |Print

The shale revolution at work today across the oil and gas industry was made possible by scrappy entrepreneurs risking their own capital and futures to pursue opportunities from onshore exploration and production in tight oil and gas formations and shale plays that the larger majors and super majors ignored.
While the biggest players went offshore in the deeper water looking for big reserve growth, these revolutionaries used commercially available technologies available to them in 3D seismic imaging, horizontal drilling, and hydraulic fracturing to change the industry—and the world………………………………………..Full Article: Source

OPEC Exports Drop on U.S. Shale

Posted on 08 September 2014 by VRS  |  Email |Print

“I know Putin is a hot topic right now, but oil exports from Russia have no effect on us. What about the big players like Saudi Arabia?” writes Sheldon, a concerned Energy and Capital reader. He emailed his query after reading this week’s columns from both me and Jeff Siegel on Russia, the civil war in Ukraine, and their bearing on the Chinese and European energy sectors.
And while Putin is attempting to harness control over two continents, Sheldon’s email got me thinking more broadly about U.S. oil and our evolving relationship with the Organization of Petroleum Exporting Countries (OPEC)………………………………………..Full Article: Source

Obama’s Oil Boom – Global Warming Be Damned

Posted on 05 September 2014 by VRS  |  Email |Print

Considering all the talk about global warming, peak oil, carbon divestment, and renewable energy, you’d think that oil consumption in the United States would be on a downward path. By now, we should certainly be witnessing real progress toward a post-petroleum economy. As it happens, the opposite is occurring. U.S. oil consumption is on an upward trajectory, climbing by 400,000 barrels per day in 2013 alone — and, if current trends persist, it should rise again both this year and next.
In other words, oil is back. Big time. Signs of its resurgence abound. Despite what you may think, Americans, on average, are driving more miles every day, not fewer, filling ever more fuel tanks with ever more gasoline, and evidently feeling ever less bad about it………………………………………..Full Article: Source

EU plans to target Russian oil groups with new sanctions

Posted on 05 September 2014 by VRS  |  Email |Print

The EU is preparing to bar Russia’s state-controlled oil companies from raising funds on European capital markets, a significant expansion of the bloc’s economic sanctions that would hit some of the country’s largest energy groups, including Rosneft.
The ban, contained in legislation approved by the European Commission and obtained by the Financial Times, would also be applied to Russian defence companies and would add to a similar restriction adopted in July on Russian banks seeking to raise cash in Europe………………………………………..Full Article: Source

Overpriced Oil: The Fundamental Facts

Posted on 05 September 2014 by VRS  |  Email |Print

Sometimes dubbed the Billionaire Bettor who always gets things right, Andy Hall has come out swinging. Bloomberg, September 3, reports Hall as saying US shale oil (and even shale gas) “are a dud” and will play down and out much faster than most people think. Hall says there is no way that either US or world Oil prices can erode down to around $75 a barrel.
He says barrel prices will be closer to $150 within five years, by at latest 2019. Hall is buying long-dated oil futures contracts to as far out as 2019 on that basis. His nearly “long only” strategy is as simple as that. Early this year, Hall could buy futures contracts for December 2019 delivery of WTI oil at a barrel price of $76………………………………………..Full Article: Source

“God of Crude Oil” bets prices will hit $150 in five years or less

Posted on 04 September 2014 by VRS  |  Email |Print

Crude oil trader Andrew John Hall made nearly $98 million in bonuses in 2008 but his oil fund lost 8.3% last year in a wrong-footed bet on price rises. He remains convinced on prices rises and believes prices will rise to as much as $150 a barrel in five years or less, according to a great Bloomberg profile that’s essential reading for oil traders.
Investing ever-larger sums of his own money, he’s buying contracts for so-called long-dated oil, to be delivered as far out as 2019, according to interviews with two dozen current and former employees and advisers who are familiar with Hall’s trading but aren’t authorized to speak on the record………………………………………..Full Article: Source

Why Oil Prices Won’t Fall Below $100 A Barrel

Posted on 04 September 2014 by VRS  |  Email |Print

Oil discoveries have fallen off a cliff. 2013 was one of the world’s lowest years on record for proven oil discoveries. For companies to scour the globe for new reserves, they need the price of oil to be significantly higher than it is today.
It is becoming increasingly more expensive to find and produce oil each year. Moving forward, I expect prices to occasionally spike towards $200 as the oil discovery cliff catches up to consumption growth………………………………………..Full Article: Source

Africa likely to experience oil and gas boom

Posted on 04 September 2014 by VRS  |  Email |Print

Africa’s energy industry could see a major boost in the coming years, a fresh study by PriceWaterhouseCoopers has suggested. Mozambique and Tanzania were highlighted as the countries with the most potential.
A study released by PriceWaterhouseCoopers (PwC) on Wednesday concluded that Africa had the potential to experience a major mid-term energy boom. The survey forecast demand for oil on the continent would “rise significantly” over the next two decades, driven by larger populations, urbanization and the emergence of a wealthier middle class………………………………………..Full Article: Source

Did Opec Miss the Shale Boat?

Posted on 04 September 2014 by VRS  |  Email |Print

Opec missed the fracking bandwagon according to this article that includes quotes from a secret letter written by Prince Al-Waleed Bin Talal, a high-ranking member of the Saudi royal family, that drew attention to the threat posed by non-Opec unconventional resource production growth.
“In addition to the many discoveries of oil and gas in the U.S., Canada and Australia,” the prince wrote, “there are also great discoveries of shale gas, which will lead to a reduction of consumption of our oil.” It does not appear conditions exist in Opec nations that would facilitate similar levels of shale development seen in North America………………………………………..Full Article: Source

How OPEC missed the North American shale revolution

Posted on 03 September 2014 by VRS  |  Email |Print

As an oil cartel, the Organization of Petroleum Exporting Countries is a fixture of the world’s energy system – not particularly liked, but begrudgingly accepted. The national oil companies within the sphere of OPEC, with their opaque accounting practices and byzantine corporate structures, monopolize vast reserves of easy oil and repatriate to their home treasuries gargantuan stores of western currency.
In an increasingly global, transparent and unconventional energy age, OPEC goes against the grain. The untold mineral riches of its member nations, most of which are Middle Eastern, has given them a sense of confidence – some might say arrogance – that lets them, by and large, ignore energy developments elsewhere in the world and continue on with business as usual………………………………………..Full Article: Source

Oil Prices Fall Sharply on Weak Demand Outlook, Stronger Dollar

Posted on 03 September 2014 by VRS  |  Email |Print

Oil prices dropped more than $3 a barrel Tuesday as disappointing Chinese and European economic data and a stronger dollar weighed on demand expectations. Oil prices have tumbled in recent weeks as weak demand from European and Asian refineries forced sellers to cut prices and global supplies remained ample despite violence in some regions. Recent data indicates that tepid demand could continue in the coming months.
U.S. oil prices rose last week for the first time in five weeks as traders who had bet on lower prices closed out their wagers, in case unrest in any geopolitical hot spots worsened during the long holiday weekend. The Nymex market was closed Monday for Labor Day and reopened Tuesday………………………………………..Full Article: Source

The end of oil price volatility

Posted on 03 September 2014 by VRS  |  Email |Print

Oil supplies from the Middle East have been savaged by violence, sanctions and instability. Libya, home to Africa’s largest oil reserves, has cut exports by 80% since its ports fell into the control of militias last year. Sanctions have cut 1.5m barrels of oil a day from Iranian exports while strife in Iraq, Venezuela and Nigeria has cost hundreds of thousands of barrels a day in production.
All up, about 3.5m barrels of oil from these regions has been stricken from global supply. Yet oil prices have fallen. In fact, the past four years have seen the most stable prices in recent history. How is that possible with so much conflict and strife? There is a new force in global oil: North America………………………………………..Full Article: Source

Oil Prices Fall Despite Global Tensions

Posted on 02 September 2014 by VRS  |  Email |Print

Oil prices are lower Monday even though tensions in a number of key oil-producing areas are on the rise. In Ukraine, fears of a larger conflict escalated as government forces lost more ground to Russian-backed separatists, while in the Middle East, U.S. airstrikes continued in Iraq, checking some of the advances made by radical Sunni militants.
Those developments weren’t enough to move the oil price significantly, as the market remains well supplied with crude oil. Prices had drifted higher Friday, but fell back somewhat on Monday. “The ample supply situation is precluding any significant rise in prices,” said Commerzbank………………………………………..Full Article: Source

Putin breaks ground on Russia-China gas pipeline, world’s biggest

Posted on 02 September 2014 by VRS  |  Email |Print

Russian President Vladimir Putin and Chinese Vice Premier Zhang Gaoli have launched the construction of the first part of Gazprom’s Power of Siberia pipeline - which will deliver 4 trillion cubic meters of gas to China over 30 years.
“The new gas branch will significantly strengthen the economic cooperation with countries in the Asia-Pacific region and above all - our key partner China,” Putin said at the ceremony outside the city of Yakutsk - the capital of Russia’s Republic of Yakutia on Monday………………………………………..Full Article: Source

Brent Oil Extends Two-Month Slump Amid OPEC Expansion

Posted on 02 September 2014 by VRS  |  Email |Print

Brent crude extended a two-month slide as OPEC’s production was seen increasing and manufacturing gauges in Europe and China missed estimates. West Texas Intermediate fell in New York.
Futures slid as much as 0.6 percent in London, having retreated more than $9 in July and August. The Organization of Petroleum Exporting Countries boosted output by 891,000 barrels a day to 31 million in August, the highest level in a year, estimates compiled by Bloomberg show………………………………………..Full Article: Source

Australia: Rich in Commodities but not Oil

Posted on 01 September 2014 by VRS  |  Email |Print

Australia is rich in commodities, including fossil fuel and uranium reserves. It is one of the few countries belonging to the Organization for Economic Cooperation and Development (OECD) that is a significant net energy exporter, sending nearly 70 percent of its total energy production (excluding energy imports) overseas, according to data from Australia’s Bureau of Resource and Energy Economics (BREE).
However, Australia retains a surplus of all its energy commodities except oil. Australia’s dependence on oil imports has increased to fill the growing gap between domestic consumption and production………………………………………..Full Article: Source

OPEC Oil Output Hits One-Year High in August on Nigeria

Posted on 01 September 2014 by VRS  |  Email |Print

OPEC crude oil production increased to a one-year high in August, led by surging output in Nigeria, a Bloomberg survey showed. Production by the 12-member Organization of Petroleum Exporting Countries rose by 891,000 barrels a day to 31.033 million, according to the survey of oil companies, producers and analysts. Last month’s total was revised 80,000 barrels a day lower to 30.142 million because of changes to the Nigerian and Iranian estimates.
Nigeria, Saudi Arabia and Angola led gains as new deposits came online, security improved and field maintenance programs ended. Iran and Venezuela were the only members to record production declines………………………………………..Full Article: Source

Speculators Turn More Bullish on Oil Before Labor Day

Posted on 01 September 2014 by VRS  |  Email |Print

Hedge funds increased bullish positions on crude oil for the first time in more than a month, benefiting from a rally before the Labor Day holiday weekend.
Money managers increased net-long positions in U.S. benchmark West Texas Intermediate oil by 0.6 percent in the seven days ended Aug. 26, boosting bullish wagers from a 16-month low, Commodity Futures Trading Commission data showed. WTI climbed 2.5 percent last week, the first gain since July………………………………………..Full Article: Source

How the US found an extraordinary solution to oil supply risk

Posted on 01 September 2014 by VRS  |  Email |Print

A new report from the US Energy Information Administration highlights the extraordinary rise in US liquid fuel production over the past few years and how it has helped off-set unplanned supply disruptions which are running at the highest level since the Iraq-Kuwait war some 24 years ago.
The report has done a very good job in clearly describing what we already knew, namely that oil markets since 2011 have become less price sensitive to actual and potential supply disruptions. Especially to those numerous geopolitical events that has taken place since the Arab spring and the overthrow of Libya’s Muammar Gaddaffi in 2011………………………………………..Full Article: Source

When Will The Peak Oil Crisis Begin?

Posted on 01 September 2014 by VRS  |  Email |Print

For those following the world oil production situation, it has been clear for some time that the only factor keeping global crude output from moving lower is the continuing increase in U.S. shale oil production, mostly from Texas and North Dakota. Needless to say, once the fabled “peak” comes oil and gasoline prices are certain to move higher, triggering a series of economic events – most of which will not be good for the global economy.
Thus the key question is just how many more months or years production of U.S. shale oil (more accurately call light tight oil) will continue to grow. Many have answers to this question ranging from the “next year or so” on out the middle or end of the next decade………………………………………..Full Article: Source

Oil and gas investment boom ‘fading fast’

Posted on 29 August 2014 by VRS  |  Email |Print

The boom in oil and gas investment that insulated Australia from the Global Financial Crisis is fading fast and there are few signs of new projects on the horizon, EnergyQuest says.
Dr Graeme Bethune - chief executive of the energy economics group – said the level of oil and gas investment is already well below the peak reached in the last quarter of 2013 and will keep falling as new LNG projects are completed………………………………………..Full Article: Source

A New American Oil Bonanza

Posted on 29 August 2014 by VRS  |  Email |Print

Whenever overseas turmoil has pushed energy prices higher in the past, John and Beth Hughes have curbed their driving by eating at home more and shopping locally. But the current crises in Ukraine and Iraq did not stop them from making the two-hour drive to San Antonio to visit the Alamo, have a chicken fried steak lunch, and buy fish for their tank before driving home to Corpus Christi.
“We were able to take a day-cation because of the lower gas prices,” said Ms. Hughes. The reason for the improved economics of road travel can be found 10,000 feet below the ground here, where the South Texas Eagle Ford shale is providing more than a million new barrels of oil supplies to the world market every day………………………………………..Full Article: Source

Falling Oil Prices Could Force Venezuela to Veer off the Chávez Formula

Posted on 29 August 2014 by VRS  |  Email |Print

Venezuela’s embattled Nicolás Maduro has spent most of his 19-month presidency fighting to avoid changing any of the economic policies he inherited from his predecessor, the late Hugo Chávez. Maduro has repeatedly told his countrymen that Chávez’s socialist blueprint is working in spite of mounting shortages, soaring inflation, and two maxi-devaluations in the past two years. Now falling oil prices may force his hand.
The price of Venezuela’s benchmark basket of crude and petroleum products fell on Aug. 22 to $90.89, a two-year low. Since the end of last month, the price has fallen 10 percent, tracking a surprising drop in international prices in spite of Mideast tensions………………………………………..Full Article: Source

OPEC oil output rises in August as Libyan recovery holds

Posted on 29 August 2014 by VRS  |  Email |Print

OPEC’s oil production has risen in August from July, a Reuters survey found on Thursday, as a recovery in Libyan supply held up and Angola and Iran boosted supplies, outweighing a further decline in Iraq.
The survey also found Saudi Arabia and other core Gulf OPEC producers kept output largely flat and have not cut back to prop up prices, which in August dipped to a 14-month low near $101 a barrel, or to make room for higher Libyan output………………………………………..Full Article: Source

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