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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

OPEC’s market share at a good level, says UAE energy minister

Posted on 29 August 2016 by VRS  |  Email |Print

OPEC’s share of the oil market is at a good level, UAE energy minister Suhail Bin Mohammed al-Mazroui said as the producer group continues to contend with low crude prices. “Regardless of the different views on the oil market, we see that the OPEC current market share is at a good level,” Mazroui said on his official Twitter account on Saturday.
Mazroui also said he believed that any future decision on oil production would require full participation from all members of the Organization of the Petroleum Exporting Countries plus other major producers………………………………………..Full Article: Source

Look Past OPEC Freeze Hype to Really Understand Oil’s Advance

Posted on 26 August 2016 by VRS  |  Email |Print

For all the feverish speculation of OPEC action that’s roiling oil markets, the real reason for crude’s recent recovery probably lies elsewhere. Oil futures have rallied more than 10 percent since the Organization of Petroleum Exporting Countries said it would hold informal talks in Algeria in late September, fueling expectations it could revive a pact on freezing production.
Banks from Citigroup Inc. to Bank of America Merrill Lynch see a simpler explanation for the rebound: the global oil oversupply is finally dissipating. A narrowing discount — also known as contango — on immediate supplies of Brent crude is the “clearest indicator” that the two-year glut is fading, Credit Suisse Group AG said………………………………………..Full Article: Source

China’s Decline in Oil Production Echoes Globally

Posted on 26 August 2016 by VRS  |  Email |Print

China’s struggling oil sector has entered a challenging new phase: long-term decline of its domestic production. Oil production in China likely peaked last year at around 4.3 million barrels a day, according to new data and interviews with industry executives.
The development has significant implications globally, including the potential for higher crude prices over time as China steps up imports to meet rising demand at home. “The turning point that we’ve been searching for, for years, is happening now,” said Kang Wu, vice chairman for Asia at energy consultancy FGE. As an oil producer, he said, “China is entering long-term stagnation and decline.”……………………………………….Full Article: Source

Iran oil minister to attend Algeria Opec meeting

Posted on 26 August 2016 by VRS  |  Email |Print

Iran’s oil minister Bijan Zanganeh will attend a meeting of Opec ministers in Algeria in September, the country’s state news agency Shana said on Thursday. The gathering towards the end of next month will be held on the sidelines of an International Energy Forum industry conference.
For several days oil prices had moved higher in response to reports that Iran would attend the meeting. This fuelled speculation that Iran may take part in any coordinated action to prop up the oil market………………………………………..Full Article: Source

Iran more willing for Opec action to boost oil price

Posted on 26 August 2016 by VRS  |  Email |Print

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in Opec and the oil industry said. Opec’s third-largest producer has been boosting output after the lifting of Western sanctions in January.
Tehran refused to join a previous attempt this year by Opec plus non-members such as Russia to stabilise production, and talks collapsed in April. Though Iran has not yet decided whether to join a new effort, Tehran appears to be more willing to reach an understanding with other oil producers, the sources said………………………………………..Full Article: Source

Don’t set too high a hope of $60 for oil

Posted on 25 August 2016 by VRS  |  Email |Print

The pendulum in the oil market has clearly swung in favour of the producers. Opec members have never pumped so much crude — ditto for Russia — but prices zoomed to a two-month high crossing $50 again.
There are a few forces at play here: demand in China and other Asian import stalwarts like Japan and South Korea is holding up, money is starting to flow back into emerging markets as investors look for a higher return on their money. And there is a wider belief Opec and non-Opec countries may actually do something at their informal meeting at the end of September………………………………………..Full Article: Source

Russia Sees Oil At US$50 Till Late 2017

Posted on 25 August 2016 by VRS  |  Email |Print

The Russian Economy Ministry said in a statement it expected crude oil prices to remain stable at their current range of US$45-50 over the next two years, with a sustainable improvement beginning in late 2017.
The latest rally in prices, according to the ministry’s statement, has “a speculative nature” and will not last long. This was proven yesterday when the American Petroleum Institute released its weekly report on inventories, stunning the market with a 4.46-million-barrel buildup, when almost all analysts expected a draw and the only group – polled by S&P – that forecast an increase was much more modest in its expectations, at a build of 200,000 barrels………………………………………..Full Article: Source

Who Is More Credible – The Fed or OPEC?

Posted on 25 August 2016 by VRS  |  Email |Print

Almost on cue oil prices quickly reversed course and traded higher on Tuesday when news broke that “Iran is sending positive signals that it may support group action to lift the oil market,” according to MarketWatch.
The ​Organization Of Petroleum Exporting Countries (OPEC) is due to hold an informal meeting next month to discuss stabilizing the oil market. This has left investors bewildered in the last few weeks as oil volatility increases. Earlier in the day, oil traded lower when Goldman Sachs reportedly said that both the oil prices and the crude market’s fundamental recovery remain fragile………………………………………..Full Article: Source

Oil could take another dive, just in time for new round of OPEC rumors

Posted on 25 August 2016 by VRS  |  Email |Print

The next trough in oil prices could come just as OPEC members gather in Algeria next month — and that could make for an interesting, and more unpredictable outcome. While most analysts say OPEC members are all talk, and no action, some say there is an outside chance members could feel pressured enough to act if crude prices are in free fall.
Members of the Organization of the Petroleum Exporting Countries have said they would discuss at their late September meeting whether a freeze or some other action is needed to stabilize oil prices, after a number of high-profile failures to reach an agreement………………………………………..Full Article: Source

Saudi Arabia Holds China Market Share Lead on Record Oil Output

Posted on 25 August 2016 by VRS  |  Email |Print

Saudi Arabia kept its spot as China’s biggest oil supplier for the first seven months this year after pumping record output in July, even as Russia threatens to overtake the kingdom in their contest for sales to the world’s largest energy consumer.
The biggest crude exporter shipped an average of 1.05 million barrels a day to China in the year through July 31, giving it a market share of 14 percent, according to Bloomberg calculations based on data that China’s General Administration of Customs published Wednesday. Russia’s share was 13.6 percent, the data show………………………………………..Full Article: Source

Iraq has not yet reached its full oil market share: PM Abadi

Posted on 25 August 2016 by VRS  |  Email |Print

Iraqi Prime Minister Haider al-Abadi on Tuesday said Iraq had not yet reached its full oil market share, suggesting that the country would prefer not to restrain its crude output as part of any possible OPEC agreement to lift prices.
“Iraq is still below what it should produce,” Abadi told a news conference in Baghdad, in response to a question on whether his government would be open to such an agreement………………………………………..Full Article: Source

Oil prices will stall below $50 a barrel for another year, says Goldman Sachs

Posted on 24 August 2016 by VRS  |  Email |Print

Oil prices continued to fall on Tuesday and may struggle to climb back over $50 a barrel for another year, Goldman Sachs has warned. The price of Brent crude has tumbled more than 3pc so far this week to $48.58, reversing a rapid $10 ascent from around $41.60 a barrel in early August to highs of almost $52 a barrel last week.
The fall reflects growing concern that August’s rapid rise was overdone as oversupply continues to drag on the market. Goldman Sachs told investors that oil prices could remain at between $45 and $50 a barrel for the next year, and could even fall lower if supply from politically volatile countries ramps up faster than expected………………………………………..Full Article: Source

Iraq may base 2017 draft budget on $35/barrel oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq may base its public budget for 2017 on an oil price of $35 per barrel, about the same level as this year, Prime Minister Haider al-Abadi told a news conference on Tuesday in Baghdad. Iraq, which depends on oil sales for 95 percent of its public spending, lowered this year its crude price assumption to about $32 a barrel from an initial forecast of $45 a barrel.
The price assumption for 2017 could still change by parliament which has to approve it, a spokesman of Abadi said separately after the press conference. Iraq is OPEC’s second-largest producer after Saudi Arabia with an output of 4.6 million barrels per day………………………………………..Full Article: Source

Not even OPEC can save the struggling oil market now, Goldman Sachs warns

Posted on 24 August 2016 by VRS  |  Email |Print

OPEC production freeze or not, the oil market is not going to recover anytime soon, as troubled oil-producing nations prepare to ramp up production and pave the way for hundred of thousands of barrels to be released into an already oversupplied market, Goldman Sachs warned.
Libya, Iraq and Nigeria — which all have suffered from severe supply disruptions — last week started to show the first signs of ramping up production, seen as posing a risk to oil’s nascent recovery, according to the bank………………………………………..Full Article: Source

Iran signals more willingness for OPEC action to boost oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in OPEC and the oil industry said, potentially aiding efforts to revive a global deal on freezing production levels at talks next month.
OPEC’s third-largest producer has been boosting output after the lifting of Western sanctions in January. Tehran refused to join a previous attempt this year by OPEC plus non-members such as Russia to stabilize production, and talks collapsed in April………………………………………..Full Article: Source

Oil sector shares jump on Iran-Opec hopes

Posted on 24 August 2016 by VRS  |  Email |Print

Oil companies broadly advanced on Tuesday as crude rebounded, buoyed by speculation that Iran will attend a meeting of Opec producing countries next month. Members of the oil producing cartel are expected to meet to discuss actions to support the crude market, which despite Brent rallying 34 per cent this year remains 57 per cent below a 2014 peak.
Brent crude, the global benchmark, reversed earlier losses and rose 1.6 per cent to $49.96 a barrel after Reuters said Iran was “sending positive signals” about supporting joint efforts, citing unnamed sources in Opec and the oil industry………………………………………..Full Article: Source

Saudi Arabia isn’t flooding oil market ahead of freeze talks: Kemp

Posted on 24 August 2016 by VRS  |  Email |Print

Saudi Arabia’s oil production hit a record in July, according to published statistics, and is likely to hit another in August, according to industry sources. Some analysts have interpreted the increases as an aggressive demonstration of the kingdom’s ability to ramp up output ahead of an informal meeting of oil ministers in Algeria next month.
In this view, Saudi Arabia is increasing output as a warning to rivals that if there is no agreement on a production freeze it has the means to continue raising its output and intensify the pain for all oil exporters……………………………………….Full Article: Source

Iraq has not yet reached its full oil market share, says PM

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq’s prime minister said the country has not yet reached its full oil market share, suggesting his government would not restrain crude output as part of any possible OPEC agreement to lift prices.
“And the capping, we are not open to that because Iraq is still below what it should produce,” Haider al-Abadi told reporters, responding to a question about whether the second-largest OPEC producer would be open to such a deal………………………………………..Full Article: Source

Oil prices: Crude will be stuck in a back-and-forth market, analyst says

Posted on 23 August 2016 by VRS  |  Email |Print

Traders have bid up oil futures on speculation that producers will take measures to prop up crude prices, but any such deal might do little to quickly bring supply and demand into balance, ClearView Energy Partners Managing Director Jacques Rousseau said. As a result, crude prices could continue swinging back and forth, he said.
A rally that lifted benchmarks about 16 percent and pushed Brent above $50 a barrel during the last seven sessions lost steam on Monday as market watchers including Morgan Stanley said the gains were overdone. The bank said it was “highly unlikely” OPEC members and Russia would be able to overcome the many headwinds to striking a deal………………………………………..Full Article: Source

Oil price retreats as speculative shake-out eases

Posted on 23 August 2016 by VRS  |  Email |Print

Analysts warn that much of the impetus for the rebound of the past 2 weeks has faded. Oil retreated 3 per cent on Monday to back below $50 a barrel, as reports Iraq is increasing exports and signs hedge funds have rapidly switched positions raise doubts about the strength of the recent rally.
Brent crude, the international benchmark, has surged by almost 15 per cent in the 10 days since Saudi Arabia said it would participate in talks aimed at securing a production freeze with other leading producers………………………………………..Full Article: Source

Oil Reverses Gear Into a Bear Market (Video)

Posted on 23 August 2016 by VRS  |  Email |Print

Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bull to a bear market in less than three weeks.
Oil fell after the longest run of gains in four years as Iraq seeks to increase exports amid a global overhang of crude inventories and as Nigerian militants call an end to hostilities. UBS Head of UK Investment Office Geoffrey Yu discusses with Bloomberg’s Anna Edwards on “Countdown.”……………………………………….Full Article: Source

Is Oil in a Bull or Bear Market? Depends on the Day

Posted on 23 August 2016 by VRS  |  Email |Print

Oil has been in a bull market recently. Or was that a bear market? It can be tough to keep track when crude shifts as much as it does. West Texas Intermediate has gone from a bull market into a bear market, or vice versa, five times this year, according to WSJ Market Data Group.
That’s the most times since 1998, when it also crossed five times, according to the data, which is based on continuous front-month futures contracts. A gain or loss of 20% typically signals the start of a bull or bear market, respectively. After entering one, it takes a 20% move in the opposite direction to switch courses. A move of that size is big, so it typically doesn’t happen all that often — except in 2016………………………………………..Full Article: Source

Morgan Stanley throws cold water on hopes of any OPEC freeze deal

Posted on 23 August 2016 by VRS  |  Email |Print

Energy investors got all excited last week on hints of a freeze deal among major oil producers, but anyone hoping for coordinated action to boost the struggling oil market is bound for disappointment, according to Morgan Stanley.
In a note out on Monday, strategists led by head of energy commodity research Adam Longson warned that an output agreement between members of the Organization of the Petroleum Exporting Countries remains “highly unlikely” as the cartel members battle for market share………………………………………..Full Article: Source

Oil Enters a Bull Market (Video)

Posted on 22 August 2016 by VRS  |  Email |Print

Oil has capped its strongest weekly gains in five months after WTI and Brent entered a bull market. Bloomberg’s Anthony DiPaola reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

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