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OPEC exports more petroleum products to Asia-Pacific in 2013

Posted on 24 July 2014 by VRS  |  Email |Print

OPEC member countries exported 4.5 mb/d of petroleum products in 2013, with the largest share devoted to Asian and Pacific countries (3.1 mb/d or 68.5 percent), the Organization of the Petroleum Exporting Countries (OPEC) said its latest “Annual Statistical Bulletin” released Tuesday.
The report noted that European and North American countries received smaller shares of OPEC petroleum product exports (0.6 mb/d or 14.0 percent and 0.2 mb/d or 5.2 percent, respectively). The refinery capacity of OPEC member countries increased by a 4.9 percent during 2013 compared to 2012. In 2013, OPEC Member Countries held 11.0 percent of total world refinery capacity, up from 10.5 percent in 2012………………………………………..Full Article: Source

Iran slips to 8-th spot as OPEC’s oil exporter

Posted on 24 July 2014 by VRS  |  Email |Print

Iran’s crude oil export dropped by 42.2 percent to 1.25 million barrels in 2013. According to the OPEC’s Annual Bulletin, released on July 19, Iran’s crude oil export was 2.537 million barrels per day in 2011, before the West imposed tough sanctions on Iran.
The crude oil in OPEC statistics includes a mixture of hydrocarbons that exist in a liquid phase in natural underground reservoirs and remains liquid at atmospheric, then it consists of crude oil, gas condensate, NGLs, etc. Before sanctions took effect in mid-2012, Iran was both the second major oil exporter and producer of OPEC………………………………………..Full Article: Source

Oil prices near lows, Russia sanctions, Iraq tensions support: PIRA Energy

Posted on 24 July 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group believes that with both the physical market and financial length bottoming, oil prices are at or near their lows. In the U.S., sharp crude stock reduction is offset by a product build. In Japan, crude stocks posted a large draw. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
Sharp U.S. Crude stock reduction offset by product build: Crude stocks fell for the week ending July 11, 2014 while product inventories built, causing an overall inventory build. This inventory pattern fits with record crude runs. Last year for the same week, inventories were down slightly so the year-on-year inventory excess widened. Crude oil and other products are up on last year while the four major product inventories are down………………………………………..Full Article: Source

Will the U.S. Oil Boom Make Energy Sanctions Easier?

Posted on 24 July 2014 by VRS  |  Email |Print

Ask someone to identify a big geopolitical consequence of the ongoing U.S. oil production boom and odds are high that they’ll invoke Iran. (Every one of the links in that last sentence is an example.) Without surging U.S. oil production, they’ll argue, sanctions on Iranian oil exports would have led to a massive oil price spike. Here is a concrete case of the oil boom yielding greater U.S. freedom of action in the world, and a harbinger, it would seem, of things to come.
The historical account seems right, but it’s tough to see how the Iran experience might be repeated. The upshot is that the lessons for future U.S. freedom of action – and for geopolitics more generally – are being badly over-read………………………………………..Full Article: Source

OPEC’s Two-Decade Ride on Global Growth Stalls

Posted on 23 July 2014 by VRS  |  Email |Print

For the past two decades, growth in the global economy spelled higher revenues for the Organization of Petroleum Exporting Countries. Not any more.
The CHART OF THE DAY shows how last year was the first since 1993 that the value of OPEC’s total crude exports didn’t track the direction of global gross domestic product. The bottom panel shows how the group supplying about 40 percent of the world’s oil fetched lower average prices and also shipped fewer barrels year on year………………………………………..Full Article: Source

Risk of oil price rises due to conflicts

Posted on 23 July 2014 by VRS  |  Email |Print

World stock markets and global economic recovery are at risk from a sharp rise in oil prices triggered by military conflicts, a leading economist said. A combination of fighting in the Middle East and the shooting down of the passenger jet over Ukraine sent crude oil prices rising by $2 a barrel in the past week, said Steen Jakobsen, chief economist at Saxo Bank.
He said markets had got used to believing that low interest rates would save the world economy and had been duped into believing what happened in the real world did not matter. Jakobsen added: “We smiled while globalisation reduced prices and made our companies more profit now the escalation of wars reflect a world where growth is short and energy is expensive and increasingly hard to get………………………………………..Full Article: Source

Oil price gains lose steam on rising dollar

Posted on 23 July 2014 by VRS  |  Email |Print

Oil prices rose Tuesday, supported by a threat of tougher sanctions against Russia and fierce fighting in Gaza, but lost steam as the dollar rallied against the euro, traders said. Brent North Sea crude for delivery in September had edged up four cents to stand at $107.72 a barrel in late London deals, after trading up 64 cents around midday in the British capital.
US benchmark West Texas Intermediate (WTI) for August was 14 cents higher at $104.73 a barrel, pulling back from levels above $105 seen earlier in the day………………………………………..Full Article: Source

Swiss Commodities Traders Go Big on African Oil

Posted on 22 July 2014 by VRS  |  Email |Print

Swiss commodities traders are buying significant volumes of Africa’s oil in opaque and lightly-regulated deals, according to a new report that spotlights their commanding position in the continent’s energy markets.
Traders such as Glencore PLC and privately-owned Trafigura Beheer B.V. spent $55 billion buying a quarter of the oil produced by Africa’s top 10 suppliers between 2011 and 2013, according to the report by a trio of nongovernmental organizations, the Berne Declaration, the Natural Resource Governance Institute and Swissaid………………………………………..Full Article: Source

Speculators cut bets on higher oil prices

Posted on 22 July 2014 by VRS  |  Email |Print

Speculators cut their bets on higher Brent crude oil prices by almost a quarter in the week to July 15 after prices dropped to three-month lows. Hedge funds and other money managers curbed their net long futures and options positions to 151,981 – the lowest since April 8 – from 201,568 contracts, the IntercontinentalExchange said in its Commitment of Traders report on Monday.
Concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts. This prompted prices to fall to $104.39 a barrel – the lowest in three months – in the week ending July 15, after rising to more than $115 a barrel in mid-June………………………………………..Full Article: Source

Oil price spike will hit ‘fragile three’

Posted on 22 July 2014 by VRS  |  Email |Print

Three of the so-called ‘fragile five’ would be among the worst hit countries if unrest in Iraq sparks another spike in oil prices, Capital Economics has claimed. Chief emerging markets economist Neil Shearing said the group’s forecast is for prices to drop back to below $100 per barrel by the end of the year, in part due to increased supply from the rest of the Middle East.
But if prices do spike beyond current levels, vulnerable markets such as Turkey, South Africa and India would find themselves in the eye of the storm………………………………………..Full Article: Source

Hedge funds slash Brent oil bets by 25 pct during price rout -ICE

Posted on 22 July 2014 by VRS  |  Email |Print

Hedge funds and other large speculators slashed their bets on higher Brent crude oil prices by almost 25 percent in the week to July 15, ICE said on Monday, as prices collapsed to their lowest in three months.
The IntercontinentalExchange Inc. said money managers reduced their net long futures and options positions in Brent to 151,981 from 201,568 as prices fell to a three-month low of $104.39, down from more than $115 a barrel in mid-June………………………………………..Full Article: Source

Speculators Cutting Bullish Oil Bets Miss Ukraine Rally

Posted on 21 July 2014 by VRS  |  Email |Print

The downed jetliner in Ukraine and Israel’s Gaza offensive blindsided speculators who had cut bullish crude bets on the assumption that risks to supply were diminishing.
Crude futures rose after money managers slashed net-long positions in West Texas Intermediate, the U.S. benchmark grade, by 15 percent in the seven days ended July 15, the Commodity Futures Trading Commission said. It was the biggest drop in bullish wagers since March 2013………………………………………..Full Article: Source

Amid Global Turmoil, Oil Prices Surprisingly Stable

Posted on 21 July 2014 by VRS  |  Email |Print

The world has entered a zone of maximum upheaval. From the Atlas Mountains of North Africa to the Hindu Kush, in Afghanistan, the Middle East is in flames. The destruction of a Malaysian airline over Ukraine, almost certainly shot down by Russian-backed separatist rebels, threatens war in the Black Sea region.
Libya is being torn apart by competing militias, while parts of Iraq are under assault by the murderous Islamist force known as ISIS. Syria remains a bloody horror show, and Israeli troops have launched a ground invasion of Gaza. At no time since the terror attacks of 2001 has the world seen such conflict and instability………………………………………..Full Article: Source

OPEC Says Oil Production, Market Share Fell in 2013

Posted on 21 July 2014 by VRS  |  Email |Print

OPEC said Friday its crude production and market share fell last year as a boom in U.S. shale dents demand for its oil. In an annual statistical report, the Organization of the Petroleum Exporting Countries said its collective crude production was down 2.5% during 2013 on an annual basis.
OPEC’s share of total global production in 2013 averaged 43.4%, down from the 44.6% in 2012, it said. Global oil production and demand rose last year but was largely captured by OPEC’s rivals, notably a rise in nonconventional U.S. production………………………………………..Full Article: Source

Platts Survey: OPEC Missed its June Target of 30,000 barrels Per Day

Posted on 21 July 2014 by VRS  |  Email |Print

Oil production from the Mideast-dominated Organization of the Petroleum Exporting Countries (OPEC) dipped by 30,000 barrels per day (b/d) in June to 29.94 million b/d, according to the latest Platts survey of OPEC plus industry officials and analysts. The survey showed Iraq’s output plunge of 160,000 b/d in some war-torn areas was largely offset by production increases from several other OPEC member countries.
“Small though it may be, a dip in OPEC output is the last thing the consuming world wants to see,” said John Kingston, Platts global director of news. “OPEC had seen the call on its crude averaging 30.4 million b/d in the second half of this year, so any drop in production from the organization – even an involuntary one – could be viewed as a move in the wrong direction,” King added………………………………………..Full Article: Source

Iran rejects selling oil to Greece, Sri Lanka, South Africa

Posted on 21 July 2014 by VRS  |  Email |Print

Mohsen Qamsari, an official with the National Iranian Oil Company, said on July 20 rejected the claims that Iran is selling crude oil to Greece, Sri Lanka, and South Africa. “China with 400,000 barrels per day is the biggest costumer of Iranian crude oil,” he said, adding that Beijing’s imports account for 40 percent of Iran’s total oil export, Iran’s IRNA News Agency reported.
“India with 25 percent is the second biggest costumer of Iranian oil,” Qamsari explained. He went on to note that South Korea, Japan, and Turkey are the other main costumers of Iranian oil………………………………………..Full Article: Source

Supply setbacks will push oil price higher

Posted on 18 July 2014 by VRS  |  Email |Print

A possible resumption of oil exports from Libya, as yet unhindered production in Iraq, and hopes of a nuclear deal with Iran, have caught the oil market on the hop. It was only a month ago that Brent, the international crude oil marker, rose to more than $115 a barrel amid fears of a disruption to oil supplies as insurgents swept across northern Iraq. But these anxieties soon dissipated and oil has been in freefall.
This week Brent suffered its biggest one day percentage drop since January, triggering a scramble to unwind positions that took the price to a low of $104 a barrel. Traders are now asking whether the rapid sell-off is over or has further to run………………………………………..Full Article: Source

Who Are The World’s Richest Oil Barons?

Posted on 18 July 2014 by VRS  |  Email |Print

1. Charles and David Koch ($68 billion jointly): The bogeymen of the Democratic Party inherited their fortunes, along with the family business, from their father, Fred. But they’ve since shown a keen entrepreneurial spirit. Koch Industries’ claim to fame initially was a proprietary oil refining technique, but the brothers soon diversified the product portfolio to encompass refineries, pipelines, and the manufacturing of chemicals, polymers and fibers.
2. Mukesh Ambani ($21.5 billion): Barons who obtained their fortunes from dearest dad occupy the top two spots on the list. Mukesh Ambani currently oversees India’s Reliance Industries. Having begun as a textiles maker, Reliance Industries created a dedicated subsidiary, Reliance Industries, which has had a spectacular run since it burst onto the world scene in 2008. It owns the world’s biggest refinery at Jamnagar in Gujarat, with a capacity of 1.24 million barrels per day………………………………………..Full Article: Source

Oil and natural gas resource categories reflect varying degrees of certainty

Posted on 18 July 2014 by VRS  |  Email |Print

The Energy Information Administration (EIA) has explained that crude oil and natural gas resources are the estimated oil and natural gas volumes that might be produced at some time in the future. The volumes of oil and natural gas that will ultimately be produced cannot be know ahead of time. Resource estimates change as extraction technologies improve, markets evolve and oil and natural gas are produced.
According to the EIA, the uncertainty in estimated volumes declines across the resource categories based on the relative mix of facts and assumptions used to create the estimates. Oil and gas in-place estimates are based on fewer facts and more assumptions, while proved reserves are based mostly on facts and fewer assumptions………………………………………..Full Article: Source

British government to help fund new oil regulator until 2022

Posted on 17 July 2014 by VRS  |  Email |Print

The British government announced on Wednesday another 3 million pounds ($5.14 million) a year in funding for the country’s new oil regulator until 2022, after which it will be fully financed by the industry.
The Oil and Gas Authority (OGA), which will be based in Aberdeen, Scotland, will be responsible for ensuring that oil explorers squeeze as much oil and gas out of Britain’s North Sea as possible. It is expected to start operating later this year………………………………………..Full Article: Source

Saudi Kingdom’s oil exports hit 1.38bn barrels in 6 months

Posted on 17 July 2014 by VRS  |  Email |Print

Saudi Arabia exported nearly 1.38 billion barrels of oil in the first six months of the current year (2014) that yielded SR565 billion, an economic expert was quoted by the local media. Local consumption is projected to hit 395 million barrels, or 22 percent of the total production, during the same period, Fahad bin Jumaa told Al-Riyadh Arabic daily.
The figures come at a time when OPEC (Organization of Petroleum Exporting Countries) is poised to shrink its share of the global market for the third consecutive year by 2015 for a number of reasons, including boom of shale oil in the United States despite acceleration of global demand on oil, he said………………………………………..Full Article: Source

Iraq: What Is The Real Impact On Oil?

Posted on 17 July 2014 by VRS  |  Email |Print

Over the last several decades, political and military turmoil in Iraq has been almost immediately associated with rising oil prices and increased uncertainty in energy markets. From a supply and demand perspective, there are some real and appropriate reasons for why this might occur. Iraq is one of the largest contributors in the Organization of the Petroleum Exporting Countries (OPEC), which accounted for more than 80% of world crude oil reserves, as of 2012.
So, it is relatively easy to understand why there is a strong association between political turmoil in the Middle East and the potential for rising prices in oil and many other energy markets. This is also why stocks likeExxon Mobil have rallied to yearly highs above $100 per share………………………………………..Full Article: Source

Oil drops sharply as supply concerns ease

Posted on 16 July 2014 by VRS  |  Email |Print

Brent crude suffered its biggest one-day percentage fall since the start of the year as concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts.
ICE August Brent fell to a three-month low of $104.39 a barrel, extending losses since the middle of June, when insurgents swept across northern Iraq, to more than 9 per cent………………………………………..Full Article: Source

How to Take Advantage of Volatility in Oil Prices

Posted on 16 July 2014 by VRS  |  Email |Print

Crude oil prices actually fell 3.1% last week despite rising tensions in Iraq and continued geopolitical turmoil in Israel. However, despite this decline, tensions pushed crude oil’s implied volatility to three-week highs.
Although crude oil prices will likely stabilize as the U.S. moves further into the summer driving season, volatility could continue to move higher, allowing investors to profit from an options strategy called a straddle………………………………………..Full Article: Source

Here Are Three Factors That Could Drag Down Oil Prices Even More

Posted on 16 July 2014 by VRS  |  Email |Print

In the past three weeks the price of West Texas Intermediate crude oil has lost 6% of its value; a barrel is currently priced at around $100. The recent plunge in oil prices has also dragged down the shares of big oil producers such as BP and Chevron.
BP’s stock is at $51.84, down 1.7% since the beginning of the month. Shares of Chevron are at $129.35, down 0.9% during July. But will crude oil prices continue to decline in the coming weeks? Following are are three factors that could keep pressure on oil pressures………………………………………..Full Article: Source

OPEC’s Clout Falls as US Increases Oil Supply

Posted on 16 July 2014 by VRS  |  Email |Print

Crude oil supply from hydraulic fracturing isn’t just a controversial topic for U.S. politicians and industry regulators; it’s also affecting the business of the world’s biggest oil cartel. The Organization of the Petroleum Exporting Countries (OPEC) cut demand forecast for its own oil by around 300,000 barrels per day (bpd) in 2015, mainly due to increased supply from American and Canadian shale formations.
Last week, OPEC’s secretariat in Vienna, Austria, issued a report projecting that demand for oil from its 12 member nations would drop from 29.7 million bpd this year to 29.4 million bpd in 2015………………………………………..Full Article: Source

U.S. World’s Largest Producer of Oil & Gas

Posted on 16 July 2014 by VRS  |  Email |Print

Recent reports have confirmed that the US is now the world’s largest producer of crude oil with output exceeding 11 million barrels per day in the 1Q of this year. This surpasses the daily oil production of Russia and Saudi Arabia.
This is the first time in over 40 years that the US has once again become the largest producer of oil in the world – and this is despite the Obama administration’s continued ban on new drilling for oil in our coastal waterways………………………………………..Full Article: Source

Global oil supply and demand equation poses risks

Posted on 15 July 2014 by VRS  |  Email |Print

Looking ahead few years, global demand for oil will continue to increase because of rising prosperity in emerging economies. Supply, however, will still remain constrained. Soon, the world will not be able to produce all the oil it needs as demand is continually rising while supply is falling. According to International Energy Agency (IEA), oil consumption will rise by 56% between now and 2040, with China and India responsible for half of this increase in consumption.
Global oil demand for 2013 will probably be around 91.3 million barrels per day (mb/d). Demand will grow to 92.6 mb/d in 2014, according to the IEA……………………………………….Full Article: Source

Is the U.S. Fracking Boom a Bubble?

Posted on 15 July 2014 by VRS  |  Email |Print

America’s oil boom continues at breakneck speed. Last week the Bank of America released figures showing that the U.S. is now the world’s leading oil producer, overtaking both Saudi Arabia and Russia.
Ways of extracting “tight” oil and gas from shale rock and other unconventional sources have revolutionized energy production. In the first half of this year the U.S. produced 11 million barrels of oil a day………………………………………..Full Article: Source

EIA expects higher gasoline prices for driving season, full year

Posted on 15 July 2014 by VRS  |  Email |Print

During the April-September summer driving season this year in the US, regular gasoline retail prices will average $3.66/gal, 8¢/gal higher than last year and 4¢ higher than projected last month, according to a forecast from the US Energy Information Administration in its July Short-Term Energy Outlook (STEO).
As lower refinery margins more than offset higher crude oil prices, regular gasoline retail prices are projected to fall from an average of $3.68/gal during the second quarter to $3.64/gal during the third quarter. EIA expects regular gasoline retail prices to average $3.54/gal this year and $3.45/gal in 2015. This compares with the agency’s forecasts of $3.50/gal this year and $3.38/gal in 2015 in last month’s STEO………………………………………..Full Article: Source

Global oil demand growth is forecast to accelerate to 1.4 mb/d in 2015

Posted on 14 July 2014 by VRS  |  Email |Print

Oil futures surged in mid‐June by $5/bbl to a nine-month high of more than $115/bbl for Brent as Islamist forces gained ground in Iraq, but later reversed their gains on confidence that Baghdad’s southern fields would remain untouched and improved prospects for a recovery in Libyan exports. Brent last traded at $108/bbl, WTI at $102/bbl.
OPEC supplies were virtually unchanged in June at 30.03 million barrels per day (mb/d), as lower Iraqi production offset gains in Saudi Arabia, Iran, Nigeria and Angola. The ‘call’ on OPEC for 2H14 was cut by 350 000 barrels per day (350 kb/d) to 30.6 mb/d on improved non‐OPEC supply and lower demand, and is forecast to dip to 29.8 mb/d in 2015 from 29.9 mb/d in 2014. ……………………………………….Full Article: Source

Less Demand for OPEC Oil as Other Sources Increase Supply

Posted on 14 July 2014 by VRS  |  Email |Print

OPEC is cutting its forecast of demand for its own oil by 300,000 barrels a day in 2015 because of an increased supply of crude from other sources, particularly the United States and Canada.
The cartel’s secretariat in Vienna issued its first estimates for the year on July 10 in its latest monthly report on the global oil market. Its conclusion: Demand for crude from the 12 OPEC members should remain at an estimated 29.7 million barrels a day (MBD) through 2014, but drop to 29.4 MBD in 2015………………………………………..Full Article: Source

Demand for OPEC oil seen to taper off

Posted on 14 July 2014 by VRS  |  Email |Print

World’s top crude consumer, the United States, is now the world’s top producer too, overtaking Russia and the OPEC kingpin Saudi Arabia. In the first quarter of 2014, the United States extracted more than 11 million barrels of crude per day, compared with Russia’ daily output of 10.53 million bpd and Saudi Arabia’s 9.45 million bpd, Bloomberg reported citing Energy Intelligence Group. And the US was already declared in 2010 as the world’s largest natural gas producer.
Last month the Paris-based International Energy Agency too conceded that the US was the biggest producer of oil and natural gas liquids………………………………………..Full Article: Source

Reality Blows Crude Oil Price Seriously Off Course

Posted on 14 July 2014 by VRS  |  Email |Print

In classic fashion market operators and manipulators gave a false signal to hopeful speculators, by nudging up oil prices on the Nymex, ICE and other oil markets, on Thursday 10th July. Then the market riggers crushed them, Friday 11th, with a 2.2% one-day crash of prices. To be sure we have to wait for Monday 15th trades to see if the new canonical oil price of $100-per-barrel can be set back in place like Humpty Dumpty, and will hold.
Chances are, it won’t. Two-percent-daily price cuts can slash oil back to where it belongs at about $80 per barrel, quite fast. Marketwatch was forced to comment, 12 July, that US WTI and ICE Brent futures dropped below $101 a barrel and $107 a barrel on Friday to mark a fourth weekly loss and their lowest close in two months………………………………………..Full Article: Source

BP’s Latest Estimate Says World’s Oil Will Last 53.3 Years

Posted on 14 July 2014 by VRS  |  Email |Print

According to BP, drivers whose vehicles rely on burning oil have a little more than a half-century to find alternate sources of energy. Or walk. BP’s annual report on proved global oil reserves says that as of the end of 2013, Earth has nearly 1.688 trillion barrels of crude, which will last 53.3 years at current rates of extraction. This figure is 1.1 percent higher than that of the previous year. In fact, during the past 10 years proven reserves have risen by 27 percent, or more than 350 billion barrels.
The increased amount of oil in the report include 900 million barrels detected in Russia and 800 million barrels in Venezuela. OPEC nations continue to lead the world by having a large majority of the planet’s reserves, or 71.9 percent………………………………………..Full Article: Source

Oil Hedging Seen in Decline as Banks Exit Commodities

Posted on 11 July 2014 by VRS  |  Email |Print

Oil-price hedging by producers and consumers is declining as a result of stricter of regulation that’s caused banks to exit commodities markets, according to Threadneedle Asset Management Ltd.
Trading of futures for delivery later this decade has diminished as some banks either leave commodities altogether or curb trading, Nicolas Robin, a fund manager at Threadneedle, said at a presentation in London yesterday. Increased regulatory oversight has caused a slump in energy trading on exchanges, Platts, a company publishing prices for commodities including oil, said the day before………………………………………..Full Article: Source

OPEC’s oil market share to shrink in 2015, despite growing demand

Posted on 11 July 2014 by VRS  |  Email |Print

OPEC expects its share of the world oil market to shrink in 2015 for a third year running, due in part to the U.S. shale oil boom, giving the exporter group little comfort from an acceleration in global demand.
Making its first 2015 forecast in a monthly report, the Organization of the Petroleum Exporting Countries said demand for its oil next year would average 29.37 million barrels per day (bpd), down 310,000 bpd from 2014………………………………………..Full Article: Source

Global oil demand expected to grow along with economy, cartel says

Posted on 11 July 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Counties said Thursday it expected the world will need more oil because of improvements in the global economy. Global oil demand for 2015 is expected to grow by 1.2 million bpd to average 92.3 million bpd as the world economy picks up steam, OPEC said in its monthly market report.
“Despite some weakness in the first half of the year, the world economy continues to recover,” the report said. “Global gross domestic production growth in 2014 is now forecast at 3.1 percent, slightly higher than the estimated 2.9 percent for 2013.”……………………………………….Full Article: Source

OPEC Sees U.S. Fueling Acceleration in Global Oil Demand Next Year

Posted on 11 July 2014 by VRS  |  Email |Print

Rising U.S. oil consumption will reverse a four-year demand decline in rich nations and drive a pick up world-wide next year, the Organization of the Petroleum Exporting Countries said Thursday. The assessment—the first given for 2015 by the oil producers’ group—shows the U.S. is scooping more of its own oil amid a production boom just as OPEC’s role continues to decrease.
In its monthly oil market report, OPEC said global oil demand growth will pick up next year amid robust economic growth. World consumption will increase by 1.21 million barrels a day in 2015, compared with a rise of 1.13 million barrels a day this year, the group said………………………………………..Full Article: Source

IEEJ sees 2015 non-OPEC oil supply rising 1.6 mil b/d, led by US exports

Posted on 11 July 2014 by VRS  |  Email |Print

Non-OPEC oil supply is expected to rise by 1.6 million b/d in 2015 from a year earlier, led by increasing US liquids exports, a senior oil analyst at the Institute of Energy Economics, Japan said Thursday. Yoshikazu Kobayashi, oil group manager at IEEJ’s fossil fuels and electric power industry unit, said the outlook considered rising LPG supplies from the US and a recent US Commerce Department decision allowing exports of lightly processed condensates.
“We expect to see US condensates flowing into the Asian market from now on,” he said, adding that US condensate export volumes would be limited but would nevertheless help reduce procurement prices of naphtha and light crudes in Asia………………………………………..Full Article: Source

Natural-Gas Prices Drop on Greater-Than-Expected Surplus

Posted on 11 July 2014 by VRS  |  Email |Print

Energy prices are tumbling, a setback for investors who were betting that supply shortfalls would drive markets higher. Natural-gas futures hit a six-month low on Thursday. U.S. oil futures ended slightly higher, snapping a nine-session losing streak, the longest since December 2009.
It is a sharp turnaround for both markets, where investors until recently were overwhelmingly bullish, and a welcome relief for consumers, who had watched gasoline climb steadily for much of this year………………………………………..Full Article: Source

Libya’s oil industry remains vulnerable to protests

Posted on 10 July 2014 by VRS  |  Email |Print

Libya’s oil industry hopes life will return to normal now that a wave of protests has ebbed, but it will take months to ramp up production and more unrest is in prospect as political chaos spreads in the North African country. A group of eastern rebels agreed last week to clear two major ports they had seized almost a year ago in a drive for regional autonomy.
Together with the freeing of the southern El Sharara oilfield, where a separate group has ended a blockade of its own, the ports’ reopening could boost oil exports by 650,000 barrels a day in the next few weeks - helping to restore much of the 1.4 million bpd Libya used to pump before protests paralysed the sector………………………………………..Full Article: Source

Pentagon uses wrong oil price and fails to hedge fuel bill: Kemp

Posted on 10 July 2014 by VRS  |  Email |Print

The U.S. Department of Defense has been using the wrong oil price in its budget, leaving the largest single buyer of fuel in the world with liabilities potentially hitting billions of dollars. The Pentagon continues to rely on WTI prices even though Brent oil is more relevant to the cost of fuels it buys on behalf of the armed forces.
Using the wrong benchmark has introduced increasing risk into the military budget, according to a critical report published on Tuesday by the Government Accountability Office (GAO) (“Bulk Fuel Pricing: DOD needs to re-evaluate its approach to better manage the effect of market fluctuations”)………………………………………..Full Article: Source

Future of Oil Hangs on Iraqi Politics

Posted on 10 July 2014 by VRS  |  Email |Print

Fears that events in Iraq will send global oil prices soaring have abated. Yet, the crisis has potentially huge implications for oil. Under any conceivable outcome to the current situation, oil production from Iraq will fail to meet recent expectations. The reason for this dire prognosis is that politics – not security or logistics – will be the biggest determinant of Iraq’s oil trajectory in the years ahead.
In 2012, the International Energy Agency forecast that Iraq would account for 45 percent of the growth in global oil supply from 2012 to 2035. In its projection, the IEA anticipated that Iraq would move to producing more than 6 million barrels a day in the next five and a half years, from 3.3 million barrels a day………………………………………..Full Article: Source

How low could crude oil go?

Posted on 10 July 2014 by VRS  |  Email |Print

At the beginning of this year — long before extreme winter weather and the Islamic State seizing Iraq’s largest oil refinery, and everything that’s followed — a high-profile analyst said oil prices could drop by $20 a barrel. His belief was that the oil supply would surge this year thanks to Iraq, Libya and the U.S. being able to increase their production.
On top of that, the lifting of some Iranian sanctions would allow it to increase its oil production as well. Oil prices have been stabilizing over the past few days as the threat in the Middle East has lessened………………………………………..Full Article: Source

LNG market grows at 2.8% CAGR, to reach US$196.4 mn by 2019

Posted on 10 July 2014 by VRS  |  Email |Print

Liquefied Natural Gas market is growing at a compounded annual growth rate (CAGR) of 2.8% from 2013 and will extend up to 2019 when total market value will rise to US$196.4 mn from $161.4 mn in 2012, according to a new report titled “Liquefied Naturla Gas Market: Global Industry Analysis, size, share, growth, trends and forecast, 2013-19.
Key end-user segments analyzed in the study include industrial sector, electric power and other segments such as transportation and commercial. In terms of volume, industrial sector was the largest segment, accounting for around 43.0% of the total market share in 2012. Industries such as fertilizers and petrochemicals are major consumers of LNG as large share of LNG is consumed by these sectors………………………………………..Full Article: Source

EIA bumps up oil, gasoline and natural gas price predictions

Posted on 09 July 2014 by VRS  |  Email |Print

The U.S. Energy Information Administration raised its 2014 and 2015 average price estimates for crude oil, gasoline and natural gas, according to a monthly report released Tuesday. “The escalating conflict in Iraq, continued record-high levels of Chinese crude oil imports in 2014, and ongoing delays to Libyan oil exports have contributed to upward price pressure,” the government agency said.
For 2014, the EIA forecast average prices of $100.98 a barrel for West Texas Intermediate crude oil , up from an estimate of $98.67 in the previous monthly report. It estimates an average 2015 price of $95.17, up from $90.92……………………………………Full Article: Source

EIA Raises Oil Price Forecasts on Surge in Iraq Violence

Posted on 09 July 2014 by VRS  |  Email |Print

The U.S. Energy Information Administration increased its 2014 and 2015 price forecasts for West Texas Intermediate and Brent crudes because of the upsurge of violence in Iraq. WTI will average $100.98 a barrel this year versus the June projection of $98.67, the EIA, the Energy Department’s statistical unit, said today in its monthly Short-Term Energy Outlook. The U.S. benchmark grade will average $95.17 in 2015, up from the previous month’s estimate of $90.92.
The EIA boosted the forecast for Brent to $109.55 for this year from $107.82. Next year’s forecast was raised to $104.92 from $101.92. “Price forecasts were raised primarily because the problems in Iraq caused us to scale back our production projections,” Tancred Lidderdale, an economist with the EIA in Washington who helped write the report……………………………………Full Article: Source

US EIA: Cuts 2014 World Oil Demnd Outlk,Raises Non-OPEC Supply

Posted on 09 July 2014 by VRS  |  Email |Print

The U.S. Energy Information Administration Tuesday slashed its forecasts for how much it sees world oil demand growing in 2014, while increasing its expectation for how supply will come from non-OPEC producers this year. The agency reported in its July Short Term Energy Outlook that U.S. oil output in 2015 will likely average its highest level in 42 years, while also raising its forecast for U.S. and international oil prices.
U.S. crude oil production is expected to increase from an estimated 7.4 million barrels per day in 2013 to 8.5 million bpd in 2014 and 9.3 million bpd in 2015. “The 2015 forecast represents the highest annual average level of oil production since 1972,” the EIA said……………………………………Full Article: Source

Would Bursting Asset Bubbles Affect Oil Prices?

Posted on 09 July 2014 by VRS  |  Email |Print

The DOW drop below 17,000 has seemed to some a sign that maybe a correction is here. Talk of bubbles in some asset classes is spreading, the potential for less quantitative easing and higher interest rates, and the crying need for profit taking in stocks suggests to some analysts that the equities market will at least pause, possibly pull back notably. As always, there are those that disagree.
But, if there is an equities correction, such as a drop of 20%, would that affect oil prices? Two schools of thought exist on this (don’t you hate that?), one suggesting that a bear market on Wall Street would pull down oil prices, the other that oil might become a perceived safe haven, or at least a parking spot, for the cash which institutions would have……………………………………Full Article: Source

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