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Commodities Briefing - Category | Oil more

Prospects for oil to hit US$50 to US$60 appear dim

Posted on 01 November 2016 by VRS  |  Email |Print

With Iraq wanting to exit and uncertainty over Russian commitment to an output cut, the prospects for oil to hit US$55-US$60 per barrel appear dim, at least for the moment. “History has shown that sustaining production cuts has never been easy. Any headline news on the Organisation of Petroleum Exporting Countries (Opec) members not toeing the line will create price pressures,” said Thomas Yong, CEO, Fortress Capital.
As it is, oil prices are struggling at around US$50 per barrel. “Already lingering doubts about the oil deal have sent prices struggling to stay firmly above US$50 per barrel. Without the full commitment from all Opec members to the output cut deal, and backing from major non-Opec members, the deal will likely fall through,” said Lee Heng Guie, executive director, Socio Economic Research Centre…………………………………….Full Article: Source

Opec deal doubts send oil price to lowest level in a month

Posted on 01 November 2016 by VRS  |  Email |Print

Two important meetings passed at the weekend without any specific agreement on Opec member state supply cuts or support from other oil producers for an output deal next month.
With only a month to go until the 14-nation cartel is due to finalise its deal to cut overall exports by up to one million barrels a day, the failures have added to fears the agreement will ever be ratified. Brent crude, the international oil price benchmark, was this morning trading at $49.54 a barrel, 23 cents above its overnight nadir that marked the lowest level since 30 September…………………………………….Full Article: Source

Iran still resolved to regain lost oil market

Posted on 01 November 2016 by VRS  |  Email |Print

As OPEC is preparing for a crucial summit to discuss a plan to freeze crude oil output, Iran its resolve to regain the share of the global oil market that it lost as a result of multiple years of sanctions remains unchanged.
Ali Kardor, the managing director of the National Iranian Oil Company (NIOC), told the domestic media that Iran’s oil production has reached the pre-sanctions levels of around 4 million barrels per day (mb/d). Kardor added that the country’s exports also stand at 2.44 mb/d…………………………………….Full Article: Source

Oil prices retreat as market waits for OPEC details: Kemp

Posted on 01 November 2016 by VRS  |  Email |Print

Oil prices are set to remain under pressure until Saudi Arabia and the rest of OPEC prove they can show how they will remove enough barrels from the market to accelerate the rebalancing process. Benchmark Brent futures prices surged more than $8 per barrel over the course of nine trading sessions after OPEC members announced a surprise framework agreement on Sept. 28 to cut production.
The agreement caught hedge funds and other money managers off guard with an unusually large number of short positions, which helped squeeze the market higher in a blistering short-covering rally…………………………………….Full Article: Source

Oil Output Discrepancies Cloud OPEC Deal for Market (Video)

Posted on 01 November 2016 by VRS  |  Email |Print

In today’s “Futures in Focus,” Alan Knuckman of Bulls-Eye Options and Bloomberg’s Alix Steel examine market moves related to OPEC oil output. They speak on “Bloomberg Daybreak: Americas.”.…………………………………..Full Article: Source

The price of oil is heading up - should I invest, and how?

Posted on 31 October 2016 by VRS  |  Email |Print

After recovering from its recent lows, the price of oil should continue to rise, in the short term at least, experts say. A trend towards equilibrium in the continuing battle between supply and demand, and a rare agreement between the members of Opec, the oil cartel, are among the reasons.
The price of oil is notoriously difficult to project, and any prediction needs to be taken with a hefty dose of salt. However, there appear to be compelling arguments in favour of a continued recovery in the oil price and Telegraph Money has rounded up a selection, along with the opposite view……………………………………..Full Article: Source

OPEC, non-oil cartel members discuss production cuts

Posted on 31 October 2016 by VRS  |  Email |Print

Vienna, Austria- OPEC officials held talks with Russia and other non-cartel members Saturday in Vienna to debate how to implement a plan aimed at cutting oil output to reduce a global supply glut and bolster prices.
“The recovery process has taken far too long and we cannot risk delaying the adjustment any further,” said Sanusi Barkindo, the secretary general of the Organization of the Petroleum Exporting Countries, in his opening remarks……………………………………..Full Article: Source

Non-OPEC yet to pledge concrete oil output steps after meeting OPEC

Posted on 31 October 2016 by VRS  |  Email |Print

Non-OPEC producers made no specific commitment on Saturday to join the Organisation of the Petroleum Exporting Countries in limiting oil output levels to prop up prices - a stance that suggested they wanted OPEC to solve its differences first.
Officials and experts from OPEC countries and non-OPEC nations including Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and Russia met for consultations in Vienna on Saturday and only agreed to meet again in November before a scheduled regular OPEC meeting on Nov. 30, they said in a statement……………………………………..Full Article: Source

OPEC splits prevent deal with other producers to curb supply

Posted on 31 October 2016 by VRS  |  Email |Print

OPEC’s internal disagreements over how to implement oil-supply cuts agreed to last month prevented a deal to secure the cooperation of other major suppliers.More than 18 hours of talks over two days in Vienna yielded little more than a promise that the world’s largest oil producers would keep on talking.
Discussions will continue in late November, just days before the Organization of Petroleum Exporting Countries is supposed to finalize the accord that lifted oil prices to one-year highs………………………………………..Full Article: Source

Oil price recovers $50 level on Venezuela unrest

Posted on 28 October 2016 by VRS  |  Email |Print

International oil price benchmark Brent crude fell below $50 a barrel for the first time in three weeks yesterday following news that the likes of Iraq, Nigeria and Libya may opt out of an Opec agreement to cut production.
Apparent dissent in the ranks is adding to fears the deal, which is seen as an essential help to rebalance an oversupplied market, will never be fully agreed. Nevertheless, Brent crude returned to a shade above $50 as prices rebounded last night and this morning, in part because of building unrest in Opec member state Venezuela, which has seen “escalating protests… against the rule of President Nicolas Maduro”, says Reuters……………………………………Full Article: Source

Winners and losers emerge from the oil price slump

Posted on 28 October 2016 by VRS  |  Email |Print

Opec takes a bigger share of the market but that effort comes at a cost. Opec’s decision to push for production cuts last month has led many to declare the US shale oil industry as the biggest winner from a two-year price war.
The wildcatters of the US shale patch successfully cut costs and consolidated operations to weather the storm of $40 oil, leaving behind a leaner more resilient industry that should benefit as prices recover……………………………………Full Article: Source

Big oil companies are about to gush red — here’s why analysts aren’t panicking

Posted on 28 October 2016 by VRS  |  Email |Print

Wall Street is expecting to see improvement in quarterly earnings as oil majors begin reporting this week after many of the world’s biggest energy companies missed forecasts in the second quarter.
The last round was indeed a dramatic one. Exxon Mobil fell far short of forecasts due to weakening refining operations, while its smaller peer Chevron surprised investors with a loss of $1.5 billion as it booked $2.8 billion in impairments. Royal Dutch Shell whiffed on earnings forecasts to the tune of about $1 billion. BP reported a $2.25 billion net loss as costs related to the Deepwater Horizon oil spill continued to bite……………………………………Full Article: Source

Russia buys its way into India’s oil market

Posted on 28 October 2016 by VRS  |  Email |Print

India After two years of struggling under low crude prices and Western sanctions, Russia has made a major conquest, securing a sizable portion of India’s oil market.
A consortium led by Russia’s state-owned Rosneft on Oct. 15 announced it would acquire 98% of India’s Essar Oil for over $10 billion. The deal with the debt-laden Essar group is structured to limit Rosneft’s stake to 49%, circumventing the sanctions brought on by the Ukraine conflict. The other 49% will be held by Kesani Enterprises, which is owned by Switzerland-headquartered commodity trader Trafigura, and United Capital Partners, a Moscow-based private investment company……………………………………Full Article: Source

Iraq Seeks Exemption from OPEC Production Deal on Islamic State War

Posted on 28 October 2016 by VRS  |  Email |Print

Iraq is arguing that its intensifying war against Islamic State won’t allow it to reduce output along with other OPEC members, threatening to derail the landmark agreement.
The Persian Gulf country is pushing for an exemption from an Organization of the Petroleum Exporting Countries pact reached in September that would cut output between 1% and 2% to make oil more scarce globally and shake prices out of a two-year slump……………………………………Full Article: Source

OPEC Output Cut May Not Drain Supply

Posted on 28 October 2016 by VRS  |  Email |Print

Oil is trading at a three-week low on concerns that OPEC is unable to make the kind of progress it needs to come to a consensus and to a tangible agreement from Vienna in late November.
Bloomberg analysis shows that even if OPEC cuts, it still might not be enough to drain the surplus. Bloomberg’s Wael Mahdi reports on “Bloomberg Markets: Middle East.”…………………………………..Full Article: Source

India’s Crude Oil Imports Hit Record: How Will It Affect Oil Market?

Posted on 27 October 2016 by VRS  |  Email |Print

A Reuters survey reported that India’s crude oil imports rose 17.7% to 4.5 MMbpd (million barrels per day) in September 2016 compared to the same period in 2015. September imports were at their highest level since April 2009. A rise in domestic demand led to the rise in crude oil imports.
India’s oil ministry expects India’s crude oil demand to rise 11% in 2016 compared to 2015. This would be driven by better economic growth and favorable monsoon rains. Market research company Energy Aspects estimates that crude oil consumption in India will rise by 400,000 barrels per day in 2016 and 2017………………………………….Full Article: Source

Russia May Consider Oil Production Cut – Envoy to OPEC

Posted on 27 October 2016 by VRS  |  Email |Print

Russian Permanent Representative to the International Organizations in Vienna stated that at this stage of talks on oil market stabilization Russia considers reasonable production freeze, but during the negotiations process Moscow may change its stance and discuss a production cut.
At this stage of talks on oil market stabilization Russia considers reasonable production freeze, but during the negotiations process Moscow may change its stance and discuss a production cut, Russian Permanent Representative to the International Organizations in Vienna Vladimir Voronkov said…………………………………Full Article: Source

OPEC is back in business, and the market is sceptical: Kemp

Posted on 27 October 2016 by VRS  |  Email |Print

OPEC’s output accord in Algiers last month was initially greeted with enthusiasm by oil market bulls but much of that euphoria is now dissipating as traders question whether it will make an actual difference.
The agreement, coming after many observers had written off the possibility of a deal, initially pushed crude prices sharply higher. Flat prices and timespreads firmed as traders concluded the accord would accelerate the rebalancing of supply and demand…………………………………Full Article: Source

Deal or no deal in Vienna, oil investors are preparing for higher prices

Posted on 26 October 2016 by VRS  |  Email |Print

The chance of an agreement to freeze or cut crude output when OPEC members meet next month might appear more distant now Iraq has joined those asking for an exemption, but investors are ramping up their bets that oil prices will rally.
The price of oil has this month risen to its highest so far this year, having gained more than 10 per cent in the four weeks since the Organization of the Petroleum Exporting Countries agreed to cut production and rein excess global supply…………………………………..Full Article: Source

Iraq is balking at OPEC’s oil output deal

Posted on 26 October 2016 by VRS  |  Email |Print

Iraq’s insistence that it should be exempt from a proposed deal to limit oil output may sound audacious coming from OPEC’s second largest producer, but analysts say it’s entirely possible that top exporter Saudi Arabia will give Baghdad a pass.
Iraqi Oil Minister Jabar Ali al-Luaibi dropped the bombshell on Sunday, doubling down after Iraq had already kicked up a fuss over how OPEC plans to set quotas when it meets next month in Vienna. He argued that his country can’t cut production because it badly needs oil revenue to fight the Islamic State, which Iraqi forces are now fighting to dislodge from Mosul, Iraq’s second-largest city and ISIS’s last stronghold in Iraq…………………………………..Full Article: Source

Saudi Arabia Faces Tough OPEC Equation With Mounting ‘Exemptions’

Posted on 26 October 2016 by VRS  |  Email |Print

Saudi Arabia faces the prospect of much deeper — and financially painful — oil production cuts after Iraq joined the queue of group members seeking immunity from the deal hatched in Algiers. In addition to Iraq, the second-biggest exporter in the group, Iran has already sought to exclude itself.
Output is also recovering from fields in Nigeria and Libya, two more countries that were exempted from the Algiers deal because violence has wrought havoc in their oil industries. Taken together, more than a third of OPEC’s production now stands outside the plan…………………………………..Full Article: Source

OPEC output cut may hasten oil market rebalance: IEA

Posted on 26 October 2016 by VRS  |  Email |Print

The oversupplied oil market will be rebalanced earlier than expected if major crude producers implement a deal to cap output when they meet next month, the International Energy Agency chief said Tuesday.
Under current conditions, the IEA expects global output to exceed demand until the second half of 2017, Fatih Birol said. “But we know that the producers are thinking of intervening in the markets. The OPEC and non-OPEC producers, if they intervene in the markets, this rebalance can be earlier than the second half of 2017,” he said…………………………………..Full Article: Source

World Bank Ups Its 2017 Oil Price Forecast To $55

Posted on 26 October 2016 by VRS  |  Email |Print

The World Bank has just upped its oil price forecast for 2017, saying it now expects average prices to be US $55 a barrel over the next year. That’s US$2 more than its earlier forecast, which is a reflection that at least some shred of optimism is returning to the oil market.
In late September, Saudi Arabia managed to persuade its OPEC co-members to consider a reduction in their combined crude oil output in a bid to, as they called it, restore balance to the oil markets. Balance, in this context, invariably means higher prices that would help Saudi Arabia – and other oil-dependent producers – plug growing budget deficits, and help Venezuela and Nigeria stave off a complete economic collapse…………………………………..Full Article: Source

Can the oil market be controlled?

Posted on 25 October 2016 by VRS  |  Email |Print

Saudi Arabia pushes to freeze oil production and Russia signals its support. It seems OPEC is trying to increase prices again and strengthen oil producing economies. Some of the organisation’s energy ministers met their counterpart from non-OPEC member Russia on Sunday.
The ministers want to see greater cooperation between OPEC and non-OPEC countries to stabilise the oil market. Prices fell to an all-time low in January. They’re still half what they were at their peak two years ago. OPEC is looking to review its strategy…………………………………..Full Article: Source

Russian energy minister believes in acute need to rebalance oil market

Posted on 25 October 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak warned Monday there was an “acute need” to rebalance the oil market and help ease price volatility, after talks with the OPEC oil cartel in Vienna. “Probably by winter we will see considerable overkill of supply over demand.
Therefore there is an acute and urgent need to speed up the rebalancing,” Novak told reporters at the Vienna headquarters of the Organization of Petroleum Exporting Countries. The meeting highlighted “the impact that recent price volatility and the high level of stocks have had on the industry”, the two parties said in a statement…………………………………..Full Article: Source

Russia, Qatar, OPEC discuss possible action to shore up oil market

Posted on 25 October 2016 by VRS  |  Email |Print

Energy ministers from Russia and Qatar along with OPEC’s secretary general discussed possible joint action to stabilise the oil market, Russian Energy Minister Alexander Novak said ahead of OPEC’s meeting next month aiming to cement a deal agreed in Algiers.
Russia is the world’s largest oil producer but not a member of the Organization of the Petroleum Exporting Countries and its budget has been hit by low oil prices, the same as for many OPEC nations. Novak, in Vienna after visiting Saudi Arabia over the weekend for talks with Saudi Energy Minister Khalid al-Falih, said sharp falls in the price of crude threatened to trigger an oil deficit and unpredictable volatility in prices…………………………………..Full Article: Source

Saudi: Oil price down cycle ‘nearing end’

Posted on 24 October 2016 by VRS  |  Email |Print

Saudi Oil Minister Khalid al-Falih said Sunday that the current down cycle of crude prices is close to an end as market fundamentals improve. “The current down cycle is nearing an end,” Falih told a joint press conference with his Russian counterpart Alexander Novak after a Gulf ministerial meeting in Riyadh.
“Market fundamentals, in terms of supply and demand, have begun to improve,” Falih said. Al-Falih said the points of view between the kingdom and Russia, the world’s top oil producer, on the need to stabilise the market “are getting closer.”…………………………………Full Article: Source

Iran says hopes Russia, Saudi can agree on oil market moves

Posted on 24 October 2016 by VRS  |  Email |Print

Iran hopes non-OPEC Russia and OPEC heavyweight Saudi Arabia can agree to coordinate on possible actions on the global oil market, Iranian Oil Minister Bijan Zanganeh said on Sunday. “I hope the two sides can reach an understanding, … that and Russia and non-OPEC countries will reach an understanding over the decision by OPEC members to decrease oil production,” said Zanganeh.
The Organization of the Petroleum Exporting Countries (OPEC) agreed in Algiers on Sept. 28 to reduce production to a range of 32.5 million to 33.0 million barrels per day, which would be its first output cut since 2008. Another meeting on Nov. 30 is set to firm up details of the accord………………………………….Full Article: Source

Qatar’s breakeven oil price of $60 at least 13% lower than GCC average

Posted on 24 October 2016 by VRS  |  Email |Print

Qatar’s fiscal breakeven oil price of $60 a barrel this year is at least 13% lower than the Gulf Cooperation Council (GCC) average but higher than that of Kuwait and the UAE, according to the Institute of International Finance (IIF).
“The significant cut in spending has reduced fiscal breakeven oil prices in all (the Gulf) countries,” Washington-based IIF said, highlighting that the weighted average fiscal breakeven price of oil for the GCC is expected to decline steadily from a peak of $87 in 2014 to $66 by 2017………………………………….Full Article: Source

Saudi Arabia looks to Russia to boost non-OPEC cooperation

Posted on 24 October 2016 by VRS  |  Email |Print

Saudi Arabia’s Energy Minister Khalid al-Falih said on Sunday he had invited his Russian counterpart Alexander Novak to meet Gulf Arab energy ministers in Riyadh as part of efforts to cooperate with non-OPEC members to stabilize the oil market.
“Russia is one of the world’s biggest oil producers … and is one of the influential parties in the stability of the oil market,” Falih said at the opening session of the six-member Gulf Cooperation Council (GCC)………………………………….Full Article: Source

World Bank Raises 2017 Oil Price Forecast

Posted on 21 October 2016 by VRS  |  Email |Print

The World Bank is raising its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output.
Energy prices, which include oil, natural gas and coal, are projected to jump almost 25 percent overall next year, a larger increase than anticipated in July. The revised forecast appears in the World Bank’s latest Commodity Markets Outlook. Oil prices are expected to average $43 per barrel in 2016, unchanged from the July report…………………………………….Full Article: Source

Saudi minister: Oil-price downturn coming to an end

Posted on 21 October 2016 by VRS  |  Email |Print

Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid al-Falih said on Wednesday that the oil-price downturn was coming to an end. Speaking at the Oil & Money conference in London, Falih called for new investments to avert a supply shortage in the future, a Saudi Gazette report said.
“We are now at the end of a considerable downturn,” he told an audience that included top executives from oil firms such as Exxon Mobil Corp., Royal Dutch Shell PLC and Total SA. Falih said the oil industry was starved of financing during a downturn over the past two years in which crude prices fell to less than $28 a barrel this year from $114 a barrel in 2014…………………………………….Full Article: Source

Nigeria Cuts Oil Prices

Posted on 21 October 2016 by VRS  |  Email |Print

Nigeria cut the price of every type of crude it sells in an effort to regain share of the global oil market at a time when there’s a “huge” glut of cargoes.
Nigeria National Petroleum Corp. lowered by at least $1 a barrel its official selling prices, or OSPs, for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists. Qua Iboe, Nigeria’s largest export crude under normal circumstances, was reduced by the most since 2014…………………………………….Full Article: Source

Oil producers optimistic that the slump is over

Posted on 21 October 2016 by VRS  |  Email |Print

As several of the world’s top oil executives rolled up at a Mayfair hotel in London this week for an industry summit, Brent crude, their benchmark product, was trading at $52 per barrel — exactly same the level as a year ago.
This might not seem like a cause for celebration. But, after the brutal retrenchment since prices collapsed from above $100 per barrel in mid-2014, the near 12-month highs of recent days have added to confidence that the worst is over for oil producers…………………………………….Full Article: Source

Russia Oil Capable of Significant Output Growth

Posted on 21 October 2016 by VRS  |  Email |Print

Russia’s largest oil company said the nation is capable of a substantial increase in production, less than two weeks after President Vladimir Putin pledged his support for international efforts to limit output.
“In the future, Russia can significantly increase oil production,” Rosneft PJSC Chief Executive Officer Igor Sechin said Thursday. The country has capacity to add as much as 200 million metric tons a year, or 4 million barrels a day, if there’s demand and technological and economic conditions allow, he said…………………………………….Full Article: Source

What’s Up With OPEC?

Posted on 21 October 2016 by VRS  |  Email |Print

In 2014, the Organization of Petroleum Exporting Countries (OPEC) declined to reduce oil production in the face of falling prices. Last month, at a meeting in Algiers, OPEC went in the opposite direction, setting out a goal of capping production collectively at 33 million barrels per day.
Why the change of course? And does OPEC’s most recent pronouncement carry any weight? A recent report from the Center on Global Energy Policy at Columbia University, and authored by Antoine Halff, director of the center’s Global Oil Markets Research Program, provides some perspective…………………………………….Full Article: Source

EU, OPEC back stable global oil market

Posted on 21 October 2016 by VRS  |  Email |Print

The European Union (EU) and the Organisation of Petroleum Exporting Countries (OPEC) have pledged their support to ensure a stable global oil market. After a joint roundtable tagged: “Prospective for Future Production of Non-Crude Liquids”, held in Brussels, Belgium, the two groups agreed that in the light of current challenges in the energy markets, ongoing dialogues of this nature would continue to be of great importance.
Both parties agreed that a stable and orderly energy market is essential for both producers and consumers, and a pre-requisite for achieving sustained world economic growth. The roundtable provided an outlook of the production levels of non-crude liquids around the world from 2000 to 2015. ……………………………………Full Article: Source

Saudi Arabia’s Energy Minister Warns of Oil Shortage

Posted on 20 October 2016 by VRS  |  Email |Print

Khalid al-Falih lends his voice to theory low oil prices caused energy companies and countries to pull back so sharply from spending that their output will soon fall. Saudi Arabia’s energy minister said Wednesday that the world’s oil industry would soon emerge from a crippling two-year slump but warned of an impending shortage of petroleum that could send crude prices up sharply.
In his speech here at the Oil and Money conference, Khalid al-Falih, the top oil official in the country that exports more crude than any other, outlined the rapidly changing landscape in the energy industry since the Organization of the Petroleum Exporting Countries agreed last month to modestly cut its output……………………………………Full Article: Source

IMF Sees Saudi Break-Even Oil Price Drop Less Than Forecast

Posted on 20 October 2016 by VRS  |  Email |Print

The average oil price that Saudi Arabia needs to balance its budget will fall this year by only half as much as forecast six months ago, according to the International Monetary Fund.
The country’s fiscal break-even price will drop to $79.70 a barrel this year from $92.90 in 2015, the IMF said in a report released on Wednesday, a fall of 14 percent. In April, the IMF projected that the Saudi break-even price would decrease by 30 percent this year, to $66.70 a barrel from $94.80……………………………………Full Article: Source

Exxon and Saudi Arabia at odds on oil market supply

Posted on 20 October 2016 by VRS  |  Email |Print

US oil chief argues that the viability of North American shale oil offsets slowdown in investment. The head of the world’s biggest listed oil company and Opec’s most powerful member Saudi Arabia on Wednesday offered sharply differing views on the outlook for the oil market.
ExxonMobil chief executive Rex Tillerson said fears of a supply crunch brought on by savage spending cuts were overdone as high stocks and US shale output would help to prevent a blowout in prices……………………………………Full Article: Source

Who’s better for the oil market: Clinton or Trump?

Posted on 20 October 2016 by VRS  |  Email |Print

Figuring out which U.S. presidential candidate is the best choice for the oil market isn’t quite as easy as you might think. With his goal to make the U.S. completely energy independent and remove restrictions on drilling on federal land, Republican nominee Donald Trump looks to be the candidate most likely to benefit the oil market.
Democratic nominee Hillary Clinton’s plans to make the country a “clean energy superpower,” however, could actually give oil a much needed price boost. “Clinton policies would tend to keep prices higher than Trump policies, which would benefit those who hold existing oil assets and penalize consumers,” said Milton Ezrati, chief economist at Wall Street consulting firm Vested, based in New York……………………………………Full Article: Source

Not Everyone’s So Sure Low Oil Prices Will Stay Put

Posted on 19 October 2016 by VRS  |  Email |Print

As the bear market in oil approaches its two-year anniversary, a consensus is growing that stagnant growth worldwide and aggressive pumping by giant producers like Saudi Arabia will keep a lid on oil prices for some time.
It’s an easy assessment to make. Large emerging economies like those of China, Brazil, India and Russia, which represent about a quarter of global demand for oil, are no longer booming, and it has become accepted wisdom that Saudi Arabia wants to keep prices low to wipe out higher-cost shale producers in the United States…………………………………Full Article: Source

Oil industry needs $10 trillion to meet coming demand, says OPEC’s Barkindo

Posted on 19 October 2016 by VRS  |  Email |Print

The global oil industry needs an astronomic investment injection over the next two decades or risk jeopardizing it’s ability to meet future oil demand, the Organization of the Petroleum Exporting Countries warned on Tuesday.
Speaking at the “Oil & Money” conference in London, the cartel’s Secretary-General Mohammed Barkindo said the recent oil crash has already taken a serious toll on investments, particularly the exploration-and-production sector, and poses a “serious threat” to both producers and consumers…………………………………Full Article: Source

The Risks Facing the Oil Market (Video)

Posted on 19 October 2016 by VRS  |  Email |Print

Oil shrugged off data forecast to show U.S. stockpiles gained a second week, edging back above the $50 level where prices have hovered since rallying on OPEC’s decision to cut output last month. Jefferies Equity Analyst Jason Gammel discusses the outlook for oil with Guy Johnson in London and Caroline Hyde in Berlin on “Bloomberg Markets: European Open.”.……………………………….Full Article: Source

OPEC puts Iran’s oil output less than real volume

Posted on 19 October 2016 by VRS  |  Email |Print

OPEC has put Iran’s oil output figure about 250,000 barrels per day less than the real volume, Ali Kardor the managing director of Iranian National Oil Company told Trend. According to OPEC’s latest monthly report based on the secondary sources, Iran produced about 3.65 million barrels per day (mb/d) of crude oil in September.
Kardor said that the country’s real crude oil output is 0.25 mb/d more than OPEC’s estimation. He said during the sideline of an energy conference in Tehran that currently Iran exports 2.05-2.1 mb/d of crude oil…………………………………Full Article: Source

OPEC Reversal Is Gift to Oil Majors After 2 Years of ‘Hell’

Posted on 19 October 2016 by VRS  |  Email |Print

When the bosses of the world’s biggest oil companies gather in London on Tuesday, they might have the urge to track down the Saudi energy minister and shake him by the hand.
After two years pursuing a Saudi-led strategy to pump without limits, pummeling industry earnings, OPEC has unexpectedly come to the aid of the oil majors. Last month, it surprised the market by deciding to cut production and put a floor under volatile crude prices…………………………………Full Article: Source

OPEC Spat Over Production Data Grows as Iran Rejects Estimates

Posted on 18 October 2016 by VRS  |  Email |Print

OPEC’s struggle with the first step of its new production deal — agreeing on how much its members are pumping — deepened as Iran became the third nation to openly question the organization’s data.
Output estimates compiled by OPEC’s Vienna-based secretariat are “not acceptable,” Ali Kardor, managing director of National Iranian Oil Co., said Monday in Tehran. Iran is pumping 3.89 million barrels a day, Kardor said, or about 300,000 a day more than OPEC estimated the country produced last month…………………………………..Full Article: Source

Saudis came out ahead in the oil price war, but everyone lost

Posted on 18 October 2016 by VRS  |  Email |Print

Two years ago, a barrel of oil sold for $82.04 US, and Saudi Arabia was producing somewhere around 9.75 million barrels a day, a potential $800 million a day in revenue. Last month, Saudi produced 10.5 million barrels a day and sold that oil for less than $50 US a barrel, a potential $525 million in revenue per day.
No matter how you do the math, that’s a chunk of foregone revenue over the past two years of pain. The world’s largest oil producer increased its market share by one percentage point to around 13 per cent of the global market, but lost market share in some parts of the world, like China…………………………………..Full Article: Source

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

Posted on 18 October 2016 by VRS  |  Email |Print

A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend.
Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports…………………………………..Full Article: Source

What OPEC’s Oil U-Turn Missed: Peak Demand Keeps Getting Closer

Posted on 18 October 2016 by VRS  |  Email |Print

OPEC’s decision last month to reverse its policy of unfettered production and cut oil output to boost prices may be at odds with the industry’s most important long-term trend: demand for what they produce could start falling within 15 years.
If rapid improvements continue in renewable energy, electric vehicles and other disruptive technologies, petroleum consumption will peak in 2030 and decline thereafter, according to a report from the World Energy Council…………………………………..Full Article: Source

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