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Commodities Briefing - Category | Oil more

Russia sees average oil price at $80-90 in medium, long-term

Posted on 27 November 2014 by VRS  |  Email |Print

Russia sees an average oil price of around $80-90 per barrel in the medium- and possibly in the long-term, Finance Minister Anton Siluanov said on Wednesday, underlining growing pressure on the Russian budget.
Russia needs an oil price of $100 per barrel to balance its 2015-2017 budget and has watched nervously as Brent has lost around 30 percent since June. On Wednesday it traded at around $78 per barrel before an OPEC meeting to discuss the price…………………………………..Full Article: Source

Saudis to push OPEC to cut output: CNBC survey

Posted on 27 November 2014 by VRS  |  Email |Print

Saudi Arabia will this week push the Organization of Petroleum Exporting Countries (OPEC) to cut production by up to 1.5 million barrels a day to help re-balance the market and lift oil prices from their four-year lows, analysts and strategists told CNBC.
Nineteen out of 30 market professionals contacted by CNBC say OPEC’s leading member Saudi Arabia will spearhead an agreement to cut supply at its November 27 meeting. “Only a 1.5 million barrel-a-day reduction would help stabilize the price at this stage,” Ole Sloth Hansen, head of commodity strategy at Saxo Bank, told CNBC…………………………………..Full Article: Source

Winter of discontent for oil producers?

Posted on 27 November 2014 by VRS  |  Email |Print

Global oil producers could face a bleak winter unless OPEC heavyweights reverse course as they head into a critical meeting and reach an agreement on production cuts to boost sagging prices.
Ministers from Saudi Arabia and the United Arab Emirates signalled Wednesday that there would be no deal reached in Vienna, although the cartel’s leaders may have been employing scare tactics in order to persuade fiscally-strapped members that they must participate in production cuts or face steep price declines…………………………………..Full Article: Source

Venezuela Seeks Oil Price Up Back at $100 a Barrel

Posted on 26 November 2014 by VRS  |  Email |Print

Venezuela wants oil prices to return to $100 a barrel, the country’s foreign minister said on Tuesday, ahead of an OPEC meeting. Speaking to reporters, Rafael Ramirez, who will represent Venezuela at the Organization of the Petroleum Exporting Countries gathering on Thursday, said “the [oil] price has to be $100 per barrel, [that] is a fair price.”
Ramirez made the remarks as he exited a meeting with fellow OPEC member Saudi Arabia and envoys from Russia and Mexico, two key oil producers outside the group. The price of Brent crude, the global benchmark, was quoted at $78.40 a barrel on Tuesday following the meeting, down 1.6%……………………………Full Article: Source

Iran parliament suggests $75-80/bbl oil price for budget

Posted on 26 November 2014 by VRS  |  Email |Print

Iran’s parliament recommends basing next year’s budget on an oil price of $75-80 a barrel, a senior lawmaker was reported as saying on Monday, down from $100 in the 2014 budget plan. “It seems the trend of decline in oil prices will continue and a return to previous oil prices is not expected,” the official IRNA news agency reported Gholamreza Tajgardoon, head of parliament’s planning and budget commission, as saying.
“Parliament and the planning commission recommend an oil price of about $80 a barrel to the government,” he said when asked about how the fall of oil prices would affect the budget. “The price of oil for the budget still can’t be announced, but it seems with caution and foresight, it will be based on a barrel of oil between $75 and $80,” he said……………………………Full Article: Source

Want to know why the oil price keeps falling? Here’s the reason

Posted on 25 November 2014 by VRS  |  Email |Print

Crude oil and lease condensate production in the United States exceeded 8.6 million barrels per day (bbl/d) in August, a production volume not observed since July 1986, according to EIA’s latest Petroleum Supply Monthly.
More than half of total US production was accounted for by record production from three basins in three states. Production from the Permian Basin in Texas and New Mexico accounted for 1.66 million bbl/d, while the Eagle Ford Shale in the Western Gulf Basin, also located in Texas, produced 1.57 million bbl/d. The Bakken Shale in North Dakota’s Williston Basin accounted for 1.13 million bbl/d………………………………….Full Article: Source

$60 oil after OPEC meeting is not possible: BRG’s Grossman

Posted on 25 November 2014 by VRS  |  Email |Print

It’s not possible for oil to fall to $60 a barrel after OPEC meets this week to discuss output policy, Jeff Grossman, president of BRG Brokerage, said. While the chance of a big price cut is small, he said, the cartel will likely announce that it has discussed reducing production in order to stem the tide of lower prices and put a bottom on the market.
“Even with some serious tempering of weather, the market could possibly go to maybe $72 in the next four to six weeks,” Grossman told “Power Lunch.” “The most optimistic bear would have to be in agreement with that.”…………………………………Full Article: Source

All eyes on oil: What will OPEC do this week?

Posted on 24 November 2014 by VRS  |  Email |Print

While Americans are chomping down on turkey and pie this week, everyone involved in the energy world will be closely watching the Thanksgiving Day meeting of the OPEC in Vienna, Austria. Oil prices have tumbled dramatically in recent weeks. Oil now trades below $80 a barrel and most Americans can buy gas for their cars for under $3 a gallon.
The question is how OPEC will respond. So far, energy producing nations and companies haven’t scaled back product even though it’s pretty clear there’s an over supply of oil on the world market…………………………………Full Article: Source

Oil markets: A new chapter for Opec?

Posted on 24 November 2014 by VRS  |  Email |Print

At the last meeting of Opec nations Ali al-Naimi, the Saudi oil minister, dashed in and out of Vienna in just a few hours. He even cast aside his customary 45-minute jog with reporters. With markets stable and the price of oil around $110 a barrel, there was little for the 12 members of the oil producing cartel to talk about.
“The customer is happy, the producer is happy, the consumer is happy, the market is in balance, everything is good,” said Mr Naimi, arguably the world’s most important man in the oil world, in June…………………………………Full Article: Source

The ‘age of abundance’ in oil and gas poses fresh dilemmas for companies

Posted on 24 November 2014 by VRS  |  Email |Print

The defining image of the global energy industry in 2014 has been a tanker loading up with an ultralight form of crude oil known as condensate in Galveston, Texas, bound for South Korea.
The delivery was significant because US exports of crude oil have been tightly restricted under regulations dating back to the 1970s. For most of that period, the restrictions have been an irrelevance: the US was a large and growing importer of both oil and natural gas up until the 2000s…………………………………Full Article: Source

OPEC’s Easy Days Setting Oil Production Are Over, Veteran Says; You Need Russia, Norway, Mexico

Posted on 24 November 2014 by VRS  |  Email |Print

The days when OPEC members could almost guarantee consensus when deciding production levels for oil are long gone, according to a veteran of almost two decades of the group’s meetings.
The global glut of crude, which has contributed to a 30 percent decline in prices since June 19, has left the organization dependent on non-members to shore up the market, said former Qatari Oil Minister Abdullah Bin Hamad Al Attiyah. The 12-member Organization of Petroleum Exporting Countries is scheduled to meet in Vienna on Nov. 27…………………………………Full Article: Source

Iran to push for Saudi oil output cut at OPEC

Posted on 24 November 2014 by VRS  |  Email |Print

Iran will try to persuade Saudi Arabia to cut oil production when the oil ministers from the two OPEC members meet this week in Vienna, Iran’s semi-official Mehr news agency reported on Sunday citing a television interview with the country’s oil minister.
The Organization of the Petroleum Exporting Countries meets on Nov. 27 to set its output policy and some of its members have called for output cuts to shore up oil prices. Brent crude oil LCOc1 has lost about 30 percent of its value since June to around $80 a barrel because of abundant supplies and weakening demand………………………………..Full Article: Source

Global economy will benefit from oil price decline

Posted on 21 November 2014 by VRS  |  Email |Print

If OPEC fails to take a unified approach on stabilizing oil prices the global economy will be the biggest winner because oil prices will continue to fall, Fred Beach, of the University of Texas at Austin, said.
First of all, Saudi Arabia being an independent producer doesn’t always link its production to supply and demand that other OPEC countries want to do. That is why there is so much focus on the upcoming OPEC meeting to see if the organization as a whole comes to an agreement to either cut production to stabilize prices or if the independent countries want to go their own way………………………………….Full Article: Source

Venezuela, Ignored By OPEC, Seeks Oil-price Relief Elsewhere

Posted on 21 November 2014 by VRS  |  Email |Print

Venezuela, openly frustrated by Saudi Arabia’s refusal to support a cut in crude production, is reaching out beyond OPEC to discuss ways to stop the recent decline in oil prices.
OPEC will be meeting at its Vienna headquarters on Nov. 27 to decide on its production goals, but on Nov. 17, Venezuelan President Nicolas Maduro said he and Russia were working to set up a meeting “very soon” with oil countries outside OPEC as well as within the cartel to discuss ways to prop up the price of crude, which is now at a four-year low………………………………….Full Article: Source

Oil price firms as optimism surrounding OPEC meet grows

Posted on 21 November 2014 by VRS  |  Email |Print

Growing optimism that OPEC will constrain oil supply to prop up prices prompted the price of crude to nudge up higher. OPEC is the cartel of oil exporting nations and is meeting next Thursday (Nov 27).
Reportedly, the odds are growing the group will either cut production or more rigorously enforce their own production quotas as the price of oil has slumped over 25% since June. West Texas Intermediate futures - for January 2015 delivery - is up 0.56% to US$75.06………………………………….Full Article: Source

Oil Prices Rise on Changing OPEC Expectations

Posted on 21 November 2014 by VRS  |  Email |Print

Oil prices gained Thursday, snapping a three-day losing streak, on expectations that the Organization of the Petroleum Exporting Countries would take action at its meeting next week to stop prices from falling.
Oil prices have plunged about 30% since mid-June on concerns about ample global supplies and tepid demand growth. OPEC, which controls about one third of global production, has acted in the past to cut output to keep prices high. However, traders have grown skeptical in recent months that the group, especially top exporter Saudi Arabia, will reduce production at its Nov. 27 meeting………………………………….Full Article: Source

Iran to Hold Market Share Talks With Saudis at OPEC

Posted on 21 November 2014 by VRS  |  Email |Print

Iran’s oil minister said he will talk with top oil exporter Saudi Arabia about market share when OPEC meets next week in Vienna, as Tehran plans for the possible end of sanctions and unfettered crude exports. Zanganeh said Iran’s oil exports would increase by two fold within two months of lifting the sanctions, although analysts say it may take longer. Iran exports around 1.3 barrels of oil per day.
“The countries in the south of the Persian Gulf are interested in keeping their market share and a decrease in market share will be difficult,” Iran Oil Minister Bijan Zanganeh was cited as saying by the official news agency IRNA on Thursday. “Under no circumstance, will we reduce our global market share, even by one barrel.”…………………………………Full Article: Source

Oil markets wonder: Whither OPEC?

Posted on 21 November 2014 by VRS  |  Email |Print

There is a high degree of uncertainty over how November’s OPEC meeting and Iranian nuclear negotiations will unfold. Either way, the end of November will have a huge impact on oil prices. As November draws to a close, there are two major events that could profoundly change the oil markets.
With the clock ticking, the 5 permanent members of the UN Security Council plus Germany (P5 plus 1) are negotiating down to the wire with Iran over its nuclear program. The two sides have made substantial progress, but some difficult issues remain unresolved ahead of the November 24 deadline………………………………….Full Article: Source

Oil Price Drop Set to Spur Gas Price Rally, Perpetual CEO Says

Posted on 20 November 2014 by VRS  |  Email |Print

Natural gas, which has dropped 38 percent in the past 10 years, is poised to gain as falling oil prices reduce production from wells that pump both fossil fuels, according to Perpetual Energy Inc. (PMT)
“We needed to see oil prices roll over for gas to actually have its day or at least show some stronger pricing,” Sue Riddell Rose said in an interview at a FirstEnergy conference in Toronto. “The only growth basins that we’ve had in North America have actually been really where you’ve got liquids-rich gas and now with oil prices going down, prices of those commodities have really come off hard.”……………………………..Full Article: Source

Oil Near 4-Year Low as OPEC Seen Resisting Cutting Output

Posted on 20 November 2014 by VRS  |  Email |Print

West Texas Intermediate crude dropped for a third day as U.S. oil inventories gained unexpectedly. Brent rose in London. Futures fell as much as 1 percent in New York. Ecuador and Venezuela will ask members of the Organization of Petroleum Exporting Countries to reduce excess output, an Ecuador official said.
A car with explosives blew up in Erbil in Iraq’s Kurdish region, the local Rudaw news agency reported, with Al Jazeera television reporting six people killed. U.S. crude inventories expanded by 3.7 million barrels last week, countering forecasts expecting a drop, the American Petroleum Institute said………………………………Full Article: Source

IEA prepares for oil supply disruption scenarios

Posted on 20 November 2014 by VRS  |  Email |Print

The International Energy Agency (IEA) completed its latest biennial Emergency Response Exercise (RER) on 18 November, as delegates from member and 10 non-member countries in Paris practiced and improved skills for responding to energy supply disruptions.
This seventh ERE focused on how member and non-member countries can cooperate during significant disruptions to oil supplies, building on lessons learned at the previous ERE in 2012. Participants from the key partner countries China, India, Indonesia and South Africa as well as other non-member countries from three continents works alongside government and industry in the 29 IEA countries to examine how best to resolve potential supply interruptions. The process included simulations of responses to three hypothetical emergencies………………………………Full Article: Source

Oil industry risks trillions of ’stranded assets’ on US-China climate deal

Posted on 20 November 2014 by VRS  |  Email |Print

Petrobas’ hopes of becoming the world’s first trillion dollar company have deflated brutally. Brazil’s Petrobras is the most indebted company in the world, a perfect barometer of the crisis enveloping the global oil and fossil nexus on multiple fronts at once.
PwC has refused to sign off on the books of this state-controlled behemoth, now under sweeping police probes for alleged graft, and rapidly crashing from hero to zero in the Brazilian press. The state oil company says funding from the capital markets has dried up, at least until auditors send a “comfort letter”………………………………Full Article: Source

A Different Kind of Oil Crisis

Posted on 19 November 2014 by VRS  |  Email |Print

In a world that has become acclimated to sky-high oil prices, the Great Oil Crash is shaping up to be good news for cash-strapped Americans on the brink of the winter heating season. For the major oil economies, not so much. And oh, by the way, that now includes the United States.
As oil producers brace for the November 24 deadline in the nuclear talks between the West and Iran—as well as what is expected to be a particularly tricky meeting for the Organization of the Petroleum Exporting Countries—political prognosticators are sensing a geopolitical shake-up may be nigh……………………………………Full Article: Source

How low oil price is killing earnings projections

Posted on 19 November 2014 by VRS  |  Email |Print

Investors hoping that companies break the cycle of posting strong profits but weak sales growth will have to hang on a while longer. The revenue outlook for the next several quarters among blue-chip companies has weakened considerably, with estimates pegging growth at barely positive by midyear, according to an analysis from brokerage ConvergEx.
That runs counter to hopes that companies would break free from the pattern of cutting their way to profits and being able to generate above-trend sales for future growth……………………………………Full Article: Source

No easy options for Opec over oil slide

Posted on 19 November 2014 by VRS  |  Email |Print

The tension has been palpable in the lead-up to next week’s Opec gathering in Vienna. As the oil price has languished at four-year lows, a flurry of diplomatic missions between some of the cartel’s members has taken place. Signalling through public statements and unofficial channels has ramped up.
In the past few days, Nigeria has said it will use up half its so-called excess crude account to support current spending, Kuwait’s cabinet has called for action to address the price slide, while Iran and Venezuela have sought support from fellow crude producers to shore up prices……………………………………Full Article: Source

Goldman Says OPEC in Dilemma as Output Cut Seen Helping U.S.

Posted on 19 November 2014 by VRS  |  Email |Print

A “large” production cut by OPEC to prop up crude prices isn’t in the group’s interest because it’s likely to bolster an expansion of U.S. shale oil, according to Goldman Sachs Group Inc.
While the slide in prices into a bear market increases the chances of a reduction, trimming output by more than 500,000 barrels a day would mean further cuts are needed starting 2016 as higher prices prompt more U.S. drilling, Goldman said. Some members of the Organization of Petroleum Exporting Countries including Saudi Arabia have resisted calls to decrease supply while others seek action to support crude……………………………………Full Article: Source

Venezuela calls ‘OPEC and non-OPEC’ talks on oil slide

Posted on 19 November 2014 by VRS  |  Email |Print

Venezuela has called for a meeting of OPEC and non-OPEC countries to address the slide in oil prices, which is adding to the woes facing President Nicolas Maduro’s cash-strapped government. With the price of Brent crude at less than $80 a barrel, a drop of more than 25 percent since June, Venezuela and many other major oil producers are feeling the pinch.
“We have coordinated a special meeting of OPEC and non-OPEC countries to be held very soon to take decisions in defense of oil and oil prices and the world oil market,” Maduro said Monday in a televised address……………………………………Full Article: Source

Water is the biggest output of U.S. oil and gas wells: Kemp

Posted on 19 November 2014 by VRS  |  Email |Print

The biggest product of the U.S. petroleum industry is not oil, gas or condensate but water — billions and billions of gallons containing dissolved salts, grease and even naturally occurring radioactive materials.
In 2007, when the shale revolution was still in its infant stages, the U.S. oil and gas industry was already producing more than 20 billion barrels of waste water per year, according to researchers at the Argonne National Laboratory (”Produced water volumes and management practices in the United States”, 2009). The industry’s daily output was 5 million barrels of oil, 67 billion cubic feet of natural gas, and 55 million barrels of water, according to federal government statistics……………………………………Full Article: Source

US shale and OPEC oil: Game of chicken?

Posted on 19 November 2014 by VRS  |  Email |Print

The political rhetoric surrounding the recent drop in oil prices shows no signs of slowing, with Venezuela said that oil producing countries could soon meet to discuss the tumbling commodity. In a televised address late Monday, Venezuela President Nicolas Maduro said that a gathering of both Organization of the Petroleum Exporting Countries (OPEC) countries and non-OPEC countries was being planned.
The discussions would be in the lead-up to a crucial OPEC meeting which is taking place in Vienna on November 27, and although Maduro was slim on details, he said he was confident that fellow OPEC nations would join together to help prices recover……………………………………Full Article: Source

Lower Oil Prices Could Pressure Some Canadian Provinces

Posted on 19 November 2014 by VRS  |  Email |Print

Crude oil has been like black gold for Canada’s three energy-exporting provinces, but further declines in oil prices could spill some red ink onto their balance sheets.
Alberta, Saskatchewan and the east coast province of Newfoundland and Labrador have enough flexibility to maintain their high credit ratings even if oil prices drop to around $60 and remain there for the 2015-16 fiscal year, bond rating firm Moody’s Investors Service said in a report Tuesday. Oil is currently around $75 dollars a barrel……………………………………Full Article: Source

Cracks widen at OPEC as oil prices tumble

Posted on 18 November 2014 by VRS  |  Email |Print

Oil prices firmly below $80 a barrel are rattling nerves within the Organization of the Petroleum Exporting Countries (OPEC) and calls are mounting for concrete action at the group’s crucial next meeting this month.
Over the weekend oil-producing countries Kuwait and Iran raised concerns about oil’s worrying lows and what OPEC should be doing to help protect its members’ economies. Kuwait’s cabinet and the country’s Supreme Petroleum Council held an “extraordinary” joint meeting Sunday to consider measures to stop the slide in prices…………………………………Full Article: Source

5 reasons why crude oil price may have found a bottom

Posted on 18 November 2014 by VRS  |  Email |Print

According to T. Gnanasekar Director, CommTrendz, technical charts suggest Brent crude has found a bottom. “Though the Friday’s rebound was mostly a short-covering and profit-booking one, there are chances that prices might have bottomed out for the time being,” says Gnanasekar. But to sustain above the technical levels, a commodity requires some demand coming in or a fundamental support. Gnanasekar says that some support may come in due to the onset of winter.
2) However on the supply side, there could be a possible production cut by the Organization of the Petroleum Exporting Countries (OPEC) which is meeting on November 27. Earlier, OPEC used to say $100 is the safe price below which it will intervene in the market. However, that has not happened yet as slowdown in major consuming countries like China and Euro Zone have hurt demand sentiment…………………………………Full Article: Source

Iraq expects 2015 budget based on $80 per barrel oil price

Posted on 18 November 2014 by VRS  |  Email |Print

OPEC producer Iraq expects to base its 2015 budget on an oil price of $80 per barrel, Oil Minister Adel Abdel Mehdi told parliament on Monday. Oil prices have fallen to below $80 on abundant and weak demand from $115 a barrel in June. Skepticism that OPEC will cut supply when it meets on Nov. 27 have also weighed on the prices.
Iraq’s budget breakeven point for 2014 is above $100 a barrel according to the IMF, but Abdel Mehdi suggested production levels might rise next year. He said government forecast southern Iraq output of 2.75 million barrels per day. “If Kurdistan and Kirkuk oil will enter, it is possible we reach numbers that will exceed the number …in (the) 2014 budget of 3.4 million barrels.”………………………………..Full Article: Source

Pressure mounting on OPEC nations to cut production

Posted on 18 November 2014 by VRS  |  Email |Print

Oil prices fell again Monday morning as pressure mounts on members of OPEC ahead of the cartel’s November 27 meeting in Vienna. With prices at four-year lows, OPEC may be forced to curb supply.
Leading members of OPEC have previously resisted calls to cut production as oil has fallen into a bear market. Most member nations of OPEC rely heavily on revenues from oil to support economic growth and spending. A decrease in global demand and the boom in U.S. shale have pushed prices down more than 25% since June…………………………………Full Article: Source

Mounting Pressure on OPEC Spurs More Wagers on Oil Rally

Posted on 18 November 2014 by VRS  |  Email |Print

Speculators got more bullish on oil for the first time in three weeks, judging that a slump in prices to a four-year low will force OPEC to act. The net-long position in West Texas Intermediate rose 8.7 percent in the week ended Nov. 11, U.S. Commodity Futures Trading Commission data show. Long holdings rebounded from the lowest level in 17 months while short bets contracted.
WTI tumbled 30 percent since June as U.S. output climbed to three-decade high, adding to a global supply glut at a time when the International Energy Agency says demand growth is slowing…………………………………Full Article: Source

Falling Oil Prices Test OPEC Unity

Posted on 18 November 2014 by VRS  |  Email |Print

As global crude prices plunged earlier this month, Venezuela’s foreign minister asked to see Saudi Arabia’s top oil official at a climate-change conference on Margarita Island, off the South American coast.
Ali al-Naimi, the Saudi oil minister, was expecting a plea to reduce oil output and bolster markets. In anticipation, according to people familiar with the matter, he brought a message to Venezuelan Foreign Minister Rafael Ramirez : Saudi Arabia won’t cut production on its own…………………………………Full Article: Source

Private equity bets on energy ‘revolution’—in oil and gas

Posted on 18 November 2014 by VRS  |  Email |Print

Russ Steenberg likens how easy it is to find lucrative energy investments to what happens when a little boy throws a big rock into a pond. “There are incredible numbers of ripples that go out from the splash,” the head of BlackRock’s $18.8 billion Private Equity Partners said in a recent interview. “Well the energy revolution right now is the rock. The ripples are all of the things in the economy that support the energy revolution, … that provide all kinds of investment opportunity.”
That opportunity has the private equity industry salivating. PE funds have raised $157 billion since 2009 to invest in energy, according to data from intelligence firm Preqin. And they’re in the middle of raising even more, with nearly $32 billion collected by 33 funds this year…………………………………Full Article: Source

Even a fall in the oil price is bad news for the eurozone

Posted on 17 November 2014 by VRS  |  Email |Print

Lower oil prices will accentuate the move to lower inflation which is already under way. This weekend the leaders of the so-called G-20, the world’s 20 largest economies, have been pontificating in Brisbane, Australia, about the state of the world economy and what can be done to make it better. These gatherings amount to much sound and fury but signify, if not quite nothing, then very little.
Meanwhile, the ineluctable economic forces that really do shape the world and its prosperity quietly do their work, for good or ill. At the moment, one of those forces is promising to do far more to raise global prosperity than any international agreements or treaties ever could, namely the sharp drop in the price of oil……………………………………Full Article: Source

Hope grows that OPEC will cut production

Posted on 17 November 2014 by VRS  |  Email |Print

There’s growing expectation OPEC may cut production when it meets in two weeks. Such a move would put a stop to oil’s months-long free fall. Oil futures posted fresh multi-year lows Thursday as the latest comments from Saudi Arabia fostered, the world’s No. 1 oil exporter and a leading OPEC member, fostered more confusion that offered clarity.
Markets have turned to OPEC, which meets Nov. 27 in Vienna, for any indications that the powerful cartel will announce plans to cut output and boost crude prices. So far, there’s no clear direction, especially since members of the oil club maintained varying interests……………………………………Full Article: Source

Iran, Venezuela urge oil price support ahead of OPEC meeting

Posted on 17 November 2014 by VRS  |  Email |Print

OPEC hawks Iran and Venezuela on Saturday called on fellow crude producers to shore up prices that have plunged more than 30 percent to four-years low ahead of an OPEC meeting later this month. Oil prices have fallen to below 79 US dollars on abundant and weak demand from 115 dollars a barrel in June. Skepticism that OPEC will cut supply when it meets on November 27 have also weighed on the prices.
So far, only Kuwait and Iran have said a reduction is unlikely, while a Libyan OPEC official, Venezuela and Ecuador have all called for OPEC to cut output. Privately, some delegates are talking of the need for some action, although they warn an agreement will not be easy to reach……………………………………Full Article: Source

Russia Threatened by Oil Price Slump Till 2015

Posted on 17 November 2014 by VRS  |  Email |Print

In a blow to the financing of the state budget and Russian oil majors alike, global crude prices will likely remain low until 2015, according to the International Energy Agency’s (IEA) Oil Market Report for November, released late last week. “It is increasingly clear that we have begun a new chapter in the history of the oil markets,” the agency said in its report.
On Thursday, oil prices hit a four-year minimum of $78 per barrel and although recovering slightly stayed below $80 until the end of the week. Just one month ago analysts predicted $80 per barrel would be the bottom for the continuing drop in oil prices but as the year approaches its end, $65 is already considered possible……………………………………Full Article: Source

Oil Slide Prompts Iran’s Oil Minister to Visit U.A.E.

Posted on 17 November 2014 by VRS  |  Email |Print

Iranian oil minister Bijan Namdar Zanganeh is preparing to visit the U.A.E. this week, underscoring the deepening concern among OPEC members over the slump in oil prices.
After trips to Kuwait and Qatar last week to discuss strategies to buoy prices, Zanganeh will meet with officials in the U.A.E. tomorrow, Shana, the Tehran-based oil ministry’s news service, said on its website yesterday. The discussions come before the Organization of Petroleum Exporting Countries’ next scheduled meeting on Nov. 27……………………………………Full Article: Source

Is OPEC Doing what it is saying?

Posted on 17 November 2014 by VRS  |  Email |Print

OPEC will have its incoming 166th meeting on November 27th of this month. This is a considerably important meeting for oil prices, global economic growth and all motorists in the world. OPEC has said that it will not cut its production and will let oil price decline, which has actually plunged by more than 25% this year. Will OPEC cut its production in order stabilize oil prices? Saying it in another way, are the Saudis bluffing about being comfortable with current oil production and are not happy with the market doing the pricing?
To answer this question, we can look at OPEC’s current production and its production history. And since OPEC is really Saudi Arabia, we can bring up the subject of whether the Saudis are tactical or strategic decision makers……………………………………Full Article: Source

OPEC Cuts Seen More Remote by Goldman Sachs as Oil Extends Slump

Posted on 14 November 2014 by VRS  |  Email |Print

Slumping oil prices over the past week reflect a growing consensus among traders and investors that OPEC will maintain output when its 12 members meet later this month, Goldman Sachs Group Inc. said. Brent crude, used to price more than half the world’s oil, dropped below $80 a barrel in London for the first time in four years.
Members of the Organization of Petroleum Exporting Countries including Saudi Arabia will let North American shale producers cut output first in response to the collapse, relinquishing their traditional role of “swing producer,” said Jeffrey Currie, the bank’s head of commodities research…………………………………Full Article: Source

Giving in? OPEC finally admits reduced oil demand in 2015

Posted on 14 November 2014 by VRS  |  Email |Print

Global demand for oil from Opec next year will be far below its current output level because of the US shale boom, the group said on Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.
Saudi Arabia, unusually, has not commented publicly on the fall in oil prices to their lowest since 2010, which has prompted industry watchers to wonder whether the kingdom may be moving away from a policy of managing the market and instead pursuing geopolitical goals…………………………………Full Article: Source

OPEC Saga Continues

Posted on 14 November 2014 by VRS  |  Email |Print

Brent crude fell briefly below $80 a barrel on Wednesday but seems to have made a decisive break below that threshold on Thursday, trading at around $79.8 a barrel by mid-morning. That’s despite news yesterday that the Organization of the Petroleum Exporting Countries has seemingly suggested it has begun to cut output.
OPEC said in a statement yesterday that its production fell to 30.3 million barrels a day in October, down by just over 200,000 barrels a day from the month before. Also Wednesday, Saudi Oil Minister Ali al-Naimi broke his long silence. In a speech in Mexico, Mr. Naimi didn’t say much about what OPEC might do at its forthcoming meeting on Nov. 27…………………………………Full Article: Source

U.S. Oil Prices Drop Below $75 a Barrel

Posted on 14 November 2014 by VRS  |  Email |Print

U.S. oil prices fell below $75 a barrel Thursday as U.S. production soared to its highest in decades. U.S. oil production rose above 9 million barrels a day in the week ended Nov. 7, the U.S. Energy Information Administration said Thursday. On a monthly basis, average production last exceeded 9 million barrels a day in 1986.
“If you asked if this were possible 10 years ago, people would have said you were crazy,” said Phil Flynn , analyst at the Price Futures Group in Chicago. “The market’s starting to believe that [the U.S. is] on tap to be the world’s largest producer.”………………………………..Full Article: Source

Andurand Seeing Rational Iran Bets on Oil Price Dropping

Posted on 14 November 2014 by VRS  |  Email |Print

Pierre Andurand, the oil trader who predicted the top of the market in 2008 and the plunge last month, expects prices to drop about $15 over the next six months. Andurand, whose hedge fund gained 5.4 percent last month and 20 percent in 2013, sees Brent crude declining to $65 to $70 a barrel, according to a letter sent to investors on Nov. 11.
He’s betting Iran will increase production after reaching agreement with the U.S. and European Union over sanctions tied to its nuclear program, and that a Nov. 27 meeting of the Organization of Petroleum Exporting Countries that will decide whether to reduce production won’t go far enough, he wrote…………………………………Full Article: Source

Saudi oil minister says falling oil price is ‘purely business’

Posted on 13 November 2014 by VRS  |  Email |Print

Don’t be fooled by falling crude prices says Saudi Arabia’s oil minister, it’s all part of the plan. Saudi Arabia’s oil minister Ali Naimi has finally broken his silence on falling oil prices declaring it’s “purely business” and that recent declines are not a scheme engineered by the kingdom to either bankrupt Russia, or shut down the US shale industry.
Speaking to Reuters in Mexico, Mr Naimi said: “Saudi oil policy has been constant for the last few decades and it has not changed today.” He added that: “We do not seek to politicise oil…for us, it’s a question of supply and demand, it’s purely business.” However, his remarks did little to settle the market with Brent crude falling almost 1pc lower at just under $81 per barrel………………………………………..Full Article: Source

EIA Slashes Oil-Price Forecasts for 2015

Posted on 13 November 2014 by VRS  |  Email |Print

Government forecasters sharply lowered their projections for oil prices this year and next, reflecting higher global supply expectations. The U.S. Energy Information Administration, in its monthly short-term energy outlook released Wednesday, called for benchmark U.S. crude-oil prices to average $95 a barrel this year and $77.75 a barrel next year, below its previous forecasts of $97.72 a barrel this year and $94.58 a barrel next year.
For Brent, the global benchmark, the EIA expects prices to average $101.04 a barrel in 2014 and $83.42 a barrel in 2015. In October, the agency called for price averages of $104.42 a barrel this year and $101.67 a barrel next year………………………………………..Full Article: Source

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