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Black gold becoming more precious resource

Posted on 19 June 2014 by VRS  |  Email |Print

A five-year-long link between crude oil and gold has come apart as the economic recovery boosts energy consumption and lowers the metal’s appeal as a haven, encouraging investors to buy oil and sell gold.
The 120-day correlation between West Texas Intermediate crude and gold futures slipped into negative territory this year for the first time since July 2009, according to data compiled by Bloomberg. The relationship tightened, though remained negative, last week as military tension in Iraq boosted prices for both commodities…………………………………..Full Article: Source

Iraq insurgency puts Opec’s oil capacity forecast at risk

Posted on 18 June 2014 by VRS  |  Email |Print

The Islamist insurgency in Iraq is putting at risk a predicted increase in the amount of crude oil that can be produced by Opec countries. Opec had expected as much as 60 per cent of its predicted growth in capacity to have come from Iraq over the coming five years, a report from the International Energy Agency said.
The IEA had predicted that, following the US withdrawal of troops from Iraq, the country, which is already Opec’s second largest producer of crude oil, would be able to boost its production capacity by an additional 1.28 million barrels per day by 2019………………………………………..Full Article: Source

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IEA warns on Opec oil production risks

Posted on 18 June 2014 by VRS  |  Email |Print

The sectarian strife in Iraq has put growth of Opec crude oil production capacity over the next five years at risk, according to the International Energy Agency, highlighting the importance of the country to the global energy market. Roughly 60 per cent of the growth in the oil-producing cartel’s production capacity up until 2019 was expected to come from Iraq.
“Given Iraq’s precarious political and security situation, the forecast [for Opec output capacity growth of 2.08m barrels a day for 2013-19] is laden with downside risk,” the watchdog backed by wealthy nations said in its medium-term oil market report released on Tuesday………………………………………..Full Article: Source

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OPEC Dominance to Wane as US Leads ‘Tight Oil’ Revolution

Posted on 18 June 2014 by VRS  |  Email |Print

The balance of power in the global oil industry will shift over the next five years, as North America becomes more prominent, with OPEC’s influence set to wane. The International Energy Agency’s five-year oil market outlook predicts that North America’s net exports will “surge” by the end of the decade, driven by the “unconventional oil revolution”.
The IEA predicts this trend to spread beyond North America, with oil extracted from oil sands and shale rock (’tight oil’) to come online in Russia and Argentina, as well as Kazakhstan and Mexico………………………………………..Full Article: Source

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The oil-price watch begins on Wall Street

Posted on 18 June 2014 by VRS  |  Email |Print

Forget the Dow. Now’s the time for investors to keep their eyes glued to the price of oil. Renewed violence in Iraq, and fear of an all-out civil war there, is to blame. The fear of an oil price shock has been etched into the minds of investors ever since the Arab oil embargo in 1973-74, when oil prices quadrupled and the U.S. economy sank into a recession and the stock market suffered a brutal bear market.
So, it’s no surprise that the latest conflict in Iraq, which just happens to produce nearly 3 million barrels of oil per day, 80% of which is exported, has put Wall Street once again on oil-price watch………………………………………..Full Article: Source

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BP Says Russia Will Profit From Rising Demand for Oil and Gas

Posted on 18 June 2014 by VRS  |  Email |Print

Global demand for oil and gas — Russia’s key exports and the lynchpin of its foundering economy — is growing, and Russia is well placed to capitalize on it, according to a BP review on world energy unveiled Monday.
Presenting the report at the 21st World Petroleum Congress held in Moscow, Bob Dudley, CEO of British oil company BP, said Russia was at the top of the world energy market. “In 2013, Russia was the world’s largest producer of oil and gas combined and the largest energy exporter,” Dudley said………………………………………..Full Article: Source

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Crude Oil still engulfed by bearishness for short term

Posted on 18 June 2014 by VRS  |  Email |Print

The recent rally in crude oil due to geopolitical tensions may not have caused a bull run as technical indictors point to bearishness in the market, according to Nadia Simmons, Forex and Oil Trading strategist at Sunshine Profits.
Simmons said that although crude oil rose to a nine month high, the overall situation hasn’t changed as it is still below strong resistance zone created by the long term declining line and two important Fibonacci retracement levels………………………………………..Full Article: Source

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Where Does the Oil Price Goes From Here?

Posted on 17 June 2014 by VRS  |  Email |Print

The price of oil is trading near nine-month highs as the situation in Iraq remains febrile. Oil market analysts Monday described the situation as “more persistent than geopolitical scares in Syria and Ukraine,” and said continual headlines would “begin to change the market psychology.” Here are their views on where the price of oil goes from here:
Peter Helles, Commodities Strategist at Bank of American Merrill Lynch: The range of potential outcomes is broad. In our view, the two most likely scenarios are a stalemate or a limited retrenchment of ISIS as the Iraqi army fights back. In both instances, we see Brent in a $105-$115 a barrel range………………………………………..Full Article: Source

BP says oil price at its most stable since early 1970s

Posted on 17 June 2014 by VRS  |  Email |Print

The price of oil is at its most stable since 1970, as a huge increase in US oil production offsets disruption to supply from places such as Libya, according to BP. Christof Rühl, group chief economist, said the world had seen a cumulative 3m barrels a day of supply disruption since the start of the 2011 Arab uprising but that had been “cancelled out” by a similar extra amount of US production.
“There has been an almost perfect match between outages in north Africa and elsewhere and US production growth,” he said. The equilibrium had created an “eerie quiet” in global oil markets………………………………………..Full Article: Source

US shale boom stabilises global oil price

Posted on 17 June 2014 by VRS  |  Email |Print

The US recorded one of the biggest annual increases in oil production by a country last year thanks to the shale boom, according to BP’s annual review.
The 1.1 million barrels per day extra the US pumped helped offset slumps in production from countries like Libya, which is still gripped by civil war three years on from the Arab Spring………………………………………..Full Article: Source

OPEC, the Phantom Menace

Posted on 17 June 2014 by VRS  |  Email |Print

From the Keystone pipeline to Ukraine to fracking and American self-sufficiency, Washington is abuzz about energy politics these days, but top U.S. policymakers continue to make mistakes when thinking about world energy markets.
For example, James Woolsey, a former director of the CIA and self-proclaimed energy hawk, argues that the Organization of the Petroleum Exporting Countries (OPEC) has a grip on global oil and gasoline prices so tight that the United States will never be free of its influence. Like most people, Woolsey wrongly believes that OPEC is a powerful cartel………………………………………..Full Article: Source

Iraq not hurting oil output: OPEC

Posted on 17 June 2014 by VRS  |  Email |Print

The unrest in Iraq isn’t affecting oil markets or the country’s oil output, the secretary general of the Organization of the Petroleum Exporting Countries said Monday. Abdalla Salem el-Badri said: “Nothing is affected. production is still going well and exporting is going fine.”
He said he doesn’t expect the recent wave of unrest in the country to affect the balance of the supply and demand of the oil market. The US and Iran have publicly committed in recent days to provide military support if requested to Iraqi Prime Minister Nouri al-Maliki and help his government repel an offensive the Islamic State of Iraq and al-Sham has launched against Baghdad and other Iraqi cities over the past week………………………………………..Full Article: Source

Oil Topping $116 Seen Possible as Iraq Conflict Widens

Posted on 16 June 2014 by VRS  |  Email |Print

Brent crude was projected by Wall Street analysts to average as much as $116 a barrel by the end of the year. Now, with violence escalating in Iraq, how far the price will rise has become anyone’s guess.
The international benchmark surged above $114 on June 13 for the first time in nine months as militants routed the Iraqi army in the north and advanced toward Baghdad, threatening to ignite a civil war. The Islamic State in Iraq and the Levant, known as ISIL, has halted repairs to the pipeline from the Kirkuk oil field to the Mediterranean port of Ceyhan in Turkey………………………………………..Full Article: Source

Without Iraq’s oil, prices could hit $150-$200: Pickens

Posted on 16 June 2014 by VRS  |  Email |Print

If Iraq’s oil supply goes offline, crude prices could hit $150-$200 a barrel, T. Boone Pickens, founder of BP Capital Management, said. “That’s where you have to kill demand with price. That’s the only way you can do it, because oil won’t be there,” Pickens said in an interview with “Street Signs.”
Crude hit a nine-month high Friday as fears intensified over the conflict in Iraq and its potential to disrupt country’s the oil supply. U.S. crude—West Texas Intermediate (WTI)—hit a session high of $107.68 a barrel early Friday. Brent rose to an intraday high of $114.69………………………………………..Full Article: Source

Can spurt in crude oil prices trigger rally in commodities?

Posted on 16 June 2014 by VRS  |  Email |Print

Is the market at the cusp of a rally in commodities? Crude oil prices have soared on news of turmoil in Iraq, one of the world’s top oil exporters. West Texas Intermediate Crude, the US benchmark, gained over 2 per cent and hit an eight-month high. This rattled equity markets and the Sensex tanked nearly 350 points on Friday.
The market reaction to higher crude oil prices is not surprising. India is one of the world’s top crude oil importers and higher crude oil prices would translate into higher consumer inflation, losses for government-owned oil refiners and increased fuel subsidy and higher fiscal deficit. This is a recipe for poor GDP growth and market volatility………………………………………..Full Article: Source

Why are oil prices rising?

Posted on 16 June 2014 by VRS  |  Email |Print

The Islamist advance this week across northern Iraq has yet to have a major effect on the country’s oil exports, so why are world prices rising? Oil experts say the 4% price spike since June 6 — which has taken a barrel of crude to $107 for the first time since September 2013 — is being driven by fear that exports could be hit later this year, just as world demand peaks.
An al Qaeda splinter group occupied Iraq’s second biggest city — Mosul — earlier this week and has pushed on towards the capital, Baghdad. The group is trying to establish an Islamic state straddling the Iraq-Syria border………………………………………..Full Article: Source

You Don’t Know the Price of Oil, and Neither Does Anyone Else

Posted on 16 June 2014 by VRS  |  Email |Print

A couple days ago, I read a fascinating piece by an analyst who predicted that the price of oil would plummet. He covered every possible angle that supports this idea: increasing short positions, fiscal policy changes, increasing production in the U.S. and in other parts of the world, and slowing demand in Organization for Economic Cooperation and Development nations, to name just a few.
The article went into extreme detail on each of these points and explained why they were a signal that oil was headed nowhere but down………………………………………..Full Article: Source

We Are So Not Prepared For Another Crude Oil Price Shock

Posted on 16 June 2014 by VRS  |  Email |Print

In one sense, energy doesn’t matter all that much to what’s coming. Once debt reaches a certain level, oil can be $10 a barrel or $200, and either way we’re in trouble.
But the cost of energy can still play a role in the timing and shape of the next financial crisis. The housing/derivatives bubble of 2006 -2008, for instance, might have gone on a while longer if oil hadn’t spiked to $140/bbl in 2007. And the subsequent recovery was probably expedited by oil plunging to $40 in 2008………………………………………..Full Article: Source

Saudi Arabia Proposes Reducing OPEC Meets From Twice To Once A Year

Posted on 16 June 2014 by VRS  |  Email |Print

Saudi Arabia has suggested OPEC meet just once a year, rather than twice, a sharp reduction from the days when the group met for up to seven times a year in the early 2000s. The OPEC meetings since 2012 have produced no policy change and Wednesday’s gathering in Vienna was no exception, sticking with its production target of 30 million barrels per day (bpd).
The 12-member cartel used to give traders more to worry about, meeting several times a year, convening emergency meetings at short notice and sometimes making surprise decisions as it tried to micro-manage the oil market………………………………………..Full Article: Source

Uncertainty over Iraq pushes oil price to three-month high

Posted on 13 June 2014 by VRS  |  Email |Print

Traders bet on advances by Isis militants disrupting supplies from one of world’s largest exporters. Escalating violence in Iraq sent the price of oil to a three-month high as traders bet that advances made by insurgents could disrupt supplies from one of the world’s largest oil exporters.
Brent crude futures rose 2% to $112.12 a barrel, the highest price since early March. The initially calm response to Sunni militants’ overrunning of Mosul, Iraq’s second largest city, on Tuesday turned to alarm as Isis, the al-Qaida splinter group, announced its intention to take Baghdad………………………………………..Full Article: Source

Quiet So Far, Oil Prices Could Rise as Insurgents Gain in Iraq

Posted on 13 June 2014 by VRS  |  Email |Print

Military advances by Islamic insurgents in northern Iraq have had a negligible impact on global oil futures so far – but that’s likely to change if Baghdad doesn’t re-establish its authority soon.
Iraq may evolve as a “significant wild card,” oil-trading advisory company Ritterbusch & Associates commented overnight, following the loss of a second major city to insurgents. Prices are likely to climb if tensions continue to rise, the firm said………………………………………..Full Article: Source

OPEC facing dark clouds on supply horizon

Posted on 13 June 2014 by VRS  |  Email |Print

OPEC faces a period of static oil prices as traders track supply-side uncertainties surrounding Iraq, Iran and Libya, as well as Ukraine, analysts said Thursday. The oil exporters’ cartel opted this week to maintain its crude output ceiling, expressing confidence in the market despite global tensions keeping prices high.
OPEC, which will convene again in late November to assess the state of the market, remains happy with Brent oil prices hovering close to $110, benefitting producers………………………………………..Full Article: Source

For OPEC, the price of oil is just right, for now

Posted on 13 June 2014 by VRS  |  Email |Print

The world oil market has set up quite nicely for OPEC. Dramatic changes in oil production around the globe are balancing each other out instead of wreaking havoc. This has helped world oil prices stay high enough to provide OPEC countries with robust income, but not so high that they scare customers away from buying more of their precious product.
Brent crude, the most important international oil benchmark, has hovered in the range of $110 per barrel over much of the last 4 years, with remarkably low volatility for oil markets. That has also led to stable gasoline prices for U.S. drivers, who have been paying in the neighborhood of $3.50 per gallon over the period………………………………………..Full Article: Source

OPEC sees oil market balanced for rest of 2014

Posted on 13 June 2014 by VRS  |  Email |Print

Oil markets should be balanced during the second half of this year with extra production sufficient to meet growing demand, OPEC said on Thursday, suggesting oil prices may be fairly stable despite worries over lost supply.
Oil prices rose sharply on Thursday with Brent crude climbing above $112 for the first time since March on worries that violence in Iraq could disrupt supplies. But the Organization of the Petroleum Exporting Countries, which supplies a third of the world’s oil, said rising oil production should be more than sufficient to meet demand………………………………………..Full Article: Source

Non-OPEC and OPEC crude balance

Posted on 13 June 2014 by VRS  |  Email |Print

On 11 June, OPEC reaffirmed the group’s crude oil production target of 30 million bpd which has been in place since December 2011. The target is slightly above the 29.8 million bpd call on OPEC crude oil and global stocks during the year so far. For 2014 in total, the average call on OPEC and global stocks is expected to be 0.3 million bpd lower than 2013 levels with an additional 0.2 million bpd decline during 2015 to hit an average of 29.6 million bpd.
Growing non-OPEC supply, particularly from contributing tight oil production growth in the US, drives the expected easing of global oil market conditions and contributes to the forecast of moderate crude oil price declines, the North Sea Brent crude oil process averaging US$ 108 /bbl in 2014 and US$ 102 /bbl in 2015, down from an average of US$ 109 /bbl last year………………………………………..Full Article: Source

Forget OPEC, let’s talk about ‘NOPEC’: Insana

Posted on 13 June 2014 by VRS  |  Email |Print

With the U.S. leading the way in the fracking revolution, Canada in tar sands and with a newly liberalized energy sector in Mexico, North America could easily rival and exceed OPEC’s production of crude oil, natural gas, distillates and other petrochemical products—making North America the envy of the energy world.
Combined, NOPEC could become the “swing producer” of energy products in world markets, helping to drive down prices of energy products that are currently hostage to OPEC’s whims, geopolitical risk and, on occasion, excessive speculation that whips oil markets round and round………………………………………..Full Article: Source

OPEC Ministers Agree to Maintain Output Quota

Posted on 12 June 2014 by VRS  |  Email |Print

Delegates of the Organization of the Petroleum Exporting Countries agreed to roll over the group’s production quota, maintaining the group’s current official production output. The decision comes despite concerns over adequate global supply. Libya has struggled to lift its output amid political turmoil in the country. Meanwhile, global growth—and by extension, oil demand—has been picking up.
OPEC, which is holding its semiannual meeting in the Austrian capital, agreed to keep its official output quota at 30 million barrels a day, delegates said. OPEC produces about one in three barrels of the world’s crude………………………………………..Full Article: Source

Supply tremors shake OPEC equilibrium

Posted on 12 June 2014 by VRS  |  Email |Print

OPEC sailed through a brief, calm meeting on Wednesday - even as oil prices rose to $110 on barrel on concern renewed strife could hit Iraq’s output and deepen a supply shortfall from chaotic Libya and sanctions-bound Iran.
Oil ministers painted a soothing image of good supply, and prices beneficial to all, although some among them struggled to eke out exports………………………………………..Full Article: Source

OPEC Keeps Output Level Below Second-Half Demand Forecast

Posted on 12 June 2014 by VRS  |  Email |Print

OPEC, which supplies about 40 percent of the world’s crude, kept its production target unchanged in a widely anticipated move that left the group’s output below forecast demand for the rest of the year.
The Organization of Petroleum Exporting Countries reaffirmed yesterday its production ceiling of 30 million barrels a day for a fifth consecutive meeting. The group forecasts demand for its crude of 30.4 million barrels a day in the coming six months, while its 12 members produced 29.6 million barrels a day in April, the organization’s data show………………………………………..Full Article: Source

OPEC’s Withholding Taxes Oil Majors

Posted on 12 June 2014 by VRS  |  Email |Print

Business lore holds that you can’t cut your way to prosperity. Apparently, no one told OPEC. In December, at its last general meeting, the Organization of the Petroleum Exporting Countries faced a rush of rising oil supply from Libya, Iraq, Iran, and North America. The big question was how far oil prices would fall before the sometimes fractious cartel agreed how to share the pain of output cuts to make way.
Now, with Libya and Iraq in crisis again and U.S. talks with Iran looking dicey, OPEC’s job is a lot easier as it its latest get-together wraps up; the group Wednesday agreed to maintain current production quotas………………………………………..Full Article: Source

Prospect of Iran’s return poses problem for Opec

Posted on 12 June 2014 by VRS  |  Email |Print

In the days before an Opec meeting the financial press pack descends on Vienna. The media fan out across the city hoping to catch a comment from an oil minister as they arrive in the Austrian capital and then shuttle between briefings.
This week’s meeting – the 165th in Opec’s 54-year history – is no different. As usual, the reporters are camped out in the foyers of the luxurious hotels favoured by the cartel’s 12 member countries, ready to jump on officials and their entourage………………………………………..Full Article: Source

North American LNG output to grow, IEA says

Posted on 12 June 2014 by VRS  |  Email |Print

The United States and Canada will account for about 8 percent of the global liquefied natural gas market by 2019, the International Energy Agency said.
“While demand growth is driven by the Asia-Pacific region, and especially China, supply growth for the international gas trade is dominated by private investments in LNG in Australia and North America,” IEA Executive Director Maria van der Hoeven said Tuesday………………………………………..Full Article: Source

OPEC nations see no reason to alter oil output ceiling

Posted on 11 June 2014 by VRS  |  Email |Print

OPEC, the oil producing cartel, will likely stick by its output ceiling at a meeting here, member nations indicated Tuesday as they expressed satisfaction with current high crude prices. The Organization of Petroleum Exporting Countries, which pumps out about one third of the world’s oil, has stood by a daily production ceiling of 30 million barrels for almost three years.
OPEC kingpin Saudi Arabia, the cartel’s biggest and most influential producer, declared Tuesday that he expected no change to oil output levels………………………………………..Full Article: Source

Saudi Arabia, Kuwait expect OPEC to maintain current oil output

Posted on 11 June 2014 by VRS  |  Email |Print

Saudi Arabia and Kuwait said on Tuesday they expect OPEC to keep oil production levels stable so as not to alter prices at a meeting of the cartel this week. Saudi Oil Minister Ali al-Nuaimi said the market was “stable and balanced” and that he therefore believed there would not be any decision to change output.
“The price is at a comfortable level for producer and consumer countries as well as for the oil industry,” he said ahead of Wednesday’s meeting of the Organisation of Petroleum Exporting Countries in Vienna………………………………………..Full Article: Source

Nigeria vies for control of Opec as cartel ponders oil output

Posted on 11 June 2014 by VRS  |  Email |Print

Ministers from the Organisation of Petroleum Exporting Countries reportedly divided over new Nigerian leadership pitch. The Organisation of Petroleum Exporting Countries (Opec) - a group of 12 nations who control over a third of the world’s crude - meets on Wednesday in Vienna as political turmoil in Iraq and Libya pushes prices higher and opens up divisions within the cartel.
The price of North Sea Brent crude nudged up above $110 (£65) per barrel in the run up to the gathering of oil ministers, offering little hope to British motorists that fuel prices in the UK will be falling at anytime in the near future………………………………………..Full Article: Source

Oil Prices Rise Before OPEC Meeting

Posted on 11 June 2014 by VRS  |  Email |Print

Oil prices rising Tuesday to near $105 a barrel leaves smiling OPEC ministers with an easy task to leave crude output levels as they are at their Wednesday meeting. Brent North Sea crude has stayed above that price, the preferred level of top OPEC producer Saudi Arabia, all year and was trading near $110 on Tuesday, supported by the almost total loss of supplies from OPEC member Libya.
The Organization of the Petroleum Exporting Countries, whose dozen member nations pump more than a third of the world’s oil, is meeting in Vienna to agree on policy for the second half of the year………………………………………..Full Article: Source

IEA outlook: ‘Golden Age’ of gas to extend to China

Posted on 11 June 2014 by VRS  |  Email |Print

The “Golden Age” of natural gas that has taken such a strong foothold in North America will extend to China over the next 5 years, driven by booming demand, according to the latest 5-year gas market outlook from the Paris-based International Energy Agency.
In its Medium-Term Gas Market Report 2014, IEA noted that a near-doubling of Chinese gas demand by 2019 will offset a slowdown in demand in other regions. The annual report sees global demand rising 2.2%/year by the end of the forecast period compared with the 2.4%/year rate projected in last year’s outlook………………………………………..Full Article: Source

OPEC seen sticking by oil output

Posted on 10 June 2014 by VRS  |  Email |Print

OPEC is set to stick by its oil output ceiling when it meets this week, as supply tensions linked to global crises help to keep crude prices high, benefitting producers. The Organization for Petroleum Exporting Countries, whose dozen member nations together supply about one third of the world’s crude, is widely predicted by experts to keep its daily output ceiling at 30 million barrels of oil.
While OPEC is satisfied with current price levels at around $100 a barrel, the cartel is in fact pumping below its collective target owing to abundant supplies in top crude consumer the US………………………………………..Full Article: Source

Iraq, Venezuela say OPEC to roll over output ceiling

Posted on 10 June 2014 by VRS  |  Email |Print

The OPEC oil producers’ cartel appeared set to maintain its output ceiling later this week, Iraq and Venezuela said here on Monday. The Organization for Petroleum Exporting Countries, whose dozen member nations together supply about one third of the world’s crude, have a daily collective output target of 30 million barrels of oil.
“I have a feeling we are expecting to have another rollover,” Venezuelan Energy Minister Rafael Ramirez told reporters in the Austrian capital, two days before Wednesday’s OPEC gathering………………………………………..Full Article: Source

OPEC Struggles to Cope With Libyan Oil Shortfall

Posted on 10 June 2014 by VRS  |  Email |Print

Six months ago, one of OPEC’s concerns was whether a U.S. shale boom might upend crude markets by providing too much oil. Today, the group of some of the world’s largest producers has a more short-term worry: How to compensate for lost Libyan crude at a time of rising demand and tensions between Russia and the West.
“That’s the big question: Who will fill the gap left by Libya?” said one delegate within the group, which meets in Vienna later this week to discuss its output. Members of the Organization of the Petroleum Exporting Countries—which produces one out of every three barrels of oil consumed daily in the world—are facing calls by some to boost output to help plug the gap left by fellow member Libya………………………………………..Full Article: Source

North American Shale Oil Boom Key Challenge At OPEC Meeting

Posted on 10 June 2014 by VRS  |  Email |Print

With the North American crude oil production boom likely to be a major topic of discussion for OPEC ministers when they meet this week in Vienna, the cartel is not expected to raise production, especially because prices remain generally stable.
If prices rise from the current $100 to $110 a barrel, falling demand would be a concern. On the other hand, falling prices would approach OPEC members’ marginal cost of production. The crude oil production oil cartel, which controls about 40 percent of global oil supplies, has imposed a 30 million barrel-per-day production ceiling for all 12 members’ output for the last two years………………………………………..Full Article: Source

Libya arrives for OPEC with exports at a trickle

Posted on 10 June 2014 by VRS  |  Email |Print

Libya’s attendance at Wednesday’s OPEC meeting will be an oddity for historians of the oil exporters club - a member with virtually no oil for sale. As it struggles with its worst crisis since the 2011 war that toppled Muammar Gaddafi, early talk of a swift resumption of output have given way to pessimism, leaving OPEC with a longer lasting hole of over one million barrels per day in its supply.
Production is below 200,000 barrels per day, Oil Minister Omar Shakmak said on arrival in Vienna on Monday for the meeting, a fraction of the 1.6 million bpd Libya pumped before the 2011 conflict………………………………………..Full Article: Source

World needs Saudi Arabia to supply record oil as OPEC meets

Posted on 10 June 2014 by VRS  |  Email |Print

OPEC ministers say they will almost certainly leave their oil-production ceiling unchanged when the group meets this week. What really matters for markets is whether Saudi Arabia will respond to global supply shortfalls by pumping a record amount of crude.
Just six months ago, energy analysts predicted output from the Organization of Petroleum Exporting Countries would climb too high and Saudi Arabia needed to cut to make room for other suppliers. They changed their minds after production from Libya, Iran and Iraq failed to rebound as anticipated, and industrialized nations’ stockpiles fell to the lowest for the time of year since 2008. Saudi Arabia may need to pump a record 11 million barrels a day by December to cover the other member nations, says Energy Aspects, a consultant………………………………………..Full Article: Source

Saudi Arabia may increase production to record level

Posted on 10 June 2014 by VRS  |  Email |Print

Ministers from the Organization of the Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world’s oil, are expected to leave their oil-production level unchanged in their meeting on June 11 in Vienna. In a Bloomberg survey 22 of the 23 analysts polled made a similar prediction.
What might have to change, however, is Saudi Arabia’s production quota within the cartel, as it will have to increase output to record levels to counteract supply shortfalls. “I don’t see anything changing in terms of the 30 million barrels-per-day target,” an unnamed OPEC source told Reuters. “It should be a fairly relaxed meeting.”……………………………………….Full Article: Source

9 Reasons Why Oil Prices May Be Headed For A Bust

Posted on 10 June 2014 by VRS  |  Email |Print

Though the U.S. shale oil boom of the past several years has led to a renewed surge of domestic oil production as well as an oil glut, crude oil prices have remained stubbornly high. There are a growing number of reasons, however, why crude oil prices are likely to finally experience a bust in the not-too-distant future.
I avoid making firm predictions about the oil market because there are so many conflicting variables that affect oil prices, from supply and demand, geopolitics (which is inherently unpredictable), and the global monetary environment, but it is important to be aware of several factors that have a high probability of pushing crude oil prices lower in the next couple of years………………………………………..Full Article: Source

World Needs Record Saudi Oil Supply as OPEC Convenes

Posted on 09 June 2014 by VRS  |  Email |Print

OPEC ministers say they will almost certainly leave their oil-production ceiling unchanged when the group meets this week. What really matters for global markets is whether Saudi Arabia will respond to global supply shortfalls by pumping a record amount of crude.
Just six months ago, energy analysts predicted output from the Organization of Petroleum Exporting Countries would climb too high and Saudi Arabia needed to cut to make room for other suppliers. They changed their minds after production from Libya, Iran and Iraq failed to rebound as anticipated, and industrialized nations’ stockpiles fell to the lowest for the time of year since 2008………………………………………..Full Article: Source

Iran fourth biggest OPEC oil exporter

Posted on 09 June 2014 by VRS  |  Email |Print

An official with the National Iranian Oil Company (NIOC) says Iran ranked fourth among OPEC members due the decrease in oil exports as a result of Western sanctions.
Seyyed Mohsen Qamsari also hoped that Iran’s oil exports will increase in the next month to improve its ranking among members of the Organization of Petroleum Exporting Countries, Iran Daily wrote in its Saturday issue. “Taking the second place in OPEC is quite tough given the increase in Iraq’s (oil) output,” he said. He added Iran’s oil exports are about one million barrels per day………………………………………..Full Article: Source

Opec expected to stick by oil output

Posted on 09 June 2014 by VRS  |  Email |Print

Opec is set to stick by its oil output ceiling this week, as supply tensions linked to global crises help to keep crude prices high, benefiting producers. The Organisation for Petroleum Exporting Countries, whose dozen member nations together supply about a third of the world’s crude, is widely predicted by experts to keep its daily output ceiling at 30 million barrels of oil.
While Opec is satisfied with current price levels at around US$100 a barrel, the cartel is in fact pumping below its collective target owing to abundant supplies in top crude consumer the United States. Offsetting this are worries of potential supply strains as Ukraine risks sliding into all-out civil war………………………………………..Full Article: Source

Oil,Gas producers can make money capturing methane than flaring it up

Posted on 09 June 2014 by VRS  |  Email |Print

Until now natural gas producers were merrily burning up methane gas as there were no regulations stipulating its capture. “Up until now, companies have been perfectly content to do this because there were no regulations stopping them, nor any financial incentives and infrastructure to help them move this extra gas to market,” according to Keith Kohl, in Energy and Capital.
However, some states like North Dakota where its Industrial Commission have already stipulated oil and gas companies to submit a methane capturing plan with every new drilling permit they apply for.The goal is to motivate Bakken operators (shale energy) to capture 85% of the gas they produce by 2016 and 90% within six more years………………………………………..Full Article: Source

Hedge Funds Buy Oil as Supply Drops Before Memorial Day

Posted on 09 June 2014 by VRS  |  Email |Print

Speculators cut bullish bets on U.S. crude oil from a record as inventories were close to a seasonal high following the Memorial Day weekend.
Hedge funds reduced net-long positions in benchmark West Texas Intermediate by 1.5 percent in the week ended June 3, the U.S. Commodity Futures Trading Commission said. Long positions slid 1.1 percent and shorts jumped 5.3 percent………………………………………..Full Article: Source

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