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Russia sees oil price of $45-$50 per barrel ‘acceptable’ as it prepares for freeze deal

Posted on 07 April 2016 by VRS  |  Email |Print

Russia believes an oil price at $45-$50 per barrel is acceptable to allow the global oil market to balance, as it prepares to meet leading oil producers in Doha later this month, sources familiar with Russian plans said on Wednesday.
Leading oil producers plan to meet in Doha on April 17 to cement a preliminary deal reached between Russia, Venezuela, Qatar and Saudi Arabia in February to freeze oil output at levels reached in January, to curb a surplus on the oil market. “Now there is discussion of how long production will be frozen and ways to monitor the agreement,” one of the sources said………………………………………..Full Article: Source

From crude glut to a balanced oil market?

Posted on 07 April 2016 by VRS  |  Email |Print

How long it will take the oil market to bounce back is a frequently asked question by energy investors. According to one equity analyst, the answer is looking beyond the coming months. “I think [there's] very little visibility over the next six months,” Kris Kelley of Janus Capital Group said Wednesday on CNBC’s “Power Lunch.”
“But I think that if you step out beyond six months, it actually gets very visible.” He contends that as supply comes off the U.S. market, if production reaches 8 to 8 ½ million barrels a day, oil will balance out by the end of the year………………………………………..Full Article: Source

Oil prices lower on IMF’s ‘not-so-good news’

Posted on 06 April 2016 by VRS  |  Email |Print

Crude oil prices moved lower for a second straight day as the International Monetary Fund gauged the prospects of “mediocre” economy momentum. The IMF warned Chinese growth patterns may have a lingering ripple effect on the global economy.
Chinese slowdown last year dragged on broader economic momentum and 2016 started with a hiccup following steep declines in the benchmark Shanghai Composite Index. Speaking in Germany, IMF Managing Director Christine Lagarde said the global economy was moving forward and there were no signs of imminent crisis………………………………………..Full Article: Source

Oil price ‘can easily revisit’ sub-$30 lows

Posted on 06 April 2016 by VRS  |  Email |Print

The oil price “can easily revisit the lows seen earlier this year”, French bank BNP Paribas said in a note to clients, as bearish demand data added to concern over a deal to freeze excess supply.
Reuters cites the commentary after a report in the US showed purchases of gasoline products fell in January for the first time in 14 months and that overall crude oil consumption was down one per cent compared to last year. This comes ahead of a second quarter period that typically sees a dip in demand as refinery maintenance peaks………………………………………..Full Article: Source

Oil prices will slowly rebound, energy analysts predict

Posted on 06 April 2016 by VRS  |  Email |Print

Oil prices will gradually rebound over the next several years as the global surplus slowly gets used up, according to a forecast released on Tuesday. The analysis by Deloitte’s resource evaluation and advisory team predicts the price of West Texas Intermediate (WTI) crude will average $44 US this year, climbing to $55 US by 2018, $70 US by 2020 and $80 US by 2022.
“Our view is that the market has reached a relative bottom and the trend for the next number of months will be a shallow but rocky upward slope as certainty increases in the global ability to chew through oversupply in the coming months and years,” the report says………………………………………..Full Article: Source

Cheap Oil Means Record U.S. Trade Surplus With OPEC

Posted on 06 April 2016 by VRS  |  Email |Print

The U.S. has posted a surplus with the oil-producing bloc in 10 of the past 12 months, hitting a record $1.8 billion for February. Cheap oil, a strong dollar and slow growth abroad continue to break historical U.S. trade patterns.
In February, the average price per barrel of imported crude slipped to $27.48, the lowest mark since December 2003. Petroleum imports fell to the lowest level since September 2002. And the U.S. registered a trade surplus with Organization of the Petroleum Exporting Countries nations–the highest on record–according to Census Bureau data………………………………………..Full Article: Source

Kuwait’s Opec governor says all signs point to freeze deal

Posted on 06 April 2016 by VRS  |  Email |Print

Kuwait has said that all signs point to a freeze deal at a meeting between Opec and the world’s biggest oil producers later this month. In a speech at the oil ministry, Kuwait’s Opec governor Nawal Al-Fuzaia, didn’t elaborate on which signs point to an agreement at the talks in Doha on 17 April.
This year’s oil price rally stalled recently after Saudi Arabia said it wouldn’t freeze oil production without participation from Iran. It had previously indicated a willingness to hold production steady even if the Opec rebel did not. Fuzaia added that producers might agree to freeze their output at February levels, or at an average of January and February levels………………………………………..Full Article: Source

Iran expects 4 mbpd oil output by March 2017

Posted on 06 April 2016 by VRS  |  Email |Print

Iranian Oil Minister Bijan Namdar Zanganeh said the country’s crude output would reach four million barrels per day (bpd) by March 2017. “In the annual budget, the amount of oil export has been predicted around 2,250,000 bpd. This means our production this (Iranian) year will reach four mbpd,” Zanganeh said.
Zanganeh said Iran’s oil output has increased after the lifting of international sanctions in January under a nuclear deal with six major powers………………………………………..Full Article: Source

Oil price falls again as Iran backs away from production cuts

Posted on 05 April 2016 by VRS  |  Email |Print

Oil prices fell after Iran indicated it would continue to increase production and exports until it reaches the market position it enjoyed before the imposition of sanctions, oil minister Bijan Zanganeh was quoted by the semi-official Mehr news agency as saying.
Brent crude, the European benchmark for oil, down 0.36pc to $38.54 a barrel on Monday morning. West Texas Intermediate, the US benchmark, slumped 0.8pc to $36.49, extending Friday’s 4pc tumble………………………………………..Full Article: Source

Crude oil market to rebalance in 2016-17: Adnoc CEO

Posted on 05 April 2016 by VRS  |  Email |Print

Global crude oil prices should increase slowly over 2016 and 2017, as supply and demand rebalances, the CEO of state-owned Abu Dhabi National Oil Co., or ADNOC, said Monday. “Over the last few weeks, we have seen some recovery in prices. While we expect to experience continue volatility in the short term, we expect to see a slow but upward improvement in prices in the medium term”, ADNOC CEO Sultan al-Jaber said in an interview with official news agency Wam.
“Overall, we think 2016 and 2017 will be the years during which markets will start to rebalance the gap between demand and supply, barring unforeseen events”, he added………………………………………..Full Article: Source

Saudi Arabia acts to slow Iran’s oil exports

Posted on 05 April 2016 by VRS  |  Email |Print

Iranian ships carrying crude restricted from entering ports in Saudi Arabia and Bahrain. Saudi Arabia has taken steps to slow Iran’s efforts at increasing oil exports, banning vessels that transport Iranian crude from entering their waters, according to traders and shipbrokers.
Iran already faces insurance, financing and legal obstacles despite the lifting of sanctions linked to its oil industry in January. Under a nuclear deal with world powers, Iran was allowed to resume crude exports to Europe and other destinations………………………………………..Full Article: Source

Chance of workable OPEC freeze at Doha is ‘minimal’: CIO

Posted on 05 April 2016 by VRS  |  Email |Print

Any hope of a coordinated output freeze between leading oil producers and an end to the recent sharp swings in the commodity’s price are likely to be dashed, one expert has told CNBC. “I think the prospect of a tangible production freeze (in April) is minimal. I think the fact that they’re actually talking about one is a thing that the markets will jump on,” Simon Fentham-Fletcher, CIO at Freedom Asset Management, told CNBC Monday.
“Russia will not and has never held to any production freezes ever and I can’t see it doing so now. The Saudis are in the same situation, they’ve been trying to grab market share and we have Iran coming back online, they were very unsure about the levels of the Iranian oil production,” Fentham-Fletcher added………………………………………..Full Article: Source

A former Opec insider tells how global oil pricing got flipped on its head

Posted on 04 April 2016 by VRS  |  Email |Print

From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains. Today, the producers who used to be price setters through supply control can produce only what costs less than the market price, which they no longer influence. Things will become normal only when we have the horse back before the cart………………………………………..Full Article: Source

Iran oil exports surpass 2m barrels per day: minister

Posted on 04 April 2016 by VRS  |  Email |Print

Iran’s oil exports have surpassed 2 million barrels per day following the lifting of sanctions under its nuclear deal with world powers, Oil Minister Bijan Zanganeh said on Sunday.
“Iran’s oil and gas condensate exports are now at more than 2 million barrels per day” after rising by 250,000 bpd since March 1, the ministry’s Shana news service quoted Zanganeh as saying. Iran has doubled exports since its nuclear accord took effect on January 16………………………………………..Full Article: Source

Kuwait hopes for OPEC, non-OPEC oil coordination to stabilise market

Posted on 04 April 2016 by VRS  |  Email |Print

Kuwait hopes that coordination among oil producers inside and outside OPEC will help to stabilise the market, acting oil minister Anas al-Saleh told reporters on Sunday. “As long as there is coordination among major producers in OPEC and outside OPEC, that will certainly help stabilise prices,” he said.
Saudi Arabian Deputy Crown Prince Mohammed bin Salman said on Thursday that Riyadh would not join an output freeze without the participation of Iran and other major producers, Bloomberg reported. A meeting to discuss the production freeze has been scheduled in Doha on April 17………………………………………..Full Article: Source

A former Opec insider tells how global oil pricing got flipped on its head

Posted on 04 April 2016 by VRS  |  Email |Print

From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains………………………………………..Full Article: Source

Oil Speculators Bet Rally’s Over as Doubts Grow on Output Freeze

Posted on 04 April 2016 by VRS  |  Email |Print

Money managers lost faith in oil’s recent rally as doubts grew over whether major producers will be able to agree on an output freeze.Futures in West Texas Intermediate oil retreated last week for the first time since mid-February.
Prices had surged from a low of almost 13 years on a proposal by Saudi Arabia, Russia, Venezuela and Qatar to cap oil output and reduce a global surplus. They’ll meet with other countries in Doha on April 17. While Iran said it would attend the talks, it ruled out limiting supply as it restores exports after sanctions were lifted in January………………………………………..Full Article: Source

Saudi Arabia will only freeze its oil output if Iran does so - and it won’t

Posted on 04 April 2016 by VRS  |  Email |Print

The recovery in the price of oil may not be sustainable as Iran chooses to play hard ball. There’s quite a way to go yet. Burgeoning oil-producer unity, which was leading toward an accord in Doha to cap output, came under immense strain as Saudi Arabia’s deputy crown prince said the kingdom’s commitment depended on regional rival Iran, which has already ruled out its participation.
If any producer increases output - and Iran has made clear its intention to do so - Saudi Arabia will likewise boost sales, Mohammed bin Salman said this weekend in an interview with Bloomberg………………………………………..Full Article: Source

Does OPEC have a future?

Posted on 04 April 2016 by VRS  |  Email |Print

With oil prices down by almost 70 per cent from mid-2014, and touching multi-year lows recently, economies across the globe are gradually adjusting to the ‘new oil normal’ and the massive transfer of real income from producers to consumers.
The market has changed radically from the days when the Organisation of the Petroleum Exporting Countries was formed in the 1960s. Set up with the objective of coordinating and unifying petroleum policies among its member countries to “secure fair and stable prices” and “maintain efficient, economic and regular supply of petroleum”, OPEC is a cartel. ……………………………………….Full Article: Source

Banks Raise Oil Price Forecasts But Remain Cautious

Posted on 01 April 2016 by VRS  |  Email |Print

Big banks have slightly raised their oil-price forecasts for the first time since August but remain cautious about crude’s outlook. A survey of 13 investment banks by The Wall Street Journal shows their average forecast increased by a dollar from the previous month, while U.S. crude prices have rallied by nearly 50% since their February lows.
The banks see Brent crude, the international oil-price benchmark, averaging $40 a barrel this year, and West Texas Intermediate, the U.S. oil gauge, averaging $39 a barrel………………………………………..Full Article: Source

FG nominates Barkindo for OPEC secretary-general

Posted on 01 April 2016 by VRS  |  Email |Print

The Federal Government has put forward the name of a former Group Managing Director of the Nigerian National Petroleum Corporation, Mohammed Barkindo, for the position of Secretary-General of the Organisation of Petroleum Exporting Countries.
Barkindo worked at NNPC until 2010 and served as acting secretary-general of OPEC in 2006, as well as representing Nigeria at the group. Bloomberg reported that two persons privy to the development confirmed the nomination but asked not to be identified because it had yet to be made public………………………………………..Full Article: Source

The OPEC Meeting Will Boost Prices Following Never-Before-Seen Agreement

Posted on 01 April 2016 by VRS  |  Email |Print

Anticipation for next month’s OPEC meeting has been building, and it’s showing in the recent oil price rally. News of the OPEC meeting has put crude oil prices on track for their best month in almost a year.
The cartel’s sit-down next month will push prices higher due to a historic change expected to come out of the meeting. And one country’s reluctance to comply won’t be a factor, despite what some analysts think now…But before we get to that, here’s just how big oil’s rally was in March………………………………………….Full Article: Source

Moody’s: Challenging oil market conditions keep hurting offshore drillers’ credit profiles

Posted on 01 April 2016 by VRS  |  Email |Print

Low oil prices and waning demand for drilling services will continue to put the credit profiles of Brazilian offshore drilling vessel projects under pressure for the next three to five years, says Moody’s Investors Service.
Petróleo Brasileiro S.A. (Petrobras, B3 negative), Brazil’s national oil company, slashed its projected capital spending budget by more than a third earlier this year. Much of the reduction in spending will affect exploration and production activities, impacting drillers that have significant re-contracting risk and a large amount of debt outstanding………………………………………..Full Article: Source

Hedge funds up bullish bets on rising oil prices

Posted on 31 March 2016 by VRS  |  Email |Print

Hedge funds and other money managers have amassed a near-record number of bullish bets on increasing oil prices, helping push the main international benchmark well above $40 per barrel.
By the close of business on March 22, money managers held a net long position equivalent to almost 579 million barrels in the three largest crude oil futures and options contracts. Hedge funds have more than doubled their net long position from just 242 million barrels at the end of last year, according to an analysis of data published by regulators and exchanges………………………………………..Full Article: Source

Oil Prices Give Up Gains

Posted on 31 March 2016 by VRS  |  Email |Print

Oil prices inched higher Wednesday but sold off through most of the afternoon with opinions divided about the latest addition to U.S. stockpiles. The U.S. Energy Information Administration said Wednesday that stockpiles rose, but by less than analysts had expected, initially adding to overnight gains.
But stockpiles are still near record highs and the EIA data show refiners ramping up strongly, suggesting the oil industry is still willing to send more oil and gasoline onto already flooded markets, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk………………………………………..Full Article: Source

The 25 Biggest Oil And Gas Companies In The World

Posted on 31 March 2016 by VRS  |  Email |Print

The past two years have been a wild ride for investors in the world’s biggest publicly traded oil companies. Compared with their high-water marks in mid-2014, Big Oil shares are down about 25% and earnings have collapsed.
The big irony: even as oil prices have halved, Big Oil is still getting bigger. In July 2014 U.S. oil production was 8.75 million barrels per day, according to the Energy Information Administration. Nearly a year (and a 50% price dip) later, U.S. oil output had grown to 9.69 million bpd, its highest level in 45 years………………………………………..Full Article: Source

The Extend-and-Pretend Oil Market

Posted on 31 March 2016 by VRS  |  Email |Print

See, OPEC: Janet Yellen knows how to do a freeze. Or, rather, a very slow thaw.The Federal Reserve Chair’s reassurance of a gradual approach to raising interest rates helped revive an oil market losing its fascination with OPEC’s chatter.
(Good job, too, what with Saudi Arabia and Kuwait announcing on the same day they would actually restart a field shut down in 2014. Clearly, the supply freeze is a complicated affair.)So, too, though, is the Fed’s relationship with oil. And if you want to see how frozen, low rates can wreak havoc, cast your mind back to the housing crisis………………………………………..Full Article: Source

OPEC oil output rises in March as Iran, Iraq growth offsets outages

Posted on 31 March 2016 by VRS  |  Email |Print

OPEC oil output is rising in March, a Reuters survey found, as higher supply from Iran after the lifting of sanctions and near-record exports from southern Iraq offset maintenance and outages in smaller producers.
The survey also found no major change in production in top exporter Saudi Arabia - another sign that Riyadh is serious about freezing output to support prices, which hit a 12-year low near $27 a barrel in January but have since recovered to $40. Producers are meeting on April 17 in Qatar to discuss the plan………………………………………..Full Article: Source

The Disruption In Oil Markets Is Just Beginning

Posted on 31 March 2016 by VRS  |  Email |Print

The near-term outlook for oil markets is a mess. Price volatility recently reached its highest level since the global financial crisis as traders, investors and the industry as a whole try to sort through the significance of two big changes: the rapid rise of the upstart U.S. shale industry, which grew from essentially nothing in 2010 to being the world’s sixth largest source of oil supplies in 2015; and Saudi Arabia’s decision to abandon its role as market manager.
These are important issues for the near term, but they pale in comparison to a much bigger set of long-term issues. Two mega-trends are gaining steam that together have the potential to truly upend the energy industry………………………………………..Full Article: Source

Hidden force behind oil’s rise: sabotage by terrorists

Posted on 30 March 2016 by VRS  |  Email |Print

Oil prices have surged on hopes of a freeze in global production. But a more hidden factor is also fueling the price spike: terror attacks on oil facilities.
Sabotage to key oil pipelines have driven global supply outages to “elevated” levels estimated at more than 3 million barrels per day, according to the Royal Bank of Canada. For instance, last month a critical pipeline in Nigeria was bombed, taking around 250,000 barrels of crude offline until May………………………………………..Full Article: Source

Oil at $45-$50 Is a Fair Price for World’s 4th-Biggest Buyer

Posted on 30 March 2016 by VRS  |  Email |Print

Crude at $45 to $50 a barrel is enough to encourage India’s own exploration without squeezing fuel consumers, according to the oil minister of the world’s fourth-largest user.
While the collapse in prices has created a buyers’ market and boosted India’s bargaining power amid an oversupply, low crude is “challenging” for the nation’s own oil fields, Dharmendra Pradhan said in an interview in New Delhi on Monday. The government’s priority is to protect the interest of consumers and simultaneously attract investments in domestic production activity, he said………………………………………..Full Article: Source

Saudi Arabia loses oil market share in key countries

Posted on 30 March 2016 by VRS  |  Email |Print

The world’s largest crude exporter, Saudi Arabia has lost its leading position in nine of the 15 top markets in the past three years reports the Financial Times citing data from energy consultancy group FGE. According to the analysis, the kingdom lost ground in China, South Africa and the US between 2013 and 2015, despite the goal of maintaining its crude market share amid the oil glut.
“Saudi Arabia has had very difficult time selling oil in this environment,” Citigroup analyst Ed Morse told the FT. “Its rivals are going into a very crowded market in a very aggressive way.”……………………………………….Full Article: Source

What Low Oil Prices Really Mean

Posted on 29 March 2016 by VRS  |  Email |Print

Since the start of 2016, oil prices have swung between $27 and $42 per barrel, about a quarter of the 2008 peak crude oil price of $145. On February 16, oil ministers from Saudi Arabia, Russia, Qatar, and Venezuela agreed to a tentative deal to freeze their production in an attempt to boost prices. This was a characteristic move.
For decades, this is how the oil business has worked. Producers carefully control production to try to match supply to demand. But there’s a lag between these decisions and their effects, creating the boom and bust cycles so typical in the business………………………………………..Full Article: Source

Saudi Arabia loses oil market share to rivals in key nations

Posted on 29 March 2016 by VRS  |  Email |Print

Saudi Arabia lost market share in more than half of the most important countries it sold crude to in the past three years, even as the kingdom increased output to record levels. The world’s biggest oil exporter lost ground to rivals in nine out of 15 top markets between 2013 and 2015, including China, South Africa and the US, according to an analysis of customs data.
Saudi Arabia set itself a goal in late 2014 of maintaining its crude market share amid a glut that prompted a collapse in oil prices, but the imports data compiled by FGE, an energy consultancy, suggest the country’s strategy suffered setbacks in some of its key customer countries last year………………………………………..Full Article: Source

Why we could see an oil price shock in 2016

Posted on 29 March 2016 by VRS  |  Email |Print

The depletion of old oil wells is expected to surpass new sources of supply in 2016, as the ongoing oil price slump puts a long list of oil projects on the shelf.
Bloomberg flagged new data from the Norwegian consultancy firm Rystad Energy, which predicts that legacy production will tip the supply balance into the negative in 2016 for the first time in years. The production from an average conventional oil field typically ramps up in the early years, plateaus and then enters a period of decline………………………………………..Full Article: Source

China and India Rewrite the Rules of the Oil and Gas Game

Posted on 29 March 2016 by VRS  |  Email |Print

As the current oil price crisis leads to some game-changing upheavals in the global energy market, Asia’s two powerhouses, China and India, are taking advantage of the supply glut to rewrite the long-established rules of business.
India and China have seen exponential growth in oil demand over the past 25 years. Combined, they consume 16 percent of the world’s oil—second only to the U.S. at 20 percent. And analysts expect that by 2040, these two growing economies will double their combined consumption to 30 percent. These are game-changing numbers that have all major producers seeking inroads to this territory………………………………………..Full Article: Source

Bears are fleeing the oil market at a record pace, but that’s no reason to be bullish

Posted on 29 March 2016 by VRS  |  Email |Print

Oil enthusiasts haven’t been jumping on board the latest rally. As crude has soared 50 per cent since Feb. 11, the number of bets on increased prices has barely budged. Instead, the upward pressure on prices appears to have come from traders cashing out of bearish wagers at an unprecedented pace.
The liquidation of short positions during the last seven weeks covered by data from the U.S. Commodity Futures Trading Commission was the largest on record. “The rally has come from shorts getting scared out of their positions, and you’re not seeing a lot of money coming in on the long side,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. “It really calls into question the fortitude and staying power of the rally.”……………………………………….Full Article: Source

OPEC’s Little Helper

Posted on 29 March 2016 by VRS  |  Email |Print

Oil ministers from OPEC and non-member countries are looking hard for a recovery in prices, and are hoping their meeting next month will produce an output freeze that can be a first step toward that goal.
They’re getting some surprise help from Iraq, the member which added more to supply last year than any other country, and that’s due in large part to a change in fortunes in Kurdistan.The Kurdish Regional Government had planned to be overseeing production of 1 million barrels a day of oil by now. Instead, it faces declining output, recurring difficulties in getting its oil to market and renewed pressure from federal authorities………………………………………..Full Article: Source

Oil price stuck as IEA brands supply deal ‘meaningless’

Posted on 24 March 2016 by VRS  |  Email |Print

Global watchdog doubtful about April meeting while Commerzbank says market expectations are ‘hopelessly excessive’. The oil price is stuck at around $40 a barrel and may even move lower in the next month or so as optimism in the market rests on a deal to freeze supplies that the global energy watchdog has warned could be “meaningless”.
Since hitting multi-year lows early last month, oil has rallied by around 50 per cent. International benchmark Brent crude hit $27 a barrel on 11 February and has hit several new 2016 highs in the past two weeks, with the latest coming on Tuesday, when it peaked at just shy of $41.80………………………………………..Full Article: Source

SABIC: Oil market reaching point of “stability”

Posted on 24 March 2016 by VRS  |  Email |Print

Oil markets may be about to reach some stability after a torrid run that pushed prices to their lowest level in over a decade, the vice chairman and acting chief executive of Saudi petrochemicals giant, SABIC said Wednesday.
Yousef Al-Benyan told CNBC on the sidelines of the Boao Forum for Asia that while this year and 2017 will be challenging for the industry, the outlook for 2018 and beyond is optimistic. “Of course, prices are not really at levels where we wish (them to be) but that’s normal in a cyclical market,” Al-Benyan said, adding that he expects crude oil at $60 a barrel by the end of 2016………………………………………..Full Article: Source

Russia near to critical US$48 oil price for recovery

Posted on 24 March 2016 by VRS  |  Email |Print

Oil prices need to hit US$48 a barrel in order for the Russian economy to achieve the stimulus it needs and consumer confidence to return, says one analyst as numbers this week indicate a genuine strengthening of the commodity.
IHS Global European LVS Forecasts manager CEE, Tatiana Hristova outlined the importance of hitting the near US$50 mark, but the last few days alone have seen it reach US$42. “The trend unfortunately leans towards the pessimistic forecast – US$38 a barrel,” Hristova noted. “Two years down the road [perhaps] US$48 – that is a critical level for the Russian economy. The rebound with Russia will be a lengthy process – US$80 we expect by 2020 and US$100 maybe by 2026.”……………………………………….Full Article: Source

Has Oil Prices Bottomed Out?

Posted on 24 March 2016 by VRS  |  Email |Print

Oil prices have been on a downward spiral for roughly 20 months now because of an oversupplied market that is made even worse by a soft demand for oil globally. But exactly how low can oil prices go? If you’re a trader, it’s imperative that you know if prices are reaching their lowest point or have bottomed out, because in a competitive market like oil trading, recognizing trends before they actually occur can spell the difference between profits and losses.
If you wait for analysts or industry groups to crunch numbers and churn out reports that confirm that prices have reach their troughs, chances are, it will be too late and you would have missed your window of opportunity to buy low and sell high………………………………………..Full Article: Source

Iraq oil exports, OPEC’s fastest growing in 2015, hold steady in March

Posted on 24 March 2016 by VRS  |  Email |Print

Iraq’s oil exports have held steady so far in March, according to loading data and industry sources, halting for now the rapid supply growth that has increased downward pressure on prices. Baghdad has given verbal support to an initiative by the Organization of the Petroleum Exporting Countries and outside producers to freeze output in an effort to boost prices.
Producers are due to meet on April 17 to discuss the plan. The lack of export growth is partly involuntary as it reflects disruptions on Iraq’s northern pipeline, offsetting near-record southern exports. Still, coupled with outages in other producers, it has supported a price rise this year………………………………………..Full Article: Source

OPEC expects upsurge in oil prices with or without Iran

Posted on 23 March 2016 by VRS  |  Email |Print

Crude prices will rise to a “moderate level” even if Iran joins the Russian-Saudi production freeze at a later date, predicts the Organization of the Petroleum Exporting Countries (OPEC). The world’s leading oil producers, including non-OPEC members, are meeting on April 17 in Doha, Qatar to discuss the output freeze.
While Iran is seeking to increase production with the lifting of international sanctions, the deal may be successful even without Tehran, according to OPEC Secretary General Abdalla Salem el-Badri………………………………………..Full Article: Source

Oil above USD 41 as OPEC predicts ‘moderate’ rebound

Posted on 23 March 2016 by VRS  |  Email |Print

Oil prices dipped slightly in Asia today but stayed above $41 a barrel as OPEC raised hopes of a moderate rebound from a meeting of key producers in Qatar in April. The Organization of the Petroleum Exporting Countries secretary-general Abdalla El-Badri said in Vienna on Monday that about 15 or 16 nations will attend discussions on output caps in Doha on Apr 17, but didn’t know whether Iran will join, Bloomberg News reported.
El-Badri also said he hopes that prices have “bottomed”, adding that he expects crude to enjoy a moderate bounce rather than reach high levels, Bloomberg reported………………………………………..Full Article: Source

Oil price crash has far-reaching consequences for business and politics

Posted on 23 March 2016 by VRS  |  Email |Print

The slump in the price of oil is having far-reaching consequences for business and politics. Brent crude, the international oil benchmark, was trading at $115 a barrel in June 2014, but it fell as low as $27 in January this year. It is now trading at about $40, but few who follow the energy industry expect it to go back above $100 soon.
As the Financial Times publishes a new series about the wide-ranging implications of the oil crash, below is a selection of the best writing on this subject in the FT during the past 18 months………………………………………..Full Article: Source

Eni CEO Sees ‘Some Recovery’ in Oil Market as Supply Shrinks

Posted on 23 March 2016 by VRS  |  Email |Print

Eni SpA, Italy’s largest energy producer, sees “some recovery” in the global oil market as demand increases and supply declines, according to Chief Executive Officer Claudio Descalzi.
While physical oil stocks remain high, the market may rebalance in September or October this year, Descalzi said Tuesday in an interview on Bloomberg Television. He said it’s become harder to predict the price of crude, which has gained almost 50 percent since slumping to a 12-year low in January………………………………………..Full Article: Source

Bondholders suffer $150bn oil price hit

Posted on 22 March 2016 by VRS  |  Email |Print

Investors have suffered losses of at least $150bn in the value of oil and gas company bonds, as the slump in crude prices since the summer of 2014 has fuelled fears of a wave of defaults in the US and emerging markets.
The 300 largest global oil and gas companies have also seen $2.3tn sliced from their stock market value over the same period, a 39 per cent slide since oil began its decline, an analysis by the Financial Times has found………………………………………..Full Article: Source

Does a $5 price change affect oil companies?

Posted on 22 March 2016 by VRS  |  Email |Print

Swings in oil prices have fueled investors to bet the farm, with some calling for $18 crude and others for $50 by year-end, but a $5 difference in the oil market means big money, according to John Christmann, CEO of Apache.
“Every $5 move in the oil price means about $450 million in cash flow to us, so it absolutely makes a difference,” he told CNBC’s “Power Lunch” on Monday. Market volatility has encouraged the exploration and production company to cut costs and reduce its rigs drastically, having gone from 93 to four drilling rigs, as of recent………………………………………..Full Article: Source

OPEC’s Badri hopes for positive producer meeting in April, says Iran could join group later

Posted on 22 March 2016 by VRS  |  Email |Print

Iran may join other oil producers planning to freeze production to support prices at a later date, OPEC’s secretary general said on Monday, since the country is seeking to raise its exports. Producers from the Organization of the Petroleum Exporting Countries and non-members are due to meet on April 17 in Qatar discuss the output freeze.
But Iran is seeking to increase exports, following the lifting of Western sanctions in January. “I hope the result of the meeting will be positive,” Abdullah al-Badri said at a news conference in Vienna. “They are not objecting to the meeting but they have some conditions for the production and maybe in the future they will join the group,” he said of Iran………………………………………..Full Article: Source

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