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Trudeau’s Cure: Canada to Push Away From Commodities (Video)

Posted on 23 August 2016 by VRS  |  Email |Print

The two-year oil slump has mired Canada in one of the weakest stretches of growth in its history. So there’s some urgency to the search for alternative models. And Prime Minister Justin Trudeau has staked out his version: an economy built on an army of highly educated white-collar workers. Bloomberg’s Danielle Bochove reports on “Bloomberg Markets.”.………………………………………Full Article: Source

Oil Price Recovery Likely to Continue

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices, which earlier Thursday broke through a key psychological level of $50 a barrel, are likely to continue recovering into next year as supplies tighten, but that recovery is still fragile and the path ahead is rocky, the chief executive of Premier Oil PLC said.
“We’re in a little bit of an upswing at the moment and everybody’s got a smile on their face because we might be at $50 a barrel. But two weeks ago we were at $40 and falling. It’s not a very helpful backdrop to plan a long-term business,” Tony Durrant said……………………………………….Full Article: Source

OPEC’s Former Head Says Conditions Right for Oil-Freeze Deal

Posted on 18 August 2016 by VRS  |  Email |Print

OPEC is on course to strike an output-freeze deal with fellow oil producers in Algiers next month because its biggest members are already pumping flat-out, the group’s former president said.
While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year………………………………………..Full Article: Source

Is George Soros Calling a Top in Gold?

Posted on 17 August 2016 by VRS  |  Email |Print

George Soros is getting out of gold. The billionaire investor jumped back into trading this year with a big bet on the precious metal, buying up a 19-million share stake in the world’s largest gold producer, Barrick Gold But in the second quarter, Soros Fund Management sold the majority of his shares in the gold miner and his full stake in mining company Silver Wheaton, according to regulatory filings.
The first-quarter bet on gold looked particularly prescient, as the precious metal has rallied 26% this year………………………………………..Full Article: Source

Chakib Khelil is optimistic about OPEC meeting in Algiers

Posted on 15 August 2016 by VRS  |  Email |Print

Former Algerian Minister of Energy and former president of the Organization of Petroleum Exporting Countries OPEC, Chakib Khelil, is optimistic about the informal meeting of OPEC, to be held in Algiers on the sidelines of the International Forum on Energy on September 26 to 28, especially after the statements of Saudi oil Minister that shows a willingness to move towards market stabilization.
Chakib Khelil believes in his statement to Ennahar TV that OPEC members will fail to rebalance the market as supply remains high compared to demand. Former Algerian Energy Minister added that during the last meeting, “almost all oil producers had reached their maximum production level, they therefore had nothing to lose by deciding a freez.”……………………………………….Full Article: Source

Saudi minister: Algeria meeting may discuss stabilising oil market

Posted on 12 August 2016 by VRS  |  Email |Print

Saudi Arabia will work with OPEC and non-OPEC members to help stabilise oil markets, it said on Thursday a month ahead of an informal meeting of major producing countries in Algeria. Members of the Organization of the Petroleum Exporting Countries will meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria from Sept. 26-28, Qatar’s energy ministry said.
“We are going to have a ministerial meeting of IEF in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize the market,” Saudi Energy Minister Khalid al-Falih said in a statement………………………………………..Full Article: Source

Saudi Energy Minister Says Kingdom Willing to Help Rebalance Oil Market

Posted on 12 August 2016 by VRS  |  Email |Print

Saudi Arabia would “take any action to help” the crude-oil market and will discuss acting in coordination with other producing countries at a meeting in September, the kingdom’s energy minister said on Thursday.
The comments by Khalid al-Falih, named energy minister in May, come as several nations in the Organization of the Petroleum Exporting Countries push for a revival of limits on oil production. Oil prices have remained stuck below $50 a barrel for much of the summer, well below what many in OPEC, the 14-nation oil cartel, need to balance national budgets………………………………………..Full Article: Source

US EIA chief shares short-term outlook for oil market: Fuel for Thought

Posted on 09 August 2016 by VRS  |  Email |Print

The 100th episode of the weekly S&P Global Platts Capitol Crude podcast, which aims to demystify the complex world of US oil policy, featured Adam Sieminski, head of the US Energy Information Administration.
The forecast in the STEO (Short-Term Energy Outlook) is probably pretty good. And what it says is we’re expecting the markets to begin to rebalance as we get towards the end of this year and as we get into the middle of 2017 we should see prices beginning to come back up again………………………………………..Full Article: Source

Venezuela oil minister talks to OPEC head, seeks higher oil price

Posted on 05 August 2016 by VRS  |  Email |Print

Venezuela’s Oil Minister Eulogio del Pino has spoken to OPEC Secretary-General Mohammed Barkindo ahead of a meeting between OPEC and non-OPEC producers in hope of boosting the global oil price, President Nicolas Maduro said on Thursday.
“He spoke with the secretary of OPEC, we are making efforts for a new meeting soon between OPEC and non-OPEC members, with Russia at the head … to stabilize the price towards $40 (per barrel) and over $50 and $60,” Maduro said on state TV. He did not give any further details on the meeting………………………………………..Full Article: Source

Nigeria’s Barkindo assumes OPEC Sec-Gen job

Posted on 04 August 2016 by VRS  |  Email |Print

Barkindo would occupy the position for three years in the first instance with effect from August 1, 2016. Nigeria’s Mohammed Barkindo tenure as the secretary-general of the Organisation of Petroleum Exporting Countries (OPEC) assumed his post, following his appointment at the 169th Meeting of the cartel in Vienna, Austria, on June 2, 2016.
He succeeded Libyan Oil Minister, Abdalla El-Badri, whose tenure ended on July. The new secretary-general came to the position with a 23-year experience in the oil and gas industry, mainly in the Nigerian National Petroleum Corporation (NNPC)………………………………………..Full Article: Source

OPEC has a new chief—here’s why the industry’s not expecting that much from him

Posted on 02 August 2016 by VRS  |  Email |Print

Powerful oil cartel OPEC has a new secretary-general — Mohammed Sanusi Barkindo — but analysts doubt he’ll have any influence over either the 14-member group’s near-term future or oil markets as a whole.
Barkindo, a Nigerian oil industry “veteran,” is due to take over from Abdalla Salem El-Badri on Monday, ending a long, drawn-out tussle between members of the group over who the next secretary general should be………………………………………..Full Article: Source

Trump as President Means Gold’s Going Higher, Mint Forecasts

Posted on 02 August 2016 by VRS  |  Email |Print

A Donald Trump victory in the U.S. presidential election in November would probably lift gold prices, according to the mint that refines almost all the bullion output from one of the world’s biggest producers.
“If someone like Donald Trump does get himself elected, it will stimulate some fear within the economy as to where things are going,” Richard Hayes, chief executive officer of the Perth Mint, said in a Bloomberg TV interview. “Trump is very much a protectionist, he is very much for almost ‘Fortress America’.”……………………………………….Full Article: Source

New OPEC Chief Faces Fragile Unity (Video)

Posted on 01 August 2016 by VRS  |  Email |Print

OPEC’s new boss starts work tomorrow against a backdrop of sinking oil prices. Mohammed Barkindo will also be leading an organization that’s been divided over output policy. Bloomberg’s Dan Murtaugh reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

2015’s most accurate gold price forecaster turns huge bull

Posted on 01 August 2016 by VRS  |  Email |Print

Since the global financial crisis the relationship between interest rate expectations and the gold price has only become tighter and these factors have created a bullish environment for gold and is the main reason many analysts are upping their forecasts for the metal.
The winner of the 2015 London Bullion Market Association long running forecasting competition, Bernard Dahdah of French investment bank Natixis, got it exactly right last year with a forecast of an average $1,160 gold price in 2015………………………………………..Full Article: Source

Could a Trump win lift gold?

Posted on 26 July 2016 by VRS  |  Email |Print

A new ABN AMRO study states gold will rise in price under a potential Trump presidency. “If Trump were to become president gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the US economy,” ABN AMRO report author Georgette Boele said.
The report cited gold’s trajectory under previous presidents, stating that inflation has always been a driver for gold, and economic uncertainty coupled with likely domestic uncertainty will drive investors to gold, creating a more bullish market………………………………………..Full Article: Source

JPMorgan oil trader takes over commodities

Posted on 21 July 2016 by VRS  |  Email |Print

JPMorgan has appointed its top oil trader as the new head of its commodities division, the latest move in a business that has reinvented itself since selling the bulk of its physical operations two years ago.
Jeff Katz, who previously oversaw oil trading at the Wall Street bank, is to replace Mike Camacho who is moving into the bank’s asset management division, according to an internal memo seen by the Financial Times………………………………………..Full Article: Source

Deltec’s Lele says commodity prices will be decimated

Posted on 20 July 2016 by VRS  |  Email |Print

Commodities are heading into another bear market and will be “decimated” by an environment of tightening United States dollar liquidity, similar to the sell-off at the start of 2016, that will drag emerging markets and high-yield credit down too.
Atul Lele, chief investment officer at Deltec, remains convinced that the US Federal Reserve can raise interest rates once this year and again in 2017. Futures indicate that right now traders are not counting on a Fed hike until 2018 and Mr Lele agrees the market “is not at all prepared” for a return to slower US dollar liquidity growth, which will come as the Fed puts more distance between itself and the era of zero per cent interest rates………………………………………..Full Article: Source

Saudi always reacts to oil supply and demand, watching market - minister

Posted on 18 July 2016 by VRS  |  Email |Print

Saudi Arabia’s energy minister said on Sunday the kingdom always reacts to oil market supply and demand and it would continue to monitor crude markets for any developments. Khalid al-Falih also said that final agreements with foreign investors taking part in state oil giant Saudi Aramco’s IPO huge ship repair and shipbuilding complex that it is developing at Ras al-Khair would be signed “over the next few weeks and months”.
The complex, on the kingdom’s east coast, is due to be fully operational by 2021. Lamprell, Aramco, National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries signed a potential partnership agreement relating to the yard earlier this year………………………………………..Full Article: Source

Saudi energy minister says oil market is balancing

Posted on 11 July 2016 by VRS  |  Email |Print

Saudi Arabia’s energy minister said on Sunday the oil market was becoming more balanced and prices were stabilizing. Khalid al-Falih said Saudi Arabia, the world’s biggest oil exporter, would always strive to stabilize the oil market, a statement by the energy ministry said on Sunday.
“In doing so, the Kingdom secures the flow of oil supplies as it retains a spare production capacity,” the minister, attending a climate meeting in Berlin, was quoted as saying in the statement………………………………………..Full Article: Source

Oil price rally is over for 2016, says Vitol boss

Posted on 06 July 2016 by VRS  |  Email |Print

The six-month rally in global oil markets could grind to a halt at a price of $50 a barrel as a string of recent production outages comes to an end, according to the world’s biggest independent oil trading house.
Vitol’s chief executive Ian Taylor said the market may stall at the $50 mark for the rest of the year after a quicker-than-expected recovery, before creeping slowly up to around $60 by the end of next year………………………………………..Full Article: Source

$10 a Barrel Oil Coming Soon? Market Expert Warns the Worst is Yet to Come

Posted on 05 July 2016 by VRS  |  Email |Print

A top oil industry analyst issued an editorial this week suggesting that the recovery of the oil market will be short lived, but is he right? Probably not.
In an editorial this week, acclaimed oil market expert Gary Shilling stood by a prediction he made in August 2015 that oil prices would collapse to $10 per barrel citing higher than expected North American fracking outputs and OPEC’s refusal to limit production………………………………………..Full Article: Source

Saudi energy minister says oil market heading toward a balance

Posted on 04 July 2016 by VRS  |  Email |Print

The energy minister of Saudi Arabia, the world’s largest oil exporter, and the secretary general of OPEC agree that the global oil market is heading toward a balance and that prices are starting to settle, according to comments carried by Saudi state news agency SPA.
The statement said Khalid al-Falih and the Organization of the Petroleum Exporting Countries’ newly appointed secretary general, Mohammed Barkindo, had met in the Saudi city of Dhahran to discuss the role of OPEC in maintaining the stability of oil markets………………………………………..Full Article: Source

How a Brexit Would Impact the Commodities Market (Video)

Posted on 23 June 2016 by VRS  |  Email |Print

Mark Keenan, Societe Generale managing director and head of commodity research - Asia, explains how a Brexit would impact commodities. He speaks with Bloomberg’s Rishaad Salamat on “Trending Business.”.………………………………………Full Article: Source

Iran names new OPEC envoy - oil ministry

Posted on 23 June 2016 by VRS  |  Email |Print

Iran named oil ministry senior analyst Behrouz Beik Alizadeh as its new representative at the Organization of the Petroleum Exporting Countries (OPEC), the ministry’s news agency SHANA reported on Wednesday.
Oil Minister Bijan Zanganeh said in an official statement that Beik Alizadeh would replace Mehdi Asali, who is retiring………………………………………..Full Article: Source

Saudi energy minister says oil glut has vanished

Posted on 23 June 2016 by VRS  |  Email |Print

Saudi Arabia’s new energy minister said the supply glut that kindled a crippling oil rout around the world and thrashed Houston’s biggest business for two years has finally vanished.
“We are out of it,” Khalid Al-Falih said in his first newspaper interview since his rise to the most powerful job in the global energy industry last month. “The oversupply has disappeared. We just have to carry the overhang of inventory for a while until the system works it out.”……………………………………….Full Article: Source

Donald Trump has commodity traders nervous, could impact ag commodities, says analyst

Posted on 22 June 2016 by VRS  |  Email |Print

The controversial rhetoric of presumptive republican nominee Donald Trump has commodity traders nervous, according to one analyst. Pete Johnson, of marketing news publication Cotton Compass believes a Trump presidency could have a negative impact on the price of Australian agricultural commodities like beef, grain and fibre.
Mr Johnson, a market analyst, said Trump had so far shown himself to be hard to predict, which could put pressure on the US dollar and in turn, the international commodity market………………………………………..Full Article: Source

Rosneft’s Sechin says Saudi Arabia, U.S. and Russia call shots on oil markets

Posted on 22 June 2016 by VRS  |  Email |Print

Igor Sechin, the head of Russia’s top oil producer Rosneft, said on Tuesday that Saudi Arabia, the United States and Russia were the three main players on global oil markets, dismissing again OPEC’s role as a regulator. He told Rossiya-24 TV that Russia’s role in hydrocarbon markets will strengthen.
Russia is the world’s top oil and natural gas producer, pumping oil at around 10.8 million barrels per day. It plans to at least keep production of crude oil, its chief export commodity, at the current level………………………………………..Full Article: Source

Will Trump or Hillary Be Good for Precious Metals Prices?

Posted on 22 June 2016 by VRS  |  Email |Print

This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.
There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we can’t even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country………………………………………..Full Article: Source

Father of ETFs urges ever more creative disruption

Posted on 20 June 2016 by VRS  |  Email |Print

Disrupt or die – that was the message to the exchange-traded funds industry from Lee Kranefuss, the man who engineered the ETFs that led to the products’ global success. Although global assets in ETFs have soared to trillions of dollars, there is still immense scope to devise creative versions of the products that subvert conventional approaches to asset management, Kranefuss, chairman of ETF provider Source, said.
Assets will be attracted only by products that are inventive in providing what investors want, he said, warning that cheap copies of ETFs that already exist would not succeed………………………………………..Full Article: Source

Lew warns China not to weaken its currency

Posted on 17 June 2016 by VRS  |  Email |Print

Treasury Secretary Jacob Lew on Thursday warned China not to revert to past foreign-exchange policy in which it kept its currency artificially low to boost its exports.
“Any reversion to the foreign exchange policies and export-led growth model of the past, within the current context of weak global growth, would trigger a new round of tension between our two countries,” Lew said in a speech at the American Enterprise Institute after returning from talks with top Chinese officials in Beijing earlier in the month………………………………………..Full Article: Source

The Big Bet of 2016: Joining George Soros in Gold

Posted on 10 June 2016 by VRS  |  Email |Print

Investors pile into the metal, up 20% this year, and mining stocks, which have vaulted even more. There is a new gold rush on. Abating expectations for Federal Reserve rate increases have fueled a fresh boom in everything that glitters, from gold futures to the shares of gold-mining firms to exchange-traded funds that give traders a way to bet on gold’s daily rise and fall.
Front-month Comex gold futures have been among the best-performing major asset classes in financial markets this year, up about 20% as of Thursday………………………………………..Full Article: Source

New Commodity Super Cycle?

Posted on 09 June 2016 by VRS  |  Email |Print

Barring a large selloff, or economic recession, the evidence suggests we are in the early stages of a new bull market for commodities. Over the past few years, nearly every major global commodity in the world has been in a severe bear market. Gold and Silver both topped out in late 2011 and were in a vicious downtrend/bear market until Q4 2015.
Now, in mid-2016, Gold and Silver are two of the strongest performing asset classes of the year. Other commodities are also emerging from violent bear markets such as: Oil, Soybeans, Wheat, Corn, Sugar, Coffee, just to name a few………………………………………..Full Article: Source

OPEC is finished: Oppenheimer’s Fadel Gheit

Posted on 03 June 2016 by VRS  |  Email |Print

OPEC is a dysfunctional organization that has outlived its usefulness, Oppenheimer senior energy analyst Fadel Gheit said. “OPEC is finished. OPEC is over,” he said. “Shale production has completely changed the way we look at energy and it’s not going to change. The fact of the matter is that OPEC and Saudi Arabia are no longer the swing producers they were only two years ago.”
In its meeting Thursday in Vienna, the Organization of the Petroleum Exporting Countries failed to agree on a new production ceiling and therefore did not change its oil output policy. The cartel has been pumping oil at record levels despite the drop in global crude prices that began in 2014………………………………………..Full Article: Source

UAE minister says happy with oil market

Posted on 01 June 2016 by VRS  |  Email |Print

UAE Oil Minister Suhail bin Mohammed al-Mazroui said on Tuesday he was happy with the oil market, noting that prices had been correcting higher. “We are optimistic. We are seeing that the market is correcting upward,” Mazroui told reporters in Vienna.
Oil ministers from the Organization of the Petroleum Exporting Countries meet on Thursday in the Austrian capital. Oil prices rose on Tuesday, heading for the fourth straight monthly gain, with investors betting on higher U.S. fuel demand as peak driving season arrived in the No. 1 oil consumer………………………………………..Full Article: Source

New Saudi energy minister shows he takes Opec seriously

Posted on 01 June 2016 by VRS  |  Email |Print

For Opec watchers, every little detail matters. When the oil producer group holds its half-yearly meetings, what time the ministers arrive in Vienna, how they speak and which hotel they stay in - anything will be analysed in an attempt to predict its policies.
So it was seen as a sign that new Saudi Energy Minister Khalid al-Falih takes Opec seriously when he turned up in the Austrian capital on Monday, three days before the Organization of the Petroleum Exporting Countries’ upcoming discussions………………………………………..Full Article: Source

Two Lessons on China and Commodities From Legendary Investor Jim Rogers

Posted on 01 June 2016 by VRS  |  Email |Print

Investor Jim Rogers’ comments from years past are still valid in today’s markets. Maybe not tomorrow, but eventually, China will devalue its currency. And prices for uranium and coal and other undervalued commodities will recover. That’s because, in the end, markets always win.
That’s the application of some of the sage advice from the books of legendary investor Jim Rogers. Rogers co-founded the Quantum Fund, one of the world’s most successful hedge funds, in the early 1970’s. He quit full-time investing in 1980 after generating returns of 4,200% over 10 years………………………………………..Full Article: Source

Sberbank CEO: Oil price of $45 per barrel to boost Russian economy

Posted on 31 May 2016 by VRS  |  Email |Print

Russia’s economy may grow next year if oil prices stay at around $45 per barrel, Sberbank CEO Herman Gref said. “If the curernt trend continues, and the oil price will be around $45 per barrel,… next year, most likely, we will be a small growth of the Russian economy,” he said.
Gref added that oil price in 2020 could reach $60 per barrel, and by 2024 could increase to $80 per barrel. On May 26 the price of Brent crude oil exceeded the mark of $50 per barrel for the first time since November 4, 2015. The maximum price for July Brent crude oil futures contract reached $50.08 per barrel, according to the London’s ICE Futures Europe………………………………………..Full Article: Source

The Real Question for OPEC: Who’ll Be Its New Top Official?

Posted on 30 May 2016 by VRS  |  Email |Print

As internal opposition to Saudi Arabia’s plan to squeeze rival suppliers fades, OPEC might not have a big policy question to debate when it meets next week. Nevertheless, the group will still have one thing to argue about: Who will replace Abdalla El-Badri as the next secretary-general?
El-Badri, a Libyan, was originally due to stand down in 2012 after serving the maximum six years in the position. The group has been extending the 76-year-old’s term ever since as squabbling members failed to agree on a successor………………………………………..Full Article: Source

OPEC Likely to Choose New Secretary-General Next Week

Posted on 27 May 2016 by VRS  |  Email |Print

Abdalla Salem el-Badri has been set to retire since 2013 but has stayed on because the fractious oil cartel has been unable to agree a new leader. The Organization of the Petroleum Exporting Countries is likely to choose a new secretary-general at its meeting next week, the only concrete action the cartel is expected to take, said national delegates of the group.
The 13-nation group that controls more than a third of the world’s crude-oil output has been unable to agree on much since petroleum prices began a long swoon nearly two years ago. Once able to swing production up or down to influence prices, OPEC has stayed on the sidelines during this downturn as an American oil boom floods the market and prices remain far below what the group’s members want………………………………………..Full Article: Source

After the gold rush — Paul Rollinson

Posted on 23 May 2016 by VRS  |  Email |Print

When Paul Rollinson took over as chief executive of Kinross Gold four years ago the end was in sight for the biggest gold boom in history — and for some of the people who were part of it. After rising 500 per cent in a decade, the market price of the precious metal had peaked. In the rush to exploit the boom, mining investments and costs had spun out of control.
Investors in gold miners such as Kinross, which had lavished $11bn on acquisitions in six years and was already writing off part of that spending, were in revolt. Tye Burt, Mr Rollinson’s predecessor, was among a score of mining chief executives to lose their jobs………………………………………..Full Article: Source

Oil market unlikely to rebalance fully by year-end: Total CEO

Posted on 19 May 2016 by VRS  |  Email |Print

Oil demand in 2016 will stay strong, supporting prices, but the market is unlikely to rebalance by the year end, the chief executive of French oil and gas major Total said. Patrick Pouyanne told a French Senate committee that oil demand rose sharply in 2015 to 1.8 million barrels per day (bpd), increasing at about 2 percent in a single year.
“This year, experts see demand at about 1.2 million barrels per day,” Pouyanne said. “Me and my team see it at about 1.4 million barrels per day, which is still strong and means the market is rebalancing, but will not rebalance completely by the end of the year, however, it will somehow support prices,” he added………………………………………..Full Article: Source

Russia’s Novak: Global oil market won’t balance before H1 2017

Posted on 13 May 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak told reporters on Thursday that the global oil surplus stood at 1.5 million barrels per day (bpd) and that the market might not balance out until the first half of 2017.
A deal to freeze oil output by OPEC and non-OPEC producers fell apart last month after Saudi Arabia demanded that Iran join in, ruining any chance of sealing what would have been the first such cooperation plan in 15 years. “This (the forecast that the market won’t balance until the first half of 2017) is an optimistic forecast as oversupply persists and the decline in production volumes is slower than analysts expected,” he said………………………………………..Full Article: Source

What OPEC Has To Fear From The New Saudi Oil Minister

Posted on 11 May 2016 by VRS  |  Email |Print

In a surprise move, Saudi Arabia sacked its long-time oil minister over the weekend, an event that illustrates the near-total control that the new young Saudi prince has obtained over the country’s energy industry.
For many years, Ali al-Naimi, the outgoing Saudi oil minister, was the voice of Saudi Arabia’s oil industry and policy. Even seemingly insignificant remarks from al-Naimi could move oil prices up or down. But the 80-year old oil minister has seen his power eclipsed by the 30-year old Deputy Crown Prince Mohammed bin Salman………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

Oil ouster: Three things Saudi Arabia needs to do now

Posted on 10 May 2016 by VRS  |  Email |Print

Ali al-Naimi, who was Saudi Arabia’s oil minister for more than 20 years, was virtually the face of the oil markets during that time. His ouster over the weekend roiled the oil market.
For many in the industry, al-Naimi represented stability and moderation in the inherently chaotic ebbs and flows of oil markets. The minister championed Saudi interests, but always within an eye to balancing the needs of OPEC producers and the world’s consumers………………………………………..Full Article: Source

Oil price lows to drag on after Saudi minister is ousted

Posted on 09 May 2016 by VRS  |  Email |Print

Saudi oil minister Ali al-Naimi, who was leading calls to help rebalance the struggling oil market, has been ousted by the government in a move which could signal a slower price recovery. The highly influential Mr Naimi will be replaced after twenty years by the chairman of the state oil company Saudi Aramco, Khalid al-Falih, scuppering hope that the world’s major oil producing nations might agree to freeze output in a bid to raise prices in the oversupplied global oil market.
Earlier this year oil prices rallied almost 40pc from twelve year lows after Mr Naimi said that members of the Organization of Oil Producing Countries (Opec) would meet with non-Opec oil producers in Doha to thrash out a production freeze deal………………………………………..Full Article: Source

Saudi Shift Brings Uncertainty on Oil

Posted on 09 May 2016 by VRS  |  Email |Print

The dismissal of Saudi Arabia’s long-serving and influential oil minister ushered in a new wave of uncertainty for oil prices, which have rallied lately but could change course depending on the kingdom’s policies.
To some, the removal of Ali al-Naimi after 20 years as oil minister cemented the grip of 31-year-old Deputy Crown Prince Mohammed bin Salman on Saudi Arabia’s energy policy. Some officials at the Organization of the Petroleum Exporting Countries said that could mean a deeper politicization of oil-production strategy as the kingdom looks to neutralize its rival Iran, which is trying to come back from years of Western sanctions with a surge of output………………………………………..Full Article: Source

Adieu to Al Naimi

Posted on 09 May 2016 by VRS  |  Email |Print

After 20 years, OPEC bids adieu to Saudi Arabia oil supremo. Saudi Arabian Oil Minister Ali al-Naimi, the architect of the 2014 switch in OPEC policy that’s since roiled the energy market, companies and entire economies from Mexico to Nigeria, is leaving his post.
An 80-year-old who rose from modest Bedouin roots, al-Naimi headed the ministry for almost 21 years, steering the world’s largest crude exporter through wild price swings, regional wars, technological progress and the rise of climate change as a key policy concern. “During my seven decades in the industry, I’ve seen oil at under $2 a barrel and $147, and much volatility in between,” al-Naimi said. “I’ve witnessed gluts and scarcity. I’ve seen multiple booms and busts.”……………………………………….Full Article: Source

The most powerful man in oil is out - here’s what comes next

Posted on 09 May 2016 by VRS  |  Email |Print

Ali al-Naimi was the most powerful man in the oil business for two decades - until this weekend. As the oil minister of Saudi Arabia, in control of the largest proven crude reserves in the world, al-Naimi was the de-facto leader of OPEC.
At one point he held three key positions at the same time: Minister of petroleum, chairman of Saudi Aramco and chairman of Saudi’s Supreme Petroleum Council. In a word, he called the shots, and he let other OPEC ministers know just that. The past year and a half had been particularly important, as oil prices crashed and oil-dependent countries looked to Saudi Arabia to lead the effort to support prices………………………………………..Full Article: Source

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