Thu, May 5, 2016
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Resources more

OPEC’s Iran Eyes Crude Oil Production at 3.8 Mil Bpd and No Signs of Slowing Down

Posted on 05 May 2016 by VRS  |  Email |Print

It’s been less than half a year after the sanctions were lifted and Iran has already recovered its pre-sanction output volume of 3.8 million barrels per day. According to data out of the International Energy Agency (IEA), Iran produced 3.5-3.7 million bpd in 2011 and was the second largest producer within OPEC. Daily oil exports equaled 2.5 million barrels.
Nonetheless, Iranian authorities are looking to go even further and ramp up production to 4 million bpd………………………………………..Full Article: Source

OPEC oil output near record high in April

Posted on 02 May 2016 by VRS  |  Email |Print

OPEC’s oil output rose in April to close to the highest level in recent history, a Reuters survey found on Friday, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.
Top exporter Saudi Arabia, however, made no major change to output, the survey found, despite the kingdom hinting it could boost supply after OPEC and non-member nations failed to agree to freeze output at a meeting on April 17………………………………………..Full Article: Source

Oil producers fail to agree output freeze

Posted on 18 April 2016 by VRS  |  Email |Print

The world’s top oil producers failed to reach agreement on capping output in Doha Sunday amid a standoff between Saudi Arabia and Iran and raising fears about how markets will react.
Qatari energy minister Mohammed bin Saleh al-Sada said oil producers concluded after six hours of negotiations that they needed “more time”. “The general conclusion was that we need more time to consult among ourselves in Opec and non-Opec producers,” Mr Sada said………………………………………..Full Article: Source

OPEC oil output climbs 40,000 barrels a day in March: Platts

Posted on 12 April 2016 by VRS  |  Email |Print

Oil production from members of the Organization of the Petroleum Exporting Countries rose by 40,000 barrels a day in March from a month earlier, to 32.38 million barrels a day, according to a Platts survey released late Monday.
Platts attributed the increase to higher output from Iran, which climbed by 110,000 barrels a day to 3.23 million barrels a day. Iraqi output also rose by 30,000 barrels a day to 4.16 million barrels a day, according to the survey of OPEC and oil industry officials and analysts conducted by Platts………………………………………..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

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

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

No One Knows Where These 800,000 Barrels of Oil Have Gone

Posted on 18 March 2016 by VRS  |  Email |Print

The status of this missing crude could mean a lot for the global oil market. Just two months ago, the International Energy Agency warned that the global oil market could “drown in oversupply.” But according to a Wall Street Journal report, a large portion of the problematic oversupply that is worrying traders and potentially holding down oil prices is also nowhere to be found.
The IEA was unable to account for 800,000 barrels of crude per day last year—the highest level of missing crude in 17 years. The missing crude could simply be a figment of statistics, showing up in the agency’s data due to flawed accounting………………………………………..Full Article: Source

India wants to unlock $40bn in oil and gas through reforms to encourage investment

Posted on 16 March 2016 by VRS  |  Email |Print

Global oil inventories continue to rise, ships are being lined up to hold oil, while agencies warn the world is “drowning” in the black stuff.
But now India wants to unlock oil and gas resources worth almost $40bn (£28.2bn) by simplifying licensing rules and offering price incentives to recover gas from difficult offshore fields. It currently imports about two-thirds of its oil needs, with bulk of that supplied from the Middle East………………………………………..Full Article: Source

EIA sees further rise in OPEC production

Posted on 10 March 2016 by VRS  |  Email |Print

OPEC oil production will further rise reaching 32.35 million barrels per day in 2016 and 32.8 million barrels per day in 2017, according to the US Energy Information Administration’s (EIA) forecasts published in its Short-Term Energy Outlook (STEO).
OPEC oil production amounted to 31.6 million barrels per day in 2015, according to the EIA estimates. EIA expects the highest OPEC oil production in the third and fourth quarters of 2017 – at 32.9 million barrels per day………………………………………..Full Article: Source

Where has the oil gone? Missing barrels and market rebalancing

Posted on 09 March 2016 by VRS  |  Email |Print

Global oil production exceeded consumption by just over 1 billion barrels in 2014/15, according to the International Energy Agency (IEA). Production exceeded consumption by an average of 0.9 million barrels per day in 2014 and 2.0 million bpd in 2015.
Of the 1 billion barrels reportedly produced but not consumed, roughly 420 million are being stored on land in member countries of the Organisation for Economic Cooperation and Development (OECD). Another 75 million barrels are thought to be stored at sea or in transit by tanker somewhere from the oil fields to the refineries………………………………………..Full Article: Source

Will Russia End Up Controlling 73% of Global Oil Supply?

Posted on 07 March 2016 by VRS  |  Email |Print

Russia has played a master stroke in the current oil crisis by taking the lead in forming a new cartel, but it’s a move that could spell geopolitical disaster. The meeting between Russia, Qatar, Saudi Arabia and Venezuela on 16 February 2016 was the first step. During the next meeting in mid-March, which is with a larger group of participants, if Russia manages to build a consensus—however small—it will further strengthen its leadership position.
Until the current oil crisis, Saudi Arabia called the crude oil price shots; however, its clout has been weakening in the aftermath of the massive price drop with the emergence of US shale. The smaller OPEC nations have been calling for a production cut to support prices, but the last OPEC meeting in December 2015 ended without any agreement………………………………………..Full Article: Source

OPEC is no longer a cartel - it’s become ‘the central bank of oil’

Posted on 03 March 2016 by VRS  |  Email |Print

OPEC, the intergovernmental organization made up of 13-oil producing members, is technically a cartel. But given some of its recent actions, one economist argues that that label may no longer be applicable.
“I don’t think they’re really a cartel in the true sense of the word anymore,” said Jason Schneker, president and chief economist at Prestige Economics. “A more accurate description, and my vision of it now, is that OPEC is the central bank of oil.”……………………………………….Full Article: Source

Why OPEC will never cut production again

Posted on 03 March 2016 by VRS  |  Email |Print

Since the December OPEC meeting, I have come to one inescapable conclusion: that OPEC will never cut production again at the expense of its own market share. Based on that idea, in the past couple of months, my clients, subscribers and I have done well to trade around oil’s further decline, the slow bleed out of indebted oil stocks and even bet against a few banks.
In the past week, however, oil has shown some strength on the back of young traders and short covering. With huge resistance around $37 per barrel of oil, I don’t see that strength lasting long………………………………………..Full Article: Source

OPEC watching Iran, Russia, unlikely to cut output in June

Posted on 02 March 2016 by VRS  |  Email |Print

OPEC is very unlikely to cut output at its next meeting in June, even if prices remain extremely low, according to OPEC sources and delegates, as it will be too early to say how fast Iranian output is rising. The sources, which include officials from the Middle East, say OPEC countries such as Saudi Arabia also want to test Russia’s commitment to freezing output before taking any further steps to stablize prices.
More than 18 months after oil prices began a steep slide due to excess supply, Saudi Arabia, Qatar, Venezuela and non-OPEC Russia agreed last month to freeze output at January levels in the first global oil pact in 15 years………………………………………..Full Article: Source

Russia Sees Oil Output Slump in Worst Case Amid OPEC Talks

Posted on 19 February 2016 by VRS  |  Email |Print

Russian oil production may slump 14 percent in the next five to 10 years under a worst-case scenario prepared by the Energy Ministry. Crude output may drop to 460 million metric tons (9.2 million barrels a day) by 2020-2025 from 534 million tons last year, before starting to show slight growth, the Energy Ministry’s press service said.
The worst case, prepared for the nation’s long-term energy strategy, envisages oil prices remaining at about $31 to $33 a barrel in 2016-2017 with a rebound to $42 in 2020, it said………………………………………..Full Article: Source

Commodity prices won’t recover on supply cuts alone

Posted on 17 February 2016 by VRS  |  Email |Print

For the first time since 2009, supply growth for the majority of major metals and bulk commodities is expected to be negative year-on-year. Global mining capex peaked in 2012, and we are now experiencing a lag effect of fewer new projects. Existing operations are facing more aggressive cuts amid weaker prices, so production growth has been curtailed.
In more familiar times, this might be considered a buy signal for nickel, palladium and iron ore, or their sharemarket proxies? In this case though, many markets enter the year from an oversupplied situation, so even a drop in mine supply won’t be enough to fully bring things back to balance………………………………………..Full Article: Source

China Commodity Deluge Eases in Relief for Global Producers

Posted on 16 February 2016 by VRS  |  Email |Print

Steel bosses in the U.S. to oil refinery officials in Asia facing increased competition from Chinese commodity exports may be seeing a glimmer of relief. China’s overseas shipments of steel, aluminum and fuels all dropped in January from a month earlier, data from the nation’s customs administration showed on Monday.
That represents an easing in the deluge of manufactured products from the country, where slowing domestic demand amid economic malaise has sent record volumes abroad and compounded a worldwide surplus of commodities………………………………………..Full Article: Source

Was Resource Boom A Boom For Commodities Exporters?

Posted on 12 February 2016 by VRS  |  Email |Print

While everyone is running around with the collapsed oil prices, economists with an eye for cycles and history are starting to digest the aftermath of the passed commodities price boom that started around the beginning of the century and lasted until 2011-2012.
The issues relating to that boom are non-trivial. Commodities prices are cyclical and just as the boom turns to bust, so will the bust turn to boom. Therefore, one should really try to understand what exactly happens in both………………………………………..Full Article: Source

Iran prices oil lower than Saudi for Europe

Posted on 12 February 2016 by VRS  |  Email |Print

Iran has revealed its oil prices to European buyers for the first time since sanctions were lifted against the Middle Eastern country. The most competitive pricing compared with Saudi Arabian supply in 21 months underscores its intention to win back market share.
Iran Heavy, one of the country’s main export grades, will cost $1.25 a barrel less than Saudi Arabia’s most similar crude in March, notices from both nations’ state oil companies show………………………………………..Full Article: Source

OPEC expects rivals to pump out less oil in 2016

Posted on 11 February 2016 by VRS  |  Email |Print

Oil cartel OPEC has cut its forecasts for how much its rival producers will produce in in 2016, while the 12-member group continues to ramp up its own production levels.
According to the latest monthly report from the group, whose de facto leader is Saudi Arabia, non-OPEC oil supply is forecast to decline by 700,000 barrels a day (b/d) in 2016 — 40,000 b/d less than the cartel’s January report………………………………………..Full Article: Source

Russia is now China’s biggest oil partner — and it’s a huge problem for Saudi Arabia

Posted on 03 February 2016 by VRS  |  Email |Print

Saudi Arabia has long trumped Russia in the Chinese oil market. The Saudi share of Chinese crude imports at the beginning of the decade was about 20%, while Russia’s was below 7%, according to data cited by RBC Capital Markets.
But now the Russians are creeping in — and the Saudis are getting nervous. “Russia is the biggest rival to the Saudis in the single-largest oil demand growth country in the world,” RBC Capital Markets’ commodity strategist Michael Tran wrote………………………………………..Full Article: Source

Commodity producers face tough times on bearish market

Posted on 27 January 2016 by VRS  |  Email |Print

Commodity bears are testing nerves of producers. Several commodity producers, especially those related to metals and US shale, have blinked and cut production. However, there is always a limit to the extent they can cut production. Prices are at multi-year lows — metals around 7-8 year lows, oil at 12-year lows. Gold and silver are no exceptions and so are other commodities like iron ore, steel and coal.
Most resource commodities are in a bear market, down significantly from their peaks, largely due to lower demand. The criteria to indicate whether commodities are in a bear market is when a commodity is down 50% or more from its peak or is around its long term low levels………………………………………..Full Article: Source

Citigroup Cuts Commodity Forecasts as Resources Rout Resumes

Posted on 21 January 2016 by VRS  |  Email |Print

Citigroup Inc. cut its commodities forecasts on concern slowing global growth will prolong the time it takes for markets to swing back into balance. Shares of resources companies resumed their drop as raw material prices slid.
Brent crude may average $40 a barrel this year, compared with an estimate of $51 in a November report, while the outlook for nickel was cut 22 percent to $8,450 a metric ton, analysts including Ed Morse wrote in a report received on Wednesday. Gold was a rare bright spot, with Citigroup raising its forecast 7.5 percent to $1,070 an ounce………………………………………..Full Article: Source

Non-OPEC crude production projected to drop in 2016

Posted on 20 January 2016 by VRS  |  Email |Print

Crude oil production in 2016 outside the Organization of Petroleum Exporting Countries (OPEC) will plunge by 660,000 barrels a day (BPD), the group said Monday in its monthly market report, a 270,000 BPD drop from its December estimate. The bulk of the production drop outside OPEC this year will come from the U.S., 380,000 BPD, OPEC projected in its January report, averaging 13.5 million barrels per day (MMBPD), Kallanish Energy finds.
The drop was revised down by 210,000 BPD compared to December’s projection due to the steep drop in global oil prices which could endanger output of marginal barrels from unconventional sources (tight crude and unconventional natural gas liquids)………………………………………..Full Article: Source

The Case for Raw Commodity Sector Bottoming in 2016

Posted on 19 January 2016 by VRS  |  Email |Print

Let’s take a look at a few longer-term charts of key markets and indexes, which are presently providing some technical clues the major “bust” cycle in the raw commodity sector will likely run its course in 2016.
Goldman Sachs Commodity Index: The GSCI monthly chart shows the index price this month dropped below the 2009 low and hit a 12-year low. The raw commodity sector is presently experiencing its second-largest bust cycle dating back at least 40 years—second only to the big downdraft seen in 2008 and 2009………………………………………..Full Article: Source

Iran to boost oil exports by 500,000 bpd after sanctions

Posted on 18 January 2016 by VRS  |  Email |Print

Iran is ready to increase its crude oil exports by 500,000 barrels a day, the deputy oil minister said on Sunday, hours after international sanctions on Tehran were lifted, removing an obstacle to exports.
The Islamic Republic emerged from years of economic isolation on Saturday when world powers lifted sanctions after confirming that Tehran had curbed its nuclear programme. “With consideration to global market conditions and the surplus that exists, Iran is ready to raise its crude oil exports by 500,000 barrels a day,” Deputy Oil Minister Amir Hossein Zamaninia was quoted as saying by the Shana news agency………………………………………..Full Article: Source

The Commodities Crash: A Supply-Side Perspective

Posted on 14 January 2016 by VRS  |  Email |Print

2015 was brutal for commodities. Even worse, they took another plunge at the start of 2016. The Bloomberg Commodity Index, which covers a wide range of natural resources, dropped to its lowest level since June 1999. The collapse in commodity prices happened across the board, from crude oil to iron ore, coal, and industrial metals.
Unfortunately, there is little sign of stability or recovery: Oil and iron ore prices dipped even further in December. As a result, mining stocks took a beating, and ratings on mining bonds were downgraded. Weakening demand from China receives most of the blame for the tumbling prices. China was the main driving force behind the rising commodity prices, its fixed-asset investment growing at an average of 25% from 2003 to 2011………………………………………..Full Article: Source

Russia plans for seven more years of $40 oil in message to Opec

Posted on 14 December 2015 by VRS  |  Email |Print

Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 (Dh147) a barrel for another seven years. Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 and $60 a barrel as far out as 2022, a scenario that would have devastating implications for Opec, the Organisation of Petroleum Exporting Countries.
It would also spell disaster for North Sea producers, Brazil’s offshore projects and heavily indebted Western producers. “We will live in a different reality,” Oreshkin told a forum in Moscow. The cold blast from Russia came as US crude slipped to $36.14, pummelled by the continuing fallout from the acrimonious Opec meeting last week. Record short positions by hedge funds have amplified the effect………………………………………..Full Article: Source

OPEC Says Crude Production Rose to 3-Year High in November

Posted on 11 December 2015 by VRS  |  Email |Print

OPEC raised crude output to the highest in more than three years as it pressed on with a strategy to protect market share and pressure competing producers.Output from the Organization of Petroleum Exporting Countries rose by 230,100 barrels a day in November to 31.695 million a day, the highest since April 2012, as surging Iraqi volumes more than offset a slight pullback in Saudi Arabia.
The organization is pumping about 900,000 barrels a day more than it anticipates will be needed next year. Benchmark Brent crude dropped to a six-year low in London this week after OPEC effectively scrapped its output ceiling at a Dec. 4 meeting as de facto leader Saudi Arabia stuck to a policy of squeezing out rival producers………………………………………..Full Article: Source

OPEC predicts rivals’ supply to contract in 2016

Posted on 11 December 2015 by VRS  |  Email |Print

The supply of oil from countries outside of the OPEC will contract next year as world oil demand rises, the production cartel said in its latest monthly report. Indicating that the 12-country oil producing group led by Saudi Arabia could be winning the fight to retain market share in the face of its rivals outside the organization, the group said that non-OPEC oil supply growth was expected to be “much lower” in 2015 and 2016 after “the tremendous growth of 2.23 million barrels a day achieved in 2014.”
While non-OPEC oil supply was estimated to grow by 1.00 mb/d in 2015 to average 57.51 mb/d, it forecast a contraction in non-OPEC oil supply in 2016………………………………………..Full Article: Source

2016 spells more gloom for oil producers

Posted on 10 December 2015 by VRS  |  Email |Print

A year after OPEC sent oil markets spiraling out of control, the group may have sparked another round of bearishness for crude. OPEC failed to agree to a production target on December 4 in Vienna, removing the stated target of 30 million barrels per day (mb/d). It was no secret that member nations collectively produced in excess of 30 mb/d for quite a while, but by removing the target altogether, OPEC sent a signal to oil markets.
The decision, or non-decision as the case may be, kills the notion that OPEC will act decisively to boost oil prices. In response, just as in November 2014, oil prices crashed. On Dec. 7, both WTI and Brent traded down by more than 5%. The markets had been holding out a sliver of hope that OPEC would take action in Vienna, but it wasn’t to be………………………………………..Full Article: Source

Oil producers prepare for prices to halve to $20 a barrel

Posted on 09 December 2015 by VRS  |  Email |Print

The world’s leading oil producers are preparing for the possibility of oil prices halving to $20 a barrel after a second day of financial market turmoil saw a fresh slide in crude, the lowest iron ore prices in a decade, and losses on global stock markets.
Benchmark Brent crude briefly dipped below $40 a barrel for the first time since February 2009 before speculators took profits on the 8% drop in the cost of crude since last week’s abortive attempt by the oil cartel Opec to steady the market. But warnings by commodity analysts that the respite could be shortlived were underlined when Russia said it would need to make additional budget cuts if the oil price halved over the coming months………………………………………..Full Article: Source

Why the Chinese metal production cuts won’t work: Andy Home

Posted on 04 December 2015 by VRS  |  Email |Print

The last few days have brought a string of cutback announcements by Chinese metals producers. A grouping of 10 of the country’s top copper smelters have pledged to reduce output by 350,000 tonnes next year. Not to be outdone, 10 major zinc producers are going to cut their output by 500,000 tonnes next year, while eight of the country’s biggest nickel producers are going to cut by around 20 percent, equivalent to around 80,000 tonnes, of collective capacity.
The statements, coordinated by the China Nonferrous Metals Industry Association and Antaike, both metallic arms of the government, are proof that Chinese metals producers are feeling the same pain as their Western peers after this year’s implosion in metal prices………………………………………..Full Article: Source

Is the market really flooded with surplus oil?

Posted on 24 November 2015 by VRS  |  Email |Print

Nearly three billion barrels of crude petroleum and refined products are being stored by oil firms in the advanced economies according to the International Energy Agency (IEA). Commentators have seized on the three billion figure as a shorthand way to convey how oversupplied the oil market has become.
Large round numbers exert a powerful pull on the imagination but shorn of context they are meaningless and apt to confuse rather than illuminate. The statistic is technically accurate but the way in which it is being employed by analysts and journalists is hugely misleading. It would be more helpful to report the change, which is 240 million barrels, or nine per cent, over the last year………………………………………..Full Article: Source

Commodity producers may be better bet in any demand recovery: Russell

Posted on 19 November 2015 by VRS  |  Email |Print

Let’s assume that you are a somewhat contrarian investor and take the view that the recent slump to fresh lows in commodity prices, and the share prices of producers, is a sign that a turnaround is coming in 2016. If you do take this view, is it better to buy the actual commodities or the shares of the companies that extract them?
Unfortunately there is no clear precedent from recent history to suggest that one will significantly outpace the other, but that doesn’t mean there’s no value in looking in what has happened in prior commodity routs. BHP Billiton, the world’s largest diversified miner, reached its lowest since the 2008 financial crisis in Sydney trading on Nov. 11, hitting an intraday low of A$19.81 ($14.06) a share, before closing at A$20.23. ……………………………………..Full Article: Source

Commodity producers may be better bet in any demand recovery: Russell

Posted on 17 November 2015 by VRS  |  Email |Print

Let’s assume that you are a somewhat contrarian investor and take the view that the recent slump to fresh lows in commodity prices, and the share prices of producers, is a sign that a turnaround is coming in 2016. If you do take this view, is it better to buy the actual commodities or the shares of the companies that extract them?
Unfortunately there is no clear precedent from recent history to suggest that one will significantly outpace the other, but that doesn’t mean there’s no value in looking in what has happened in prior commodity routs. BHP Billiton, the world’s largest diversified miner, reached its lowest since the 2008 financial crisis in Sydney trading on Nov. 11, hitting an intraday low of A$19.81 ($14.06) a share, before closing at A$20.23………………………………………..Full Article: Source

China’s gold reserves likely to rise by 14 tonnes in October

Posted on 10 November 2015 by VRS  |  Email |Print

China likely added about 14 tonnes of gold to its reserves in October, according to Reuters calculations from central bank data on Saturday. The value of China’s gold reserves stood at $63.261 billion at the end of October, compared with $61.189 billion at the end of September, the People’s Bank of China (PBOC) said on its website.
Based on the London Bullion Market Association afternoon gold price on the last trading session of October, China’s reserves likely totalled 55.378 million troy ounces or 1,722.5 tonnes at the end of last month, Reuters calculations show. That would be an increase of about 14 tonnes from September. The PBOC reveals the dollar value of its gold reserves early in the month, before revealing the volume numbers later on……………………………………….Full Article: Source

Arab oil producers watching Iranian re-entry into oil market closely

Posted on 05 November 2015 by VRS  |  Email |Print

The re-entry of Iranian crude oil exports into an already well supplied market is being watched closely by Middle East oil producers, but their full re-entry is likely to take “years rather than months,” the Arab Petroleum Investment Corp. or Apicorp said Wednesday.
The introduction of significant Iranian barrels could force OPEC to consider re-introducing supply management measures, but this will not be straightforward, the Al Khobar-based investment company said in a research note, “as Iran has repeatedly signaled its desire to re-capture market share and that other OPEC players should create the necessary space.”……………………………………….Full Article: Source

The Earth is not running out of oil and gas, BP says

Posted on 03 November 2015 by VRS  |  Email |Print

Global reserves could almost double by 2050 despite booming consumption, oil major says. The world is no longer at risk of running out of oil or gas, with existing technology capable of unlocking so much that global reserves would almost double by 2050 despite booming consumption, BP has said.
When taking into account all accessible forms of energy, including nuclear, wind and solar, there are enough resources to meet 20 times what the world will need over that period, David Eyton, BP Group head of technology said. “Energy resources are plentiful. Concerns over running out of oil and gas have disappeared,” Mr Eyton said at the launch of BP’s inaugural Technology Outlook………………………………………..Full Article: Source

Oil exports: KSA holds around 8.1% of global market share

Posted on 23 October 2015 by VRS  |  Email |Print

Saudi Arabia will not change course on its strategy of retaining market share and exports are expected to remain at around current levels for the remainder of this year and next year, according to a report released by Jadwa Investment.
Latest data available shows that year-to-August exports in the Kingdom were up 3 percent year-on-year, at 7.38 million barrels per day, below 10-year highs of 7.54 million bpd, recorded in 2012, Jadwa researchers say in their Quarterly Oil Market Update issued recently. Both Saudi Arabia and Iraq saw the largest year-on-year increases in OPEC supply in Q3 2015 pushing the organization’s output to a two-year high of 32 million bpd………………………………………..Full Article: Source

Opec crude output falls in September led by Gulf producers

Posted on 02 October 2015 by VRS  |  Email |Print

Opec crude output fell this month, led by declines in the group’s three-biggest producers. Output from the Organisation of Petroleum Exporting Countries fell by 233,000 barrels to 32.048 million a day this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 35,000 barrels lower to 32.281 million a day because of changes to the Iraqi, Nigerian and Ecuadorean estimates.
Crude futures in London and New York market are down 24 per cent this quarter amid speculation that the global supply glut will grow as Chinese economic growth slows. Opec agreed on June 5 to retain its collective output target of 30 million barrels a day, a level that it’s exceeded for 16 months, according to data compiled by Bloomberg………………………………………..Full Article: Source

OPEC crude output falls in September, led by Gulf producers’ decline

Posted on 01 October 2015 by VRS  |  Email |Print

OPEC crude output fell this month, led by declines in the group’s three-biggest producers. Output from the Organization of Petroleum Exporting Countries fell by 233,000 barrels to 32.048 million a day this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 35,000 barrels lower to 32.281 million a day because of changes to the Iraqi, Nigerian and Ecuadorean estimates.
Crude futures in London and New York market are down 24 per cent this quarter amid speculation that the global supply glut will grow as Chinese economic growth slows. OPEC agreed on June 5 to retain its collective output target of 30 million barrels a day, a level that it’s exceeded for 16 months, according to data compiled by Bloomberg………………………………………..Full Article: Source

What it means: Shell abandons Arctic oil drilling

Posted on 29 September 2015 by VRS  |  Email |Print

Royal Dutch Shell is giving up on its expensive and controversial push to produce oil in Alaska’s Arctic waters, a decision that darkens the long-term oil prospects of the U.S. and brings relief to environmental groups that had tried desperately to block the project. Shell is abandoning the region “for the foreseeable future” because it failed to find enough oil to make further drilling worthwhile.
The company has spent more than $7 billion to explore for oil in Alaska’s Arctic, slogging through a years-long regulatory gauntlet and attracting spite from environmental groups who feared a spill in the Arctic’s harsh climate would be extremely difficult to clean up and devastating to polar bears, walruses, seals and other wildlife………………………………………..Full Article: Source

Investors Are Mining for Water, the Next Hot Commodity

Posted on 25 September 2015 by VRS  |  Email |Print

Gazing out of a turboprop high above his company’s main asset — 34,000 acres in the Mojave Desert with billions of gallons of fresh water locked deep below the sagebrush-dotted land — Scott Slater paints a lush picture that has enticed a hardy band of investors for a quarter-century.
Yes, Mr. Slater admits, his company, Cadiz, has never earned a dime from water. And he freely concedes it will take at least another $200 million to dig dozens of wells, filter the water and then move it 43 miles across the desert through a new pipeline before thirsty Southern Californians can drink a drop………………………………………..Full Article: Source

China is hoarding the world’s oil

Posted on 21 September 2015 by VRS  |  Email |Print

Even after China’s slowing economy dragged crude to a six-year low, oil’s second-biggest consumer remains the main safeguard against a further price meltdown. While China’s surprise currency devaluation helped trigger Brent crude’s slump to about $42 a barrel last month, the nation’s stockpiling of oil can staunch further losses.
In the first seven months of the year, China purchased about half a million barrels of crude in excess of its daily needs, the most for the period since 2012, according to data compiled by Bloomberg……………………………………….Full Article: Source

OPEC cuts oil production forecast for US

Posted on 15 September 2015 by VRS  |  Email |Print

OPEC has cut its oil production forecasts for states like the US that are not members of the cartel. The group said Monday it had lowered its forecast for daily oil supply growth this year from non-member states by 72,000 barrels a day to 880,000 due to lower than expected output in the US For next year, it trimmed its forecast by 110,000 barrels to 160,000.
The cartel also increased its forecast for global demand growth this year by around 84,000 barrels a day to 1.46 million, and by 50,000 barrels to 1.29 million for next year. The price of oil has fallen this year amid strong supply and weaker demand from energy-hungry economies like China………………………………………..Full Article: Source

Commodities Producers’ Currency Prop

Posted on 14 September 2015 by VRS  |  Email |Print

Some emerging-markets exposure can be a valuable currency – for commodities producers. Currencies of commodity-producing countries have mostly fallen against the U.S. dollar this year, helping cushion earnings of miners who dig there. Platinum has fallen 20% this year in dollar terms, but only about 6% in South African rand. Copper is down 15% in dollars, just 4% in Chilean peso.
This can keep beleaguered producers in business. It also means big falls in investment spending don’t necessarily mean equally large cuts in activity. Tudor Pickering Holt notes emerging-market oil producers like Lukoil, Rosneft, CNOOC and Petrobras all expect capital spending to be down 30% this year, helped by currency moves, versus 15% for U.S. and European companies………………………………………..Full Article: Source

OPEC pumps 31.26 million bpd in August

Posted on 10 September 2015 by VRS  |  Email |Print

Oil production from the Organisation of the Petroleum Exporting Countries (OPEC) totaled 31.26 million bpd in August, down 140 000 bpd from the July level of 31.4 million bpd as several member countries, including Saudi Arabia, trimmed output, according to a just-released Platts survey of OPEC and oil industry officials and analysts.
“This is the first time OPEC output has fallen since February, but it shouldn’t be over-interpreted,” Margaret McQuaile, senior correspondent for Platts, a leading global provider of energy and commodities information. “The August total still puts OPEC exceeding its official ceiling by 1.26 million bpd and Saudi oil is still flowing at record levels.”……………………………………….Full Article: Source

OPEC oil output in Aug falls from record on Iraq disruption - survey

Posted on 03 September 2015 by VRS  |  Email |Print

OPEC oil output fell in August from the highest monthly level in recent history, a Reuters survey found on Wednesday, as disruptions to flows on Iraq’s northern pipeline halted supply growth from the group’s second-largest producer.
Largely stable output from Saudi Arabia and other Gulf members of the Organization of the Petroleum Exporting Countries indicated they are not wavering in their focus on defending market share instead of prices. OPEC supply fell in August to 31.71 million barrels per day (bpd) from a revised 31.88 million bpd in July, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………………..Full Article: Source

banner
May 2016
S M T W T F S
« Apr    
1234567
891011121314
15161718192021
22232425262728
293031