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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

Commodities in Africa: How natural resources breed violence

Posted on 28 August 2015 by VRS  |  Email |Print

Africa is home to a tenth of the planet’s oil, a third of its mineral reserves and produces two-thirds of its diamonds. High prices may pep up the continent’s short-term economic growth, but scholars have long suspected that its plentiful natural resources also breed instability and violence. Politicians and their cronies cannot resist skimming off some of the huge profits, the theory goes, which enrages those who are left out.
Struggles over these wealths have played a part in many African troubles, from militias in the Democratic Republic of Congo to Sudanese civil wars. However, identifying a systematic link between natural resources and violence in Africa has proven tricky for economists, who must usually work with small or insufficiently detailed datasets………………………………………..Full Article: Source

OPEC Unable to Control Oil Production in Member States

Posted on 27 August 2015 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) is irrelevant because it can’t control oil production volumes within it’s own member-countries, the president of PKVerleger LLC, an US energy consulting firm, told Sputnik. “OPEC is irrelevant today. Producing countries set their levels of production… Prices will probably fluctuate between 30 and 50 [dollars per barrel]. OPEC <…> has no power,” Dr. Philip K. Verleger said.
Global oil prices have significantly dropped compared to summer 2014, falling from $100 to $43 per barrel for Brent crude, primarily a result of worldwide oversupply. According to the International Energy Agency (IEA), global oil prices will fall further in 2016 in response to decreased demand. ……………………………………….Full Article: Source

Ecuador Reveals Pain Inside OPEC: It’s Pumping Oil at a Loss

Posted on 27 August 2015 by VRS  |  Email |Print

Ecuador has revealed the financial stress inside OPEC created by low oil prices, becoming the first member of the group to say it’s pumping at a loss. President Rafael Correa said on Tuesday that the South American nation is receiving as little as $30 a barrel for its crude, while production costs average about $39.
The warning comes after several other members of the Organization of Petroleum Exporting Countries, including Algeria and Libya, said the group should consider holding an emergency meeting to respond to the drop in oil prices. “We are going through a very difficult year economically because the price of oil collapsed,” Correa said in a speech in the central highland province of Cotopaxi………………………………………..Full Article: Source

Iran to Raise Oil Output ‘at Any Cost’ to Defend Market Share

Posted on 24 August 2015 by VRS  |  Email |Print

Iran plans to raise oil production “at any cost” to defend the country’s market share and joins calls for an emergency OPEC meeting to help shore up crude prices. “We will be raising our oil production at any cost and we have no other alternative,” said Oil Minister Bijan Namdar Zanganeh, according to his ministry’s news website Shana. “If Iran’s oil production hike is not done promptly, we will be losing our market share permanently.”
Iran had the second-biggest output in the Organization of Petroleum Exporting Countries before U.S.-led sanctions banning the purchase, transport, finance and insuring of its crude began July 2012. Oil producers such as BP Plc and Royal Dutch Shell Plc have expressed interest in developing its reserves, the world’s fourth-biggest, once sanctions are removed………………………………………..Full Article: Source

OPEC May Boost Oil Output to Record With Iran Back Amid Glut

Posted on 17 August 2015 by VRS  |  Email |Print

OPEC could potentially boost crude oil production to 33 million barrels a day, the most ever, after international sanctions are removed against Iran amid a global supply glut, according to the country’s OPEC representative.
The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing Mehdi Asali. Iran can boost output by 500,000 barrels a day within one week after sanctions are lifted, Oil Minister Bijan Namdar Zanganeh said earlier this month………………………………………..Full Article: Source

Iran Targets 45 Oil and Gas Projects in Plan to Boost Output

Posted on 14 August 2015 by VRS  |  Email |Print

Iran has selected 45 oil and gas projects to show international companies at a conference in London in December when new oil contract models will be discussed ahead of exploration auctions to double the country’s crude output.
The projects, including oil and gas exploration, will be discussed along with details of a new oil contract model at the Dec. 14-16 conference, Mehdi Hosseini, chairman of Iran’s oil contracts restructuring committee, said in an interview in Tehran. Iran hopes to boost crude production to 5.7 million barrels a day, he said………………………………………..Full Article: Source

Iran is hiding more oil at sea than we realized

Posted on 14 August 2015 by VRS  |  Email |Print

One of the biggest mysteries in the oil market surrounds just how much oil Iran is hoarding at sea. That’s a key question because Iran’s nuclear deal with the West could lift crippling sanctions, and pave the way for tons of Iranian oil to hit the market. A surge in Iranian exports would only deepen the oil supply glut that has sent prices to fresh six-year lows this week to below $43.
Iran claims it’s not stockpiling oil in tankers in the Persian Gulf, but no one believes it. Up until recently, energy experts thought Iran’s vessels held 30 million to 40 million barrels of oil. But maritime surveillance firm Windward has harnessed sophisticated technology to determine Iran is actually hoarding 50 million barrels of oil………………………………………..Full Article: Source

Are oil production hikes the sole defense against crude’s lows?

Posted on 11 August 2015 by VRS  |  Email |Print

The only way for oil producers to cope with the low price of crude is to hike rather than cut production, an industry analyst told CNBC. Natixis Lead Oil Market Analyst Abhishek Deshpande said that both the Organization of Petroleum Exporting Countries (OPEC) and Western producers were working hard to maintain oil levels—simply as a matter of self-preservation.
“They’re left with no choice,” Deshpande told CNBC on Monday. Both OPEC and Western producers want to keep production high, but their motivations are different, said Deshpande………………………………………..Full Article: Source

OPEC leader Saudi Arabia is having to borrow money

Posted on 07 August 2015 by VRS  |  Email |Print

The oil kingdom is facing a big hole in its budget, caused by the slump in oil prices and a sharp rise in military spending. That’s forcing the government to raid its reserves, and it may even borrow from foreign investors, analysts say.
Saudi Arabia has already burned through almost $62 billion of its foreign currency reserves this year, and borrowed $4 billion from local banks in July — its first bond issue since 2007. Its budget deficit is expected to reach 20% of GDP in 2015. That’s extraordinarily high for a country used to running surpluses. Capital Economics estimates that government revenues will fall by $82 billion in 2015, equivalent to 8% of GDP. The IMF is forecasting budget……………………………………….Full Article: Source

Asteroid passing by Earth may hold $5 trillion in precious metals

Posted on 21 July 2015 by VRS  |  Email |Print

Forget the Pluto flyby. Metals bugs were buzzing Monday after a metallurgically rich asteroid rocketed past Earth on Sunday evening, boasting an out-of-this-world cache of precious metals. Astronomers speculated that the asteroid, known as 2011 UW-158, which passed about 1.5 million miles from Earth, might have carried as much as $5.4 trillion worth of precious metals and minerals, according to Slooh, which connects telescopes to the Internet.
Slooh quoted Astronomer Bob Berman as saying this in a news release: “Can it be mined someday, perhaps not too far in the future?” Mining.com reported that scientists believe the half-kilometer-wide asteroid contains up to 90 million metric tons of platinum and other precious metals………………………………………..Full Article: Source

China’s Been Hoarding Gold And It Isn’t Likely to Stop

Posted on 20 July 2015 by VRS  |  Email |Print

With China finally coming clean that it’s been the second-biggest buyer of gold over the past six years, analysts and traders say the purchases will continue. In the first update since 2009, the People’s Bank of China said on Friday that it owns about 1,658 metric tons, implying purchases of 100 tons a year. The stockpile may eventually reach more than 5,000 tons, according to Robin Bhar, an analyst at Societe Generale SA in London.
“China hasn’t been very open about its strategy, so what matters now is whether the market believes they intend to continue buying,” said Joni Teves, an analyst at UBS Group AG in London. “They do appear to leave the door open to further purchases, which should limit the downside for gold.”……………………………………….Full Article: Source

China’s gold reserves underestimated

Posted on 20 July 2015 by VRS  |  Email |Print

Pull the other one, Beijing. Various analysts put it more politely, but there was a wave of scepticism washing over Friday’s announcement that the people’s Bank of China had increased its official gold holdings, adding 604 tonnes since 2009, making the present total 1658 tonnes.
Being more measured than Pure Speculation, Bernard Dahdah, precious metals analyst at French bank Natixis put this view thus: “It begs the question of what’s been happening to the gold produced that hasn’t been taken by the central bank”. One London broker said he did not believe the Chinese announcement, and wondered why Beijing was playing down its gold purchases. Another said: “The timing (of the announcement) is as expected; it’s just the amount that makes no sense”……………………………………….Full Article: Source

Iran: The oil and gas multibillion-dollar ‘candy store’

Posted on 17 July 2015 by VRS  |  Email |Print

They did not advertise their presence. But in the days and weeks before Tuesday’s nuclear deal between the west and Iran, a steady trickle of visitors from some of the world’s largest energy groups have flown into Tehran. By some accounts, they have done more than exchange business cards.
As one senior western executive puts it, few of the industry’s big players can ignore the “candy store” that is Iran — now preparing to throw open a multibillion-dollar shop window of oil and gas projects. An array of US and EU oil-related sanctions, in place since 2012, has prevented detailed negotiations. But once these are lifted, serious talks about a return to the country will get under way, with the European majors first………………………………………..Full Article: Source

Iran 5th gas exporter in 2014: OPEC

Posted on 14 July 2015 by VRS  |  Email |Print

According to the latest OPEC’s statistical report on 2014 market, Iran placed the 5th top exporter of natural gas and 7th oil seller in OPEC. Despite sanctions in 2014, Iran stood at the 5th place among the top natural gas exporters and the seventh oil seller in the world, according to OPEC’s Annual Statistical Bulletin 2015.
According to the bulletin the largest gas reserves in the OPEC belongs to Iran with 34.20 trillion cubic meters of natural gas ahead of Qatar with 24.531 trillion cubic meters. However the bulletin holds that sanctions imposed on Iran hindered infrastructural developments and led to an export of 8.360 billion cubic meters of natural gas putting Iran behind Qatar, Algeria, Nigeria, and the UAE in 2014………………………………………..Full Article: Source

The Story Behind Inflated World Oil Reserves

Posted on 09 July 2015 by VRS  |  Email |Print

There’s an old joke about lab rats in which the teller says he or she secretly suspects that all lab rats are prone to cancer and so all research about the risk of cancer in humans based on tests in rats is likely useless. The Committee for Independent Research and Information on Genetic Engineering, a European-based research group, thought it would look into such a possibility.
Last week the group released its findings and that joke became a reality. The diet fed to most lab rats is so laced with pesticides, heavy metals, genetically engineered feed and other man-made contaminants that lab rats worldwide are indeed at much higher risk of developing cancer and other diseases and disabilities just from the food they are reared on………………………………………..Full Article: Source

OPEC keeps plugging away

Posted on 08 July 2015 by VRS  |  Email |Print

Output from Saudi Arabia and Iraq helped lead to the fourth straight monthly increase from the Organization of Petroleum Exporting Countries, a survey found. A survey by energy reporting service Platts finds OPEC production in June reached 31.3 million barrels per day, a 5.5 percent increase from May and the fourth straight month of gains from the 12-member group.
Saudi Arabia, the de facto leader of OPEC, produced an average 10.3 million bpd in June, about 1 million barrels more than the United States. The increase in production from U.S. shale basins is keeping markets weighted on the supply side. Saudi Arabia has said it would keep its output higher despite the glut in an effort to stay competitive and keep its Asian consumers satiated………………………………………..Full Article: Source

OPEC Pumps 31.28 Million Barrels of Crude Oil Per Day in June

Posted on 07 July 2015 by VRS  |  Email |Print

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) totaled 31.28 million barrels per day (b/d) in June, up 170,000 b/d from May and the fourth consecutive monthly increase since February, as Saudi Arabia and Iraq pushed out more oil, a Platts survey of OPEC and oil industry officials and analysts showed Monday.
“This is the highest monthly level since August 2012, when the survey estimated output at 31.54 million b/d,” said Margaret McQuaile, senior correspondent for Platts, a leading global provider of energy and commodities information. “At that point, output was on the way down. Now, output seems to be on the way up, and at a time when the market could be looking at a lot more oil from Iran.” The June total leaves OPEC pumping nearly 1.3 million b/d in excess of its official 30 million b/d ceiling. (Press Release)

International companies ’seek’ Iranian oil fields

Posted on 06 July 2015 by VRS  |  Email |Print

Some European countries have already started direct talks with Iran’s oil officials regarding future relations after the embargo on Iran is lifted. Shell, Eni and Russian Luke Oil companies have launched discussions both in Vienna and Tehran. American companies have not yet taken a step in this regard but they are on alert waiting by the second for the official announcement of lifting of the embargo on Iran.
The investments of international oil companies in this country dates back to many years. They always had their ups and downs throughout their longstanding history since year 1901 starting with the first concession; then the rest of the major American oil companies poured in followed by Royal Dutch Shell and Total of France………………………………………..Full Article: Source

Oil Falters After Rig Count Grows

Posted on 03 July 2015 by VRS  |  Email |Print

The amount of rigs drilling for oil in the U.S. rose for the first time in seven months, triggering a slump in crude oil prices to their lowest settlement in two months. U.S. oil producers added 12 rigs last week, breaking 29 straight weeks of cuts, in response to prices that have rebound to- and stayed at $60 a barrel since late April.
That convinced producers to end months of massive cutbacks that started after the U.S. shale drilling boom flooded the market and sent prices crashing. But the increase in rigs is scaring investors and analysts who have warned that oil could be on the verge of another sharp fall. Production has kept making small gains even as drilling has declined and stockpiles have hit historic levels around the world………………………………………..Full Article: Source

OPEC oil output hits three-year high in June on Iraq: Reuters survey

Posted on 02 July 2015 by VRS  |  Email |Print

OPEC oil supply in June has climbed to a three-year high due to record or near-record output from Iraq and Saudi Arabia, a Reuters survey found, underlining the focus of the group’s top exporters on market share.
The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd) and comes despite outages in Libya and Nigeria that curbed supplies. OPEC supply has risen in June to 31.60 million bpd from a revised 31.30 million bpd in May, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………………..Full Article: Source

OPEC output surges as Iraq accelerates production

Posted on 01 July 2015 by VRS  |  Email |Print

Iraqi crude production climbed to a record this month, helping send OPEC output to the highest level since August 2012. Output by the Organisation of Petroleum Exporting Countries climbed 744,000 barrels to 32.134 million a day this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 189,000 barrels lower to 31.39 million a day, because of changes to the Saudi, Iraqi, Algerian and Nigerian estimates.
OPEC has been boosting supply as it seeks to force higher-cost producers to cut output. The 12-member group agreed on June 5 to retain its collective output target of 30 million barrels a day, a level that it’s exceeded for 13 months, according to data compiled by Bloomberg………………………………………..Full Article: Source

OPEC oil output hits 3-year high in June on Iraq - Reuters survey

Posted on 01 July 2015 by VRS  |  Email |Print

OPEC oil supply in June has climbed to a three-year high due to record or near-record output from Iraq and Saudi Arabia, a Reuters survey found, underlining the focus of the group’s top exporters on market share.
The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd) and comes despite outages in Libya and Nigeria that curbed supplies. OPEC supply has risen in June to 31.60 million bpd from a revised 31.30 million bpd in May, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………………..Full Article: Source

Will Opec gain with higher production?

Posted on 30 June 2015 by VRS  |  Email |Print

What is common between the production and marketing approaches of the 12-member Organization of the Petroleum Exporting Countries (Opec) and the world’s three largest producers of iron ore - Vale, BHP Billiton and Rio Tinto? The fall in prices of crude oil from $115 a barrel in June 2014 to $64 now and of iron ore from $205 a tonne to $62.5 have not proved enough disincentive for leading producers of the two most globally traded commodities to apply a production brake.
Opec and the ore triumvirate do not see merit in restricting production at lowest cost enterprises, which will allow high-cost producers to stay in business. As big miners remain engaged in commissioning large new capacity and others that cannot abandon projects nearing completion, the seaborne ore glut could rise to 260 million tonnes (mt) by the end of next year………………………………………..Full Article: Source

Water: The Next Tradable Commodity?

Posted on 30 June 2015 by VRS  |  Email |Print

Water will one day be soon traded as a commodity. Setup in 2003 as an unmanaged benchmark, the Palisades Water Index is tracked by many water indexes and ETFs. As the popular rhyme goes: “Water, water everywhere, but not a drop to drink” tweet.
Public perception has begun to change regarding water no longer being an infinite resource as we previously thought. Despite it covering 68% of the surface of the planet, the amount that actually serves a purpose for humans is only a mere 0.3%. With what some perceive as an “epidemic” expanding globally, experts predict that the only sustainable way in managing water is to trade it on a futures exchange, similar to other natural commodities such as oil and gold………………………………………..Full Article: Source

Experts say Iran oil output to rise 500 bpd before 2016

Posted on 29 June 2015 by VRS  |  Email |Print

Many may have already started to speculate when economic sanctions against Iran will be lifted in case the country manages to seal a deal with the P5+1 group of countries. Nevertheless, some have even gone further to speculate when Iran will see the economic objectives it has set for a post-sanctions era become materialized.
Many may agree that the most important objective that Iran has set for itself is to increase its oil production capacity. Iranian officials had already voiced optimism that the country will be able to increase its crude oil production by 500,000 barrels per day before the end of 2015 if anti-Iran sanctions are lifted. However, what many may want to know is what the impacts of an increased Iran oil production will be on the market already under the pressure of excessive supplies………………………………………..Full Article: Source

Output of most commodities in India at half or two-third of world average

Posted on 25 June 2015 by VRS  |  Email |Print

With a good progress of rains across the country, as policy makers are busy tracking the area being planted under different crops and the crops competing with each other for area, the agribased industry is worried about getting more yield from the same area.
With yields of most commodities barring wheat and rice, at half to two-thirds of the world average yields, processors and exporters think focus on improving yields is the only way to increase production. “Demand for soybean is more than its supply as the productivity levels have been stagnant. We cannot compete with the top soymeal exporting countries as our yields are just about one-third of the world average yields,” said Devish Jain, chairman, Soybean Processors’ Association of India (SOPA)………………………………………..Full Article: Source

Japan: Traders boost ‘nonresources’ businesses as commodities businesses falter

Posted on 22 June 2015 by VRS  |  Email |Print

Major Japanese trading houses are beefing up “nonresources” operations, such as food, to make up for falling profitability at mainstay operations caused by the plunge in crude oil prices, iron ore and other commodities.
“We will unite” to enhance nonresources operations, Mitsui & Co. President Tatsuo Yasunaga said at a general shareholders meeting Friday. Earlier this month, Mitsui said that it had established a joint venture in Tokyo with major Italian food retailer Eataly Distribuzione SRL and Japanese restaurant operator Kichiri & Co………………………………………..Full Article: Source

Iran and Iraq are Opec’s biggest wild cards

Posted on 22 June 2015 by VRS  |  Email |Print

Iran and Iraq have taken over from North American shale oil as the biggest wild card facing Opec and the world oil market in the year ahead, according to a number of leading market analysts. New research by the Edinburgh oil consultancy Wood Mackenzie, for example, reckons that the combined additional production from the two countries could be running as much as 500,000 to 600,000 barrels per day (bpd) higher in the coming months.
On the other hand, the volatile conditions the two countries face mean output from the two could end up little changed, the consultancy adds. If the higher forecasts prove correct, the extra oil would significantly increase the surplus already swamping the market, according to the International Energy Agency (IEA) based in Paris………………………………………..Full Article: Source

Chinese investments in Australian resources lowest in decade

Posted on 22 June 2015 by VRS  |  Email |Print

China’s appetite for Australian mining assets has fallen to its ­lowest level in almost a decade, setting a difficult backdrop for Fortescue Metals Group and its efforts to sell a minority stake in its Pilbara iron ore assets.
An analysis by The Weekend Australian of Bloomberg data has found that the number and value of Chinese acquisitions and ­investments in Australia’s resources sector is on track to record its lowest levels since 2007. With just weeks remaining in the 2015 financial year, the data shows only nine Chinese investments in Australian Securities Exchange-listed mining and exploration companies so far this year………………………………………..Full Article: Source

OPEC’s epiphany: Shale production in the US is here

Posted on 18 June 2015 by VRS  |  Email |Print

It probably had to happen sooner or later: OPEC’s oil ministers have now come to the realization that shale production in the United States is not a passing fad. Here in Texas, of course, we can only remark that it’s about time they noticed.
Without a doubt, the events of the past few years have completely turned traditional assumptions about the oil-and-gas industry on their head. The genie is out of the bottle, and there is no turning back………………………………………..Full Article: Source

Iran’s 40 million barrels stored at sea hangs over oil market

Posted on 17 June 2015 by VRS  |  Email |Print

Iran is storing as much as 40 million barrels of oil on supertankers at sea as it prepares for a sales drive if a nuclear deal can be sealed. Iran and six world powers are seeking to overcome remaining differences with a looming self-imposed June 30 deadline to reach a deal over Tehran’s disputed nuclear programme.
In the meantime, Iran has been parking oil off its coast, mainly on tankers belonging to its national carrier NITC. “The first thing they will try and do is offload quite a lot of that storage. (Oil Minister Bijan) Zanganeh has already warned Opec: make room for us. In other words, we are going to sell this oil at any price,” said Mehdi Varzi, a former official at the state-run National Iranian Oil Co………………………………………..Full Article: Source

Platts Survey: OPEC Pumps 31.11 Million Barrels of Crude Oil Per Day in May

Posted on 16 June 2015 by VRS  |  Email |Print

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) totaled 31.11 million barrels per day (b/d) in May, up 180,000 b/d from April and the group’s highest monthly volume since October 2012, according to the latest Platts survey of OPEC and oil industry officials and analysts. “OPEC’s communique after the June 5 meeting mentioned that members had been urged to adhere to its production ceiling,” said Margaret McQuaile, senior correspondent for Platts, a leading global provider of energy and commodities information.
“That’s something of a tall order, given that there are no quotas and that the 30 million b/d ceiling is supposed to cover production from Iraq, which hasn’t been part of OPEC’s production management system for years. With market share now pretty much the main theme – for the bigger players, at least – it seems likely that, for the time being, the only cuts in output will be involuntary ones.” (Press Release)

Iran third leading OPEC producer in May: report

Posted on 15 June 2015 by VRS  |  Email |Print

Iran was the third leading producer within the Organization of Petroleum Exporting Countries in May, outpacing the United Arab Emirates, OPEC said in its Monthly Oil Market Report. Iran produced 2.845 million barrels of oil per day in May, the report said, ranking Iran behind Saudi Arabia and Iraq at third place.

The UAE produced 2.83 million barrels of oil per day in May. Saudi Arabia and Iraq were the two leading producers, with 10.107 million barrels per day and 3.8 million barrels per day output, respectively. According to the report, total OPEC crude oil production averaged 30.98 million barrels per day in May, an increase of 24 thousand barrels per day over the previous month………………………………………..Full Article: Source

OPEC has advantages over US producers in fight for market share

Posted on 15 June 2015 by VRS  |  Email |Print

The member countries of OPEC decided on June 5 to continue their current oil production rate, and see what happens to oil prices. It is a strategy that many analysts believe will put more downward pressure on crude oil prices, which will create more pain for U.S. oil producers, and result in an increase in market share for OPEC.
Already the average price of West Texas crude oil has declined from $97.46 during the month of September 2014 to a low of $45.90 for the month of February 2015 following OPEC’s first announcement in November that it would continue its production target of 30 million barrels per day (b/d)………………………………………..Full Article: Source

USA leaves Russia behind among world’s biggest producers of oil and gas

Posted on 12 June 2015 by VRS  |  Email |Print

Russia is no longer the largest producer of natural gas. Oil production in the USA has gained 1.6 million barrels a day, BP Plc’s Statistical Review of World Energy said. Gas output has also grown, putting America ahead of Russia on the list of world’s largest producers of hydrocarbons, Pravda.Ru reports.
The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities. “We are truly witnessing a changing of the guard of global energy suppliers,” BP Chief Economist Spencer Dale said in a presentation. “The implications of the shale revolution for the U.S. are profound.”……………………………………….Full Article: Source

Russia Grows Oil and Gas Reserves Faster Than Rivals

Posted on 11 June 2015 by VRS  |  Email |Print

Russia added the most oil and gas reserves during the past year while the United States overtook it as the top energy producer, oil company BP said Wednesday in its benchmark annual review of world energy.
The BP Statistical Review of World Energy, first published in 1951 and considered an industry handbook, showed Russia added as much as 10 billion barrels of reserves, enough to supply the world for more than 100 days. The review also showed that world oil demand grew by just 843,000 barrels per day last year, the slowest pace in 14 years outside U.S. recessions………………………………………..Full Article: Source

OPEC says oil market oversupply to ease, but raises output again

Posted on 11 June 2015 by VRS  |  Email |Print

OPEC voiced confidence that excess supply in the oil market will ease as demand picks up and supply growth slows from producers outside the group, an indication its strategy of letting prices fall, reaffirmed at a meeting last week, is working.
In a monthly report on Wednesday, OPEC pointed to its expectations that supply from rival producers would decline in the second half of the year after rising in the first. World oil demand will grow faster than it did in 2014, OPEC said………………………………………..Full Article: Source

What will Opec do about the oil supply?

Posted on 04 June 2015 by VRS  |  Email |Print

With oil prices down some 40% in a year, the oil ministers of the Organization of the Petroleum Exporting Countries (Opec) are once again getting together in Vienna this week to decide whether to cut output or keep pumping crude oil into a market that is already oversupplied.
Six months ago, Opec’s lack of consensus on a similar decision cost them almost $6 a barrel. Some may argue that in a changing world, Opec is no longer as relevant to global oil markets, but Opec summits still command attention in both the industry and the global media and this week’s meeting is no exception………………………………………..Full Article: Source

BHP Billiton warns of oversupply on metals, hitting mining sector

Posted on 04 June 2015 by VRS  |  Email |Print

Commodity company shares are under pressure after the world’s biggest miner warned than oversupply and low prices were likely to carry on for a prolonged period. BHP Billiton chief executive Andrew Mackenzie told a meeting of senior executives and politicians in Australia (as reported by Reuters):
Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time. BHP and rival Rio Tinto have been criticised for expanding their iron ore production despite a slump in the metal’s price………………………………………..Full Article: Source

Russia Met OPEC In Secret, Won’t Cut Oil Production?

Posted on 03 June 2015 by VRS  |  Email |Print

Russia is feeling the bite of lower oil prices exemplified by a secret meeting with OPEC leaders last month. This week, ahead of Friday’s Vienna meeting of the Organization of the Petroleum Exporting Countries, Kuwait, Saudi Arabia and the United Arab Emirates reportedly say they won’t meet with Russian officials because of “past broken promises,” The Wall Street Journal reports. In the Energy Journal’s email today, Christopher Harder writes:
“The secret meeting last month underscores the distance between OPEC and Russia, the world’s largest oil producer. During those discussions, which were at a staff level and didn’t include officials who could make policy, the attendees argued about a joint statement and the talks went no further. ……………………………………….Full Article: Source

OPEC oil output in May reaches highest since 2012 - survey

Posted on 01 June 2015 by VRS  |  Email |Print

OPEC oil supply in May climbed further to its highest in more than two years as increasing Angolan exports and record or near-record output from Saudi Arabia and Iraq outweighed outages in smaller producers, a Reuters survey showed. The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd), underlining the focus of top exporter Saudi Arabia and other key members on market share.
OPEC supply rose in May to 31.22 million bpd from a revised 31.16 million bpd in April, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………….Full Article: Source

Texas set to create a gold depository

Posted on 01 June 2015 by VRS  |  Email |Print

All that glittering gold doesn’t have to go to Fort Knox or the Federal Reserve in New York. Instead Texas will soon be able to keep their precious metals in a new bullion depository lawmakers approved today. The bill goes to to governor.Now, this isn’t a place to store Great Aunt Margaret’s earrings.
Public agencies, corporations or even individuals could store gold or precious metal there if it is in certain form — such as bullion or specie, which are generally gold or silver stamped. Rep. Giovanni Capriglione, R-Southlake, has worked for two years on the legislation that allows the comptroller’s office to create the depository, which would make Texas the first state in the nation to do so………………………………….Full Article: Source

Non-OPEC production growth reduced by over 2 MMbopd towards 2020

Posted on 27 May 2015 by VRS  |  Email |Print

Non-OPEC liquids growth potential of 5.5 MMbopd over the next five years has been reduced by over 2 MMbopd to 3.3 MMbopd, according to Rystad Energy’s most recent forecasts. Latest oil field research shows investments in oil and gas production are estimated to drop 20% in 2015 compared to 2014. Outside OPEC, $200 billion in yearly capex is considered to be axed over a two-year period.
Ultimately, for every billion dollars being cut in development capex on marginal projects, the production shortfall would amount to 10 Mbopd. Only U.S. production has been visibly impacted with the trend turning from 20% annual growth during the first quarter of the year to a flat trend in the second quarter. The shortfall of global offshore production may be steeper if oil prices stay low throughout the year…………………………………..Full Article: Source

Kingdom built on oil foresees fossil fuel phase-out this century

Posted on 22 May 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s largest crude exporter, could phase out the use of fossil fuels by the middle of this century, Ali al-Naimi, the kingdom’s oil minister, said on Thursday. The statement represents a stunning admission by a nation whose wealth, power and outsize influence in the world are predicated on its vast reserves of crude oil.
Naimi, whose comments on oil supply routinely move markets, told a conference in Paris on business and climate change: “In Saudi Arabia, we recognise that eventually, one of these days, we are not going to need fossil fuels. I don’t know when, in 2040, 2050 or thereafter.”……………………………………….Full Article: Source

India moves closer to tapping 20,000-ton gold hoard

Posted on 20 May 2015 by VRS  |  Email |Print

India will allow citizens to deposit gold with banks to earn interest as the world’s second-biggest consumer seeks to cut reliance on imports by tapping idle bullion lying with households. Individuals and institutions can deposit a minimum of 30 grams in the form of bullion or jewelry under a so-called gold monetization scheme, according to a draft document released by the government on Tuesday.
The banks can set the interest rate on the deposits and the metal mobilized may be loaned to jewelers, the government said. Success in drawing out a part of the more than 20,000 metric tons of gold lying with households and institutions like temples may help India lower dependence on imports and ease pressure on the current-account deficit………………………………………..Full Article: Source

India, China account for 54% of total gold demand during Q1

Posted on 18 May 2015 by VRS  |  Email |Print

India and China accounted for 54 percent of the total global gold consumer demand in the first quarter of this year, according to a report. Global demand for jewellery, still the most significant component of overall demand, totalled 601 tonnes in the first quarter of 2015, three percent lower than the last year, said the Gold Demands Trends report prepared by the World Gold Council.
According to the report, conditions differed from market to market, but at an aggregate level these differences broadly balanced each other out. “Once again, consumers in Eastern countries dominated the market with China and India alone accounting for 54 percent?of total global consumer demand in the quarter,” said Alistair Hewitt, Head of Market Intelligence at the World Gold Council………………………………………..Full Article: Source

Saudi April oil output hits record high

Posted on 13 May 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s biggest exporter, increased its production of crude oil to a record high in April to meet demand from Asian buyers and to satisfy the needs of domestic power stations and refineries.
The Kingdom pumped 10.308m barrels of oil a day last month, up from 10.294m b/d in March, according to information given by Riyadh to Opec for the cartel’s monthly oil report, reports Anjli Raval in London. Saudi Arabia’s oil minister Ali Al Naimi last month indicated that there are no plans to slow its production which has risen above 10m barrels per day in recent months………………………………………..Full Article: Source

Indian people hold 20,000 tonnes of gold

Posted on 11 May 2015 by VRS  |  Email |Print

It may come as little surprise to those who understand the “fear trade” and the “love trade” in gold, as Frank Holmes of US Global Investors likes to say. Last week the Economic Times reported that the Indian public hold 20,000 tonnes of the yellow metal in jewelry, coins and gold bars. It was unclear from the media report what was the source of the “20,000-tonnes” comment, but Arun Jaitley, the Indian Finance Minister, reportedly stated the figure after noting that the Indian government does not have data on gold held by the general public.
However it would mesh with a news story three years ago in The Financial Express, which said that Indian households have amassed up to 20,000 tonnes for a historic high of $1.16 trillion, based on the gold price in 2012. The figure came from the World Gold Council (WGC) which estimated that India’s household gold reserves at the time were 11 percent higher than the 18,000 tonnes it had earlier pegged………………………………………..Full Article: Source

Global silver output running low — report

Posted on 07 May 2015 by VRS  |  Email |Print

After over ten years of gains, global silver production is expected to drop this year, as new supply from projects won’t be sufficient to replace production losses from aging operations, a study released Wednesday shows.
According to the World Silver Survey 2015, published by The Silver Institute and Thomson Reuters GFMS, global silver output went up by 5% in 2014 to reach 877.5 million ounces, the 12th successive gain and a new record. This year, however mine supply is set to decrease………………………………………..Full Article: Source

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