Prices

Oil Prices Come Off Recent Lows

23 Jun 2017   Prices

Oil prices edged up Thursday but remained in bear-market territory on lingering concerns about a global supply glut. Light, sweet crude for August delivery settled up 21 cents, or 0.5%, at $42.74 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 40 cents, or 0.9%, to $45.22 a barrel on ICE Futures Europe. The gains snap a three-session losing streak, but both contracts are still at their…

Traders test OPEC ‘whatever it takes’ resolve to defend oil price

23 Jun 2017   OPEC, Prices

When OPEC leader Saudi Arabia pledged in May to do “whatever it takes” to defend world oil prices, it didn’t expect the market to be testing its resolve just one month later. As the Organization of the Petroleum Exporting Countries extended oil production cuts, oil prices fell 18 percent in just 20 days. OPEC members appear determined not to rush into deeper output curbs despite market pressure. Oil traders have chosen to ignore bullish news for prices – including a long-awaited decline in U.S. oil stocks on Wednesday – and focused instead on negative factors such as a stubborn global glut. As a result, the oil market posted its worst performance in […]

Oil prices climb off 10-month lows as U.S. stockpiles drop

23 Jun 2017   Prices

Oil prices rose on Thursday after U.S. crude and gasoline stockpiles fell, but worries over whether OPEC-led output cuts would be able to rein in a three-year glut continued to drag. The market largely shrugged off comments overnight from Iran’s oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production. Brent crude futures were 4 cents higher at $44.86 a barrel at 0219 GMT, after falling 2.6 percent in the previous session to their lowest since August last year. U.S. crude futures were up 6 cents at $42.59 a barrel. On Wednesday, they settled down at $42.53, after touching their lowest intraday level since August 2016. Since peaking in late February, crude has dropped around 20 percent, with only brief rallies, completely erasing gains at the end of the year in the wake of the initial OPEC-led production cut. OPEC and […]

Wednesday Is Fast Becoming Oil’s Least Favorite Day of the Week

23 Jun 2017   Prices

Focus on weekly EIA report highlights oversupply concerns Losses on WTI average 3.2% over the past four Wednesdays Every Wednesday, WTI gets whacked. With investors focused on the question of oversupply in the oil market, a familiar pattern is emerging in the price of crude. On Wednesdays — when the Energy Information Administration releases its latest data for U.S. production and inventories — oil prices take a tumble. The pattern has held for the past month, with losses on a barrel of West Texas Intermediate averaging 3.2 percent, or $1.56, over the past four Wednesdays. “No Wednesday without a good fall in prices seems to be the current motto of the market,” wrote analysts at JBC Energy GmbH, after the latest EIA data showed U.S. production increased to the highest since August 2015. While stockpiles of crude fell by 2.45 million barrels to 509.1 million last week, inventories remain […]

Trump’s ‘Solar Border Wall’ Claim Sends Stocks Soaring

23 Jun 2017   Prices, Solar

BBC . During the rally, he suggested that the idea to install solar panels on the hypothetical wall was originally his, though the green amenity had been included in several companies’ bids to plan and construct the wall. “ We’re thinking of something that’s unique, we’re talking about the southern border. Lots of sun, lots of heat,” Trump said. “ We’re thinking about building the wall as a solar wall, so it creates energy, and pays for itself. And this way Mexico will have to pay much less money…Pretty good imagination, right? Good? My idea.” The Mexican border wall had been a cornerstone of Trump’s campaign for president last year. The Department of Homeland Security invited construction companies to submit proposals for the wall’s design after the January inauguration. Two hundred companies have responded so far and 20 have been short-listed. Bloomberg reported that stocks of solar panel companies […]

Brent oil slides below $45 for first time this year

22 Jun 2017   Prices

Brent crude oil remained mired below $45 a barrel on Thursday leaving it further in a bear market as traders continue to lose faith in Opec’s ability to balance supplies.  Oil prices have now dropped by more than 20 per cent since the start of this year, with Brent on course to post its worst first half since 1997 and energy stocks getting hit. Brent fell under $45 on Wednesday for the first time in 2017. The sell-off has accelerated since late May when Opec extended a deal with Russia and other producers to cut supplies by 1.8m barrels a day.  US shale producers have increased the rate of drilling, stepping into the void and showing they can compete in a world of sub-$50 oil. Many traders believe the price slide will only be arrested when US shale drillers are either forced to slow their expansion plans or Opec kingpin Saudi Arabia agrees to lead the cartel in bigger supply cuts. Brent, the international benchmark, was down a further 0.2 per cent on Thursday at $44.73 a barrel, after finishing the previous session down 2.6 per cent at $44.82. US benchmark West Texas Intermediate fell 0.2 per cent to $42.44, extending Wednesday’s 2.3 per cent drop.

Oil prices climb off 10-month lows as U.S. stockpiles drop

22 Jun 2017   Prices

Oil prices rose on Thursday after U.S. crude and gasoline stockpiles fell, but worries over whether OPEC-led output cuts would be able to rein in a three-year glut continued to drag. The market largely shrugged off comments overnight from Iran’s oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production. Brent crude futures were 4 cents higher at $44.86 a barrel at 0219 GMT, after falling 2.6 percent in the previous session to their lowest since August last year. U.S. crude futures were up 6 cents at $42.59 a barrel. On Wednesday, they settled down at $42.53, after touching their lowest intraday level since August 2016. Since peaking in late February, crude has dropped around 20 percent, with only brief rallies, completely erasing gains at the end of the year in the wake of the initial OPEC-led production cut. OPEC and […]

Oil holds near multi-month lows as glut fears persist

22 Jun 2017   Prices

A worker fills a tank with subsidized fuel at a fuel station in Jakarta April 18, 2013. Oil prices held around multi-month lows in early Asian trading on Wednesday as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut global output. Brent LCOc1 was down 6 cents at $45.96 barrel at 0035 GMT. The global benchmark ended down 89 cents, or 1.9 percent, on Tuesday at its lowest settlement since November. U.S. crude futures CLc1 for August were trading down 3 cents at $43.48. The July contract, which expired on Tuesday, settled down than 2 percent at its lowest since September. The Organization of the Petroleum Exporting Countries and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January and compliance with the agreement has reached more than 100 percent. “The lack of […]

Is There Still Hope For Higher Oil Prices?

22 Jun 2017   Prices

Oil prices have cratered in recent weeks, dipping to their lowest levels in more than seven months and any sense of optimism has almost entirely disappeared. All signs point to a period of “lower for longer” for oil prices, a refrain that is all too familiar to those in the industry. WTI dipped below $44 per barrel on Tuesday, and the bearish indicators are starting to pile up. Libya’s production just topped 900,000 bpd, a new multi-year high that is up sharply even from just a few weeks ago. Libyan officials are hoping that they will hit many more milestones in the coming months. Next stop is 1 million barrels per day (mb/d), which Libya hopes to breach by the end of July. U.S. shale is arguably the biggest reason why prices are floundering again. The rig count has increased for 22 consecutive weeks, rising to 747 as of […]

Can U.S. Shale Survive Below $40?

22 Jun 2017   Prices

Many U.S. shale drillers have said that they have full-proofed their operations for $40 oil, having lowered breakeven prices substantially over the last few years. They may soon have to prove it. Oil prices dropped to fresh seven-month lows on Tuesday, officially entering bear market territory, down more than 20 percent year-to-date. The declines have raised questions about the possibility of WTI hitting $40 soon. A rising U.S. rig count, multi-year record production levels from Libya, and a general mood of pessimism more than outweighed the positive news that OPEC and non-OPEC producers increased their compliance rate in May. There is now a growing consensus that the OPEC deal won’t be sufficient to bring down inventories at a fast enough pace to balance the market this year. Can U.S. shale survive in a world of $40 oil? There are very different answers out there depending on who you ask. […]

Can U.S. Shale Survive Below $40?

22 Jun 2017   Prices

Many U.S. shale drillers have said that they have full-proofed their operations for $40 oil, having lowered breakeven prices substantially over the last few years. They may soon have to prove it. Oil prices dropped to fresh seven-month lows on Tuesday, officially entering bear market territory, down more than 20 percent year-to-date. The declines have raised questions about the possibility of WTI hitting $40 soon. A rising U.S. rig count, multi-year record production levels from Libya, and a general mood of pessimism more than outweighed the positive news that OPEC and non-OPEC producers increased their compliance rate in May. There is now a growing consensus that the OPEC deal won’t be sufficient to bring down inventories at a fast enough pace to balance the market this year. Can U.S. shale survive in a world of $40 oil? There are very different answers out there depending on who you ask. […]

Oil holds near multi-month lows as glut fears persist

21 Jun 2017   Prices

Oil prices held around multi-month lows in early Asian trading on Wednesday as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut global output. Brent LCOc1 was down 6 cents at $45.96 barrel at 0035 GMT. The global benchmark ended down 89 cents, or 1.9 percent, on Tuesday at its lowest settlement since November. U.S. crude futures CLc1 for August were trading down 3 cents at $43.48. The July contract, which expired on Tuesday, settled down than 2 percent at its lowest since September. The Organization of the Petroleum Exporting Countries and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January and compliance with the agreement has reached more than 100 percent. “The lack of […]

Oil Bears Are Back as Prices Fall and Driller Shares Take a Hit

21 Jun 2017   Prices

U.S. shale production has investors, traders pulling back Faith in OPEC’s ability to drain glut with cuts is receding Shale producers risk drowning in their own surplus — again. On Tuesday, oil slid into its first bear market in 10 months, falling 21 percent from its high for the year. The swoon dragged down driller shares amid concern that unceasing production from U.S. shale fields is overwhelming OPEC efforts to ease a global supply glut. Explorers who came of age at a time when ever-increasing production was rewarded with ever-higher prices are now having a bit of a déjà vu from their fall from grace in 2014. The S&P 500 Energy Index has lost 14 percent this year, while West Texas Intermediate crude, the U.S. benchmark, has fallen 19 percent. Buoyed by prices that hit $54.45 a barrel in February, U.S. explorers have boosted the number of rigs drilling […]

Oil Prices Get Tiny Reprieve As API Reports Modest Crude Draw

21 Jun 2017   Prices

The American Petroleum Institute (API) reported a draw of 2.72 million barrels in United States crude oil inventories, compared to analyst expectations that the EIA would report a 2.0-million barrel draw for the week ending June 16. This week’s inventory draw almost completely offsets last week’s API-reported crude inventory build of 2.75 million barrels. Oil prices started off the week with a rather poor showing, only worsening on Tuesday. As so often is the case, prices rallied on Tuesday—if you are inclined to call it a rally—from a low point of $42.94 to an unimpressive $43.49 by 3:44pm EST, still 2.14% down on the day. The falling prices, which are now at a seven-month low, are a clear indication that even record compliance from OPEC/non-OPEC is an insufficient bolsterer of prices. Both benchmarks are trading more than $3.00 lower than last week. This week’s build, according to the API, […]

Oil slides into bear market as supply angst persists

21 Jun 2017   Prices

Oil has entered a new bear market, with prices falling to their lowest level this year as rising supplies threaten to derail an effort by some of the world’s biggest producers to bring an end to a three-year glut.  Renewed trader concerns about growing production from within the Opec cartel and a reinvigorated US shale industry took global crude benchmarks on Tuesday to the lowest since mid-November with Brent crude sinking towards $45 a barrel.  Prices have fallen more than 20 per cent from their levels in early January, which they last touched in the summer of 2015. A decline of more than 20 per cent from a most recent high is typically considered a bear market.  Crude has now erased all its gains since late last year, when Opec and other producer countries, including Russia, agreed to cut output by 1.8m barrels a day for the first six months of 2017.  A decision in May to extend the original six-month deal for a further nine months has not helped lift sentiment as a growing chorus of traders and analysts question the effectiveness of the supply curbs.  Brent crude, the international benchmark, fell $1.28 cents, or almost 3 per cent, to $45.63 a barrel. West Texas Intermediate, the US marker, dropped by $1.31 to a low of $42.89 a barrel. Even as global oil demand is expected to rise in the coming months, traders have been focused on supply.  “The future might be bright for oil prices but the present is not,” said Tamas Varga at London-based broker PVM. Any immediate price recovery, he said, was “wishful thinking”.  Rising output in Libya and Nigeria, which were exempt from the supply deal because of conflict in both countries, have offset cutbacks from their Opec peers. Libya has said it is set to reach its 1m b/d target in the coming weeks after an interim agreement with an oil operator while Nigerian exports from the Forcados terminal are due to resume.

Oil Returns to Bear Market

21 Jun 2017   Prices

Oil prices are back in bear-market territory, frustrating OPEC members that cut production in an attempt to boost prices and renewing fears that falling prices could spill into stocks and other markets. A persistent glut has weighed on prices for most of the past three years, a blow to investors who believed that the Organization of the…

Bank Of America: Expect $30 Oil

21 Jun 2017   Prices

Oil prices hit on Tuesday their lowest levels since mid-November last year, with WTI entering a bear market , and analysts now see the price of oil sliding further down to below US$40 and even into the US$30s, as rising output from Libya and Nigeria adds to the persistent concerns over global oversupply. As of 2:21pm EDT, WTI Crude had tumbled 3.11 percent to US$43.05, while Brent Crude had plunged 2.79 percent at US$45.60. According to analysts, the slide will continue, and oil prices could drop to levels they hadn’t seen in more than a year. “ Oil is in a downtrend and risks trending into the $30’s, ” Paul Ciana, a technical strategist at Bank of America Merrill Lynch, said in a note on Tuesday, as quoted by Business Insider . Oil prices have now dropped to the levels they traded before OPEC and 11 non-OPEC producers agreed […]

Have Natural Gas Prices Hit A Bottom?

21 Jun 2017   Prices

Natural gas prices are falling, and the speculators have cut their U.S. natural gas net long positions for the fourth straight week. Does this indicate further weakness, or is this a contrarian buy signal? Let’s analyze the fundamentals and the chart pattern of natural gas to arrive at an answer. Natural gas is mainly used for electricity generation. During summers and winters, the demand for electricity increases, hence, the demand for natural gas goes up. After all, about 50 percent of all U.S. households use natural gas for heating purposes. In pleasant weather conditions, the need for cooling or heating decreases; therefore, the need for electricity decreases. As a result, natural gas demand at the gas-fired plants also falls. Let’s look at the demand and supply metrics to analyze the prospects of natural gas. The Commodity Weather Group LLC expects temperature to be below normal in the central U.S. […]

Rampaging Oil Bears Are Missing Half the Picture

21 Jun 2017   Prices

It’s official—oil is in a bear market following Tuesday’s 2% fall, taking prices 21% below late-winter highs. The Organization of the Petroleum Exporting Countries’ high hopes for crude have been shredded by the sharp claws of resurgent U.S. shale. It’s been a nasty few weeks for oil investors. The International Energy Agency last week cast doubt on OPEC’s ability to do “whatever it takes” to drain massive global crude stocks,…

Oil Trades Near $45 as U.S. Continues Drilling Expansion

20 Jun 2017   Prices

Rigs targeting crude in America climb for a 22nd straight week Demand to rise during third quarter, United Arab Emirates says Oil traded near $45 a barrel following a fourth weekly loss as U.S. drillers continued to add rigs, blunting OPEC-led efforts to rebalance an oversupplied market. Futures were little changed in New York after capping the longest run of weekly declines since August 2015. U.S. drillers targeting crude added rigs for a 22nd straight week, the longest stretch in three decades, according to data Friday from Baker Hughes Inc. Demand will rise during the third quarter, United Arab Emirates Energy Minister Suhail Mohammed Al Mazrouei said. Oil slumped to the lowest close in seven months on Thursday amid concerns that rising U.S. supplies will offset output cuts by the Organization of Petroleum Exporting Countries and allies including Russia. OPEC and its partners have curtailed production in an attempt […]

Oil Turns Lower as Inventory Glut Continues to Pressure Market

20 Jun 2017   Prices

Oil prices turned lower Monday, failing to hold on to earlier gains as the stubborn glut of oil in storage continued to weigh on the market. U.S. crude futures settled down 54 cents, or 1.21%, at $44.20 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 46 cents, or 0.97%, to $46.91 a barrel on ICE Futures Europe. Oil prices were pulled down by falling prices for gasoline and diesel, as well as…

Three Years On, Oil Industry Comes to Terms With Cheap Crude

20 Jun 2017   Prices

Three years after the price of crude began its rapid descent, the oil industry and investors are finally resigned to the idea of lower prices for longer, potentially ending a period of crisis for the sector. The price of Brent crude, the international benchmark, is now down 59% since it hit a closing high of $115.06 a barrel three years ago on…

Analyst: Expect $30 Oil In 2018 Unless OPEC Deepens Cuts

20 Jun 2017   Prices

Oil prices could plunge to US$30 a barrel in 2018 and maintain that low price for some two years, if OPEC fails to make steeper output cuts, Fereidun Fesharaki, chairman of oil and gas consultancy FGE, said at a conference on Monday. The current OPEC cuts could be enough to keep the price of oil at around US$50 per barrel for the rest of this year, Fesharaki said at the International Association for Energy Economics conference in Singapore, as quoted by Platts . But next year, new supply is expected to overtake demand growth if OPEC doesn’t deepen the production cuts. This would send oil prices lower, according to Fesharaki. Last week, the International Energy Agency (IEA) said that non-OPEC production in 2018 would increase by 1.5 million barrels daily – a rate that would surpass the growth of global demand. Speaking at the Singapore conference on Monday, FGE’s […]

Oil Markets Unmoved By Brewing Conflict In The Middle East

20 Jun 2017   Middle East, Prices

The political standoff in the Middle East between Qatar and other powers in the Middle East enters its third week, and the conflict shows no signs of abating. On June 5, Saudi Arabia, Egypt, the UAE and Bahrain cut diplomatic ties with Qatar and also tried to close off entry to Qatar by land, sea and air. They argued that Qatar is a major funder of terrorism. U.S. President Donald Trump backed the move. “The nation of Qatar, unfortunately, has historically been a funder of terrorism at a very high level, and in the wake of that conference, nations came together and spoke to me about confronting Qatar over its behavior,” Trump said on June 9. “I decided, along with Secretary of State Rex Tillerson, our great generals and military people, the time had come to call on Qatar to end its funding — they have to end that […]

Oil prices fall on further rise in U.S. drilling, signs of slowing demand

19 Jun 2017   Prices

Oil prices fell early on Monday, weighed down by high supplies despite an OPEC-led initiative to cut production to tighten the market. Signs of faltering demand stoked weak sentiment, prompting price levels comparable to when the output cuts were first announced late last year. Brent crude futures LCOc1 were down 11 cents, or 0.23 percent, at $47.26 per barrel at 0035 GMT. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 11 cents, or 0.25 percent, at $44.63 per barrel. Prices for both benchmarks are down by almost 13 percent since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended their pledge to cut production by 1.8 million barrels per day (bpd) by an extra nine months until the end of the first quarter of 2018. Traders said that the main factor driving the low prices was a steady rise in U.S. […]

Oil Trades Near $45 as U.S. Continues Drilling Expansion

19 Jun 2017   Prices

Rigs targeting crude in America climb for a 22nd straight week Demand to rise during third quarter, United Arab Emirates says Oil traded near $45 a barrel following a fourth weekly loss as U.S. drillers continued to add rigs, blunting OPEC-led efforts to rebalance an oversupplied market. Futures were little changed in New York after capping the longest run of weekly declines since August 2015. U.S. drillers targeting crude added rigs for a 22nd straight week, the longest stretch in three decades, according to data Friday from Baker Hughes Inc. Demand will rise during the third quarter, United Arab Emirates Energy Minister Suhail Mohammed Al Mazrouei said. Oil slumped to the lowest close in seven months on Thursday amid concerns that rising U.S. supplies will offset output cuts by the Organization of Petroleum Exporting Countries and allies including Russia. OPEC and its partners have curtailed production in an attempt […]

Three Years On, Oil Industry Comes to Terms With Cheap Crude

19 Jun 2017   Prices

Three years after the price of crude began its rapid descent, the oil industry and investors are finally resigned to the idea of lower prices for longer, potentially ending a period of crisis for the sector. The price of Brent crude, the international benchmark, is now down 59% since it hit a closing high of $115.06 a barrel three years ago on…

Déjà Vu: Shale To Kill Oil Prices Once Again

19 Jun 2017   Prices

The U.S. shale industry is in danger of killing of the very rally that it had hoped to take advantage of. Shale production is up more than 700,000 bpd since bottoming out in September 2016, rising steadily to 9.33 million barrels per day (mb/d) in June, according to the latest weekly estimates from the EIA. The International Energy Agency says that U.S. oil production could end 2017 up 920,000 barrels per day (bpd) from a year earlier. Most analysts expect the production gains to continue into next year – the IEA says shale could grow by another 780,000 bpd. Those figures, if they came to pass, would likely prevent any rally in oil prices. But the industry might not get that far because they could push down prices this year, which could potentially choke off their ambitious production plans. “The growth outlooks proposed by many oily E&Ps appear tenuous […]

UAE energy minister sees no need for extraordinary OPEC talks

19 Jun 2017   Prices

The OPEC logo is seen outside their headquarters in Vienna, Austria May 24, 2017. The United Arab Emirates energy minister said on Saturday he saw no need for an extraordinary meeting of the Organization of the Petroleum Exporting Countries ahead of regular talks in November. OPEC holds its next regular meeting in Vienna on Nov. 30. “No one is talking about extraordinary. We are at the beginning of the agreement, I think we need to give it a little bit of time,” Suhail bin Mohammed al-Mazrouei told reporters in Dubai. OPEC and non-members led by Russia decided on May 25 to extend cuts in oil output by nine months to March 2018 as they battle a global glut of crude. Mazrouei also said he expected demand for oil to pick up in the third quarter of the year. “The third quarter is coming and the holidays are coming and […]

Oil market fundamentals heading in right direction – Saudi’s Falih

19 Jun 2017   Prices, Saudi Arabia

File Photo – Saudi Energy Minister Khalid al-Falih attends a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 2, 2017. Saudi Energy Minister Khalid al-Falih said the oil market is heading in the right direction but still needs time to rebalance, the London-based newspaper Asharq al-Awsat reported on Monday. “In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the cut needs time to take effect,” he told the newspaper, referring to a global deal to curb oil production. “Current expectations indicate the market will rebalance in the fourth quarter of this year, taking into account an increase in shale oil production,” he said. Asked about the recent drop in oil prices, Falih said: “Markets determine prices but are themselves driven by unpredictable variables beyond the control of producing nations.” “Short-term volatility […]

Oil Prices Up, Still Poised For Longest Weekly Loss Streak Since 2015

17 Jun 2017   Prices

After oil prices hit the lowest in seven months earlier this week, they were tentatively rising early on Friday, but were still on course to post the fourth consecutive week of losses—the longest weekly losing streak since August 2015—as concerns over the stubbornly high global oversupply continue to trump OPEC’s efforts to rebalance the market. As of 7:20am EDT on Friday, WTI Crude was up 0.65 percent at US$44.75, while Brent Crude was trading up 1.04 percent at US$47.41. Both the prices of WTI and Brent have dropped by around 13 percent since May 25, when OPEC said it was rolling over the cuts into March 2018. A flurry of bearish news for the oil market followed one after the other this past week, sending oil prices even lower than at the levels they were trading before OPEC announced its production cut agreement in late November. First, OPEC said […]

Oil Prices Recover Slightly, but Glut Fears Persist

17 Jun 2017   Prices

Oil prices inched up Friday, but still fell hard for the week, holding near its lowest levels of the year because of the lingering glut. Light, sweet crude for July delivery settled up 28 cents, or 0.6%, at $44.74 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 45 cents, or 1%, to $47.37 a barrel on ICE Futures Europe. That wasn’t enough to overcome large losses from earlier this week,…

Oil Set for Longest Run of Weekly Losses Since 2015 Amid Glut

17 Jun 2017   Prices

U.S. supplies remain 100 million barrels above 5-year average Libya sees its output reaching 1 million b/d by end of July Oil headed for the longest run of weekly losses since August 2015 as OPEC member Libya restored production just as the surplus in the U.S. showed few signs of abating. While futures added 0.5 percent in New York, they’re down 2.5 percent for the week, a fourth straight decline. U.S. inventories fell less than forecast last week, keeping supplies more than 100 million barrels above the five-year average, according to data from the Energy Information Administration on Wednesday. Libya, exempt from the OPEC-led deal to cut supply, will boost output to 1 million barrels a day by the end of July, according to the country’s National Oil Co. Oil slumped to the lowest close in seven months this week as concerns grew that rising U.S. supplies will offset […]

Oil sits near half-year lows as global supply overhang weighs

17 Jun 2017   Prices

Oil prices dipped early on Friday and were not far off six-months lows as an ongoing supply overhang weighed on markets despite an OPEC-led effort to cut production and prop up prices. Brent crude futures were down 6 cents, or 0.1 percent, at $46.86 per barrel at 0045 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 8 cents, or 0.2 percent, at $44.38 per barrel. Prices for both benchmarks are down by more than 13 percent since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended a pledge to cut production by 1.8 million barrels per day (bpd) by an extra nine months until the end of the first quarter of 2018. The price falls are due to ongoing high supplies despite the pledge to cut from within […]

Oil prices in the black, but underlying pessimism setting in

17 Jun 2017   Prices

Crude oil prices recover some lost ground in early Friday trading, though bearish sentiments are starting to settle in, analysts say. File photo by Monika Graff/UPI June 16 (UPI) — Crude oil prices bounced back into positive territory early Friday, but bearish sentiments may be entrenched for the short term at least. Crude oil prices have been through two consecutive weeks that saw markets lose as much as 4 percent because of lingering supply-side strains. Reports this week from the International Energy Agency and economists at the Organization of Petroleum Exporting Countries said balance was returning to the market, but it was taking longer than expected. In defending a move to cut its key lending rates, the Central Bank of Russia said Friday there were economic risks ahead because the movement in crude oil prices was lower than expected since OPEC decided to extend a coordinated production decline agreement […]

Can Oil Come Back From Its Longest Losing Streak In Years?

17 Jun 2017   Prices

Oil prices recovered somewhat in Friday’s trading session as markets reacted stoically on another rise in the U.S. rig count. (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) Friday, June 16, 2017 Oil prices dropped to new lows this week, completely erasing all the gains made since OPEC originally cut production back in November 2016. The fear is that persistent oversupply will continue to weigh on crude oil markets. Both the IEA and OPEC came out with forecasts this week that admitted that the adjustment process is happening much slower than they expected. That pulled down WTI and Brent, but when the U.S. EIA reported an uptick in gasoline inventories on Wednesday, oil prices really tanked. Oil prices are closing out the fourth consecutive week of losses – the longest string of weekly losses in two […]

Is $100 Oil Possible? Wells Fargo Says No

17 Jun 2017   Prices

$100 oil is but a “pipe dream,” according to a new investor note by Wells Fargo. “ $100 per barrel oil remains a pipe dream” due to “massive overproduction, ” real estate strategist John LaForge said in a note this week. Barrels price will bounce between $30 and $60 in the coming years, according to top bank’s diagnosis. At the $40-$50 price range, crude prices will likely crater, LeForge said, “ but [oil producers] are having a hard time restraining themselves from producing.” Shale production has caused American output to stand higher than it did in 2014, before the oil price crisis began. Wells Fargo data shows current production at 15.5 million barrels per day, compared to 14 million bpd three years ago. An $80 ceiling is also likely unattainable, LaForge said, “until the world’s oil producers stop overproducing.” “ We continue to hear that big cutbacks are on […]

Russia’s Central Bank Sees Oil Prices Down To $40 In 2018-2019

17 Jun 2017   -, Prices, Russia

In view of the current price movements and the oil market outlook, Russia’s central bank is keeping its oil price forecast for this year at US$50 per barrel, and still believes that the price of oil will drop to roughly US$40 in 2018-2019, Bank of Russia Governor Elvira Nabiullina said in a statement on Friday, after the bank cut the key interest rate to 9 percent annually. Although the pace of economic recovery has somewhat exceeded the Bank of Russia’s expectations, medium-term inflation risks remain in place, governor Nabiullina said. In the medium-term, “ The external economic situation will likely remain unstable, as confirmed by the volatility of oil prices. We do not rule out that [oil] production in the US will grow and other countries, which are not parties to the agreement, will expand their supplies to the global market. Demand-side risks are also in place. They result […]

Oil Set for Longest Run of Weekly Losses Since 2015 Amid Glut

16 Jun 2017   Prices

U.S. supplies remain 100 million barrels above 5-year average Libya sees its output reaching 1 million b/d by end of July Oil headed for the longest run of weekly losses since August 2015 as OPEC member Libya restored production just as the surplus in the U.S. showed few signs of abating. While futures added 0.5 percent in New York, they’re down 2.5 percent for the week, a fourth straight decline. U.S. inventories fell less than forecast last week, keeping supplies more than 100 million barrels above the five-year average, according to data from the Energy Information Administration on Wednesday. Libya, exempt from the OPEC-led deal to cut supply, will boost output to 1 million barrels a day by the end of July, according to the country’s National Oil Co. Oil slumped to the lowest close in seven months this week as concerns grew that rising U.S. supplies will offset […]

Oil Falls to New Seven-Month Low on Surplus Stocks

16 Jun 2017   Prices

Oil prices slipped again Thursday, guided lower for a second-straight session by an unexpected increase in gasoline stockpiles. Light, sweet crude for July settled down 27 cents, or 0.6%, at $44.46 a barrel on the New York Mercantile Exchange. It is the lowest settlement since Nov. 14. The losses extended a selloff that started Wednesday when crude tanked by nearly 4% after the U.S. Energy Information Administration reported…

Oil prices struggle on doubts OPEC can rein in oversupply

16 Jun 2017   Prices

Oil prices wallowed near their lowest levels in seven months early on Thursday, hurt by high global inventories and doubts over OPEC’s ability to implement production cuts. Brent crude futures were down 7 cents or 0.2 percent at $46.93 per barrel at 0053 GMT, after slumping nearly 4 percent in the previous session. U.S. West Texas Intermediate (WTI) crude futures were down 12 cents or 0.3 percent at $44.61 per barrel. Crude futures benchmarks are sitting near their lowest levels since late November last year when production cuts led by the Petroleum Exporting Countries (OPEC) were first announced. Brent and WTI are down over 12 percent since their opens on May 25, when the agreement to cut was extended to the end of the first quarter next year, instead of expiring this month as initially […]

Why The United States Rule Oil Prices… Not OPEC

16 Jun 2017   Prices

There’s no end in sight to slumping oil prices – good news for consumers but a dire development for major oil producers like Saudi Arabia and Russia. And now, rising U.S. oil production and exports are contributing to the slump. Last week, oil prices reached new lows for 2017, with Brent crude dipping below $48 per barrel and West Texas Intermediate dipping belo w $46. The drop has been attributed to an unexpected increase in U.S. crude inventories, which rose by 3.3 million barrels last week (according to the U.S. Energy Information Administration), despite expectations that it would drop by 3.5 million barrels. The rise in production is compounded by rising U.S. oil exports, since the U.S. lifted a 40-year ban on these exports in 2015. This led to modest increases in oil exports in 2016 but substantial increases so far in 2017. This is a key reason prices […]

Oil hits six-week low as OPEC fails to curb oversupply

15 Jun 2017   Prices

Sample bottle of crude oil are seen in this illustration photo June 1, 2017. Oil prices dropped to six-week lows on Thursday, under pressure from high global inventories and doubts about OPEC’s ability to implement agreed production cuts. Brent crude oil fell 30 cents to $46.70 a barrel, its weakest since May 5 and just above six-month lows, before recovering a little to trade around $46.90 by 0945 GMT. U.S. light crude was down 15 cents at $44.58, also not far off six-month lows. Both crude benchmarks have lost all the gains made at the end of last year after the Organization of the Petroleum Exporting Countries agreed with other big producers to cut output in an effort to prop up prices. OPEC and its allies have promised to restrict output until at least the end of the first quarter of next year to try to drain surplus supply. […]

Oil Slides to Seven-Month Low on High Inventories

15 Jun 2017   Prices

Oil prices tumbled to the lowest level in seven months Wednesday, as high oil inventories continued to erode confidence in the ability of major producers to ease a global supply glut. The U.S. Energy Information Administration reported a smaller-than-expected decline in crude-oil stockpiles last week, pushing prices below $45 a barrel and to the lowest levels since November. Meanwhile, gasoline stockpiles rose unexpectedly,…

Oil Tumbles to Lowest Since November as Gasoline Supplies Surge

15 Jun 2017   Prices

Gasoline inventories rose 2.1 million barrels last week: EIA Refinery utilization increased, while gasoline demand slipped Oil slipped to the lowest since November as weaker demand at the start of the summer driving season led to another increase in gasoline stockpiles. Futures closed 3.7 percent down in New York. Gasoline inventories rose 2.1 million barrels last week, and diesel supplies also increased, according to the Energy Information Administration. Crude inventories fell by 1.66 million barrels, less than the 2.45 million barrels that analysts surveyed by Bloomberg had expected. Adding to the market pessimism, the International Energy Agency said new production from OPEC’s rivals will be more than enough to meet growth in demand next year, overwhelming the oil group’s efforts to reduce supplies. “A gasoline inventory build is the last thing the bulls need,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by […]

Oil prices fall on OPEC output increase, rising U.S. crude stocks

14 Jun 2017   Prices

Workers clamp together pieces of pipe while drilling an oil well near Fort Stockton, Texas, U.S., May 4, 2017. Oil prices fell on Wednesday after data showed a build in U.S. crude stocks and OPEC reported a rise in its production despite its pledge to cut back on output. Brent crude futures LCOc1 were at $48.41 per barrel at 0652 GMT, down 31 cents, or 0.6 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $46.10 per barrel, down 36 cents, or 0.8 percent. Crude prices have fallen by more than 10 percent since late May, pulled down by an supply glut that persists despite a move led by the Organization of the Petroleum Exporting Countries (OPEC) to cut production by almost 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. OPEC’s own compliance with the cuts […]

Oil Closes Above $46 as Focus Shifts to U.S. Supply Drop

14 Jun 2017   Prices

U.S. crude inventories forecast to drop 2.4 million barrels OPEC’s production climbed by 336,100 barrels a day in May Oil rebounded after dipping below $46 a barrel as estimates that U.S. supplies declined helped investors turn their attention away from higher OPEC production. Futures closed 0.8 percent higher in New York after earlier dropping as much as 1.1 percent. U.S. crude inventories are forecast to have shrunk by 2.45 million barrels last week, according to a Bloomberg survey before an Energy Information Administration release Wednesday. That helped offset concerns over a report from the Organization of Petroleum Exporting Countries that the group’s output climbed the most in six months in May. Oil has lingered near $46 a barrel since the EIA reported last week that total U.S. crude and product stockpiles jumped by the most since 2008 in the week ended June 2. Saudi Arabia has sought to allay […]

The Downturn Is Over, But U.S. Oil Companies Face A Huge Problem

14 Jun 2017   Oil Supply, Prices, USA

The downturn may be over, but the oil price crash has left behind potentially long-term consequences for the oil industry. In the wake of the oil price rout that started in 2014, companies slashed expenditures, most notably in their exploration and development budgets—and this lack of investment could have severe ramifications for the oil industry. In 2016, for a second consecutive year, 68 U.S.-listed oil companies indicated in their annual reports that their combined proved liquids reserves dropped, the EIA said in an analysis on Monday. The 68 U.S.-listed oil companies—obliged to report proved reserves annually to the SEC—had their global crude oil and other liquids production averaging 24 million barrels per day (bpd) last year, which accounted for around 25 percent of the world’s total. The proved reserves—the ones that companies believe they can extract from known reservoirs under existing economic and operating conditions—dropped by a net 8.2 […]

Flooded markets mean low gas prices for U.S. commuters

14 Jun 2017   Prices, USA

Refineries leaving the market flush with gasoline and prices are lower year-on-year as a result, motor club AAA said in a weekly retail market report. File photo by Eduardo Sverdlin/UPI. June 13 (UPI) — The gasoline market in the United States is flooded, meaning most consumers are paying less at the pump than they were last year, AAA reported. The motor club reported a national average retail price for a gallon of regular unleaded gasoline at $2.33 for Tuesday, a slight decline from the previous day, relatively stable from last week and only about a penny less than this time last month. On this date in 2016, the national average price was $2.38 per gallon. In a weekly retail market report, AAA said high levels of crude oil in storage, coupled with a surge in gasoline production at the nation’s refineries, led to the decline in retail prices. “If […]

Oil Ticks Higher After Challenging Week

13 Jun 2017   Prices

Crude prices rose for a second consecutive session Monday amid a supply disruption in Nigeria and as major producers said their deal to cut output is working. U.S. crude futures rose 25 cents, or 0.55%, to $46.08 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 14 cents, or 0.29%, to $48.29 a barrel on ICE Futures Europe. The move higher comes after prices fell nearly 4% last week. Investors have…