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Oil below $100 on concern about US economy

Oil fell back below $100 a barrel Thursday as investors worried upcoming data would show weakness in the U.S. economy. Benchmark U.S. crude for March delivery declined 88 cents to $99.49 a barrel by 0945 GMT in electronic trading on the New York Mercantile Exchange. It rose as high as $101.38 the previous day on signs of strong Chinese demand. A day after the Organization of Petroleum Exporting Countries forecast higher global consumption of oil, investors were looking ahead to U.S. retail sales and initial jobless claims. Economists say last month’s U.S. retail spending may have been weak. Brent crude, which is used to set prices for international varieties of crude, lost 52 cents to $107.82 on the ICE exchange in London. In other energy futures trading in New York: – Wholesale gasoline shed 1.8 cents to $2.919 per gallon. – Heating oil fell 0.1 cent to $3.012 a […]

Posted On : Published By : Tom Whipple
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WTI Drops Amid Speculation Rally to 4-Month High Was Excessive

West Texas Intermediate crude slid amid speculation that its advance to the highest price in almost four months was excessive. Futures fell as much as 0.8 percent in New York as a technical indicator approached a level signaling further gains can’t be sustained. Prices increased six times in the past seven days. Stockpiles at Cushing, Oklahoma , dropped by 2.67 million barrels last week, Energy Information Administration data show, as a pipeline helped to move oil away from the largest U.S. storage hub. Total crude supplies rose by 3.27 million, more than the median estimate in a Bloomberg News survey. “The market has possibly overshot a bit,” said Victor Shum , a vice president at IHS Energy Insight, a consultant in Singapore . “The Keystone pipeline started service in late January, so the market was looking for an impact on Cushing inventories and it wasn’t disappointed.” WTI for March […]

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International Energy Agency – Oil Market Report

Oil markets rallied in mid-January as bitterly cold weather in the US pushed up demand for heating fuels, but on average benchmark prices weakened month-on-month (m-o-m). Upcoming seasonal refinery maintenance later put downward pressure on markets before prices rebounded in early February, with ICE Brent futures last trading at $109.25/bbl and NYMEX WTI at $101.25/bbl. Total OECD industry stocks plummeted by a further 56.8 mb in December, taking 4Q13 OECD stock draws to 1.5 mb/d, the steepest quarterly decline since 4Q99. At 2 559 mb, total OECD oil stocks stood 103 mb below their five year average at the end of December, while product stocks covered 28.8 days of forward demand. Global supplies fell by 290 kb/d in January, to 92.1 mb/d, on lower non-OPEC output . Supplies were up 1.50 mb/d year-on-year (y-o-y), however, as steep growth of 1.90 mb/d in non‐OPEC output and OPEC NGLs surpassed a drop of 390 kb/d in OPEC […]

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Oil Inventories Fell Most Since 1999 on Demand in IEA Estimate

Oil inventories in advanced economies tumbled in the fourth quarter by the most since 1999 because of “surprising robustness” of demand in the U.S. and other developed nations, the International Energy Agency said. The IEA, a Paris-based adviser to oil-consuming nations, also boosted forecasts for global fuel demand this year and the amount of crude that will be required from the Organization of Petroleum Exporting Countries. Stockpiles of crude and refined products shrank by 1.5 million barrels a day in the last three months of 2013 to end the year at 2.6 billion, their lowest level since 2008, the IEA said. “Far from drowning in oil, markets have had to dig deeply into inventories to meet unexpectedly strong demand,” the agency said. “A glut is looking increasingly elusive. U.S. demand strength likely reflects in part a structural response to the country’s supply bounty,” as surging shale oil output lowers […]

Posted On : Published By : Tom Whipple
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OPEC sees oil demand growing, but below potential

OPEC said Wednesday in a report from Vienna crude oil demand should increase, though regional economic variances will keep appetites tempered. The Organization of Petroleum Exporting Countries said in its market report for February it expected the world will need about 29.6 million barrels of its crude oil per day in 2014, down 300,000 bpd from the previous year. The 12-member oil cartel said in its report from Vienna its January production of 29.71 million bpd was up 28,000 bpd from the previous month. For cartel members, OPEC said Libya was the stand out in terms of production increases. From Dec. 13 to Jan. 14, Libyan oil production more than doubled to 510,000 bpd, though that’s well below the pre-civil war peak of 1.6 million bpd. For oil producers outside the cartel, OPEC said much of the increase in production is expected to come […]

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Iran Monthly Oil Exports Rise as Demand Spurs Output, IEA Says

Imports of Iranian crude rose by 100,000 barrels a day last month, with China , Japan and India taking more oil as a deal easing sanctions over Iran’s nuclear program took effect, the International Energy Agency said. Purchasing countries received 1.32 million barrels a day last month, the IEA, a Paris-based adviser to 28 nations, said in an e-mailed report today. An increase in the number of barrels shipped to the three Asian importers more than made up for reduced deliveries to South Korea, Syria and Taiwan , the agency said. An interim accord easing restrictions on insurance for Iran’s oil shipments and freeing up cash held outside the country in return for a suspension of nuclear work went into effect last month. Under the agreement, six buyers permitted under U.S. sanctions to take Iranian crude don’t have to cut imports to avoid penalties. Iran had an estimated 30 […]

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Iran's Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

Posted On : Published By : Tom Whipple
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Iran’s Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

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Escaped Inmates From Iraq Fuel Syrian Insurgency

A series of daring but little noticed breakouts from Iraqi prisons has freed hundreds of hardened militants who are now among the leaders and foot soldiers of the radical Sunni groups operating in neighboring Syria and, increasingly, in Iraq itself. The role of the former inmates in fueling a new wave of Sunni jihad across the region is an unfortunate reminder of the breakdown of authority in Iraq since the United States departed in 2011, of the security vacuum that has spread around the region and of the continuing threat of Sunni-led terrorist groups that the United States said it was fighting during its occupation of Iraq. The prison breaks also […]

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Total CEO eyes return to post-sanctions Iran if terms attractive

Total CEO Christophe de Margerie said Thursday the company would be interested in investing in a post-sanctions Iran, but only if the terms of upstream participation were attractive enough. De Margerie, speaking at a briefing in London, also stressed that Total would respect international law with regard to Iran and would not sign any deals with Tehran while the Islamic Republic remained under sanctions. "We will not sign or negotiate anything until the embargo is lifted," he said. But asked whether Total would be interested in returning to Iran if and when international sanctions against Tehran were lifted, de Margerie said: "If the terms are attractive, yes." Iran is currently finalizing a new draft upstream contract model. It hopes to offer international oil companies an early glimpse of the new draft contracts in February in Tehran, months before it introduces the finalized contracts at […]

Posted On : Published By : Tom Whipple