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Oil Demand Seen by IEA Rising Fastest Since ’10 on China

Global oil demand will rise at the fastest pace in five years in 2015 as China leads gains in emerging economies, the International Energy Agency said. World oil consumption will increase next year by 1.4 million barrels a day, the agency said in its first monthly report to assess 2015. The rate of growth will be the fastest since 2010. It’s also higher than a projected increase of 1.2 million a day in supplies from outside the Organization of Petroleum Exporting Countries, the agency said. Demand growth will be led by China and other countries outside the 34-member Organization of Economic Cooperation and Development. While prices have retreated in the past month as threats to supplies in Libya and Iraq abate, they remain “historically high and there is no sign of a turning of the tide just yet,” according to the report. “The global economy is still expected to […]

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Prepare for Oil to Keep Falling on Libya to U.S. Supply

New U.S. pipelines and a revival in Libyan supply are increasing the likelihood that oil prices will slump through year-end after climbing in the first six months. Wall Street analysts tracked by Bloomberg predict West Texas Intermediate oil will average $100 a barrel in the fourth quarter, down 5.1 percent from June 30, while Brent drops 4.8 percent to $107. Violence in Iraq sent Brent to $115.71 in June, its highest level since September, on concern supplies would be disrupted. Brent is poised to decline in part on increased output in Libya as key export terminals were reopened. In the U.S., traders are focused on supplies at Cushing, Oklahoma , the delivery point for the WTI futures contract. Tallgrass Energy Partners LP plans to complete the conversion of the Pony Express pipeline to carry crude to Cushing from Wyoming . Enbridge Inc.’s Flanagan South will connect to the hub […]

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IEA Warns Little Room for Complacency in Oil Markets in 2015

Geopolitical tensions and the shaky economic recovery means there is little room for complacency in oil market in the next 12 months, the International Energy Agency warned Friday. In its closely watched monthly oil market report, the Paris-based energy watchdog forecast rising demand growth and a steady increase in supply from non-Organization of the Petroleum Exporting Countries for 2015. It said global demand for oil will accelerate to 1.4 million barrels a day from 1.2 million barrels a day this year, while oil supply from outside OPEC will increase by around 1.2 million barrels a day, continuing the trend of robust non-OPEC production. However, the IEA warned that the risks associated with its 2015 demand forecast are "particularly high" due to the uncertain global economic recovery and geopolitical tensions in a host of countries, including Iraq, Libya, Nigeria and Venezuela, are adding to the macroeconomic uncertainties. The same political […]

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OPEC Sees U.S. Fueling Acceleration in Global Oil Demand Next Year

Rising U.S. oil consumption will reverse a four-year demand decline in rich nations and drive a pick up world-wide next year, the Organization of the Petroleum Exporting Countries said Thursday. The assessment–the first given for 2015 by the oil producers’ group–shows the U.S. is scooping more of its own oil amid a production boom just as OPEC’s role continues to decrease. In its monthly oil market report, OPEC said global oil demand growth will pick up next year amid robust economic growth. World consumption will increase by 1.21 million barrels a day in 2015, compared with a rise of 1.13 million barrels a day this year, the group said. Oil consumption has recently been falling in most industrialized nations due to fuel-conservation measures and economic woes. But in 2015, the accelerating demand growth will be partly driven by an increase in oil demand in industrialized nations […]

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Iraq Crude Exports to Rebound in July Amid Unrest: IEA

Iraq should boost southern crude exports this month even after an armed insurgency disrupted the nation’s northern oil operations, according to the International Energy Agency. Shipments from Iraq’s southern region should recover this month to about 2.6 million barrels a day, compared with 2.42 million in June, barring technical problems, the Paris-based IEA said today. The increase will come from oil in storage tanks at Fao and added capacity from the West Qurna 2 and Majnoon fields. Production from the northern Kurdistan region surged last month even as the conflict escalated, the IEA said. “Iraq’s southern oil fields have so far remained untouched by the violence sweeping through the north and west,” the IEA said in its monthly oil market report. “The risk remains that militants will target the region’s vital infrastructure and cause a substantial or lengthy disruption.” Iraqi crude production fell to 3.17 million barrels a day […]

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Iran's Oil Exports Dropped to Lowest Level Since October, Says Watchdog

Iran’s oil exports dropped to their lowest level since October but are still set to narrowly surpass an agreed cap at the end of the month, data released by a top energy watchdog showed Friday. An interim nuclear agreement between Iran and six world powers requires the Islamic Republic to keep its crude exports at 1 million barrels a day on average over the six months ending July 20. In its monthly oil-market report, the International Energy Agency—which advises industrialized nations on oil policies—said Iran’s oil exports, including crude and condensates, had fallen by 26% in June to 1.08 million barrels a day amid sharp cuts by its two largest Asian buyers. That low level had not been reached since October when it stood at 715,000 barrels a day, according to previous IEA data. China has cut its Iranian oil imports by 36% in just two months to 510,000 […]

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Iran’s Oil Exports Dropped to Lowest Level Since October, Says Watchdog

Iran’s oil exports dropped to their lowest level since October but are still set to narrowly surpass an agreed cap at the end of the month, data released by a top energy watchdog showed Friday. An interim nuclear agreement between Iran and six world powers requires the Islamic Republic to keep its crude exports at 1 million barrels a day on average over the six months ending July 20. In its monthly oil-market report, the International Energy Agency—which advises industrialized nations on oil policies—said Iran’s oil exports, including crude and condensates, had fallen by 26% in June to 1.08 million barrels a day amid sharp cuts by its two largest Asian buyers. That low level had not been reached since October when it stood at 715,000 barrels a day, according to previous IEA data. China has cut its Iranian oil imports by 36% in just two months to 510,000 […]

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Kerry to Join Iran Nuclear Talks

U.S. Secretary of State John Kerry and other foreign ministers from the six-power group negotiating a final nuclear agreement with Iran will join the talks in Vienna this weekend, officials confirmed late Thursday. Michael Mann, the spokesman for European Union foreign policy chief Catherine Ashton, chairwoman of the six-power group, said on Twitter that she had invited foreign ministers "who are available to come to Vienna on Sunday to take stock of where we are in talks." A Western diplomat said some of the foreign ministers will likely start arriving on Saturday as Iran and the six powers try to forge a comprehensive nuclear deal by a July 20 deadline. The diplomat said it isn’t yet clear whether all the ministers will be able to come in person. However, State Department deputy spokeswoman Marie Harf confirmed that Mr. Kerry would join the negotiations, which will include Iranian Foreign Minister […]

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KRG takes Kirkuk, Bai Hassan fields

KRG takes Kirkuk, Bai Hassan fields The Kurdistan Regional Government (KRG) has dispatched its armed forces and civilian staff to take over nearly the entire North Oil Company (NOC) early Friday, telling workers they are now in charge of the Kirkuk, Bai Hassan and other fields with nearly 500,000 barrels per day (bpd) of production capacity.The mobilization of Kurdish Peshmerga soldiers and civilian oil engineers comes after the Oil Ministry demanded NOC workers dismantle the valves of a KRG-installed pipeline connecting KRG-c… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple
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Kurds threaten legal action over oil sales

The Kurdish government of Iraq said it may take legal action against any entity buying oil from the federal government because of constitutional issues. The semiautonomous Kurdistan Regional Government of Iraq said it’s entitled under provisions in the national constitution to 17 percent of all oil sales made by the federal government. "The federal Oil Ministry and State Organization for Marketing of Oil continue to sell and to seek to sell oil, gas and other petroleum products to third parties, and to retain the full proceeds of such sales, all in violation of the KRG’s express constitutional and legal rights, and without the participation or approval of the KRG," the Kurdish government said in a statement Wednesday. Because the federal government isn’t sharing revenue, the Kurdish government said buyers are also complicit in the violations and therefore may be subject to legal action. The Kurdish government has sent several […]

Posted On : Published By : Tom Whipple