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Russia Oil Chief Says Sanctions No Bar to Arctic Drilling

The most powerful man in Russia’s oil industry says U.S. sanctions won’t prevent the development of discoveries in the Arctic Ocean. Igor Sechin, chief executive officer of state oil producer OAO Rosneft (ROSN) and a long-time ally of President Vladimir Putin, spent two days traveling by plane, ship and helicopter last week to announce a billion-barrel crude strike in the iceberg-prone Kara Sea region of Russia’s Arctic Ocean. “We will continue working no matter what,” Sechin said in an interview on board a polar research vessel as he prepared to unveil the find he named Victory. “We will plan the work for next season. As I said, now we’ve drilled only the first structure — at Universitetskaya. There are more than 30.” But Sechin has a problem. The first well, the costliest yet drilled in Russia, relied on money and expertise from Exxon Mobil Corp. (XOM) , Rosneft’s partner […]

Posted On : Published By : Tom Whipple
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Why Peak-Oil Predictions Haven’t Come True

Have we beaten "peak oil"? For decades, it has been a doomsday scenario looming large in the popular imagination: The world’s oil production tops out and then starts an inexorable decline—sending costs soaring and forcing nations to lay down strict rationing programs and battle for shrinking reserves. U.S. oil production did peak in the 1970s and sank for decades after, exactly as the theory predicted. But then it did something the theory didn’t predict: It started rising again in 2009, and hasn’t stopped, thanks to a leap forward in oil-field technology. To the peak-oil adherents, this is just a respite, and decline is inevitable. But a growing tide of oil-industry experts argue that peak oil looks at the situation in the wrong way. The real constraints we face are technological and economic, they say. We’re limited not by the amount of oil in the ground, but by how inventive […]

Posted On : Published By : Tom Whipple
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Geneva Report warns record debt and slow growth point to crisis

Growth in China has slowed from double digits to 7.5% A “poisonous combination” of record debt and slowing growth suggest the global economy could be heading for another crisis, a hard-hitting report will warn on Monday. The 16th annual Geneva Report , commissioned by the International Centre for Monetary and Banking Studies and written by a panel of senior economists including three former senior central bankers, predicts interest rates across the world will have to stay low for a “very, very long” time to enable households, companies and governments to service their debts and avoid another crash. The warning, before the International Monetary Fund ’s annual meeting in Washington next week, comes amid growing concern that a weakening global recovery is coinciding with the possibility that the US Federal Reserve will begin to raise interest rates within a year. More On this story On this topic IN Global Economy […]

Posted On : Published By : Tom Whipple
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The Return To $30 a Barrel Oil

While the world starts to understand that behind the evil behind ISIS there is also another element to it, greed. US airstrikes hit mobile oil refineries in Syria that was help fund the terrorist group. Ideology is always best suited when it is being funded with oil and to strike at these mobile units is a step in destroying this ISIS terror threat. That was clear that when they were fighting over the Brega refinery in Iraq they went to great measures to kill people but save the refinery. While the Brent Crude fell hard against the WTI as Libyan oil comes back on line a late surge led by RBOB gasoline as refinery glitches and a larger than expected drop in US crude supply brought the market back. Yet with a soaring dollar it is hard to be too excited about the long side of almost any commodity. […]

Posted On : Published By : Tom Whipple
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NYMEX RBOB rally ends as October contract settles more than 5 cents lower

New York (Platts)–26Sep2014/633 pm EDT/2233 GMT NYMEX October RBOB corrected sharply Friday, settling 5.61 cents lower at $2.6619/gal, partly erasing a two-day rally that saw the prompt contract trade as high as $2.7577/gal. Prompt RBOB traded as low as $2.6308/gal early in Friday’s session. NYMEX November crude settled up $1.01 at $93.54/barrel, despite strong headwinds in the form of a stronger US dollar. ICE November Brent settled unchanged at $97/b. The prompt Brent/NYMEX crude spread settled at $3.46/b. NYMEX October ULSD settled near flat, up 47 points at $2.7005/gal. Article continues below… Platts Global Alert is a complete real-time information service for the global energy industry, providing breaking reports of deals done, price indicators for crude and products and more than 200 end-of-day assessments. RBOB’s downward move could be related to the expiration of October options Thursday, signaling that any squeeze play in the market was likely tied to […]

Posted On : Published By : Tom Whipple
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Iranian President Sees Little Progress on Nuclear Dispute

With a blunt demeanor that bordered on pessimism, President Hassan Rouhani of Iran said Friday that he was unhappy over the lack of progress in resolving his country’s protracted nuclear dispute with the major powers, less than two months before their self-imposed deadline for reaching a comprehensive agreement. “The progress realized thus far has not been significant,” Mr. Rouhani said at a news conference concluding his five-day visit to the United Nations General Assembly annual meeting, his second as president. He said any movement toward an agreement had been “extremely slow.” Mr. Rouhani also questioned the motives of the United States and its allies over what he described as their newfound concern with the Islamic State, the extremist group roiling Syria and Iraq. He expressed deep skepticism that “a few aerial bombardments” like those undertaken by an American-led coalition could eradicate the Islamic State and its affiliates. He repeatedly […]

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Oil Caps Biggest Weekly Gain in a Month; Discount Narrows

West Texas Intermediate crude capped its biggest weekly gain in a month on speculation stronger U.S. economic growth will increase demand. WTI narrowed its discount to Brent to a one-year low. The U.S. economy expanded in the second quarter at the fastest rate since the last three months of 2011, the Commerce Department said. Brent dropped for a third week in four as ample supplies shield the oil market from the U.S. military campaign against Islamic State. Gasoline tumbled after reaching this month’s high yesterday. “Improving U.S. economic conditions should improve the fundamental outlook here,” said Gene McGillian , an analyst and broker at Tradition Energy in Stamford , Connecticut . “The market is trying to stabilize. We still have a lot of supply out there and that’s weighing on the overall market.” WTI for November delivery rose $1.01, or 1.1 percent, to settle at $93.54 a barrel on […]

Posted On : Published By : Tom Whipple
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Rouhani: Courage needed to clinch nuclear deal

Rouhani: Courage needed to clinch nuclear deal Iran President Hassan Rouhani said Friday “courageous decisions” must be made to clinch a long-term nuclear agreement and that any deal without the lifting of all sanctions against Tehran was “unacceptable.” Speaking to reporters in New York on the sidelines of the annual U.N. General Assembly, he added that progress in the latest round of talks between Iran and six world powers has been “extremely slow.” “We must look forward to the future and make the courageous decisions vis-a-vis this problem,” Rouhani said. “ Iran will never surrender its legal right to civilian nuclear activities,” he added. “Enrichment will continue on our soil.” “Sanctions should be lifted totally and altogether and any agreement that does not have that will not be acceptable for Iran. This agreement will be beneficial for Iran, the P5+1 and for stability in the region,” he said. A […]

Posted On : Published By : Tom Whipple