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Brent Oil Set for Longest Run of Weekly Losses Since ’02

Brent crude headed for a sixth weekly loss, the longest decline since 2002, as OPEC boosted production to a 14-month high amid a global surplus. West Texas Intermediate was on track for its biggest monthly decline in more than two years. Futures fell as much as 1.3 percent in London, bringing October’s drop to about 9.9 percent. Both Brent and WTI are headed for their biggest monthly declines since 2012. Output from the 12-member Organization of Petroleum Exporting Countries increased by 53,000 barrels a day to 30.974 million, a third monthly gain, a Bloomberg survey showed. Traders are split on whether Saudi Arabia will deepen the crude price cuts that propelled oil into a bear market this month. “In the very short-term there’s still downside risk if no one says they’re going to cut production,” Hans van Cleef, energy economist at ABN Amro Bank NV in Amsterdam, said by […]

Posted On : Published By : Tom Whipple
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WTI, Brent search for traction

Secretary General of OPEC Abdalla El Badri signals to oil markets there’s nothing to worry about. UPI/Maryam Rahmanian Major stock indices struggled to find a consensus in Thursday trading after the U.S. Federal Reserve announced an end to the stimulus program known as quantitative easing. The Nikkei 225 Index was up 0.67 percent while the DAX index in Europe posted a drop of 0.92 percent. West Texas Intermediate crude oil prices for December delivery drifted off its Wednesday mark to trade down 0.62 to $81.58 in early Thursday trading. WTI, the U.S. benchmark, has been drifting toward the $80 mark because of supply and demand dynamics in the U.S. market. The U.S. Energy Information Administration said in its weekly report crude oil production for the week ending Oct. 24 averaged 8.97 million barrels per day, an increase of about one half of one percent from the previous week and […]

Posted On : Published By : Tom Whipple
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Crude Falls on Federal Reserve Stimulus Halt, U.S. Supply

West Texas Intermediate oil fell after the Federal Reserve ended its asset-purchase program and U.S. crude production surged to the highest level since the 1980s. Brent declined in London . Futures slipped 1.3 percent in New York . The dollar strengthened a second day against the euro after the Fed’s announcement, curbing the appeal of commodities priced in the U.S. currency as a store of value. U.S. crude supplies rose for a fourth week as output increased to 8.97 million barrels a day, Energy Information Administration data showed yesterday. “Yesterday’s Fed announcement is pushing the dollar higher, which is putting selling pressure on commodities,” Gene McGillian , an analyst and broker at Tradition Energy in Stamford , Connecticut , said by phone. “The supply build yesterday may have been smaller than expected but it was still quite large. Ample supply and economic worry are going to continue to weigh […]

Posted On : Published By : Tom Whipple
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Natural Gas Holds Gains as Inventories Meet Expectations

By Christian Berthelsen and Nicole Friedman Natural gas prices held gains Thursday as weekly inventory data came in largely in line with estimates, and forecasts for cold weather prompted expectations for gas-fired heating demand. Natural gas for December delivery was up 2.8 cents, or 0.8%, at $3.8160 a million British thermal units on the New York Mercantile Exchange. The U.S. Energy Information Administration said domestic gas stockpiles rose 87 billion cubic feet in the week ended Oct. 24, slightly higher than the 85 bcf increase projected by a Wall Street Journal survey of analysts. Total inventories now stand at 3.48 trillion cubic feet, just shy of the 3.5 tcf mark that analysts say will ensure adequate supplies through the fall and winter heating season. With analysts expecting continued storage increases into November, stockpiles could cross that threshold as early as next week. Inventories now stand 8.2% below average levels […]

Posted On : Published By : Tom Whipple
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No Guarantee Saudis to Repeat Price Cut That Drove Oil Lower

Asian traders are split on whether Saudi Arabia will deepen the crude price cuts that propelled oil into a bear market this month. State-run Saudi Arabian Oil Co. will announce official selling prices for supplies to buyers in Asia for December next week after cutting prices to the lowest in almost six years for a month earlier. The world’s biggest oil exporter will further discount supplies, according to seven respondents in a Bloomberg survey of traders. Six people forecast prices to be unchanged and two predict an increase. Saudi Arabia’s decision may signal whether the biggest producers in the Organization of Petroleum Exporting Countries will offer bigger discounts to defend market share as the highest U.S. output in three decades boosts global supplies. After the most recent price cut on Oct. 1, Brent crude tumbled 9 percent and West Texas Intermediate slumped 11 percent amid speculation that OPEC won’t […]

Posted On : Published By : Tom Whipple
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OPEC Oil Output Rises in October as Prices Tumble: Survey

OPEC crude production rose to a 14-month high in October as oil futures sank into a bear market , a Bloomberg survey showed. Production by the 12-member Organization of Petroleum Exporting Countries climbed by 53,000 barrels a day to 30.974 million, led by gains in Iraq , Saudi Arabia and Libya , according to the survey of oil companies , producers and analysts. Last month’s total was revised 14,000 barrels a day lower to 30.921 million because of changes to the Iraqi, Kuwaiti, Nigerian and Qatari estimates. Output rose as Brent crude dropped to a four-year low amid ample global supplies and signs that demand will be sluggish through the end of the year. OPEC’s biggest producers, Saudi Arabia, Iraq, Iran and Kuwait , have cut their official selling prices, sparking speculation they will compete for market share rather than trim output. Ministers will gather next month to discuss […]

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China province orders 30 pct of vehicles off roads for APEC

SHIJIAZHUANG, Oct. 31 (Xinhua) — Five cities in north China’s Hebei Province, which surround Beijing, will ban 30 percent of vehicles from roads to help ensure cleaner air for the upcoming APEC meeting in the Chinese capital. The 10-day restriction that starts on Nov. 3 applies to the cities of Langfang, Baoding, Tangshan, Zhangjiakou and Chengde, which are all within 200 kilometers of Beijing, the Hebei provincial public security bureau said Friday. Meanwhile, high-emission vehicles are banned from driving on highways and city roads during the period. Local traffic police will order trucks, tricycles, motorcycles, tractors and high-emission passenger cars coming from Hebei and other provinces planning to pass through Beijing to return or make a detour. Beijing will also restrict cars based on an odd-and-even-number rule, allowing cars to drive on alternating days from Nov. 3 to 12. Apart from vehicle controls, the Chinese government has also ordered […]

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ConocoPhillips Becomes First to Cut Spending on Lower Oil

ConocoPhillips became the first major oil company to announce plans to reduce spending due to falling crude prices as drilling in some emerging North American fields becomes less profitable. The third-largest U.S. energy producer can meet its target to boost production by as much as 5 percent each year even as it reduces annual spending to below $16 billion, Chairman and Chief Executive Officer Ryan Lance told investors today. ConocoPhillips plans to scale back drilling in emerging oil regions such as West Texas and the Rocky Mountains . The company’s ability to produce oil at lower costs in more established areas that have fueled the U.S. shale boom make growth sustainable. ConocoPhillips (COP) could also reduce exploration spending, he said. “Events like the recent price downturn underscore the importance of staying focused on the fundamentals,” Lance said. “We know this is a cyclical business, and we’ve been here before.” […]

Posted On : Published By : Tom Whipple