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Russia in Active Consultations with OPEC

ENLARGE Arkady Dvorkovich, Russia’s deputy prime minister, at the World Economic Forum in Davos this year. He said on Wednesday that the Russian Energy Ministry was continuing to conduct active consultations with the European Union, Asia-Pacific countries, the Middle Eas and with countries of Latin America. Photo: Bloomberg News MOSCOW—Russia is conducting “unprecedentedly active” consultations with the Organization of the Petroleum Exporting Countries but isn’t discussing oil production cuts to support prices, Russian officials said on Wednesday. The consultations come after several months of low oil prices that are putting pressure on Russia’s budget and currency , but Russian officials poured cold water on any suggestion of coordinated production cuts. “The Energy Ministry is continuing to conduct active consultations and work with the European Union, countries of the Asia-Pacific region, the Middle East, including within the framework of OPEC, as well as with the countries of Latin America,” Deputy […]

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The Bottom of the Food Chain Is Experiencing a Catastrophic Collapse

A 1,000 Mile Stretch Of The Pacific Ocean Has Heated Up Several Degrees And Scientists Don’t Know Why According to two University of Washington scientific research papers that were recently released, a 1,000 mile stretch of the Pacific Ocean has warmed up by several degrees, and nobody seems to know why this is happening.  This giant “blob” of warm water was first observed in late 2013, and it is playing havoc with our climate.  And since this giant “blob” first showed up, fish and other sea creatures have been dying in absolutely massive numbers.  So could there be a connection?  And what is going to happen if the Pacific Ocean continues to warm up?  Could we potentially be facing the greatest holocaust of sea life in the Pacific that anyone has ever observed?  If so, what would that mean for the food chain and for our food supply? For […]

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Has The U.S. Reached “Peak Oil” At Current Price Levels?

Has The U.S. Reached “Peak Oil” At Current Price Levels? thumbnail Last night the EIA once again capitulated on the myth that rig counts don’t matter and the productivity of wells would largely offset, leaving the industry on a continuous path to higher output. The current consensus of 500,000 B/D additional growth in 2015 US production now appears very much at risk. Look how far we have come, folks, from all that media hysteria this past year. Yesterday, Reuters even wrote an article stating that the EIA prediction of a sequential decline in oil production in May vs. April would be the first, if proven, true prediction. Meanwhile, fact checking would indicate that this, in fact, occurred last week as reported here . In any event the EIA now thinks that production will decline 57,000 B/D in May counter to earlier expectations that the Permian would largely offset declines […]

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Oil above $59 on Middle East, U.S. output, but IEA report caps gains

LONDON (Reuters) – Brent crude oil prices rose above $59 a barrel on Wednesday amid tension in the Middle East and signs of a dip in U.S. production, but gains were capped by a report from the International Energy Agency (IEA) indicating that supplies would take longer to tighten than previously expected. Front-month Brent crude futures LCOc1 were up 68 cents at $59.11 per barrel by 0903 GMT, while U.S. crude futures CLc1 were up 70 cents to $53.99. Prices were supported by uncertainty in the Middle East, where fighting continues in Yemen. A Saudi-led campaign of air strikes against Iran-allied Houthi rebels threatened to turn into a ground intervention after Egypt said it had discussed military manoeuvres with Saudi Arabia and other Gulf allies. In the United States, North Dakota’s February oil production fell 15,000 barrels per day (bpd) versus January, although the number of producing wells hit […]

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Oil above $58 on U.S. shale output report, Mideast

LONDON (Reuters) – Crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war. Brent crude for May LCOc1 was up 50 cents at $58.43 a barrel by 0815 GMT, while U.S. crude CLc1 was up 60 cents at $52.51. The U.S. Energy Information Administration (EIA) said on Monday it expected U.S. shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in May. Shale production has helped boost U.S. oil output by more than 4 million bpd since 2010 and has been a key factor behind the collapse in world oil prices over the last year. But much lower oil prices, down from above $115 a barrel last June, have now begun to hit […]

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Look out OPEC! Oil ETF investors head for exit, risking new slump

NEW YORK (Reuters) – Oil investors who amassed a $6 billion long position in exchange traded funds, occupying as much as a third of the U.S. futures market, are now racing for the exit at a near record pace. Outflows from four of the largest oil-specific exchange traded funds, including the largest U.S. Oil Fund, reached $338 million in two weeks to April 8, according to data from ThomsonReuters Lipper. That is the first two-week outflow since September and the biggest since early 2014, marking a turnaround from heavy inflows in December and January on bets that oil prices would quickly rebound from six-year lows. If the exodus gathers pace it could signal new pressure on crude oil prices that had begun to stabilize at around $50 a barrel this year following their 60 percent plunge, says John Kilduff, a partner at energy fund Again Capital LLC in New […]

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IEA warns of ‘murkier’ oil outlook

The rebalancing of the global oil market may still be in its early stage with the outlook “only getting murkier”, according to the International Energy Agency , as uncertainties remain about demand and supply responses to the steep drop in prices. “The backdrop against which the adjustment is playing out is constantly changing,” said the wealthy nations’ energy watchdog in its monthly report. “Given deep changes in supply and demand in recent years, the way lower prices impact the market is also different from previous price corrections,” it added. Pockets of strength in oil demand have unexpectedly emerged of late as colder temperatures in the first quarter coincided with stronger economic growth across many OECD economies, the IEA said. Asian demand led by India, China and South Korea also grew, while Russia surpassed expectations. Demand growth rose by 1.3m barrels a day in the first quarter of 2015 compared […]

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World Oil Demand

mb/dWorld Oil Demand1Q20122Q20123Q20124Q20121Q20132Q20133Q20134Q20131Q20142Q20143Q20144Q20141Q20152Q20153Q20154Q2015868890929496© 2015 OECD/IEA World Oil Demand *Please note that these Highlights are from the latest Oil Market Report, which is released in full to subscribers only – according to this schedule each month . Non subscribers get free access to the latest Highlights on this schedule, however the full Oil Market Report is released to the public two weeks after the report is released to subscribers. If you would like to receive the full report with accompanying charts and graphs on the day of publication please subscribe or contact the subscription manager . Crude oil prices stabilised following early-February gains , with ICE Brent rising more than NYMEX WTI which was weighed down by swelling US stockpiles. At the time of writing, Brent was trading at around $58/bbl – up nearly 30% from a six-year low in January. WTI was at around $48/bbl. Having bottomed-out in 2Q14, […]

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U.S. Warns Iran to Halt Unilateral Military Moves in Iraq

ENLARGE U.S. President Barack Obama and Iraqi Prime Minister Haider al-Abadi during a bilateral meeting in the Oval Office on Tuesday. Photo: Mandel Ngan/Agence France-Presse/Getty Images WASHINGTON—President Barack Obama on Tuesday warned Iran to end its unilateral military role in Iraq, part of a broader U.S. effort to weaken Tehran’s influence in the fight against Islamist extremists in the Middle East. With Iraqi Prime Minister Haider al-Abadi sitting by his side in their first official Oval Office meeting, Mr. Obama said Iran had to “respect Iraqi sovereignty” by channeling any military support through Baghdad. Now, Tehran backs Shiite militias fighting Sunni militants from Islamic State. Mr. Obama also moved to tighten U.S. ties with Iraq by announcing $200 million in fresh humanitarian aid for the country. Iraqi Prime Minister Haider al-Abadi visits the White House on Tuesday. Col. Wes Martin (Ret.) explains the agenda will likely include how to […]

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Conflicting takes mean tough work ahead for Iran nuke deal

VIENNA (AP) — As negotiators prepare to start drafting a final deal to curb Iran’s atomic activities, conflicting U.S.-Iran takes on key elements mean tough work ahead of a June 30 deadline. Though six world powers remain at the bargaining table, the real negotiating is between the two nations. Ahead of the resumption of expert-level negotiations early next week, here’s a look at key areas of U.S.-Iran agreement and disagreement, based on fact sheets made available to the media by Tehran and Washington and comments from their officials. —- WHAT THEY AGREE ON – Iran will halve the number of working centrifuges, machines that can spin uranium gas into levels used for nuclear arms. That will leave about 5,000 centrifuges, enriching to levels substantially below weapons-grade. – Iran will re-engineer a nearly finished reactor to cut its production of plutonium and reduce the proliferation threat it would have posed. […]

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