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Oil prices rise on hopes for China stimulus

SEOUL Oil prices edged up on Tuesday on hopes of more economic stimulus in China after disappointing data from the world’s No.2 economy. China’s consumer inflation weakened more than expected, to 1.2 percent year-on-year in May, raising concerns about growing deflationary pressures as the economy cools. Its producer prices fell for the 38th straight month. "The weak data continues to point out the sluggish demand in the real economy. The government should roll out more easing measures to lower the real financing costs to boost growth," said Yu Yafang, macro strategist at Huachuang Securities in Beijing. Front month U.S. crude CLc1 climbed 41 cents to $58.55 a barrel by 0655 GMT (0255 ET) , after ending the previous session down 99 cents. Brent for July delivery LCOc1 rose 45 cents to $63.14 a barrel, having settled down 62 cents in the previous session. Chinese oil imports fell about 11 […]

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Oil Prices Retreat as China Imports Soften

Oil prices fell in Asian trade Monday, after China reported a drop in its oil imports and as the impact of the Organization of the Petroleum Exporting Countries’ decision to keep its production level unchanged trickled through. Investors are also expected to turn their attention to the June 30 deadline for the Iran nuclear deal that could pave the way for the lifting of Western sanctions and more Iranian oil hitting the oil market. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $58.54 a barrel at 0322 GMT, down $0.59 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange fell $0.56 to $62.75 a barrel. Oil markets have struggled to sustain a price rally as bearish supply indicators such as Saudi Arabia’s record output have offset signs of a decline in U.S. shale oil production. This bearishness […]

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A New Peak in Conventional Crude Oil Production

Since May 2005, global conventional crude oil + condensate production (C+C) has been constrained to a bumpy plateau of around 73.2 Mbpd. That limit was breached in December 2014 with a new high of 74.28 Mbpd (Figure 1, blue area is conventional C+C). This comes on the back of a prolonged period of record high oil price. It seems likely that the reason for the new high is OPEC abandoning constraint rather than an actual expansion of global conventional C+C production capacity. Figure 1 The EIA report various categories of hydrocarbon liquids production including a category for combined crude oil + condensate. This category includes Canadian syncrude (tar sands) and light tight oil (LTO previously known as shale oil). Conventional C+C production is estimated by deducting the unconventional sources from the C+C total and shows a new peak of 74.28 Mbpd for December 2014. The chart is not zero […]

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G-7 Adds Thrust to UN Climate Talks With Ambitious Target

The Group of Seven large industrialized democracies said the world should reduce greenhouse gas emissions by as much as 70%, an agreement that helps lay the groundwork for United Nations climate talks in Paris later this year. The leaders of the seven countries, including the U.S. and meeting host Germany, said in a joint statement at the end of the G-7 summit here that deep cuts in carbon dioxide emissions were needed this century. They said countries around the world should hold to the upper end of a U.N. recommendation calling for 40% to 70% reductions in greenhouse gas emissions by 2050 compared with 2010. “For the first time ever, G-7 leaders have rallied behind a long-term goal to decarbonize the global economy,” said Jennifer Morgan, director of the global climate program at the World Resources Institute, an environmental think tank. The joint statement on climate was one of […]

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Global economic policies may hinge on oil prices

EDINBURGH, Scotland, June 8 (UPI) — Countries that depend heavily on oil for part of their government revenue may see companies’ investment appetite wane without fiscal reforms, analysis finds. The International Monetary Fund in April said low oil prices have led to a subdued outlook for the global economy, with importers and exporters alike feeling the impact. Growth would be uneven, it said, as advanced economies expand while developing economies shrink. Some factors, like the decline in the value of the ruble, the currency in oil-rich Russia, are easily visible, though other factors, like slow capital growth in emerging economies, are less apparent, the IMF said. Graham Kellas, vice president of fiscal research for Wood Mackenzie , said governments across the globe are examining the terms for investing in the exploration and production sector as the weak market for crude oil endures. "For some governments, the impact of the […]

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Delayed gratification for OPEC, more pain for investors

Delayed gratification is said to be a sign of maturity. By that standard OPEC at age 55 demonstrated its maturity this week as it left oil production quotas for its members unchanged . It did so in the face of oil prices that are about 40 percent lower than they were at this time last year , delaying once again a return to the $100-per-barrel prices seen during the past four years. Why OPEC members chose to leave their oil output unchanged is no mystery . The explicit purpose for keeping oil prices depressed is to close down U.S. oil production from deep shale deposits–production that soared when oil hovered around $100 a barrel, but which is largely uneconomic at current prices. That production was starting to threaten OPEC’s market share. If OPEC were to cut its oil production now and drive prices back up, it would only lead […]

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Iran sees oil interest from Europe

Iranian Minister for Oil Bijan Zanganeh says big European energy companies are eager to work in the country’s oil sector. File Photo by Maryam Rahmanian/UPI TEHRAN, June 8 (UPI) — While some European companies are eager to work with Iran, the country’s oil minister said there’s been few commitments on oil sales. "I met with the [top executives] of big European oil companies," Iranian Oil Minister Bijan Zanganeh said. "They expressed interest in returning [to Iran] for an active presence in Iran’s market." The Iranian government is pressing for more sanctions relief from a framework agreement slated to take effect in mid-2015. Zanganeh said he met with top European executives on the sidelines of last week’s meeting in Vienna of ministers from the Organization of Petroleum Exporting Countries. In April, Zanganeh said Iran could return as a dominant force in OPEC once a nuclear deal is formalized with six […]

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Iraqis Progress in Defending Beiji Oil Refinery, U.S. Says

WASHINGTON—The Iraqi government is making progress in its efforts to hold on to the country’s largest oil refinery and to retake a nearby city controlled by Islamic State fighters, the Pentagon said Monday. An Iraqi Shiite fighter battles Islamic State for the city of Beiji. Iraqi security forces, working with Shiite militias, have broken through a defensive line controlled by Islamic State, allowing Baghdad to resupply its forces fighting for the Beiji oil refinery over land, said Col. Steve Warren, the Pentagon spokesman. That has allowed Iraqi security forces to mark progress against Islamic State forces mounting an assault on the refinery. Shiite militias, fighting under the banner of the Popular Mobilization Force and largely controlled by the Iraqi government, also are leading an offensive to retake the nearby city of Beiji, Col. Warren said. Those forces, along with some Iraqi forces, have moved into Beiji and begun to […]

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Egypt: Petroleum Projects Worth U.S.$9.4 Billion Currently Underway in Egypt – Minister

Cairo — The petroleum sector is currently implementing projects worth $9.4 billion, in addition to projects that have been completed, Egypt’s petroleum minister said on Monday. The ministry is seeking to complete projects with an investment value of $3.8 billion before the end of this year, Minister Sherif Ismail said in a statement. These include a major project to produce ethylene and its derivatives. The plant will be based in Alexandria city on Egypt’s Mediterranean coast and production is due to start before the end of 2015. This is said to be the largest petrochemical project in the country. Petrochemical projects are currently a top priority in the ministry’s strategy, the minister said, describing petrochemical projects as a "fundamental pillar" to maximising the value of petroleum wealth. Copyright © 2015 Aswat Masriya. All rights reserved. Distributed by AllAfrica Global Media ( allAfrica.com ). To contact the copyright holder directly […]

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Cyprus emerging as regional gas player

Government of Cyprus gets notification a reserve area off its coast holds commercial quantities of natural gas. File Photo by UPI/Maryam Rahmanian TEL AVIV, Israel, June 8 (UPI) — A group of Israeli energy partners said they were declaring a natural gas reservoir discovered off the coast of Cyprus a commercial prospect. Delek Group, along with its partners at Avner Oil Exploration and Noble Energy, said they submitted a declaration to the Cypriot government that reserves discovered in the Aphrodite prospect were considered of commercial quality . "In addition, the Aphrodite reservoir partners intend to submit a proposed outline of the development plan of the Aphrodite reservoir to the government of Cyprus," they said in a joint statement. Delek offered no indication of the reserve estimates in the Aphrodite reservoir. The Mediterranean island nation of Cyprus is considered frontier energy territory, though the offshore area could hold nearly 12 […]

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