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Oil Pares Gain as IEA Sees Lower Price While Iran Talks Drag

Oil pared its advance as the International Energy Agency forecast prices will need to fall further to curb excess supplies, countering gains after nuclear talks stalled between Iran and world powers. Futures were 0.6 percent higher in New York, having earlier climbed 2.1 percent. The world remains “massively oversupplied” before markets tighten in 2016 when output growth outside OPEC grinds to a halt, according to the IEA. Senior officials involved in the nuclear negotiations said it was too late to reach an agreement by a Friday deadline. Oil is heading for a second weekly loss driven by China’s equities rout and the turmoil in Greece. Iran, the fourth-largest producer in the Organization of Petroleum Exporting Countries, plans to boost crude exports and recapture market share if international sanctions are lifted. “The realization that the tightening in the oil market will take longer than expected was definitely one of the […]

Posted On : Published By : Tom Whipple
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Oil Prices Rise on China Recovery and Iran Deadlock

NEW YORK—U.S. oil prices climbed Thursday, snapping a five-session losing streak, as expectations of higher Iranian crude-oil exports receded. Nuclear talks between Iran and six world powers are appear likely to drag on past Thursday’s midnight deadline. If a deal isn’t complete by Friday morning, Congress will get an extra month to review the deal. The prospect of a final deal has weighed on oil prices in recent months. If a deal is reached, sanctions currently limiting Iran’s oil exports would eventually be lifted, allowing the nation to sell more oil to the already-oversupplied global market. Light, sweet crude for August delivery settled up $1.13, or 2.2%, at $52.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.56, or 2.7%, to $58.61 a barrel on ICE Futures Europe. Oil prices fell sharply earlier this week amid concerns about gyrations in the Chinese stock markets […]

Posted On : Published By : Tom Whipple
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Natural Gas Prices Rebounds After Setting New One-Month Low

By Timothy Puko Natural gas prices rebounded on Thursday, gaining after falling earlier to a fresh one-month low. Bearish traders who have dominated the market may be taking profits by buying and bidding up the price, after weekly government storage data was published, a broker and analyst said. Prices dipped after the U.S. Energy Information Administration update at 10:30 a.m., EDT, said storage levels grew by 91 billion cubic feet, larger than the expected and average additions, in the week ended July 3. The five-year average addition for that week was 75 bcf. Forecasters surveyed by The Wall Street Journal had a median expectation of 85 bcf. The heavy surplus would indicate the market is oversupplied and by more than most had expected. But with that inventory news out of the way, traders who bet on a fall in prices may have been closing out their bets. In addition […]

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As oil teeters at $50, a few shale producers still drilling more

A pumpjack brings oil to the surface in the Monterey Shale, California, April 29, 2013. A handful of optimistic U.S. shale drillers are sticking with plans to deploy more rigs in the coming months even as oil prices take a sharp dive well below many producers’ $60-a-barrel breakeven point. On Wednesday, Pioneer Natural Resources Co. became the first big company to publicly confirm it was drilling more wells, saying it had already added two rigs in the Permian Basin of Texas this month and would keep on adding two a month as long as the oil price "remains constructive." Smaller shale oil producer WPX Energy Inc, whose operations are focused on North Dakota’s Bakken shale, said this week that its decision to add two rigs later this year was unaffected by a nearly $8 drop in crude prices since June to toward $50 a barrel. While half a dozen […]

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The Cost of Insuring Against a Commodities Crash Is Rocketing

Pink Slime No Brake to Beef Rally as Herd Contracts China’s stock slump has played havoc with the commodities market as traders fret that the economy driving global demand for raw materials is about to tank. The Bloomberg Commodity Index , which includes 22 commodities, everything from live cattle to natural gas, traded near a 13-year low this week as industrial metals and oil tumbled. Nickel plunged 9 percent in a single day. Here’s what prices have done over the past five days: Best and worst performers in Bloomberg’s Commodity Index over the past five days The increase in volatility has sent the cost of buying options to insure against bigger drops in the price of some commodities soaring. The table below shows the implied volatility for 90 percent puts on commodities, or options that bring protection against a 10 percent drop in prices. The higher the implied volatility, […]

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IEA Says Oil May Fall Further Before Supply Growth Slows

Oil prices may fall further as the world remains “massively oversupplied,” before markets tighten in 2016 when output growth outside OPEC grinds to a halt, according to the International Energy Agency. There will be no overall production growth outside the Organization of Petroleum Exporting Countries for the first time since 2008, according to the IEA. Growth in U.S. shale oil supplies will stagnate to mid-2016 while output declines in Russia, the Paris-based adviser said in its first detailed assessment of the year ahead. Global oil demand growth will slow in 2016, the agency predicted. Oil-producing nations around the world are reeling after OPEC initiated a strategy in November to defend its share of global markets by pressuring rivals to curb output. Oil prices, 45 percent lower than a year ago, may need to decline further to reduce the supply surplus, the IEA said. “The bottom of the market may […]

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IEA Says Oil Prices May Fall More Amid Slowing Demand

The International Energy Agency said Friday global demand for oil would slow down next year, as it warned that crude prices could resume a recent downward spiral. “The bottom of the market may still be ahead,” the agency said in its closely watched monthly oil-market report. In its first oil-consumption assessment for next year, the IEA—which advises industrialized nations on their energy policies—said global oil demand growth is forecast to slow to 1.2 million barrels a day in 2016. That compares with an average 1.4 million barrels a day this year. It said a return of Iranian oil and if Greece were to exit from the euro could put further pressure on oil prices—which have lost about 10% in the past month. Tehran this week failed to meet a deadline to clinch a nuclear deal with world powers. But if sanctions were lifted, it could raise exports immediately out […]

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Oil Market Report

mb/d 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 fell to their lowest in nearly three months in early July, pressured by ever rising supply while financial turmoil in Greece and China unsettled world markets. At the time of writing, Brent was around $59/bbl and US WTI at $53.10/bbl. Global oil demand growth is forecast to slow to 1.2 mb/d in 2016, from an […]

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Nuclear talks deadlocked as U.S. refuses to accept Iran’s rights on sanctions: Fars agency

The United States’ refusal to accept Iran’s rights, particularly on sanctions, is blocking a deal between the Islamic state and the six major powers, a source told Iran’s semi-official Fars news agency on Thursday. "While the Iranian team is showing flexibility, the Americans are refusing to accept Iran’s obvious right, particularly on sanctions," Fars quoted an unnamed source as saying. The United States, Britain, France, Germany, Russia and China have been negotiating with Iran to reach a long-term deal under which Tehran would its curb nuclear activities in exchange for sanctions relief.

Posted On : Published By : Tom Whipple
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Restart of crude oil exports from Libya’s Ras Lanuf port in doubt after threat

* Petroleum guards say vessels would be impounded * Two tankers seen headed for 220,000 b/d port * Force majeure at Ras Lanuf lifted July 2 Libya’s hopes of resuming crude exports from its third-largest port Ras Lanuf may have been dashed after guards that protect the facility said they would not allow any vessel to dock there. State-owned NOC lifted the force majeure on crude loadings at Ras Lanuf — which had been in place since December — on July 2, theoretically allowing for exports to resume from the 220,000 b/d capacity terminal. Article continues below… The Platts Global Energy Awards is a competitive awards program honoring excellence and accomplishments in the global energy industry. The 17th annual awards will be presented at a black-tie gala, attracting energy industry leaders from around the world on Wednesday, December 9th, 2015 at Cipriani’s in New York. Don’t miss this opportunity […]

Posted On : Published By : Tom Whipple