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Libya OPEC Governor Calls for Output Cut Amid Oil Plunge

Print Back to story Libya’s OPEC governor called for the group to reduce oil output by at least 500,000 barrels a day as its biggest members discount supplies to defend market share rather than cut production to boost prices. The market is oversupplied by about 1 million barrels a day, Libya’s Samir Kamal said by e-mail yesterday. His comments reflected personal views, not the official Libyan position, he said. They mark the first time a member nation representative is suggesting how much production needs to be reduced after prices entered a bear market . Brent crude , a benchmark for more than half of the world’s oil, has tumbled about 25 percent since June, as producers including Saudi Arabia cut export prices to stimulate demand amid the highest U.S. output in almost 30 years. Banks including BNP Paribas SA and Bank of America Corp. predict the price rout may […]

Posted On : Published By : Tom Whipple
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Brent Falls to Lowest Since 2010 After IEA Cuts Forecast

Brent oil tumbled to the lowest level in almost four years and West Texas Intermediate slipped the most since 2012 after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009. Futures dropped 4.3 percent to $85.04 a barrel in London and 4.6 percent to $81.84 in New York . Oil consumption will rise by about 650,000 barrels a day this year, 250,000 fewer than the prior estimate, the Paris-based agency said in a monthly report. U.S. crude supplies probably grew by 2.5 million barrels last week, according to a Bloomberg survey of analysts before a report from the Energy Information Administration on Oct. 16. Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the most in almost 30 years and global demand weakens. The biggest producers in the Organization of Petroleum Exporting Countries are responding by […]

Posted On : Published By : Tom Whipple
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Oil demand down, IEA says

Global oil demand faltering, International Energy Agency says. UPI/A.J. Sisco.. PARIS, Oct. 14 (UPI) — Lower economic growth expectations mean the forecast for global oil demand is down, but should recover in 2015, the International Energy Agency said Tuesday. The Paris-based IEA released its monthly market report for October, saying it cut its oil demand prediction for the year by 200,000 barrels per day from the previous month’s report to 92.4 million bpd. The IEA attributed the decline to lower economic growth . In its monthly report, the Organization of Petroleum Exporting Countries kept oil demand growth predictions steady at 1.05 million bpd for 2014. "Annual demand growth for 2014 is now projected at 700,000 bpd, rising tentatively to 1.1 million bpd in 2015 as the macroeconomic backdrop improves," IEA said in its forecast. OPEC last week said the global economy should grow by 0.6 percent next year to […]

Posted On : Published By : Tom Whipple
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Oil fell for a third month straight in September with Brent breaking through $90/bbl in October

Oil fell for a third month straight in September with Brent breaking through $90/bbl in October , on abundant supply, slowing demand growth and a strong US dollar. Brent prices have fallen by over 20% since June, when turmoil in Iraq lifted prices to $116/bbl, and were last at a near four-year low of $88.70/bbl. NYMEX WTI was at $85.20/bbl.   The forecast of global oil demand for 2014 has been revised 0.2 mb/d lower since last month’s Report, to 92.4 mb/d, on reduced expectations of economic growth and the weak recent trend. Annual demand growth is now projected at 0.7 mb/d in 2014, rising tentatively to 1.1 mb/d in 2015, as the macroeconomic backdrop improves.   Global supply rose by almost 910 kb/d in September to 93.8 mb/d, on higher OPEC and non-OPEC output. Compared with a year earlier, total supply stood 2.8 mb/d higher, as OPEC supply swung back to growth and amplified robust […]

Posted On : Published By : Tom Whipple
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IEA 2014 Oil Demand Growth Forecast Weakest Since 2009

By Sarah Kent LONDON–The International Energy Agency on Tuesday cut its 2014 oil demand growth forecast to its weakest in five years, sending another bearish signal to the market as oil prices continue to tumble. In its closely watched monthly oil market report, the Paris-based energy watchdog cut its forecast for the amount it expects oil demand to increase this year by 200,000 barrels a day to just 700,000 barrels a day. Oil prices have tanked since June amid concerns over sluggish demand in a weak global economy coupled with healthy supply growth. However, the IEA said the weakness in demand growth may have reached its bottom. The organization sees demand picking up more next year, to increase by 1.1 million barrels a day. In fact, the glut in oil supply could prove more significant in sustaining market weakness. Oil production surged last month, due in part to a […]

Posted On : Published By : Tom Whipple
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Saudis boost output as oil price slumps; Venezuela wants emergency OPEC meeting to discuss

London (Platts)–10Oct2014/556 pm EDT/2156 GMT – Caracas has contacted OPEC ministers – Saudi September output at 30.474 million b/d – Cartel under pressure to cut output Venezuela on Friday called for an emergency OPEC meeting, saying action was needed to stop the fall in oil prices, even as Saudi Arabia told the oil producer group it had boosted its crude production in September by more than 100,000 b/d. Saudi Arabia and several other key OPEC member countries have so far shown little sign of panic over the price slide that has seen Brent crude prices slide from around $115/barrel in mid-June to as little as $88.10/b earlier last Thursday, dismissing the need for a meeting before the November 27 scheduled conference. Venezuela’s foreign minister and former oil minister Rafael Ramirez said Caracas was calling for an extraordinary meeting to coordinate action to stop the fall in oil prices and […]

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OPEC October MOMR and other news

The OPEC Monthly Oil Market Report  has just came out with OPEC production data for September 2014. All production numbers are in thousand barrels per day with the last data point September 2014. The August production numbers were revised down 275,000 bpd from 30,347 kbd to 30,054 kbd. Current OPEC 12 production stands at 30,474 kbd, up 402 from the revised numbers. Saudi Arabia Saudi Arabia’s August production numbers were revised down 202 kbd. With that revision they are down another 50 kbd in Septemer to 9,605 kbd. By far the largest change in OPEC production came from Libya, up 251 kbd to 787 kbd. The other big gainer was Iraq, up 135 kbd to 3,164 kbd. Iraq et al. The four OPEC nations that have increased production over twice as much as total OPEC appears to have topped out at around 18.5 million barrels per day. Algria et […]

Posted On : Published By : Tom Whipple