Keyword: oilprices

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  • Gartman: ‘’Crude Not Going Above $55 For Years’’

    09/07/2016 10:53:30 AM PDT · by bananaman22 · 13 replies
    Oilprice.com ^ | 07-09-2016 | Dennis
    In mid-January, everyone's favorite market indicator Dennis Gartman, made an infamous prediction when oil was trading in the mid-$30s, when he said that oil won't hit $44 again "in my lifetime" Sure enough, three months later, oil "killed" Gartman, or at least his credibility, when it jumped above $44. We thought that Gartman had learned his lesson, and would avoid such bombastic forecasts in the future. Turns out we were wrong, and earlier today Gartman again appeared on CNBC, where he said that "investors shouldn't expect the commodity to break through $55 for a few years."
  • Boom, Balance Or Bust: What's Next For Oil?

    08/23/2016 9:27:28 AM PDT · by bananaman22 · 4 replies
    Oilprice.com ^ | 23-08-2016 | Nick
    Oil prices have surged more than 20 percent in the last two weeks but there is quite a bit of disagreement over whether or not the rally can continue. The spark that created the bull market was the decision from OPEC to hold an unscheduled meeting in Algiers in September to discuss a production freeze. On the one hand, it would seem odd that OPEC members would once again go through all the motions and trouble of holding another meeting without a high degree of confidence that this time will be different. On the other hand, it has been years...
  • Has T. Boone Pickens Timed the Oil Market Just Right?

    08/16/2016 8:59:15 AM PDT · by bananaman22 · 7 replies
    Oilprice.com ^ | 16-08-2016 | Wildcatter
    t’s a tough business right now for oil and gas companies, with some companies faring better than others with most majors releasing in-the-red second quarter financials, but business mogul T. Boone Pickens has made a bold and heavy return to the energy market, upping his stake in energy holdings by more than a third in the second quarter, according to data tallied by Bloomberg. The value of BP Capital Fund Advisors LLC’s energy stock holdings increased by $55 million to $218 million. BP Capital Fund Advisors added stakes to eight energy-related companies at a time when oil prices were painstakingly...
  • Is Saudi Arabia About To Cry Uncle In The Oil Price War?

    08/14/2016 6:04:37 PM PDT · by Petrosius · 33 replies
    OilPrice.com ^ | August 11, 2016 | Rakesh Upadhyay
    The Kingdom is struggling with weak GDP growth, higher fees and taxes, and an economy that is unable to pay the dues to its workers, leaving thousands of workers from South Asia with an uncertain future. When a nation is unable to provide food to its migrant workers, it says a lot about their financial condition. The oil price crash has forced the oil-rich Kingdom to introduce austerity measures, and delay payments to already cash-strapped contractors.
  • End of Driving Season Could Send Oil Back to February Lows

    08/03/2016 9:58:37 AM PDT · by bananaman22 · 5 replies
    Oilprice.com ^ | 03-08-2016 | Driver
    Summer driving season: it’s the season to be traveling, what with long weekends, annual leaves and short getaways from the banalities of everyday life at the office. The summer season in the Northern Hemisphere is when demand for crude oil invariably picks up, because fuel consumption increases. In Europe, there’s greater hunger for diesel and in the U.S. there’s a pickup in gasoline demand. Usually. This year’s driving season, however, is shaping up to be a very disappointing exception to the usual seasonal patterns in fuel demand. People are not traveling now as much as analysts expected back in May....
  • Oil Tumbles Below $40 on Flurry of Bearish News

    08/01/2016 10:01:23 AM PDT · by bananaman22 · 6 replies
    Oilprice.com ^ | 01-08-2016 | Matt
    A new week, a new month, a new sell-off. Crude prices are charging lower to start the week as a plethora of bearish indicators emerge to encourage crude lower. Hark, here are five things to consider in the oil market today.
  • The Biggest Threat To Oil Prices Is The Dollar, Not A Supply Glut

    07/28/2016 9:14:52 AM PDT · by bananaman22 · 5 replies
    The glut of gasoline and other refined products has taken center stage for the oil markets, threatening to initiate a new bear market and push oil prices down below $40 per barrel for the first time in months. But while a surplus of refined products is weighing on crude prices, there could be another culprit that does not get as much publicity. Goldman Sachs says that a strong dollar deserves more blame for an oil price downturn, and further strengthening of the greenback looms as a much larger threat to prices than the gasoline glut. The U.S. Federal Reserve could...
  • Forget The Glut – This Is Why Oil Prices Will Rise

    07/26/2016 9:29:43 AM PDT · by bananaman22 · 18 replies
    Oilprice.com ^ | 26-07-2016 | Steffens
    U.S. oil production peaked at over 9.6 million barrels per day in June, 2015: Based on Core Labs' prediction above, U.S. oil production will fall to under 8.3 million barrels per day before the end of this year and will continue fall to under 7.5 million barrels per day sometime in 2017 before it stabilizes. The only thing that will stop U.S. oil production from falling is a sharp increase in oil prices. In my opinion, West Texas Intermediate (WTI) must move firmly over $60/bbl before we will see the increase in capital expenditures necessary to stabilize U.S. oil production....
  • Is This The Next Big Headache For Oil Prices?

    07/25/2016 8:00:46 AM PDT · by bananaman22 · 2 replies
    Oilprice.com ^ | 25-07-2016 | Nick
    When oil analysts look at the markets to try to get a sense of where oil prices are heading, one of the great unknowns, at least in the U.S. shale industry, is the large volume of drilled but uncompleted wells (DUCs). As oil prices began collapsing two years ago, shale drillers increasingly decided to defer the completion of their drilled wells, hoping to wait out the downturn and bring production online at a later point when prices rebounded. But with oil prices suffering from a prolonged downturn, the DUCS began to mount, leaving a huge backlog of potential production that...
  • IEA: Gasoline Glut Could Cause Oil Price Rout

    07/13/2016 9:39:07 AM PDT · by bananaman22 · 7 replies
    Oilprice.com ^ | 13-07-2016 | IEA
    Oil prices have been crushed over the past two years because of a glut of production. With supplies falling off, particularly in the U.S. shale patch, prices have begun to firm up. But another glut that has built up and has stubbornly refused to fall threatens another oil price downturn. In its July Oil Market Report, the International Energy Agency warned about shockingly high levels of refined products sitting in storage. Gasoline, diesel and heating oil are built up to such high levels in so many parts of the world, that a sharp rise in crude oil prices is unlikely...
  • Crude Rebounds Spectacularly On Weaker Dollar

    07/12/2016 1:24:34 PM PDT · by bananaman22 · 3 replies
    Oilprice.com ^ | 12-07-2016 | Len
    Oil prices showed weakness on Monday once again after a brutal few days last week. But WTI and Brent moved up in early trading hours on Tuesday. Several news items overnight pushed oil up on Tuesday, including a falling U.S. dollar, a ruling from an international court on the South China Sea (more below), news that an ExxonMobil well was attacked in the Niger Delta (something which Exxon denies), and reports that some oil exports were delayed from Iraq because of a pipeline leak. The markets are awaiting crude inventory estimates from API later today, which could move prices.
  • Citibank: We’re Nearing A Bull Market For Oil

    07/12/2016 10:01:52 AM PDT · by bananaman22 · 8 replies
    Oilprice.com ^ | 12-07-2016 | Citi
    Citigroup is “especially bullish” on commodities in 2017, the bank says. “The oil market is treading water for now, but the oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade,” Citi analysts, led by Ed Morse, wrote in a research note published on July 11. There is a quite a bit of volatility in commodity markets, especially for oil, but global demand continues to grow at a steady pace. Prices have crashed on oversupply, but with oil production going offline, particularly in the U.S., the markets...
  • Why An Oil Price Crash Remains Unlikely

    07/06/2016 10:20:46 AM PDT · by bananaman22 · 4 replies
    Oilprice.com ^ | 06-07-2016 | Mike
    There has been a lot of optimism returning to the energy markets of late as oil prices have climbed to the $50 a barrel region. Ironically, while a few years ago $50 a barrel would have been seen as an unthinkably low oil price, today it is regarded as much needed relief from prices that ran in the $25 a barrel region earlier this year. Yet with the climb in prices, analysts are now starting to forecast prices per barrel of as much as $80 in the next year. That view is not the mainstream though. Instead most analysts are...
  • Oil Prices Down As OPEC Fails To Agree Output Ceiling

    06/02/2016 8:35:11 AM PDT · by bananaman22 · 10 replies
    Oilprice.com ^ | 02-06-2016 | Nick
    The much anticipated OPEC meeting in Vienna on June 2 ended pretty much as expected: the group once again failed to put any production targets in place. Without a ceiling on output, all OPEC members will continue to produce as they see fit, leaving the oil market to sort itself out. The result was largely anticipated, given the lack of agreement at several prior meetings. However, the meeting in Vienna was not without some news. OPEC members managed to agree on several small bore issues, which could be viewed as a modest success, especially after the apparent hostility on display...
  • Why Did Saudi Arabia Kill OPEC?

    05/26/2016 9:31:53 AM PDT · by bananaman22 · 4 replies
    Oilprice.com ^ | 26-05-2016 | Len
    The OPEC meeting is only a week away, but the chances of a positive result are as remote as ever. Rising oil prices, the heightened rivalry between Saudi Arabia and Iran, and Saudi Arabia’s willingness to go it alone will make a deal all but impossible. First of all, Iran is not in a cooperative mood. According to the IEA, Iran has managed to boost oil production to 3.56 million barrels per day in April, its highest level since November 2011. Oil exports also jumped 600,000 barrels per day to 2 million barrels per day. Importantly, Iran’s output now stands...
  • Saudi Arabia Admits To A Full-Blown Liquidity Crisis

    05/19/2016 1:38:49 PM PDT · by Braak · 24 replies
    Zerohedge ^ | 5/18/2016 | Tyler Durden
    Previously we documented that as a result of the still low oil prices, largely a result of Saudi Arabian strategy to put high cost producers out of business and to remove excess supply, none other than Saudi Arabia has been substantially impacted, with the result being dramatic state budget, a sharp economic slowdown and mass worker layoffs. Just three weeks ago we reported that the biggest construction conglomerate in the middle east, the Saudi Binladin Group had announced it would layoff 50,000 workers ot a quarter of its workforce, slammed by the weak economy. Now, Saudi Arabia has admitted that...
  • $500 Billion In Lost Oil Revenues Forces Gulf Nations To Turn To Debt Markets

    04/28/2016 2:24:51 PM PDT · by bananaman22 · 9 replies
    The International Monetary Fund (IMF) has projected a whopping $500 billion loss in revenue for the Gulf nations in 2016, which is 30 percent more than the $390 billion lost in 2015. The massive shortfall has crippled the gulf economies, which are facing record budget deficits and seeking external funding to overcome it. Many experts believe that $100 per barrel oil prices are history, and we might not revisit those prices for more than a decade. It implies that the recent crisis will not end as quickly as the downturn in 2007-2009. The oil-dependent nations will have to figure out...
  • Oil Prices Jump To Six-Month High

    04/28/2016 11:55:35 AM PDT · by bananaman22 · 10 replies
    Oilprice.com ^ | 28-04-2016 | Chemokuurtje
    Oil prices surged to their highest levels in six months on Wednesday as the Fed left interest rates unchanged. WTI jumped by 2.8 percent to $45.29 per barrel and Brent climbed by 3.17 percent to $47.19 per barrel. Those are the highest prices so far in 2016 and the oil markets continue to bet on rising momentum for crude. The Federal Reserve added strength to oil when it announced its decision to leave interest rates unchanged, a move that caused the dollar to weaken and oil prices to rise. The Fed also softened its language regarding its concerns over the...
  • The Real Reason Saudi Arabia Killed Doha

    04/25/2016 11:46:55 AM PDT · by bananaman22 · 3 replies
    Oilprice.com ^ | 25-04-2016 | Captain Hook
    Saudi Arabia single-handedly scuttled the Doha meeting, knowing all along that Iran would not participate, with a valid reason. The Russians and others agreed to proceed without Iran, planning to include them at a later date. So if everything was known beforehand, why did the Saudi’s pour cold water on the aspirations of the remaining members, risking its alienation from Russia and the OPEC community? Was it simply Saudi enmity toward Iran? Not exactly. Upon closer scrutiny, we can find the Saudi masterstroke behind Doha. It is well known that Saudi Arabia is heavily dependent on oil revenues, and that...
  • Why Low Oil Prices Haven’t Helped The Economy

    04/12/2016 8:01:35 AM PDT · by bananaman22 · 36 replies
    Oilprice.com ^ | 12-04-2016 | Jim
    Many analysts had anticipated that a dramatic drop in oil prices such as we’ve seen since the summer of 2014 could provide a big stimulus to the economy of a net oil importer like the United States. That doesn’t seem to be what we’ve observed in the data. There is no question that lower oil prices have been a big windfall for consumers. Americans today are spending $180 B less each year on energy goods and services than we were in July of 2014, which corresponds to about 1 percent of GDP. A year and a half ago, energy expenses...
  • How The Oil Crisis Has Impacted Military Spending

    04/11/2016 2:33:46 PM PDT · by bananaman22 · 2 replies
    Oilprice.com ^ | 11-04-2016 | Irina
    A report by the Stockholm International Peace Research Institute has revealed that most of the world’s nations hiked their military budgets last year, marking the first increase in spending since the 2008 crisis. It seems that the only ones not taking part in this military spending hike are some of the world’s biggest oil producers. While the United States is still the country with the largest military budget at $596 billion spent in 2015, this figure was actually a decline on the previous year. Saudi Arabia, according to Bloomberg, would also have cut its military budget if not for the...
  • What Happens When Oil Hits $50?

    03/21/2016 1:00:25 PM PDT · by bananaman22 · 11 replies
    Oilprice.com ^ | 21-03-2016 | hoeren
    The major beneficiary of the 54 percent jump in oil prices from the lows of $26 per barrel is the U.S. shale oil industry, which will utilize this rise to ramp up production and repair balance sheets. But any move above $45 per barrel will likely reverse all this good luck: The drop in production will halt and more will be added to the supply glut. It’s a bit of a double-edged sword.
  • Oil Fundamentals Could Cause Oil Prices To Fall, Fast.

    03/08/2016 1:53:07 PM PST · by bananaman22 · 5 replies
    Oilprice.com ^ | 08-03-2016 | Free Republican
    Oil prices should fall, possibly hard, in coming weeks. That is because fundamentals do not support the present price. Prices should fall to around $30 once the empty nature of an OPEC-plus-Russia production freeze is understood. A return to the grim reality of over-supply and the weakness of the world economy could push prices well into the $20s. A Production Freeze Will Not Reduce The Supply Surplus An OPEC-plus-Russia production cut would be a great step toward re-establishing oil-market balance. I believe that will happen later in 2016 but is not on the table today.
  • Is This The Most Bullish News For Oil Since 2014?

    02/25/2016 10:48:08 AM PST · by bananaman22 · 13 replies
    Oilprice.com ^ | 25-02-2016 | Len
    Whiting Petroleum announced earnings on February 24, with probably the most bullish and shocking news to come to the oil patch since the crash started in June 2014. It announced that it will not maintain any active rigs in the Bakken shale region in 2016 and also announced production cuts of 15-20 percent and a capital spending reduction of 80 percent. The significance of this is that, contrary to popular belief, the so called breakeven points are not anywhere close to $30 when you take into account cap ex. That should be obvious enough, but the media and many analysts...
  • Saudi Oil Minister Says Oil Production Cut “Not Going To Happen”

    02/23/2016 10:29:31 AM PST · by bananaman22 · 7 replies
    Oilprice.com ^ | 23-02-2016 | Ali
    Saudi Arabia’s oil minister spoke in Houston at the IHS CERAWeek conference, where he poured cold water on the prospect of a production cut. Saudi oil minister Ali al-Naimi, one of the most important voices in the oil world, spoke at the conference on Tuesday. He first suggested that the production freeze being negotiated between several key OPEC members and Russia could be a building block. “Freeze is the beginning of a process, and that means if we can get all the major producers to agree not to add additional balance, then this high inventory we have now will probably...
  • OPEC Will Not Blink First

    02/10/2016 2:56:09 PM PST · by bananaman22 · 11 replies
    Oilprice.com ^ | 10/02/2016 | Oilprice
    An OPEC production cut is unlikely until U.S. production declines by about another million barrels per day (mmbpd). OPEC won’t cut because it would accomplish nothing beyond a short-term increase in price. Carefully placed comments by OPEC and Russian oil ministers about the possibility of production cuts achieve almost the same price increase as an actual cut. Bad News About The Oil Over-Supply from IEA and EIA The International Energy Agency (IEA) and U.S. Energy Information Administration (EIA) shook the markets yesterday with news that the world’s over-supply of oil has gotten worse rather than better in recent months. IEA...
  • OPEC Will Not Blink First

    02/10/2016 10:58:26 AM PST · by bananaman22 · 6 replies
    Oilprice.com ^ | 10-02-2016 | kale poes
    An OPEC production cut is unlikely until U.S. production declines by about another million barrels per day (mmbpd). OPEC won’t cut because it would accomplish nothing beyond a short-term increase in price. Carefully placed comments by OPEC and Russian oil ministers about the possibility of production cuts achieve almost the same price increase as an actual cut.
  • Fundamentals For Oil Still Bearish, But Sentiment Is Shifting

    02/03/2016 1:11:36 PM PST · by bananaman22 · 4 replies
    Oilprice.com ^ | 03-02-2016 | esmionoestuyo
    Oil speculators spent the latter half of 2015 with an incredibly pessimistic view of the trajectory for oil prices. Speculators piled into short positions, pushing net-shorts to multiyear highs. But speculators are at a bit of a crossroads at this point. With oil down to $30 and below, a growing number of hedge funds and other major investors are starting to wonder whether or not the selloff has gone too far. To be sure, oil markets are still suffering from too much supply, but with so much production around the world unprofitable at today’s prices, a rally will have to...
  • Rumors of OPEC-Russia Coordination Send Oil Prices Surging

    01/27/2016 12:24:17 PM PST · by bananaman22 · 9 replies
    Oilprice.com ^ | 27-01-2016 | The Motherland
    Oil prices surged by midday on Wednesday on comments from Russian officials hinting at possible coordination with OPEC on production cuts in an effort to arrest the decline in prices. The day didn’t start off on such a positive note. The EIA reported a massive increase in oil storage levels – a jump of 8.4 million barrels last week. Inventories are at their highest levels in at least 80 years. That pushed oil prices down in early trading on Wednesday.
  • 60 Reasons Why Oil Investors Should Hang On

    01/26/2016 3:50:48 PM PST · by bananaman22 · 9 replies
    Oilprice.com ^ | 26-01-2016 | doyle
    Inventories will continue to rise, but the momentum is slowing. The following are some observations as to how we got here and how we’re gonna get out. 9 reasons why oil has taken so long to bottom: 1. OPEC increased production in 2015 to multiyear highs, principally in Saudi Arabia and Iraq where production between the two added 1.5 million barrels per day (mb/d) to inventories after the no cut stance was adopted. 2. Russian production increased in 2015 to post Soviet highs. 3. Long planned Gulf of Mexico production began coming on in late 2015. 4. An overhang of...
  • $20 Oil No Longer Seen As Good For The Economy

    01/19/2016 11:12:03 AM PST · by bananaman22 · 53 replies
    Oilprice.com ^ | 19-01-2016 | austerity hurts no?
    While low energy prices are thought to provide a boost to the global economy as consumers benefit from lower costs, there are growing signs that the dramatic collapse in oil prices – so sudden and so severe – is actually creating economic headwinds. The oil and gas industry spent $200 billion on drilling, refining, and new equipment in 2013, and the sharp cutback in spending is being felt beyond just the oil patch. Last week Wood Mackenzie estimated that $380 billion worth of oil and gas projects were scrapped by the industry. In The New York Times on January 16,...
  • Oil Sold for -$0.50 per Barrel. A Negative Price!

    01/18/2016 3:54:46 PM PST · by bananaman22 · 18 replies
    Oilprice.com ^ | 18-01-2016 | northdakoterrrr
    The oil markets are on edge with oil sinking into the $20s per barrel. And last week we reported on one place where oil is already trading in the single-digits. Canada’s bitumen is selling for just $8 per barrel. But even that rock bottom price is higher than what one oil seller earned for a shipment recently. In a bizarre turn of events, Bloomberg reported that Flint Hill Resources, a refining unit owned by the Koch brothers, said that they would purchase sour crude from North Dakota for $-0.50 per barrel. That’s right: a negative price. Oil has become so...
  • Low Oil Prices Take Their Toll On Recycling Sector

    01/18/2016 7:17:40 AM PST · by bananaman22 · 9 replies
    Oilprice.com ^ | 18-01-2016 | plastic
    “Plastics,” Mr. McGuire tells Ben Braddock in the 1967 film “The Graduate.” He was impressing on the young man the importance of one of the chief branches of the oil industry: Virtually every item available at the time contained plastic, or was packaged in it. So a career in plastics meant you always had something to sell. That’s just as true today, despite many changes in societal priorities. Plastics are still ubiquitous, whether they’re made from oil or recycled from scrap. But a major change has come over the past 19 months, and there’s no telling how long it will...
  • Forget $20 - Oil Prices At $8 Per Barrel In Canada

    01/14/2016 1:34:01 PM PST · by bananaman22 · 22 replies
    Oilprice.com ^ | 14-01-2015 | noh
    Where is the cheapest crude oil in the world? And how low can you get that barrel of oil? WTI has declined to $30 per barrel, the lowest level in more than 12 years. But heavy oil producers in Canada would love to have $30 oil. The price for a barrel of bitumen, the tar-like oil sands that comes from Alberta, fell to just over $8 per barrel this week. That is not a typo. Bitumen traded at $8.35 per barrel on Tuesday. In fact, Amazon.com sells oil drums – just the barrel, not the oil – for $78, almost...
  • Crashing Oil Prices And Dropping Rig Count Take Their Toll On U.S. Output

    01/12/2016 2:36:28 PM PST · by bananaman22 · 1 replies
    Oilprice.com ^ | 12-01-2015 | Steve
    The EIA has just published its latest update to the Drilling Productivity Report (DPR), and soon we will get their update to the Short Term Energy Outlook. These are the two documents in which the EIA take a stab at estimating where US production is going, as opposed to where it has been. Weakness in the Chinese economy has hung like a pall on the oil market since the turn of the year and there is nothing putting a floor under the oil price just yet, but to my eyes the decline of US shale production is now well established...
  • Four Oil Tanks Now on Fire at Libyan Ports after Clashes

    01/06/2016 8:56:55 PM PST · by fella · 4 replies
    Rig Zone ^ | 6 JAN 2016 | Ayman al-Warfalli
    BENGHAZI, Libya, Jan 6 (Reuters) – Fires caused by clashes between Islamic State militants and guards near Libya's biggest oil ports have spread to four oil storage tanks that were still burning on Wednesday, a guards spokesman said. Ali al-Hassi said the Petroleum Facilities Guards were in control of Es Sider and Ras Lanuf ports, but that skirmishes continued. At least nine guards were killed and more than 40 injured in fighting around the perimeter of the area on Monday and Tuesday. Hassi said guards had recovered bodies of 30 Islamic State fighters, and had also captured two military tanks...
  • Professional Pandering -- Desperate Cruz, Dependent on Iowa, Flip-Flops on Ethanol Subsidies...

    01/06/2016 5:30:43 PM PST · by Greetings_Puny_Humans · 330 replies
    Conservative Treehouse ^ | 1/06/2015 | Sundance
    Professional Pandering -- Desperate Cruz, Dependent on Iowa, Flip-Flops on Ethanol Subsidies... Posted on January 6, 2016 by sundance In what can only be noted as "typically Cruzian" the Senator who sponsored the "Renewable Fuel Standard Repeal Act", which would have immediately repealed the ethanol mandate, has now reversed course and claims to support continued Iowa Corn Subsidies. The pandering flip-flop becomes "brutally Cruzian" when the campaign for Ted Cruz denies the current change in position by pointing to a prior change in position; saying, in effect: when Senator Ted Cruz decided to run for President he changed his position,...
  • Senator Ted Cruz listens to Iowa farmers, supports Renewable Fuel Standard (Ethanol) through 2022

    01/06/2016 11:23:15 AM PST · by springwater13 · 291 replies
    SIOUX CENTER - During a bus tour stop in Sioux Center, Iowa last night, Senator Ted Cruz expressed support for the Renewable Fuel Standard (RFS) through 2022. Responding to a question from an ethanol investor from Iowa about whether he would allow the landmark energy program to continue through its current expiration in 2022, Sen. Cruz responded by expressing support for the RFS through 2022. Senator Cruz also expressed passionate support for breaking through the so-called "blendwall." That "blendwall" makes it illegal for ethanol to expand its market penetration, and I intend to eliminate the EPA blendwall to get rid...
  • Saudi Arabia vs Iran: The oil war that isn't coming

    01/05/2016 4:46:00 AM PST · by thackney · 3 replies
    CNBC ^ | 1/4/2016 | Everett Rosenfeld
    Armchair analysts have been predicting an oil price war between Saudi Arabia and Iran for a while now, and escalating tensions between the countries would seem to portend a major market disruption. But that war may never come. Saudi Arabia announced Monday that it will sever all commercial ties with Iran, a day after the kingdom said it would cut diplomatic relations with Iran. Protesters stormed the Saudi embassy in Tehran earlier Sunday, and the country's supreme leader, Ayatollah Ali Khamenei, predicted "divine vengeance" for the Saudi execution of a major Shiite cleric. Saudi Arabia is predominantly Sunni and home...
  • 10 Key Energy Trends To Watch For In 2016

    01/06/2016 6:56:51 AM PST · by bananaman22 · 1 replies
    Oilprice.com ^ | 06-01-2015 | trends
    Energy investors got clobbered in 2015, and are hoping for things to turn positive as we head into the New Year. What can we expect in 2016? Here is a rundown of some key trends to watch for: 1. U.S. oil production contracts. Oil output in the U.S. has declined by about 300,000 barrels per day to 9.3 million barrels per day (mb/d). Most energy prognosticators, including the EIA and the IEA, see U.S. production falling by around 0.5 mb/d in 2016. The decline could be steeper than that, however, given the plunging rig count, high depletion rates, and extraordinary...
  • BP’s CEO Finally Sees Oil Prices Bottoming Out

    01/05/2016 11:59:31 AM PST · by bananaman22 · 5 replies
    Oilprice.com ^ | 05-01-2015 | dudley
    Since last summer, Bob Dudley, the CEO of the British oil giant BP, has been cautioning that he expects oil prices to stay “lower for longer.” Now he believes he’s determined how much longer those prices may decline, and when they may start rising again. “A low point could be in the first quarter [of 2016],” Dudley said in an interview broadcast Saturday by the BBC. “But 2016’s third and fourth quarters could witness a more natural balance between supply and demand, after which stock levels could start to wear off.”
  • OPEC Expects U.S. Oil Production To Rise In 2016… Really?

    12/29/2015 11:54:02 AM PST · by bananaman22 · 36 replies
    Oilprice.com ^ | 29-12-2015 | Peak oil ping
    The OPEC 2015 World Oil Outlook came out a few days ago. They basically produce two outlooks, a medium term outlook to 2020 and a long term outlook to 2040. I found their medium term outlook pessimistic in some cases too optimistic in others. But I found their long term outlook to be wildly optimistic… in most cases. In all cases below I chart crude when it is available and “liquids” only when no other option is available. The data is in million barrels per day.
  • Top 10 Oil And Gas Stories Of 2015

    12/28/2015 11:39:12 AM PST · by bananaman22 · 1 replies
    Oilprice.com ^ | 28-12-2015 | OILP
    2015 has been an historic year for oil markets, one that few will forget. At the beginning of the year, crude oil was well on its way to the lowest point since the financial crisis, dropping into the $40s in January. Prices bounced around, rebounded into the $60s by early summer, and then declined again for the rest of the year. As we close the books on 2015, crude oil is hovering just above an 11-year low point. Here’s a quick review of some of the key developments from 2015
  • Obamacare Is Sucking Up To 10% Of Americans' Incomes

    12/28/2015 8:12:15 AM PST · by Lorianne · 29 replies
    Zero Hedge ^ | 28 December 2015 | Tyler Durden
    The latest dilemma facing economists is why "unequivocally good" low oil prices haven't sparked excuberant consumer spending across America. We have discussed the simple (though awkward for the establishment) answer many times - soaring costs for 'shelter' and healthcare have hoovered up every penny saved (and more); and now, a new study proves it- exposing the reality that many Obamacare customers pay more than 10 percent of their incomes toward coverage (and some paying considerably more). The shocking findings show that, as CNBC summarizes, One in 10 Obamacare customers who earn between just two and five times the federal poverty...
  • Fed Rate Hike Bad Timing for Crude Oil

    12/16/2015 12:16:04 PM PST · by bananaman22 · 6 replies
    Oilprice.com ^ | 16-12-2015 | Janet Yellen
    The Federal Reserve is about to raise interest rates for the first time in almost ten years and it couldn’t come at a worse time for the oil and gas industry. On the one hand, the oil boom was fueled by loose money from the Fed. With near-zero interest rates, money flowed into capital-intensive shale oil and gas drilling for many years. That succeeded in creating a production boom. But the boom was too successful – the glut caused prices to crash. In this sense, the Fed helped inflate the drilling bubble, which burst in 2014. Now the Fed is...
  • This Suggests An Oil Price Recovery Might Be On Its Way

    12/10/2015 8:10:25 AM PST · by bananaman22 · 10 replies
    Oil futures prices are below $38 but there is a glimmer of hope in EIA’s Short-Term Energy Outlook (STEO) released today–world consumption increased in November and supply fell. OPEC did what everyone expected last week–nothing–and oil markets reacted badly. Brent futures fell 15% from $47.44 before the OPEC meeting on Friday (December 4) to $40.25 today (December 8). I have been saying that oil prices have been too high based on fundamentals and need to move lower in order for oil markets to balance. Now we may be seeing the beginnings of that trend. In November, world liquids supply fell...
  • Can OPEC Strike A Deal On Cutting Production Tomorrow?

    12/03/2015 1:05:30 PM PST · by bananaman22 · 9 replies
    Oilprice.com ^ | 03-12-2015 | OPEC meeting
    OPEC is set to convene its twice-a-year meeting in Vienna, and a growing number of the group’s members are clamoring for production cuts in order to boost oil prices. The problem is a collective one. Sure, everyone agrees production should be cut, but each member wants someone else to shoulder the burden. That results in no decision. The only member whose voice really counts is Saudi Arabia. Interestingly, the de facto leader of OPEC is starting to change its tone, a sign that the desperation from some OPEC countries – along with the financial pain that Saudi Arabia itself has...
  • Can We Blame Hedge Funds For Low Oil Prices?

    12/01/2015 8:35:25 AM PST · by bananaman22 · 15 replies
    Oilprice.com ^ | 01-12-2015 | Michael McDonald
    When oil prices were spiking in 2008 and some commentators were predicting prices of $200 a barrel, many pundits and politicians turned to blame speculators and hedge funds for pushing prices upwards. That period of high prices passed and speculators avoided any tough new regulations in part due to mix empirical evidence surrounding the causes of price volatility. Now though, the opposite case is being made; hedge funds shorting oil may be behind recent volatility and the current low price of oil. Given the benefits to consumers from low oil prices, there is little talk of new regulation to prevent...
  • U.S Drillers’ Operating Loses Could Surge In 2016

    11/25/2015 9:27:01 AM PST · by bananaman22 · 3 replies
    Oilprice.com ^ | 25-11-2015 | Mike
    What do you do when all of the low hanging fruit is gone? That question is one that oil producers are increasingly facing as they confront an oil price slump that is now more than a year old and shows no serious signs of abating. With oil prices having fallen by nearly half over the last sixteen months, it is little wonder that oil companies found their balance sheets under pressure. From Exxon to Continental all oil companies have faced problems in maintaining their capital spending and more importantly, their profitability. In light of that, it is little wonder that...
  • Oil Jobs Lost: 250.000 And Counting, Texas Likely To See Massive Layoffs Soon

    11/24/2015 7:44:46 AM PST · by bananaman22 · 12 replies
    Oilprice.com ^ | 24-11-2015 | Charles
    Crude oil just capped off a third straight week of declines, as WTI nears the $40 per barrel threshold. Goldman Sachs is once again raising the possibility of oil dipping into the $20s per barrel. That spells more pain for the energy sector. Many companies have already slashed spending and culled their payrolls, but the total number of job losses continues to climb. According to Graves & Co., an industry consultant, oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oil prices remain in the dumps