Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Oil production from the divided region between Saudi Arabia and Kuwait has stalled as relations deteriorated

05:55 - 17/10/2018

 

 

 

Follow - up - the balance of News 
informed sources, he said that Saudi Arabia and Kuwait Stjaddan difficult to resume oil production from the two fields Edaran jointly soon due to disagreements on the processes and the deterioration of political relations between the two allies Gulf OPEC members. 
The two countries stopped production from Khafji and Al-Wafra fields in the divided region more than three years ago, cutting about 500,000 bpd, equivalent to 0.5 percent of the world's oil supply. 
As oil prices soar to a four-year high above $ 85 a barrel this year, Washington is pressing Riyadh, its biggest ally in the Gulf, to cut oil prices by increasing production. 
Crown Prince Mohammed bin Salman visited Kuwait last month to discuss resuming oil production from the region.
But the sources, who asked not to be identified because they were not authorized to discuss the matter publicly, said the talks failed to get closer to the two countries than to reach an agreement with the resistance of Kuwait pressure Riyadh to strengthen control of the two fields. 
"It did not go well because Kuwaiti sovereignty is not negotiable," one source said. 
He added that Riyadh did not want to apply the Kuwaiti laws on the large US oil company Chevron, which works in the field of land on behalf of the Saudi government. 
Another source said Saudi Arabia wanted to have a decision and greater control over the management of oil operations in the region. 
The sources said that Prince Mohammed met with the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah and Crown Prince Nawaf Al-Ahmad Al-Jaber Al-Sabah, but the visit was shortened to a few hours on the night of 30 September compared to two days as originally planned.

Political tensions 
The tensions between the two countries over a ban on Qatar and differences of views on relations with Iran, Saudi Arabia's arch-rival, have fueled political row, sources say. Kuwait is seeking to mediate in the Saudi-led province of the United Arab Emirates. 
Saudi Arabia, Bahrain, the United Arab Emirates and Egypt cut diplomatic ties, transport links and trade with Doha last year, accusing Qatar of funding terrorism, charges Doha rejects. 
Kuwait has sought to remain neutral, but the prince's efforts to mediate the dispute have not been successful so far. 
Kuwait, which has a large Shiite minority, has maintained open lines of dialogue with Iran. Saudi Arabia and Iran support opposing parties in Syria and Yemen. 
In a move that may complicate relations with Riyadh more, Kuwait this month signed a defense cooperation plan with Turkey in what was said to be aimed at strengthening bilateral ties.
Turkey supports Qatar in the Gulf dispute and has strained relations with Riyadh because of Ankara's close ties with Iran. 
"The (regional) situation does not bode well for stability, so every country has to think about how to protect itself," Kuwaiti parliament member Saleh Ashour told Reuters. 

Expropriated oilfields that 
divide oil production in the divided region, dating back to agreements reached in the 1920s, have established regional borders equally between Saudi Arabia and Kuwait. 
Wafra is the Kuwait-operated Gulf Oil Company and Chevron on behalf of Saudi Arabia. The Khafji field is run by Saudi oil giant Saudi Aramco and Kuwait Gulf Oil Company. 
Tensions have been brewing since last decade, when Kuwait was angered by a Saudi decision to extend Chevron's concession in the Wafra field until 2039 without consulting Kuwait.
Saudi Arabia closed the Khafji field in 2014 due to environmental problems. In 2015, Chevron closed the Wafra field after failing to agree on operating rights with Kuwait. 
According to sources familiar with the field operations, the suspension of production is costly because of the need to invest tens of millions of dollars annually for maintenance work. 
One source said the divided area "is the largest single origin in the world that has been deliberately stopped and is no longer productive for three years." 
"The longer the resumption of production, the greater the cost of maintenance. "The most complicated thing is probably a quick and complete resumption of the two fields." 
Sources in the sectors of the two countries say that although Khafji and Al-Wafra are geographically unrelated, agreement on resumption of production in one of them will be linked to the other.

[yota691]

US oil inventories rise 6.5 million barrels a week

 

 17 October 2018 05:43 PM
Direct : US oil inventories rose more than expected for the fourth week in a row, while gasoline stocks fell during the same period.

The US Energy Information Administration announced Wednesday that oil inventories rose by 6.5 million barrels during the week ending October 12 to 416.4 million barrels.

Analysts had expected US crude inventories to rise by 1.6 million barrels last week.

While gasoline inventories in the United States fell 2 million barrels last week.

By 2:30 pm GMT, Brent crude for December delivery fell 1.3 percent to $ 80.36 a barrel.

US crude futures for November delivery fell 1.6% to $ 70.74 a barrel.

[yota691]

Oil falls below $ 80

 

Thursday 18 October

 

 

BAGHDAD ( Reuters) - Oil fell below $ 80 a barrel on Thursday, as US crude stockpiles for the fourth week indicated an abundance of supplies, while crude received support from a drop in Iran's exports .  The US Energy Information Administration said Wednesday that US crude inventories rose 6.5 million barrels last week, a weekly increase for the fourth consecutive year, nearly three times the analysts' forecasts.   By 1010 GMT, Brent crude fell 70 cents to $ 79.35 a barrel. Crude is down more than $ 7 from the highest level since 2014 of $ 86.74 recorded on October 3.  The decline in US crude West Texas Intermediate 61 cents to $ 69.14 a barrel.

[yota691]

Oil falls as concerns about weak demand for crude grow

04:43 - 24/10/2018

 

 

 

 

Follow - Mawazine News

Oil prices fell on Wednesday on concerns about weak global demand for crude and abundant supplies even under US sanctions on Iran's crude exports. 
Brent crude fell 37 cents to $ 76.07 a barrel by 10:20 GMT, while US crude was unchanged, trading at $ 66.43 a barrel. 
Oil prices fell sharply in the previous session, with Brent closing down 4.3%, in a sell-off triggered by worries about economic prospects. 
The International Energy Agency (IEA) expects slower growth in oil demand in 2019 due to slower global economic growth. Finished 29 / d

[yota691]

 

US crude inventories rise and fuel stocks fall

08:18 - 24/10/2018

 

 

 

Follow - up - News balance 
US Energy Information Administration said on Wednesday that crude oil inventories in the United States rose last week for the fifth consecutive week, while gasoline and distillate inventories fell. 
Crude inventories rose 6.3 million barrels in the week ending October 19, while analysts had forecast a 3.7 million barrel increase. In the past five weeks, total US stockpiles have risen to 422 million barrels, which does not include the strategic reserve of about 656 million barrels. 
The US Energy Information Administration said crude stocks at the delivery center in Cushing, Oklahoma rose 1.4 million barrels.
The administration's data showed that the consumption of crude refineries fell by 48 thousand barrels per day. Refinery utilization rates increased by 0.4 percentage points, but overall utilization rate remained at a low of 89.2 percent. 
Gasoline inventories fell 4.8 million barrels, while analysts' forecasts in a Reuters poll showed a 1.9 million barrel decline. 
Distillate stocks, including diesel and heating oil, also fell by 2.3 million barrels, while 1.9 million barrels were expected to fall. 
US net crude oil imports fell 335,000 barrels per day last week, ending 29.6 percent

 

 

[yota691]

An imminent impending fall in the price of oil

 

Arab and international Economy News _ Baghdad Oil prices fell on Friday, heading for a third weekly loss after Saudi Arabia warned of oversupply, amid a slump in global equities and trade that overshadows fuel demand forecasts. London Brent crude futures fell 49 cents, or 0.6 percent, to $ 76.40 a barrel by 06:49 GMT. And Brent on a weekly loss recording path of more than 4 percent. US crude fell 59 cents, or 0.9 percent, to $ 66.74 a barrel. Measuring crude is heading for a 3.5% loss this week. Views 91   Date Added 10/26/2018

[yota691]

OPEC: the level of commitment of countries to the agreement to reduce oil production fell to 111%

25 October 2018 06:53 PM
Mubasher: OPEC members and non-OPEC producers have fallen in line over the past month, but both crude inventories and economic uncertainty may change course.

A report published by the Organization of Petroleum Exporting Countries on its website said Thursday that the compliance of the countries participating in the agreement to reduce oil production reached 111% last September.

"This is a significant progress toward the agreed target among OPEC members and beyond during the June 23, 2018 meeting .

The agreement provided for a return to the level of commitment of the OPEC countries to the level of 100% as of July 1 compared to 152% recorded in May.

According to the statement, the Joint Ministerial Follow-up Committee expressed its satisfaction in general with the collective performance of Member States during the month of September.

She also explained that by reviewing market fundamentals, there were very comfortable levels of oil supplies relative to demand.

In contrast, the committee has expressed concern about the rise in oil stocks in recent weeks, in addition to the uncertainty about the macroeconomic looming.

It may need to change course, she said.

The Joint Commission also called for further study of the future growth of 2019, with options on production levels for the year to prevent the return of imbalances to the equilibrium of the oil market.

 

[yota691]

International Energy: High oil prices hurt consumers and have repercussions on producers

 

Tuesday, October 30,

 

 

 

 

Alsumaria News / Baghdad  , explained the International Energy Agency on Tuesday that high oil prices hurt consumers and may have implications for producers.  " High oil prices are hurting consumers and could have adverse consequences for producers," said the agency's executive director Fatih Birul at an energy conference in Singapore .  "The current account deficit in many countries is affected by the rise in oil prices," he said.     Oil prices rose to nearly $ 80 at a time it was expected to record $ 60 this year.

[yota691]

US Official: America Will Become A Major Source Of Global Energy Supplies

By Reuters On October 30, 2018 

A US official said Tuesday that the United States will become a major source of energy supplies to meet growing global demand as technology innovation and funding are expected to boost US oil and gas production in the next decade.

"Over the next five to 10 years, we expect to see higher extraction rates and even multiply them in the heaviest ponds," said Frank Fanon, a State Department official with energy.

"In the short term this means that the United States has doubled production and export capacity," he told a sector conference in Singapore.

"The United States will become an undisputed leader for global oil and gas production," said Fatih Birol, executive director of the International Energy Agency (IEA).

 

[yota691]

US Petroleum Institute: Crude inventories increase by 5.7 million barrels

 

 

 

Number of readings: 321 31-10-2018 12:25 PM

 

 

31-10-2018 12:25 PM 

 

Oil inventories in the United States rose last week, while gasoline stocks and distillates fell, the US Petroleum Institute said Wednesday. 

Crude inventories increased by 5.7 million barrels in the week ending Oct. 26 to 424.1 million barrels, while analysts forecast an increase of 4.1 million barrels, according to the US Institute. 

Crude stocks at the delivery center in Cushing, Oklahoma, rose 1.9 million barrels, he said, adding crude oil consumption fell by 110,000 bpd. 

Gasoline stocks fell 3.5 million barrels, while analysts forecast in a poll conducted by Reuters' decline of 2.1 million barrels. 

Data from the Petroleum Institute showed that distillate stocks, including diesel and heating oil, were down 3.1 million barrels, compared with expectations for a 1.4 million barrel drop.

US crude imports fell 78,000 barrels per day to 7.9 million bpd last week.

[Officiallytook]

Energy expert John Kilduff sees an unusual phenomenon affecting crude oil and beaten-down stocks.

According to the Again Capital founding partner, oil and stocks have embarked on the closest trading relationship since early 2016 and during the financial crisis sell-off.

"This has been the highest correlation that I've seen in quite some time," he said Tuesday on CNBC's "Futures Now."

His latest thoughts came with U.S. benchmark West Texas Intermediate crude on track for its worst month in more than two years. WTI closed at $66.40 a barrel on Tuesday, while Brent crude settled at $76.23.

"A lot of folks like to trade crude oil and other commodities to get away from the correlations you have in the stock market," said Kilduff, a CNBC contributor. "But over the past 20 days, you can see where stocks peak out in early October. Crude oil peaked out in early October."

View Related Chart

He suggests that fears of a global economic slowdown could be behind the rare move.

"It's a real risk off, and the same things that are bedeviling the equity market are bedeviling the crude market," he said.

However, Kilduff isn't implying the trend spells more downside ahead. There's a bullish factor hanging over the oil market: Iran.

On Sunday, sanctions against Iran exports are scheduled to go back into effect. And, it's unclear how they'll impact oil prices.

"We'll know in a relatively short amount of time whether the sanctions on Iran are really going to bite or not. I think they are to a degree," he said.

Taking that into account, Kilduff believes crude could break out of its slump within weeks and rally from current levels.

"I do see a nice rebound for crude oil as we get into the very end of the year, and the heart of the Northern Hemisphere winter of about $75-plus for crude WTI," Kilduff said.

 

https://www.cnbc.com/amp/2018/10/31/crude-oil-is-doing-something-it-hasnt-done-in-years.html

 

Site has a video too but I lost some coding skills when I had kids LMFAO

Edited October 31, 2018 by Officiallytook

[yota691]

Kuwaiti oil minister: "The world oil markets are currently stable"

Bakhit Shabib al-Rashidi, Kuwaiti oil minister

 06 Nov 2018 01:38 PM

KUWAIT (Reuters) - Kuwait's oil minister said on Tuesday that global oil markets were stable and expected stability to continue until the end of this year, Reuters said.

Bakheet al-Rashidi said the OPEC meeting next month would consider whether the market needed more crude and whether there was an increase in inventories.

OPEC and its allies will hold a meeting in Vienna on Dec. 6 and 7 to decide on the oil supply policy and agree on a long-term mechanism to manage the market after 2018.

He pointed out that the commitment is 100% currently expected to continue this commitment saying, "We in the OPEC group and outside do not show interest in prices and what is important is the stability of markets and we are working to ensure that there is a quantity produced from OPEC countries and beyond able to cover and meet the needs of consumers to reach stable markets Supporting consumer and product ".

Al-Rashidi predicted that the next meeting of OPEC would be interested in studying the need for markets for more crude oil or if there is surplus production or stocks, pointing out that the current stocks are stable due to this historic agreement.

On the mechanism of getting out of the production reduction agreement, which ends by the end of this year, Al-Rashidi said that OPEC is currently considering a permanent mechanism for communication and finding common ground to monitor production and reach a way to ensure the stability of the markets in the long term.

Oil prices fell on Tuesday , with the US decision to allow some countries to continue buying oil from Iran, amid concerns about a slowdown in global economic growth.

Oil fell to $ 70.74 on Monday, down 28 cents from Friday's trading.

[yota691]

OPEC may resume production cuts next year

 07 November 2018 08:40 PM
Mubasher: A return to cut oil production by the Organization of Petroleum Exporting Countries (OPEC) and its allies is unlikely next year to avoid the possibility of oversupply that could affect prices, a news report said.

"Certainly not the other way round," the agency quoted two unnamed OPEC sources as saying on Wednesday.

In June, OPEC and its allies decided to reduce the pace of production cuts that the organization has been pursuing since 2017 to counter rising oil prices and compensate for the shortfall in supplies resulting from US sanctions against Iran.

The comments came in response to a report that Russia and Saudi Arabia began bilateral talks to reduce production next year.

Fears of supply shortages subsided after US sanctions against Tehran came into effect this week, with the United States granting exemptions to eight countries to continue buying Iranian oil.

[yota691]

US investor expects oil prices to fall to $ 40

Mubasher : US investor said that US oil prices are falling sharply, pointing out that crude may fall to $ 40 a barrel.

Jim Cramer told CNBC on Thursday that oil prices were falling, adding that demand for crude was slowing at a time when more supplies were being pumped.

US oil production hit a new record high of 11.600 million bpd last week, with supplies expected to rise by major producers next year.

Kramer noted that the positive outlook for major oil companies such as Exxon Mobil, BP and Chevron does not reflect the economic reality.

The comments come amid expectations that demand growth on crude will slow due to economic concerns as a result of trade tensions and weak currencies in emerging markets.

US crude has suffered heavy losses in recent sessions and hit its lowest level in 8 months as inventories and production continue to increase in the United States.

US crude futures for December delivery fell 0.7% to $ 61.21 a barrel by 4:25 pm GMT.

[yota691]

Saudi Arabia is considering a proposal to cut production of OPEC and its allies to 1 million bpd

 

OPEC logo

Arab and international Economy News Baghdad The agency "Reuters" on Sunday, there are Saudi talks to reduce the production of OPEC and its allies of oil up to one million barrels per day. "The talks are not over yet because a large part depends on the size of the decline in Iranian exports," Reuters quoted two sources as saying . "There is a general debate going on in this regard, but the question is how much the market needs," one source said. Views 31   Date Added 11/11/2018

[Butifldrm]

Economy

Sunday 11 November 2018 11:24 am

| Number of readings:

A meeting of the oil production control committee will be held in Abu Dhabi on Sunday

 

 

A meeting of the oil production control committee, composed of OPEC countries and independent producers, will take place in the UAE capital Abu Dhabi later Sunday.

The meeting comes to discuss the results of the production reduction agreement and the need to pump more crude into the global market or reduce it.

The Ministerial Committee for Monitoring the Production Reduction Agreement consists of: Kuwait, Russia, Oman, Venezuela and Algeria.

OPEC members and independent producers started in early 2017 an agreement to cut output by 1.8 million barrels per day, which was cut to 1.2 million barrels from July, with the agreement ending in December.

Last week, Kuwaiti Oil Minister Bukhit Al-Rashidi announced that the meeting would review the markets and their needs for more crude oil.

In the same week, the Russian news agency Tass quoted unnamed sources as saying there were Saudi-Russian consultations to discuss reducing oil production in 2019.

The price of oil currently hovering at $ 72 for Brent crude, down from the highest level in 2018, recorded in October last, $ 86 per barrel.

http://aynaliraqnews.com/index.php?aa=news&id22=108383

[Butifldrm]

ARKETS 

 COMMODITIES

Oil Jumps as OPEC Moves Closer to Cutting Output

Both crude benchmarks had plummeted around 20% since climbing to four-year highs at the start of October

 

By 

Christopher Alessi

Nov. 12, 2018 5:40 a.m. ET

ABU DHABI—Oil prices climbed out of the red Monday morning after weeks of losses that had wiped out all of crude’s gains for 2018, as OPEC and its allies signaled a willingness to again cut production amid surging global supply.

Brent crude, the global oil benchmark, was trading up 1.3% at $71.08 a barrel on London’s Intercontinental Exchange. West Texas Intermediate futures, the U.S. standard, were trading up 0.7% at $60.60 a barrel.

“We need to do whatever it takes to balance the oil market,” Saudi Arabian Energy Minister Khalid al-Falih said Monday at the start of an international gathering here of petroleum ministers and industry leaders.

Mr. Falih, the de facto head of the Organization of the Petroleum Exporting Countries, said if current supply and demand levels don’t shift, the oil-cartel and its partner producers, led by Russia, would need to cut production by around 1 million barrels a day at the group level.

Those comments came less than a day after Saudi Arabia, OPEC’s biggest member and the world’s largest exporter of crude, Russia and other producers met here in the United Arab Emirates capital to debate a potential output cut.

Oil prices rebounded on the news that OPEC was nearing a deal to cut production. PHOTO:RODGER BOSCH/AGENCE FRANCE-PRESSE/GETTY IMAGES

While the group didn’t make a final decision on output levels Sunday, they acknowledged a need to again shift strategy just months after a decision to ramp up production. That move had come after OPEC and 10 producers outside the cartel had been holding back output for over a year in an effort to rein a global supply glut that had weighed on prices since late 2014.

“There is a consensus that there will be oversupply in 2019,” Omani Oil Minister Mohammed bin Hamad al-Rumhy told The Wall Street Journal after exiting the meeting Sunday. He said the coalition of producers would likely agree to cut back on supplies when they gather next month in Vienna.

“The size of any production cuts will likely depend on how much oil demand growth will slow down into 2019, how much Iranian supply falls due to U.S. sanctions, and how strongly U.S. supply increases over the coming months,” said Giovanni Staunovo, commodities analyst at UBS Wealth Management.

MORE IN OIL

Saudi Arabia, OPEC’s Anchor, Ponders a Future Without the Cartel

Analysis: How Iran Sanctions Wrongfooted Oil Bulls

Saudi Arabia’s Mr. Falih on Sunday also said his country would unilaterally slash its exports next month by around 500,000 barrels a day, compared with November levels. However, Russia—currently the world’s largest oil producer—sent mixed messages on whether it would pull back on supply.

Both crude benchmarks have plummeted around 20% since climbing to four-year highs at the start of last month, amid signs of weakening global oil demand and a surge in supply from producers like the U.S.

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Oil prices extended declines after the U.S. unexpectedly said last week that it would allow eight buyers of Iranian crude to continue their imports. President Trump in May pulled the U.S. out of a 2015 international agreement to curb Iran’s nuclear program, setting the stage for the reimposition of sanctions on Nov. 5 targeting the Islamic Republic’s oil industry.

The move prompted many of Iran’s customers to reduce significantly their imports ahead of the deadline, tightening global supply and initially bolstering prices before the recent fall.

But Ehsan Khoman, head of research for the Middle East at MUFG Bank is “convinced both Brent and WTI will rebound from their current bearish market mode.” He expected OPEC and its partners to “conform to a new production cut agreement next month, with the question turning to the speed and magnitude of the cuts, as well as the quota allocation of each member state.”

Write to Christopher Alessi at christopher.alessi@wsj.com

https://www.wsj.com/articles/oil-jumps-as-opec-moves-closer-to-cutting-output-1542019255

[yota691]

Iraq announces its position on the next OPEC meeting

Date of release: 2018/11/12 20:16 • 49 times read

Baghdad: Iraq announced its position on the meeting of the Organization of Petroleum Exporting Countries (OPEC) scheduled in early December.

"There will be a ministerial meeting of members of OPEC and outside the Organization early next month in Vienna and we have time to monitor the oil market and developments and challenges facing the market," Oil Ministry spokesman Assem Jihad told the Euphrates News. 
He added that "the Minister of Oil (Thamer Ghadhban) will participate in the meeting and will discuss with OPEC producers and beyond the challenges of the oil market." 
Jihad stressed that "Iraq with any resolution aimed at stabilizing the oil market and oil prices and rebalancing the global oil market," noting that "Iraq's position will be positive with any resolution aimed at stabilizing oil prices in global markets and rebalancing them and in the interests of producers and consumers." 
"The resolution will be collective, not individual, and stipulates that all parties agree on solutions that are set in the face of market challenges," he said

[yota691]

Oil is falling because of Trump

Release date: 2018/11/13 10:09 • 214 times read

International oil prices fell on Tuesday, under pressure from US President Donald Trump, to the Organization of the Petroleum Exporting Countries (OPEC) so as not to cut supplies to support prices.

London Brent crude futures were down 65 cents at $ 69.47 a barrel, while US WTI futures fell 78 cents a barrel to $ 59.15 a barrel. 
Saudi Energy Minister Khalid al-Falih said on Monday that OPEC was considering cutting supply next year, but demand was low, but Trump did not appreciate the rhetoric from Saudi Arabia, a US ally. 
"We hope Saudi Arabia and OPEC will not cut production," Trump said in a tweet on Twitter. "Oil prices have to be much lower based on supplies."

[yota691]

Oil drops about 1% after Trump's demand not to cut OPEC supplies

 

An oil refinery in Philadelphia. "Reuters"

Arab and international Economy News Baghdad Oil prices fell nearly 1 percent on Tuesday as Brent crude fell below $ 70 a barrel and US crude fell below $ 60 after US President Donald Trump pressed Opec not to cut supplies to support the market. The decline came at a time when the dollar is hovering near a 16-month high, increasing the cost of importing oil to countries using other currencies. By 0740 GMT, US West Texas Intermediate crude futures were $ 59.22 a barrel, down 70 cents, or 1.2 percent, from the previous settlement. Brent crude futures were $ 69.41 a barrel, down 71 cents, or 1 percent, from the previous close. Brent and West Texas Intermediate crude have fallen more than 20 percent since early October. Production in the United States alone increased; Kazakhstan said on Tuesday that its oil production rose 4.8 percent to 74.5 million tonnes in the first 10 months of 2018, equivalent to 1.82 million bpd. Saudi Energy Minister Khalid al-Falih said on Monday that OPEC agreed on the need to cut next year's oil supply by about 1 million bpd compared to October levels to prevent a surplus in supplies. But US President Donald Trump did not like the talk of Saudi Arabia, the US political ally. Oil prices should be much lower based on supplies, "Trump said on Twitter on Monday . Views 5   Date Added 13/11/2018

[yota691]

10 trillion dollars to meet the expected demand for oil and gas in two decades

 

Source:

• Abu Dhabi - Al Bayan

History: 14 November 2018

The oil and gas sector has to secure more than $ 10 trillion in investments over the next 22 years to meet the expected growth in demand for energy and industrial petroleum products, a report by the Organization of Petroleum Exporting Countries (OPEC) said.

According to figures from OPEC's Global Oil Outlook Outlook 2040, business in all aspects and stages of the oil and gas sector value chain will need funding of about $ 10.5 trillion between 2017 and 2040, calculated at 2016 US dollar prices , To achieve a oil market «balanced and stable».

These include $ 7.9 trillion in exploration, development and production, such as production, or about $ 328 billion annually. Gas, refining and petrochemicals, such as manufacturing and refining, will need about $ 1.5 trillion, with some $ 915 billion allocated for repairs And maintenance, while shipping, storage and oil and gas distribution will require about $ 1.1 trillion in investment.

In light of these expectations, the 2018 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) will host a series of specialized discussions on finance in the sector as part of a program to strengthen linkages between senior executives and facilitate knowledge exchange that can be applied across the entire value chain From exploration, development and production to the final product, in order to meet the challenges of future financing.

Richard Cormack, co-head of Goldman Sachs Capital Markets, said investment and financing opportunities were "closely interrelated", arguing that no potential investment could be discussed without knowing the source and cost of the financing, and the potential cost involved. Finance.

Cormak, who spoke at the ADIPEC conference, stressed the importance of developing a comprehensive capital allocation strategy for success in this sector, stressing that investors "are very focused on following the course we have experienced in this sector."

Many experts in the sector believe that access to finance for new oil and gas projects will become increasingly complex, especially as transportation, transportation and power generation are moving away from hydrocarbon dependence on renewable energy sources. Finding a financing roadmap for the new energy landscape is critical.

The ADIPEC Strategic Conference hosts a two-day executive briefing on financial and investment matters, sponsored by the Grant Thornton Consulting Group, to identify ways in which the sector can attract new investment opportunities, with a focus on On mergers and acquisitions, joint ventures, placement of shares through initial placements, project financing, and others.

Key topics at the conference include financing the future growth of the current global oil and gas sector, enhancing the stability of funding, increasing cooperation between governments and financial institutions, and exploring how to secure project finance in the upstream, downstream and downstream industries.

Panel discussions and interviews include some of the most influential financial decision makers in the sector, including senior executives from national and international oil companies such as Abu Dhabi National Oil Company (ADNOC), Mubadala Petroleum, McDermott, BP, Dana Gas and Petronit LNG, have demonstrated some of their diverse expertise in all aspects of the industry.

Representatives from the Abu Dhabi Securities Exchange, Goldman Sachs, JPMorgan, Standard Bank of South Africa, Japan Bank for International Cooperation and Grant Thornton are participating in the financial sector.

Jean-Philippe Cousse, vice president of energy at DMG Events, organizers of the ADIPEC conference and conference, said the conference's finance leaders include some of the most influential executives in the oil sector Gas or finance sector, who are making major investment decisions in this sector today.

"The talks and discussions hosted by the ADIPEC conference are expected to contribute to knowledge exchange and will be very practical as they address the challenges facing the sector at present and those that are expected to face the sector in the future as it seeks funding for sustained growth."

The Executive Briefing Meetings on Finance are one of the events hosting senior officials in the 2018 Strategic ADIPEC program, which also includes three ministerial sessions hosting energy ministers from the Middle East, Africa, Europe, Asia and the Americas, and 10 global corporate leaders' meetings, And eleven executive directors' meetings.

[SocalDinar]

Crude Oil: The Free Fall After The Growth Trend

By FxPro Financial Services Ltd (Alexander Kuptsikevich)Commodities9 hours ago (Nov 14, 2018 04:35AM ET)

 

 

 

 

 

 

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Brent crude fell by 5.7% on Tuesday, sinking below $65 per barrel. American WTI is close to $55.50, the lowest value seen in the last year.

Investors have shifted their focus away from the fears of decreasing oil shipments due to sanctions against Iran, as there are many countries on the horizon who want to replace the drop-off shipments inside OPEC+. This is Iraq, Russia and Saudi Arabia. Meanwhile, Iran wants to retain its markets share, hoping to keep a significant part of its exports.

 

Brent Crude

 

Against this background, the fears of supply disruptions in the near future have vanished from the market. Again, we are in a situation in which storing oil is more profitable than selling it on the spot market. However, it is worth noting that supply is likely to grow in the future.

An important driving pressure of oil prices in the last month was the resumption of speculation around overproduction. The forecasted growth of production in the next year exceeds, almost twice, the forecasted increase in demand.

 

US Crude Supply

 

American drilling is breaking records, and OPEC predicts that the United States will increase its production by another 2 million barrels a day by the end of next year. The cartel, in turn, predicts a decline in demand for its own oil and indicates a slowdown in demand growth.

It is also worth paying attention to the technical factors behind the previous day’s collapse. We have recently noted that entering the bear market is often preceded by a further decrease of 20% in prices. In our case, these levels are about $55.5 per barrel for Brent and about $50 for WTI. The fall of oil yesterday was very impactful, causing avalanche of stop orders.

 

WTI Crude

 

Despite the extreme levels of oversold readings observed in market oscillators, the decline in oil may keep its momentum in the coming days as long as market players see the recent decline as the end of the oil growth trend. From the technical analysis perspective, the nearest important levels may be remote marks near the next round level and previous local minimums, at $50 for WTI and $62-63 for Brent.

https://www.investing.com/analysis/crude-oil-the-free-fall-after-the-growth-trend-200359021

[yota691]

OPEC and its allies plan to cut oil production by 1.4 million barrels

 

 14 November 2018 04:31 PM
Mubasher : A news report revealed that OPEC and its allies are discussing a proposal to reduce production by up to 1.4 million barrels per day next year.

The Reuters news agency quoted unnamed sources as saying Wednesday that the proposal to cut output was an option discussed by energy ministers from Saudi Arabia, the United Arab Emirates and Russia on Saturday.

The source told the agency that the reduction of production by 1.4 million barrels per day proposal is more reasonable than the reduction by more or less.

Producers inside and outside OPEC launched in early 2017 a plan to cut production after oil prices fell, before cutting the rate of reduction in recent months.

At the same time sources confirmed that OPEC and its allies have not yet agreed on the final figure to reduce the new supply.

One of the sources said the lowest expected reduction would be one million barrels per day and is likely to exceed the barrier of 1.4 million barrels per day.

The report said both Libya and Nigeria, which were excluded from the current cut-off order, may be included in the new agreement. "We are talking about cuts from every country, including Nigeria and Libya, because production has peaked in recent months."

[yota691]

Putin: I discussed oil prices with Trump

01:46 - 15/11/2018

 

 

 

Follow - up - balances News 
Russian President Vladimir Putin said on Thursday the global oil market discussed with US President Donald Trump when they were in Paris to mark the anniversary of the end of the First World War. 
Speaking to reporters on the sidelines of a regional conference in Singapore, Putin said oil prices at around $ 70 a barrel were good for Russia and that Moscow would continue to cooperate with OPEC on global crude production levels.

[SocalDinar]

The World's Most Important Oil Region

By Rystad Energy - Nov 15, 2018, 11:00 AM CST  

 

https://oilprice.com/Energy/Crude-Oil/The-Worlds-Most-Important-Oil-Region.htmlJoin Our Community

Middle Eastern oil production is expected to grow by 2.7 million bpd by 2025, according to latest Rystad Energy analysis. The boost in conventional oil output from the Middle East is primarily driven by supply additions from Iraq with 1.5 million bpd growth, and an additional 1.2 million bpd mainly coming from the Neutral Zone, the UAE and Iran in the medium term.

Output from conventional fields outside the Middle East peaked in 2010 and is expected to continue falling with current estimates putting 2025 output at 45.6, a 2.3 million barrel decline from current levels.

(Click to enlarge)

Iraq

Rystad Energy forecasts the country’s oil production could grow to 6.15 million bpd in 2025.

The current ramp up from producing assets is expected to add about 625,000 bpd on the country’s output of about 4.65 million bpd. The growth will primarily be driven by the giant southern fields, Rumaila, West Qurna-1 and West Qurna-2. Over the past 18 months, the country has seen the sanctioning of expansion projects at Majnoon, the third phase of Halfaya development and the second phase of Garraf. These fields could add another 550,000 bpd over the next seven years. An additional 325,000 bpd could be added through near-term project approvals. These developments could include full field development at Faihaa, and further expansion of Nasiriyah and Shaikan.

Iran

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With the official re-imposition of financial sanctions by the United States, Rystad Energy expects annual average Iranian oil output to dip y/y by 700,000 bpd in a conservative case (accounting for waivers granted for Europe, India, Japan and South Korea for 180 days). Should sanctions be adhered to and then lifted in 2021, underinvestment in the interim would slow the eventual ramp up in production. In which case, the producing fields would be able to restart at 90% of the pre-sanction levels and ongoing developments – primarily at South Pars (13, 14 and 22-24) – would add about 50,000 bpd by 2025. Furthermore, the development projects with FIDs delayed due to the sanctions, once restarted, have combined potential to add over 325,000 bpd.

UAE

Rystad Energy forecasts the UAE’s oil production could grow to 3.71 million bpd in 2025, from currently 3 million bpd.Related: Significant Crude Build Weighs On Oil Markets

The country has already sanctioned expansion projects developing almost a billion barrels of oil resources in 2017-18 which have the potential to add about 350,000-400,000 bpd production in the medium term. The notable development projects sanctioned over the past 18 months include the expansion at Bab (Thamama A/B/H), the second phase of Qusahwira and Haliba fields. In addition to these projects, ADNOC could potentially sanction and bring online further expansion of the Bu Hasa and Umm Shaif fields, sustainable facilities project at Bab, and the Upper Zakum expansion where the production is expected to increase by 250,000 bpd (reaching 1 million bpd). These developments could further boost the output by 750,000-800,000 bpd by 2025.

Neutral Zone

The oil production from the Neutral Zone shared between Saudi Arabia and Kuwait, has been shut since 2015. Earlier this year, the two sides began negotiations concerning the restart of the fields. Rystad Energy’s base case incorporates a restart and gradual ramp up of fields in the Neutral zone to about 500,000 bpd in the medium term.