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Updated: oil falls 5% upon settlement, with geopolitical concerns calm


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Oil prices fell on Monday amid fears of an economic slowdown and a trade war between China and the United States that led to a reduction in the outlook for growth in global demand for crude.

Brent crude futures were at $ 58.40 a barrel by 0638 GMT, down 13 cents, or 0.2%, from the previous settlement price. 

U.S. West Texas Intermediate (WTI) crude futures were at $ 54.33 a barrel, down 17 cents, or 0.3%, from the previous close.
 
 
Brent and WTI crude futures fell last week, with Brent down more than 5% and West Texas Intermediate down 2%. 

The US-China trade dispute shook global stock markets last week, and a sudden surge in US crude inventories put downward pressure on oil prices, which lost about 20 percent of their 2019 peaks in April.
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  • yota691 changed the title to Oil prices fall ahead of US inventory data

Oil prices fall ahead of US inventory data

Oil prices fall ahead of US inventory data

 14 August 2019 11:30 AM
Direct : Oil prices fell during trading on Wednesday, in anticipation of disclosure of US inventory data amid expectations of rising.

Brent crude futures for October delivery fell 1.1 percent to $ 60.61 a barrel by 8:20 am GMT.

US crude for September delivery was down 1.4 percent at $ 56.30 a barrel.

China today released disappointing economic data that has raised expectations of slowing global economic growth, including industrial production rising at the slowest pace in more than 17 years last month.

Oil prices posted gains yesterday after US President Donald Trump's decision to postpone tariffs against Chinese products to mid-December instead of early next month.

Later in the day, the US Energy Information Administration was to release production and inventory data for the past week.

The American Petroleum Institute announced yesterday that inventories rose last week by 3.7 million barrels at 443 million barrels, against expectations of a decline of 2.8 million barrels.

 
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 Arabic and International


Economy News _ Baghdad

Oil prices fell on Wednesday on disappointing Chinese economic data and rising US crude inventories, erasing some of the strong gains made in the previous session after the United States said it would delay tariffs on some Chinese products, easing trade tensions.

Brent crude was down 46 cents, or 0.8 percent, at $ 60.84 a barrel by 0639 GMT, after rising 4.7 percent on Tuesday, its biggest percentage gain since December.

US oil fell 62 cents, or 1.1 percent, to $ 56.48 a barrel, after rising 4 percent in the previous session, the biggest gain in more than a month.

China reported a batch of unexpectedly weak data for July, including a sudden drop in industrial output growth to its lowest level in more than 17 years, underscoring the widening economic weaknesses as trade war with the United States intensifies.

Profit-taking after strong gains on Tuesday also weighed on crude prices on Wednesday, analysts said.

Record crude oil prices rose on Tuesday after US President Donald Trump backed down from a September 1 deadline to impose 10 percent tariffs on some products, affecting about half of China's $ 300 billion tariff list.

Data from the American Petroleum Institute showed that US crude oil inventories rose unexpectedly last week.

The Petroleum Institute said crude inventories rose 3.7 million barrels to 443 million barrels, compared with analysts' expectations of a decline of 2.8 million barrels.


Views: 52   Date Added: 14/08/2019

 
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  • yota691 changed the title to Rare pessimism for OPEC
Release date:: 2019/8/16 17:50 • 222 times read
Rare pessimism for OPEC
OPEC on Friday presented a gloomy outlook for the oil market for the remainder of 2019 as economic growth slowed and highlighted the challenges of 2020 as rival producers pump more crude, justifying maintaining an OPEC-led deal to curb supplies.
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for oil demand growth in 2019 by 40,000 bpd to 1.10 million bpd and indicated that the market would post a slight surplus in 2020. The 
pessimistic outlook is due to the slowing economy in light of the trade dispute. Between the US and China and Britain's separation from the European Union may strengthen the rationale of OPEC and allies including Russia to maintain a policy of production cuts to boost prices. Indeed, a Saudi official has hinted at further steps to support the market. 
`` While the outlook for fundamentals looks somewhat pessimistic for the rest of the year, given weak economic growth, ongoing global trade problems and slowing oil demand growth, it remains important to closely monitor the balance between supply and demand and support market stability in the coming months, '' OPEC said in the report.
It is rare for OPEC to announce a pessimistic view of market expectations and trim oil gains made earlier after the report was published and traded below $ 59 a barrel. 
Despite OPEC-led cuts, oil fell from its April 2019 peak of over $ 75 on pressure from trade concerns and an economic slowdown. 
OPEC, Russia and other producers have been implementing an agreement since January 1 to cut output by 1.2 million barrels per day. The alliance, known as OPEC +, extended the deal until March 2020 to avoid rising inventories, which could adversely affect prices. 
OPEC maintained its forecast for oil demand growth in 2020 at 1.14 million bpd, up slightly from this year. But the OECD said its outlook for 2020 economic growth faces downside risks.
"Risks related to global economic growth remain tilted to the downside," the report said. 
OPEC trimmed its global economic growth forecast to 3.1 percent from 3.2 percent and kept its 2020 forecast at 3.2 percent for now. 
The report also said that oil stocks in developed countries increased in June, indicating a trend that may reinforce OPEC concerns about a possible oil glut. 
Inventories in June exceeded the five-year average, a benchmark closely followed by OPEC, by 67 million barrels. 
This comes despite OPEC + production cuts and an additional involuntary loss in the production of Iran and Venezuela, two OPEC members subject to US sanctions.
The report showed that OPEC strengthened its cuts in July. According to data compiled by OPEC from secondary sources, output from the 14-member group fell 246,000 barrels per day from June to 29.61 million bpd as Saudi Arabia boosted supply cuts. 
OPEC and its partners have been curbing supplies since 2017, helping to eliminate the glut of supply between 2014 and 2016. 
That policy gives continued support to US shale oil and supplies to other competitors, and the report suggests the world will need much less oil than OPEC next year. 
OPEC said demand for its oil would average 29.41 million bpd next year, down 1.3 million bpd from this year. But it raised expectations for 2020 by 140,000 barrels per day compared with expectations last month.
The report indicates that there will be a surplus of supply in 2020 by 200 thousand barrels per day if OPEC continues to pump oil at the rate recorded in July and the rest of the factors remain equal. The report last month pointed to a larger surplus of more than 500,000 barrels per day
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US oil rigs are rising for the first time by 7 weeks

US oil rigs are rising for the first time by 7 weeks

 16 August 2019 08:30 PM
Live: The number of oil drilling rigs in the US rose last week to be the first rise in seven weeks.

The number of oil exploration platforms in the United States rose 6 during the week to 770, according to data released by Baker Hughes on Friday.

US companies had closed oil rigs in the United States for six consecutive weeks until the end of last week.

Meanwhile, the number of natural gas exploration platforms in the United States this week fell by 4 to 165.

Another oil and gas exploration platform has been closed together, the data showed.

By 5:07 pm GMT, Brent crude futures for October delivery rose 0.4 percent to $ 58.48 a barrel.

US crude for September delivery rose 0.3 percent to $ 54.61 a barrel.

During the same period, the price of natural gas futures for September delivery fell more than 2.2 percent to $ 2.18 per million British thermal units.

 
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CNPC Backs Out Of Oil Purchases With Venezuela On Sanctions Scare

By Julianne Geiger - Aug 16, 2019, 10:00 PM CDT PDVSA

Russia and China have stuck with Venezuela during its most recent time of need, but at least one of their loyalties may soon come to an end, according to anonymous sources who spoke to Bloomberg on Friday.

CPNC’s PetroChina has canceled loading plans in August that would have seen 5 million barrels of Venezuelan oil, the sources said, as the United States continues to squeeze Venezuela to loosen Nicolas Maduro’s hold on the troubled Latin American Country.

Maduro has precious few allies left, and until recently, China has been a devoted one. China was one of PDVSA’s top buyers of crude oil, even after the initial rounds of sanctions took hold. But now things are changing, and the most recent screw-turning by the Trump administration has foreign oil companies doing business with PDVSA on edge. The new sanctions target companies—even foreign ones—doing business with PDVSA, threatening to seize their assets in the United States if they have any.

 

Without China’s backing and loans, Venezuela is left without many options. China has loaned Venezuela $50 billion over the past decade, Bloomberg reports, and has purchased 339,000 barrels per day of Venezuela’s crude.

It’s unclear exactly how painful Venezuela will find this—Venezuela’s oil production is already falling, according to today’s OPEC Monthly Oil Market Report which shows that oil production fell 32,000 bpd in July, reaching 742,000 bpd.

PetroChina’s cancellations are the first of its kind in more than a decade, but its distancing from Venezuela follows another similar action in January this year when PetroChina announced it was dropping PDVSA as a partner in a $10 billion oil refinery project in southern China, according to Reuters. It was thought at the time that this was more due to PDVSA’s financial unattractiveness rather than sanctions levied by the United States.

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  • yota691 changed the title to Oil gains exceed 2% when settled with geopolitical tensions

Oil gains exceed 2% when settled with geopolitical tensions

Oil gains exceed 2% when settled with geopolitical tensions

19 August 2019 09:53 PM
Mubasher: Oil prices rose more than 2 percent on Monday, as geopolitical tensions in the Middle East settled on Monday as a Saudi oil facility was attacked over the weekend.

The rise in oil comes with gains in global stock markets amid hopes of central banks stimulus measures.

Investors are also awaiting trade conditions between the world's two largest economies, with White House economic adviser Larry Kudlow saying that representatives from the United States and China will speak within 10 days.

But gains in the black gold market were limited by last week's OPEC report , which gave a pessimistic view of concerns about the growth of global demand for crude.

At the settlement, the price of futures contracts for US Nymex crude for September delivery rose 2.4 percent to $ 56.14 a barrel.

Brent crude futures for October delivery rose more than 1.9 percent to $ 59.77 a barrel by 6:50 pm GMT.

 
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  • yota691 changed the title to Rising oil and barrel prices touch $ 60
Release date:: 2019/8/20 10:59  132 times read
Rising oil and barrel prices touch $ 60
Oil prices rose on Tuesday on optimism about easing trade tensions between the United States and China and hopes that major economies will adopt stimulus measures to stave off a possible economic slowdown that could hurt oil demand.
Brent crude <LCOc1> was up 8 cents at $ 59.82 a barrel by 0652 GMT after gaining 1.88 percent on Monday. 
US crude was up 9 cents at $ 56.30 a barrel, after rising 2.44 percent in the previous session. 
The United States said it would extend a deadline to allow Huawei Technologies to buy components from US companies, a sign of a simple cooling off of the dispute between the world's largest economists. 
Crude prices also supported the bullishness of equities around the world with growing expectations that global economies will move to counter slowing growth. 
At the same time, a Reuters poll of seven analysts revealed that US crude inventories were expected to fall by 1.9 million barrels in the week ending Aug. 19.
The American Petroleum Institute will release inventory data later on Tuesday
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 Arabic and International


Economy News _ Baghdad

Brent crude futures rose above $ 60 a barrel on Wednesday, after data showed a larger-than-expected drop in US crude inventories, but persistent fears of a possible global recession limited gains.

Brent crude was up 33 cents, or 0.6 percent, at $ 60.36 a barrel by 0654 GMT, after rising 0.5 percent on Tuesday.

US crude rose 17 cents, or 0.3 percent, to $ 56.30 a barrel.

Crude oil inventories fell 3.5 million barrels in the week ending Aug. 16, the API said on Tuesday. Analysts polled by Reuters had expected inventories to fall 1.9 million barrels.

`` Crude prices are likely to be supported by a positive inventory report from the American Petroleum Institute, which may indicate the biggest drop in Cushing since February 2018, if approved by the Energy Information Administration, '' said Edward Moya, market analyst at Oanda in New York.

Inventories data from the Energy Information Administration (EIA), due to be released at 1430 GMT on Wednesday, will be more closely watched than usual as the end of the peak US fuel consumption season approaches, analysts said.

Tensions in the Middle East remain under the spotlight, with US Secretary of State Mike Pompeo saying on Tuesday that the United States would do everything possible to prevent an Iranian tanker in the Mediterranean from delivering oil to Syria in violation of US sanctions.

Oil prices were also supported by data showing a drop in exports from Saudi Arabia, the world's top crude exporter, in June.

A Saudi oil official told Reuters earlier this month that the kingdom plans to keep crude exports below 7 million bpd in August and September, despite strong demand from customers, to rebalance the market.

But the uncertainty surrounding the global economic outlook amid the US-China trade war has limited gains in oil markets.


Views: 20   Date Added: 21/08/2019

 
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Investors Are Ditching High-Yield Shale Bonds- Aug 21, 2019, 5:00 PM CDT

Investors in high-yield riskier bonds of U.S. shale firms have caught up with equity investors in showing impatience over the mounting debt that the shale patch has piled up to fund production growth at the expense of cash flow and profits.

Equity markets are largely ‘closed’ for smaller U.S. energy firms willing to raise funds, so the bond market has become their last chance to finance drilling operations. Investors in bonds, however, have become increasingly frustrated over the ‘growth for growth’s sake’ business model and the lack of cash flow generation. 

This year, bond buyers are not flocking to the high-yield energy bond issues of companies rated below investment grade, or ‘junk’, while the rate of bond defaults has increased. Analysts and rating agencies expect the default pain to continue as the stubbornly low oil prices are not enough for many small drillers to clean up their debt-dominated balance sheets and meet all debt maturities.

So far this year, bond issues of high-yield energy firms have been half the amount they had sold at this time last year, while total bond issues by all junk rated companies have grown by 30 percent, data compiled by Bloombergshows.

In the Bloomberg Barclays high-yield index, the energy bond issuance has been underperforming the other sectors. The energy sector itself represents the single largest portion of the high-yield bond market in the United States. 

Persistently low oil prices and high corporate debt at the high-yield energy companies point to more pain and more defaults ahead, analysts say.

Signs have already started to emerge. Earlier this month, Halcon Resources Corporation filed for Chapter 11bankruptcy proceedings, its second Chapter 11 this decade.

A few days later, Sanchez Energy also filed for reorganization under Chapter 11 following “an extensive review of strategic alternatives to align its capital structure with the continued low commodity price environment.”

In July, Fitch Ratings expected the energy sector to lead U.S. high yield default volume for the third consecutive month after Weatherford’s bankruptcy. The trailing 12 months (TTM) energy default rate stood at 4.1 percent in July, compared to 1.9 percent for the overall market, Fitch said.

The Halcon and Sanchez bankruptcies in August pushed the U.S. high yield energy default rate to 5.7 percent from 4.1 percent, marking the sixth consecutive month of an energy filing, Fitch Ratings said in a report last week.

Fitch sees a 5-percent energy default rate for year-end 2019 and 4 percent for year-end 2020, well above the expected 2-percent overall market rate for both years.

“The year-end 2019 energy rate could climb above seven percent if EP Energy LLC elects to file rather than do an out of court exchange for its nearer-term maturities,” Eric Rosenthal, Senior Director of Leveraged Finance at Fitch Ratings, said in a press release. Related: How Much Crude Oil Has The World Really Consumed?

Last month, S&P Global Ratings said in a sector overview that the number of junk-rated energy companies going into default has started to increase and could lead to “a second reckoning” for some, as some survivors of the 2015-2016 wave of bankruptcies could be looking at Chapter 11 proceedings again.

Haynes and Boone’s latest Oil Patch Bankruptcy Monitorpublished last week showed that this year there has been an uptick in the number of bankruptcy filings, with 26 filings as of August 12, of which 20 since the beginning of May. To compare, the number of bankruptcy filings were just 24 for full-year 2017 and only 28 filings in the whole of 2018.

“It is clear that for certain financially troubled producers wounded by the crash in 2015, some stakeholders may have given up hope that resurgent commodity prices will bail everyone out,” Haynes and Boone said, adding:

“For these producers the game clock has run out of time to keep playing “kick the can” with their creditors and other stakeholders.”  

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U.S. To “Drown The World” In Oil

By Nick Cunningham - Aug 21, 2019, 6:00 PM CDT

The U.S. could “drown the world in oil” over the next decade, which, according to Global Witness, would “spell disaster” for the world’s attempts to address climate change.

The U.S. is set to account for 61 percent of all new oil and gas production over the next decade. A recent report from this organization says that to avoid the worst effects of climate change, “we can’t afford to drill up any oil and gas from new fields anywhere in the world.” This, of course, would quickly cause a global deficit, as the world continues to consume around 100 million barrels per day (bpd) of oil.

Global Witness notes that the industry is not slowing down in the United States, notwithstanding recent spending cuts by independent and financially-strappedoil and gas firms. If anything, the consolidation in the Permian and other shale basins, increasingly led by the oil majors, ensures that drilling will continue at a steady pace for years to come.

It isn’t as if the rest of the world is slowing down either. The global oil industry is set to greenlight $123 billion worth of new offshore oil projects this year, nearly double the $69 billion that moved forward last year, according to Rystad Energy. In fact, while shale drilling has slowed a bit over the past year amid investor skepticism and poor financial returns, offshore projects have begun to pick up pace.

But that trend might turn out to be just a blip. The U.S. is still expected to account of the bulk of new drilling and the vast majority of new production, with much of that coming from shale. Already, the U.S. is the world’s largest producer of both oil and natural gas. And the pace has accelerated in recent years. In 2018, U.S. oil and gas production increased by 16 and 12 percent, respectively. According to the EIA, the U.S. surpassed Russia in terms of gas production in 2011, claiming the top spot, and it surpassed Saudi Arabia in oil production last year.

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Going forward, new production from the U.S. will be eight times larger than the next largest source of growth, which is Canada. In fact, the U.S. will add 1.5 times more oil and gas than the rest of the world combined, according to Global Witness. Related: U.S. Is Now Largest Oil… And Gas Producer In The World

But because so much drilling in the U.S. is concentrated in a few areas, individual U.S. states on their own tower over the rest of the world. If Texas were a country, it would account for the most new oil and gas production in the world. Between 2020 and 2029, Texas could account for 28 percent of all additional output, Global Witness says.

Canada and Pennsylvania tie for second and third with 7 percent each. Then comes New Mexico at 5 percent of the growth and North Dakota at 4 percent. Oklahoma, Brazil, Colorado, Russia and Ohio are all tied at 3 percent a piece.

In other words, 7 out of the top 10 sources of new oil and gas production globally over the next decade are U.S. states.

“If things don’t change, by the end of the next decade, new oil and gas fields in the US will produce more than twice what Saudi Arabia produces today,” Global Witness said in its report.

This presents a massive challenge. “To avoid the worst impacts of climate change, our analysis shows that global oil and gas production needs to drop by 40% over the next decade. Yet, instead of declining, US oil and gas output is set to rise by 25% over this time, fueled by expansion in new fields,” the report warned.

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Shale Towns In Texas Boom As Oil Supermajors Settle In The Permian

By Tsvetana Paraskova - Aug 21, 2019, 6:00 PM CDT

The towns in the heart of the Permian in West Texas—once notoriously known as boom or ghost towns depending on the price of oil and drilling activity—have seen steady growth since 2017 and look to expandcommunity and school services as the boom hasn’t been affected by the recent oil price slide.

Schools in the towns of Midland and Odessa need more buildings to house more students and Odessa is even thinking of buying a hotel to house the new teachers that the schools need, Reuters correspondent Jennifer Hiller reports.  

This time, unlike in previous boom-and-bust cycles, residents and local authorities believe that the boom will continue as the biggest U.S. oil companies are betting on the Permian to grow their production volumes.

Earlier this year, both Exxon and Chevron announced increased targets for their Permian oil production. Chevron now sees its Permian unconventional net oil-equivalent production rising to 600,000 bpd by the end of 2020, and to 900,000 bpd by the end of 2023. Exxon revised up its Permian growth plans to produce more than 1 million oil-equivalent barrels per day by as early as 2024, which would be an increase of almost 80 percent.  

Even though smaller shale drillers have started to show signs of slowdown in drilling activity in the Permian, locals in the towns of Midland and Odessa see the supermajors coming to the shale region as providing more sustainable growth and development in these boom-and-bust cities.

Related: Oil & Gas Industry Leads Forbes Profit Growth List In 2019

Midland, for instance, has grown a lot in terms of job creation, leading to much higher house prices than in the rest of Texas, excluding Austin. The median home value in Midland is US$261,900, up by 12.9 percent over the past year, as per data from real estate and marketplace Zillow, which expects house prices to go by another 5.3 percent over the next year and rates the Midland housing market as ‘very hot.’

According to data from the Texas A&M University Real Estate Center compiled by Reuters, the median Midland home price is $305,000, compared to $117,000 for the median Texas house price.  

Last year, Midland saw the largest over-the-year percentage gains in nonfarm payroll employment in the U.S.—at 6.7 percent, according to the Bureau of Labor Statistics. 

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The Downside Risk For Oil Prices Is Undeniable

By Osama Rizvi - Aug 21, 2019, 4:00 PM CDT

Inverting yield curves, a shrinking German economy, Brexit, two trade wars, tariffs and slowing industrial activity in China are all pointing to the possibility of a recession. Even if we assume, as I’m sure most are hoping, that despite these signals a recession does not occur - the current market sentiment is undoubtedly a cause of concern for commodities like crude oil. Oil markets look set to be bearish or at least range bound for the rest of the year. Macroeconomic forces are coming together in such a way that a bullish case for crude oil is increasingly difficult to justify.

The truce at the recent G20 meeting in Osaka between the U.S. and China proved to be very short lived. Oil prices plunged sharply after Trump’s announcement of 10 percent tariffs on an additional $300 billion of Chinese goods. And while the recent announcement by the United States Trade Representative (USTR) to delay these tariffs until the 15th December gave markets some hope, it is unlikely to lead to a breakthrough in the trade war. Realistically, this delay was designed to provide cover for the holiday season and after that, it will be business as usual. The President himself has made it clear that, despite the talks, he is not ready for a deal. The current unrest in Hong Kong is likely to sour relations between the two countries even further. And to make matters worse for oil markets, there is another trade war brewing in the East Asia, one between Japan and South Korea.

The Japanese and South Korean trade war may be a recent phenomenon, but the tensions between these two countries goes back as far as the Second World War. During the war, Japan exploited Korean workers in the form of forced labor, leading South Korea to ask Japan for reparations for human rights abuses and the country’s wartime loss. This claim led to Japan tightening controls and implementing trade restrictionson South Korea – removing the country from its “white list”. In the meantime, South Korea began considering abolishing Japan’s preferred trade nation status and downgrading it. To add to tensions, Japan has accused South Korea of leaking tech secrets to North Korea, although there is no evidence for that accusation. The effects of this trade war, as it develops, could be profound on the global economy. Take for example Samsung and SK Hynix, which account for 60 percent of world’s DRAM chips, used in everyday electronics objects around the world. This second trade war is sure to be negative for the global economy, adding yet another bearish factor for oil markets to deal with. Related: Rampant Corruption In The World’s Last Oil Frontier

Despite the many economic warning signs that are flashing, such as the U.S. treasury yield curve for 10 year bonds falling below a 2 year rate, some analysts are optimistic that we will see a repeat of 1960 - when the yield curves inverted but a recession was avoided. We could, for example, experience a scenario in which the Fed continues to cut interest rates. This would result in a depreciated dollar, making it more affordable for other countries to buy crude oil and causing the price of crude to go higher. This optimistic outlook, however, is based on one key assumption - stable demand. The assumption of stable demand is far from a reasonable one, with the IEA and EIA having continuously cut their demand estimates this year. Two trade wars and recessionary concerns would only exacerbate this downward trend, and it is likely that other central banks around the world are also gearing up to reduce interestrates, offsetting the effect of a falling dollar and keeping oil prices under pressure.

Of course, a war in the Middle East would void much of the above analysis. But we can gauge the sentiment in that regard as well. President Trump has categorically said that he is not looking for a war with Iran. This statement was reciprocated by Muhammad Zarif, Iran’s foreign minister, when he stated that “we are not seeking war”. While geopolitical tensions in the Middle East are high, there appears to be very little support for escalating those tensions into a military conflict.

Amidst all of this there are very few factors pointing to an upward rally in oil prices. Inventory withdrawals are temporarily putting a bottom under prices, but against the backdrop of record Saudi cuts and falling demand, fundamentals are unlikely to spark a bull run any time soon. China and the U.S. will only reach a deal in the trade war when both the sides agree to compromise, and there is no sign of that happening any time soon. Oil traders should be particularly careful in today’s markets, bearish sentiment has well and truly taken over markets.

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4 hours ago, Pitcher said:

Shale Towns In Texas Boom As Oil Supermajors Settle In The Permian

By Tsvetana Paraskova - Aug 21, 2019, 6:00 PM CDT

The towns in the heart of the Permian in West Texas—once notoriously known as boom or ghost towns depending on the price of oil and drilling activity—have seen steady growth since 2017 and look to expandcommunity and school services as the boom hasn’t been affected by the recent oil price slide.

Schools in the towns of Midland and Odessa need more buildings to house more students and Odessa is even thinking of buying a hotel to house the new teachers that the schools need, Reuters correspondent Jennifer Hiller reports.  

This time, unlike in previous boom-and-bust cycles, residents and local authorities believe that the boom will continue as the biggest U.S. oil companies are betting on the Permian to grow their production volumes.

Earlier this year, both Exxon and Chevron announced increased targets for their Permian oil production. Chevron now sees its Permian unconventional net oil-equivalent production rising to 600,000 bpd by the end of 2020, and to 900,000 bpd by the end of 2023. Exxon revised up its Permian growth plans to produce more than 1 million oil-equivalent barrels per day by as early as 2024, which would be an increase of almost 80 percent.  

Even though smaller shale drillers have started to show signs of slowdown in drilling activity in the Permian, locals in the towns of Midland and Odessa see the supermajors coming to the shale region as providing more sustainable growth and development in these boom-and-bust cities.

Related: Oil & Gas Industry Leads Forbes Profit Growth List In 2019

Midland, for instance, has grown a lot in terms of job creation, leading to much higher house prices than in the rest of Texas, excluding Austin. The median home value in Midland is US$261,900, up by 12.9 percent over the past year, as per data from real estate and marketplace Zillow, which expects house prices to go by another 5.3 percent over the next year and rates the Midland housing market as ‘very hot.’

According to data from the Texas A&M University Real Estate Center compiled by Reuters, the median Midland home price is $305,000, compared to $117,000 for the median Texas house price.  

Last year, Midland saw the largest over-the-year percentage gains in nonfarm payroll employment in the U.S.—at 6.7 percent, according to the Bureau of Labor Statistics. 

I remember back in the 1979 oil boom - there were 10,000 oil workers living in a tent city on the west side of Odessa Texas....Odessa was also the murder capitol of the US there for a few years (per capita).

lol...great party town then...

 

.

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 Arabic and International


Economy News _ Baghdad

LONDON (Reuters) - Oil prices eased on Thursday, paring earlier gains as they are under pressure from worries about the global economy and a bigger-than-expected rise in oil inventories in the United States, the world's top crude consumer.

Brent crude futures were down 16 cents, or 0.3 percent, at $ 60.14 a barrel by 0634 GMT.

US West Texas Intermediate (WTI) crude futures were down 10 cents, or 0.2 percent, at $ 55.58 a barrel.

"Oil markets continue to move lower after a sudden increase in US fuel stocks," said Stephen Ince, managing partner at Valor Markets.

The US Energy Information Administration said on Wednesday that gasoline and distillate inventories rose more-than-expected last week, as crude stocks fell as refineries raised production.

Investors are worried about the prospects for global oil demand, especially in light of trade tensions between the United States and China, the world's two biggest oil consumers and consumers.

Oil traders, along with the stock and bond markets, are eyeing a speech by Federal Reserve Chairman Jerome Powell on Friday at an economic conference in Jackson Hole, Wyoming, which may indicate whether the central bank will continue to cut interest rates and ease monetary policy.

Meanwhile, oil markets are receiving some support from growing tensions between the United States and Iran, after Iranian President Hassan Rouhani said that if Iran's oil exports stopped completely, international waterways would not be as secure as before.


Views: 23   Date Added: 22/08/2019

 
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  • yota691 changed the title to OPEC's share of world oil market drops to 30%

OPEC's share of world oil market drops to 30%

OPEC's share of world oil market drops to 30%

 22 August 2019 07:39 PM
Mubasher : OPEC's market share in the global oil market fell to 30 percent last month, in conjunction with its efforts to reduce supply.

OPEC data showed on Thursday that the production of members of the Organization of Petroleum Exporting Countries accounted for about 30 percent of the world crude oil supply in July, compared with 34 percent a decade ago, compared with the peak in 2012 at 35 percent, according to the agency. Reuters

Last month, OPEC production fell by 246,000 bpd to 29.609 million bpd, led by supply cuts from Saudi Arabia, Iran and Venezuela.

Although the Organization of the Petroleum Exporting Countries (OPEC) continues to reduce production, prices have fallen from the highest level in 2019, which was recorded in April at $ 75 a barrel, to about $ 60 a barrel at the moment.

OPEC and non-OPEC producers will continue to work on a production cut until March.

 
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Oil Plunges On Trade War Escalation

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Oil plunged on Friday after China announced new tariffs on U.S. goods, including crude oil. The move reignited fears of economic recession. Meanwhile, global financial markets are closely watching the Jackson Hole symposium, an elite financial summit that may provide some clues into the thinking of the U.S. Federal Reserve.

Alberta extends production curtailments through 2020. Alberta extended the authority of its production cuts through the end of 2020 due to pipeline uncertainty. The move comes after the delay of the Line 3 replacement, which means midstream bottlenecks are likely to persist.

Oil producers battle pipelines over tariff surcharge.Plains All American Pipeline (NYSE: PAA) has slapped a surcharge on oil producers using its new Cactus II pipeline to offset the higher costs of steel due to U.S. tariffs. But ConocoPhillips (NYSE: COP) and Encana (NYSE: ECA) have requested that U.S. regulators shoot down the pipeline fee.

China’s petrochemical expansion threatens others. A rapid increase in petrochemical production capacity in China could force producers in Japan and South Korea to cut production in the second quarter of 2020, according to Reuters. China is set to add 10 million tonnes of paraxylene capacity between March 2019 and March 2020.

U.S. says Iran exports fall below 100,000 bpd. U.S. State Department special representative for Iran, Brian Hook, said that Iran’s oil exports have plunged below 100,000 bpd, although independent assessments from S&P Global Platts puts the figure closer to 450,000 bpd. “We have effectively zeroed out Iran's export of oil,” Hook said during a press briefing in New York. “I can't overstate the significance of this accomplishment.”

U.S. to add 61% of all new oil and gas. Over the next decade, the U.S. will account for 61 percent of all new oil and gas output in the world. The added output is set to “drown the world in oil,” Global Witness said in a report.

Related: LNG Upends Europe’s Gas Market

Natural gas hits 10-year low in Europe. Natural gas prices in Europe fell to a 10-year low as cheap LNG washes over the continent. Gas storage in many European countries is significantly higher than the five-year average.

Layoffs in India’s car industry. According to Reuters, declining auto sales is leading to worker layoffs and idling production in India. Auto sales have slumped for nine consecutive months in India, a sign of a worsening economy.

China unveils $75 billion in tariffs. China said that it would retaliate if the U.S. moves forward with the additional 10 percent tariff on $300 billion worth of goods, and on Friday announced plans for new tariffs on $75 billion worth of U.S. imports. The plans include an additional 5 percent on American soybeans and crude oil, which will go into effect in September, while a 25 percent tariff on cars will take effect in December.

Rosneft becomes oil trader for PDVSA. Russia’s Rosneft has become the main trader of Venezuelan oil, moving it to buyers in India and China, according to Reuters. The move comes as traditional oil traders are steering clear of Venezuela because of U.S. sanctions. Rosneft took 40 percent of PDVSA’s oil in July and 66 percent in August.

Rosneft to trade in euros. Rosneft has notified customers that future tender contracts will be conducted in euros, not dollars.

U.S. warns China away from Vietnam’s oil. The U.S. warned China on Thursday against interfering with Vietnam’s oil and gas exploration, highlighting the longstanding tension over territory in the South China Sea.

Pembina to buy Kinder Morgan’s Canadian assets for $3.3 billionPembina Pipeline Corp. (NYSE: PBA) has agreed to purchase the remaining Canadian assets owned by Kinder Morgan (NYSE: KMI) for $3.3 billion. The deal gives Pembina a large source of oil storage in Edmonton and marks a major bet on the future of Canada’s oil sands. Kinder Morgan’s exit is another in a long line of divestitures by international oil companies from Canada.

Trans Mountain pipeline restarts construction. Now under the control of a government-owned entity, construction has restarted on the Trans Mountain expansion. The pipeline is scheduled to come online in mid-2022 barring more delays.

OPEC’s market share falls to 30 percent. OPEC’s market share is at its lowest point in years, even as the group stares down a supply glut in 2020, which may prompt even further cuts.

U.S. to sell 10 million barrels from SPR. The U.S. Department of Energy will sell 10 million barrels of oil from its SPR for delivery in October and November. The sale stems from previously passed legislation by the U.S. Congress.

Cube development can increase shale drilling returns. New research from Wood Mackenzie finds that cube development – drilling an entire section rather than individual wells – can increase present value (PV) by 30 percent in the Wolfcamp and Bone Spring. “Cubes won’t work for every company. That said, they offer big benefits if executed to plan,” Ryan Duman, principal analyst at WoodMac, said. But the approach also carries risk. “Investors need to be aware that the cube approach concentrates geographic and subsurface risk. And it doesn’t completely eliminate the risk of child wells,” Duman said. “Producing wells simultaneously can actually be more costly on a unit basis if the wells are not as productive as expected from overly dense spacing.”

Brazil wants to privatize Petrobras. The Brazilian government wants to fully privatize Petrobras by 2022. Meanwhile, Petrobras CEO Roberto Castello Branco suggested that the company should end the use of production-sharing contracts, and instead shift to a concession model.

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U.S. Oil Rig Count Plunges To Near 2-Year Low

By Julianne Geiger - Aug 23, 2019, 12:19 PM CDT

The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.

The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.

Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.

Year-to-date, the oil rig count has fallen from 858 active rigs since the beginning of the year to 754, while gas rigs have fallen from 187 to 162 during that same time.

Oil prices were trading up slightly on Friday ahead of the data.

At 11:37 am EST today WTI was down $1.48 (-2.67%) at $53.87—not quite $1 lower than this time last week. The Brent benchmark was also down on the day, by $1.02 (-1.70%) at $58.90—up roughly $0.40 week on week.

US production held fast at an average of 12.3 million bpd for week ending August 16, for the third week running, which is just 100,000 bpd off the all-time high.

Canada’s overall rig count fell too this week. Oil and gas rigs fell by 3, after last week’s 2-rig increase. Oil and gas rigs in Canada are still down 90 year on year. Canada’s oil rigs are down 58 year on year, with gas rigs down 32 year on year.

WTI was trading down 3.54% shortly after data release, while Brent was trading down 2.30%.

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U.S. Oil Rig Count Plunges To Near 2-Year Low

By Julianne Geiger - Aug 23, 2019, 12:19 PM CDT

The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.

The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.

Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.

Year-to-date, the oil rig count has fallen from 858 active rigs since the beginning of the year to 754, while gas rigs have fallen from 187 to 162 during that same time.

Oil prices were trading up slightly on Friday ahead of the data.

At 11:37 am EST today WTI was down $1.48 (-2.67%) at $53.87—not quite $1 lower than this time last week. The Brent benchmark was also down on the day, by $1.02 (-1.70%) at $58.90—up roughly $0.40 week on week.

US production held fast at an average of 12.3 million bpd for week ending August 16, for the third week running, which is just 100,000 bpd off the all-time high.

Canada’s overall rig count fell too this week. Oil and gas rigs fell by 3, after last week’s 2-rig increase. Oil and gas rigs in Canada are still down 90 year on year. Canada’s oil rigs are down 58 year on year, with gas rigs down 32 year on year.

WTI was trading down 3.54% shortly after data release, while Brent was trading down 2.30%.

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Oil falls 2% on settlement to record weekly losses

Oil falls 2% on settlement to record weekly losses

 23 August 2019 09:49 PM
Mubasher : Oil prices fell more than 2 percent on Friday, as the trade war between Washington and Beijing escalated to record weekly losses.

In response to possible US tariffs, China announced the targeting of $ 75 billion worth of goods from Washington, including crude oil, beginning next month.

After China's decision, US President Donald Trump demanded that companies stop production in China, move their business outside Beijing and return to the United States.

Oil prices fell nearly 4 percent during the session, with the escalation of the trade war, but reduced nearly half of its losses after the data of the company "Baker Hughes" revealed that the drilling platforms for crude in the United States by 16 platforms this week.

At the settlement, the price of futures contracts for "Nymex" US crude for October delivery by 2.1 percent to $ 54.17 a barrel, after falling during the session at $ 53.24 a barrel.

US crude recorded a weekly loss of about 1.3 percent.

Brent crude futures for October delivery were down 0.8 percent at $ 59.43 a barrel, down from $ 58.30 a barrel by 6:45 pm GMT.

 
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Report: US to flood world with oil over the next decade

Economy | 12:07 - 24/08/2019

 
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Follow - up - the balance of News 
likely report issued by the Organization "Global tennis" world on the environment that the United States cause flooding the world with oil over the next decade, which would serve as a "disaster" as described by the organization for the global efforts to combat climate change. 
According to oilprice.com, the US is likely to account for 61 percent of new oil and gas production over the next decade, which Global Witness has warned would have bad effects on climate change. Stressing that the results of the analysis indicates that the climate can not tolerate further drilling of new fields anywhere in the world.
The Global Witness report noted that the oil industry is not slowing down in the US, despite recent cuts in spending by financially troubled oil and gas companies. 
According to Rystad Energy, the global oil industry is poised to give the green light for new $ 123 billion offshore oil projects this year, nearly double what the industry has seen over the past year. While shale exploration has slowed slightly over the past year, amid investor uncertainty and poor financial returns, offshore oil projects are finally on the rise. 
However, the Oilprice.com report noted
The United States is currently the world's largest producer of oil and natural gas, with its production increasing in recent years. 
In 2018, US oil and gas production increased by 12 and 16 percent respectively.According to the International Energy Agency, the United States outperformed Russia in gas production in 2011 to rank first, and surpassed Saudi Arabia in oil production last year. . 
Because much of the drilling in America is concentrated in a few areas, Texas production will be a nation's own. It is expected to contribute the largest volume of new oil and gas production in the world. That Texas accounted for 28 percent of total additional production.
In contrast, Canada and Pennsylvania will take second and third place in production with 7 percent each, New Mexico with 5 percent of growth, and North Dakota with 4 percent, while Oklahoma and Brazil will capture , Colorado, Russia, and Ohio at 3 percent. 
In other words, 7 of the top 10 sources of oil and gas production in the world over the next decade will be US states. 
If things do not change by the end of the next decade, new oil and gas fields in the United States will produce more than twice what Saudi Arabia produces today. The worst effects of climate change, global oil and gas production will need to fall by 40 percent over the next decade.
But instead of falling, US oil and gas production is set to rise by 25 percent during this time, driven by expansion in new fields.

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The price of a barrel of Kuwaiti oil fell to $ 60.76

The price of a barrel of Kuwaiti oil fell to $ 60.76
Oil drums
 24 August 2019 10:35 AM

Kuwait - Mubasher: The price of Kuwaiti oil fell by 89 cents on Friday, Kuwait Petroleum Corporation data showed.

The price of the barrel reached 60.76 dollars in trading yesterday, compared with 61.65 dollars per barrel in trading on Thursday .

Oil prices fell more than 2 percent on Friday, as the trade war between Washington and Beijing escalated to record weekly losses.

In response to possible US tariffs, China announced the targeting of $ 75 billion worth of goods from Washington, including crude oil, beginning next month.

After China's decision, US President Donald Trump demanded that companies stop production in China, move their business outside Beijing and return to the United States.

Oil prices fell nearly 4 percent in the final session of the week, with the escalation of the trade war, but reduced almost half of its losses after the data of the company "Baker Hughes" revealed the decline of oil exploration platforms in the United States by 16 platforms this week.

At the settlement, the price of futures contracts for "Nymex" US crude for October delivery by 2.1 percent to $ 54.17 a barrel, after falling during the session at $ 53.24 a barrel.

US crude recorded a weekly loss of about 1.3 percent.

Brent crude futures for October delivery were down 0.8 percent at $ 59.43 a barrel, down from $ 58.30 a barrel by 6:45 pm GMT.

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  • yota691 changed the title to New OPEC basket price drop

New OPEC basket price drop

By mustafa k 27/08/2019 12:18 PM | Number Of Hits: 615

New OPEC basket price drop

Ahd News - Baghdad

OPEC basket oil prices recorded a new decline in daily trading to reach 59.18 dollars per barrel .

"The price of OPEC oil reached 59.18 dollars per barrel compared with 59.67 dollars per barrel," said the bulletin of the General Secretariat of the Organization of Petroleum Exporting Countries (OPEC) on Tuesday. ".

The OPEC basket, which is a reference for production policy, comprises 13 types: Algerian (Sahara) crude, Iranian heavy, (Basra) Iraqi, Kuwaiti export crude, Libyan (Sidr) crude, Nigerian (Bonny) crude, Saudi Arabian light crude, Saudi (Miriat), Saudi crude and Venezuelan crude. Angolan, Orient, Ecuadorian, Zafiro (Equatorial Guinea) and Rabi Light (Gabon). "

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  • yota691 changed the title to Updated: oil falls 5% upon settlement, with geopolitical concerns calm

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