OilPrice.com Daily News Update
All the latest in Oil, Gas, Commodity news and analysis
Continuing Arab Gulf Spat Could Weigh On Oil Prices?Again
by Tsvetana Paraskova
23 Jun 2017 at 4:24pm
While oil markets were battered again this week over persisting oversupply concerns, the diplomatic crisis in the Middle East continued to brew, peaking when the Arab states boycotting Qatar issued a list of 13 demands to the tiny gas-rich country, which most analysts and insiders consider nearly impossible to meet. Saudi Arabia and its several other Arab allies that severed ties with Qatar almost three weeks ago have issued a list of 13 demands to Qatar, giving their now-isolated neighbor 10 days to meet those demands, which include cutting ties?
IEA Official: Nuclear Must Remain In The Mix To Meet Global Carbon Goals
by Zainab Calcuttawala
23 Jun 2017 at 4:15pm
The abandonment of plans to build or upgrade nuclear facilities in the United States and Europe could prevent the international community from meeting its reduced carbon emissions targets, according to an official from the International Energy Agency (IEA). In both the United States and the European Union, nuclear energy is the largest low-carbon source of energy. IEA data shows that nuclear produces three times more power than wind and solar energy combined in both regions, with most production coming from plants built more than three decades?
Greece Okays Exxon-Total Bid To Explore For Offshore Oil
by Tsvetana Paraskova
23 Jun 2017 at 4:03pm
Greece has approved an application by a consortium of ExxonMobil, France?s Total SA, and domestic oil refiner Hellenic Petroleum, to drill for oil and gas off the island of Crete, Reuters reported on Friday, quoting the Greek energy ministry as saying. Greece has also approved another application, by local company Energean Oil, to start drilling for oil offshore western Greece. The country?s oil and gas resources management body will launch a tender for exploration licenses in the blocks by the end of June, with the goal to award licenses?
Oil Industry To Waste Trillions As Peak Demand Looms
by Nick Cunningham
23 Jun 2017 at 3:52pm
ExxonMobil and its peers risk blowing $2.3 trillion on oil projects that will not be needed if the world hits peak demand in the next decade. A new report from The Carbon Tracker Initiative analyzed what would happen if the oil market saw demand peak by 2025, a scenario that would be compatible with limiting global warming to just 2 degrees Celsius. The headline conclusion is that about one-third of the global oil industry?s potential spending ? or about $2.3 trillion ? would not be needed. In other words, the oil industry is?
Goldman Sachs: Oil Crash Unlikely To Continue
by Julianne Geiger
23 Jun 2017 at 3:51pm
The current selloff in energy stocks is but an opportunity for buyers, according to a Thursday note from Goldman Sachs? European energy team, who added that current prices are likely unsustainable in the long run. ?We?see the sell off as an attractive buying opportunity in our favored stocks, including Total and Lundin, whilst we have also started to see investor interest in higher beta stocks that have sold off such as Tullow,? said Goldman. French Total SA (NYSE: TOT), which is trading at $49.53 on Friday, had closed?
Crisis-Stricken Venezuela Looks To Import Fuel
by Irina Slav
23 Jun 2017 at 3:47pm
Venezuela is seeking more than 13 million barrels of fuel imports by the end of the year, which constitutes about a third of what the South American nation needs annually. The information is from tender documents seen by Bloomberg, and suggests deepening troubles for the country?s oil industry. Refineries are operating at less than 50 percent of their installed capacity?which is 3.1 million bpd?due to insufficient supplies of crude oil and to insufficient maintenance, the latter according to BMI Research. The firm noted that refinery?
The World Is Millions Of Barrels Away From Peak Oil
by Robert Rapier
23 Jun 2017 at 3:46pm
The notion that demand for crude oil will soon peak has largely replaced the idea from a decade ago that crude oil production was about to peak for geological reasons. This new idea is that we will no longer need oil (or at least a lot less of it) because consumers will choose alternatives to oil. But actual oil consumption numbers suggest that peak demand for oil won?t happen soon, and when it does happen it will do so at a demand millions of barrels per day (BPD) higher than current demand. Proponents of peak demand expect that exponential?
What Is The Most Likely Outcome Of The Qatar Crisis?
23 Jun 2017 at 3:42pm
Just a fortnight after President Trump?s visit to the Middle-East, many members of the GCC as well as Egypt, severed diplomatic, economic and security relations with Qatar. Saudi Arabia, Egypt, the UAE, Bahrain and Yemen, made this momentous decision, joined days later by Mauritania and the Maldives. These measures are particularly hard for Qatar as this is not merely a closing of embassies. In 2014, Qatar had a crisis with its neighbors, who shut down their embassies to protest against Doha?s foreign policy. The crisis was resolved?
Russian Cyber Strength Pushes EU Into The Modern Era
23 Jun 2017 at 3:41pm
On June 14, during the first international Global Cybersecurity Summit, in Kyiv, the secretary of the Ukrainian National Security and Defense Council, Oleksandr Turchynov, stated that ?Ukraine has become a playground for the testing of the most up-to-date cyber techniques? by the Russian Federation (Ukrinform.ru, June 14). Earlier, also commenting on Russian aggression against Ukraine, Maro? Kir?ák, the director of the cybersecurity program at the Slovak Security Policy Institute, said, ?Russia plays a very important?
U.S. E&P?s See Reserves Drop As Oil Sands Struggle
23 Jun 2017 at 3:41pm
Independent E&P companies saw liquids reserves decline again in 2016, as lower prices continued to squeeze producers. Oil prices in early 2016 dropped to the lowest levels in more than a decade. While OPEC?s output cut did improve the price environment late in the year, it was not enough to raise the overall SEC price for 2016. Based on the previous year?s monthly spot price, the WTI price used for reserves calculation in 2016 was $42.75, the lowest in more than a decade. This lower price forced liquids reserves down among independent?
The Hidden Motives Of The Chinese Silk Road
23 Jun 2017 at 3:21pm
China?s Belt and Road Forum, hosted with great fanfare, signals the priority of this flagship connectivity initiative while also underlining its credentials as the new ?shaper? of global trends and norms. Exhorting all countries to participate, Chinese President Xi Jinping suggested that ?what we hope to create is a big family of harmonious co-existence.? But India, an emerging economy that shares a contested border with China, worries about containment and new pathways for aggression from Pakistan. Other nations wonder?
Oil Prices To Stay Low If Global Credit Impulse Turns Negative
by Rune Likvern
23 Jun 2017 at 3:20pm
For some time I have explored the relations in developments for total debt [private and public], interest rates, Gross Domestic Product (GDP) energy consumption and thus also the oil price. My theory has been that there are relations between changes to total debt and energy consumption and thus energy prices. Changes to total credit/debt should thus be reflected in energy consumption. Price formation is also influenced by several other factors and most prominently supply and demand balances. To me, demand appears to be the one that is poorly understood?
Expansion And Diversification: Papua New Guinea?s Energy Sector
23 Jun 2017 at 3:14pm
Rising demand and a need to boost connectivity to the national grid are driving rapid expansion in Papua New Guinea?s electricity sector, with a range of sources tapped to meet the government?s power access targets. Currently, PNG has less than 600 MW of installed generation capacity, according to the Department of National Enterprises, and frequent outages due to spikes in demand mean the existing grid is consistently under pressure. On top of this, much of the country lacks access to electricity ? particularly in rural areas?
Tropical Storm Cindy Cripples Gulf Of Mexico Oil Production
by Tsvetana Paraskova
23 Jun 2017 at 3:08pm
Tropical storm Cindy?which made landfall in southwest Louisiana on Thursday and is moving northeast across the U.S.?has shut in around one-sixth of the Gulf of Mexico oil production and is crippling shipping that will affect oil and gas imports and exports this week and next. Heavy winds and rain, as well as possible power outages and flooding, could also affect operations. Storm Cindy, which was downgraded to a tropical depression after making landfall, comes just a few weeks after the National Oceanic and Atmospheric Administration?
What To Do As Oil Prices Plunge?
by Dan Dicker
23 Jun 2017 at 2:56pm
Everyone is scrambling for a new plan now --- now that oil is in its third mini-bust since the major bust cycle that began in 2014. (Click to enlarge)Since the lows in early 2106, oil has made three retreats; in July/August of 2016, in November of 2016 and right now, in June of 2017. But this retreat is different, in that it comes after the extension of OPEC production cuts that are scheduled to last until mid-2018. Those cuts have not helped oil to maintain prices above $50, they have in fact heralded this latest drop. And that?s bad news?