Archive for the ‘oil fundamentals’ Category

Few surprises expected from OPEC despite cracks over policy — Fuel for Thought

Never say never.

With this in mind, it would probably be foolish to rule out some kind of deal between OPEC and non-OPEC producers to manage supply.

But, right now, there’s nothing to suggest that any such pact is even a remote possibility, and few OPEC watchers expect the oil producer group to do anything other than rubber-stamp current output policy at talks in Vienna next week.

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OPEC’s big favor to the world of oil

Platts Energy Economist Managing Editor Ross McCracken takes a look at OPEC’s spare crude production capacity. Much has been made recently of the US’ new spare capacity, but OPEC’s role has also shifted, as he explains.

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Mixed signals: Weighing the fate of US shale oil supply

Aside from a brief blip, oil prices have remained stubbornly below $50/b in recent weeks despite fresh concern over global demand and rising geopolitical tensions. On the supply side, the market’s gaze has gravitated to that most closely watched of oil market variables — the response of US shale output to weaker oil prices.

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Don’t lose your head over bad times — the oil markets will sort everything out

Back in the day six weeks ago, I used to tell this joke when I was explaining how Platts was sending me on the road for the rest of the year to get the pulse of the oil markets.

I hate to travel, and I don’t like people, so this is perfect for me.

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Upstream oil execs agree: Low, long and living within means

The recent Barclays CEO Energy-Power Conference came at a crucial time in the current lower-for-longer oil price environment and clarified upstream CEOs’ plans to weather what could be 2015 all over again for a couple of more years.

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Music to OPEC’s ears: IEA sees cartel’s oil strategy as having ‘intended effect’

The past year has, without a doubt, been a momentous one for oil markets. Prices began their precipitous plunge in mid-2014, only for OPEC’s shift in strategy in November last year to send them even lower.

At the time, OPEC argued that the market should be left to balance itself, and that it should be the higher-cost oil that should be removed from the market first — not the lower-cost OPEC oil.

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US crude oil export state of play

On Thursday, a House Energy and Commerce subcommittee passed HR 702, which would repeal all limits on US crude exports. The US Energy Information Administration claims that a crude export policy shift would likely have a relatively minimal impact on overall export levels, causing, at most, 1.5 million b/d of crude exports over current levels, but only in the most extreme case the agency looked at.

Still, the policy has ignited a fierce lobbying battle between producers, who claim they need access to the world market to compete in the current low-price environment, and some refiners, who claim a policy change will hinder the domestic refining industry.

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The Oil Big Five: Crude oil catches much of our attention

Oil made its way into various public conversations between last month’s posting of The Oil Big Five and this month’s roundup of some of oil’s biggest and hottest topics. Looking back over the past few weeks, and then looking forward toward the rest of the year, it’s clear that there may not be any slowing down anytime soon.

Welcome, once again, to The Oil Big Five, where we ask our oil editors and analysts worldwide what they think are the most important or interesting topics in oil at the moment.

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Paper and barrels, pushing and pulling oil prices: Petrodollars

It’s an old debate: Is it fundamentals or trading that primarily drive oil prices? As John Kingston, previously of Platts and now president of the McGraw Hill Financial Global Institute, explains in this week’s Oilgram News column, Petrodollars, it’s not always an either/or debate.

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Much ado about … an OPEC editorial

An editorial in OPEC’s latest Bulletin caused much excitement and contributed to a price rally on oil markets on August 31. The oil producer club said it stood “ready to talk to all other producers” but emphasized that this had to be on “a level playing field.”

But there’s nothing new here. OPEC has regularly stated its willingness to talk to other producers and the editorial seems merely to reiterate this.

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