Oil’s persistent slide has moved some OPEC members into action.
WTI traded down again Wednesday, off almost $3.00 from the day’s high to close at $90.83, a 17-month low. Brent crude closed at $94.14, a 27-month low following a price cut by Saudi Arabia.
Yesterday Reuters reported that OPEC output had hit its highest levels since 2012, thanks to more supply coming mainly from Libya and Saudi Arabia, and other OPEC producers.
“The lack of any cutbacks underlines the relaxed view of OPEC’s core Gulf members to oil’s slide from $115 in June to $97 on Tuesday – a level they can tolerate, but which puts budgets in producers such as Iran and non-member Russia under pressure,” Reuters reported. “Supply from the Organization of the Petroleum Exporting Countries averaged 30.96 million Bpd in September, up from 30.15 million Bpd in August, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants.”
BRENT SPOT PRICE (2011 – PRESENT)
Attacks in Iraq, Syria Still Not Affecting Oil Prices
Thus far the Islamic State’s (ISIS) rampage from Syria across Iraq has not affected world prices or oil export levels from Iraq’s southern oil fields, although the barbaric killers known for beheading enemy soldiers, civilians, children and Christians, were only 16 miles from Baghdad when the BBC filmed this report on Sept. 29.
“OPEC’s own forecasts suggest demand for its crude will fall to 29.20 million bpd in 2015 due to rising supply of U.S. shale oil and supplies from other producers outside the group – almost 1.8 million bpd below current output according to this survey,” Reuters said.
Meantime Bloomberg reported that U.S. oil exports could break a record held since 1957, “as traders find ways around a four-decade ban on supplies leaving the country. The U.S. sent 401,000 barrels a day abroad in July, 54,000 barrels a day shy of the monthly record set in March 1957, according to data compiled by the EIA. While Canada accounted for 93 percent of the shipments, Italy, Singapore and Switzerland also took oil from U.S. ports. Coupled with Alaskan supplies bound for Asia, total U.S. exports will reach 1 million barrels a day by the middle of 2015, according to Citigroup Inc.”
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