Post Tagged with: "Demand"

Source: TOPS/LinkedIn

Black Bay Energy Capital Backs Permian-Based Oilfield Services Company

By Tyler Losier, Energy Reporter, Oil & Gas 360 Black Bay Energy Capital forms partnership with Total Operations and Production Services Black Bay Energy Capital, a private equity firm focused primarily on the oilfield services and equipment sector, has formed a partnership with, and made an investment in, Total Operations and Production Services (TOPS). TOPS, which operates in the Permian Basin, is an oilfield services company that provides compression products and services, specializing in gas lift applications. The company is headquartered in Midland, Texas, and is led by Founder and President L.D. Green, as well as Vice President Brian Green. A TOPS electric gas lift unit (source: TOPS Inc./LinkedIn) “TOPS is manage… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Oil Steadies as Saudi, Kuwait Signals Offset Demand Fears

Oil Steadies as Saudi, Kuwait Signals Offset Demand Fears

From Reuters Oil prices were little changed on Monday as expectations that major producers would continue to reduce global supplies ran into worries about sluggish growth in crude demand due to the U.S.-China trade war. International benchmark Brent crude settled at $58.57 a barrel, up 4 cents. West Texas Intermediate (WTI) futures settled at $54.93, up 43 cents. Investors were torn between forecasts of slowing global oil demand growth and chatter about renewed efforts by major producers to curtail output and support prices, analysts said. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have agreed to cut 1.2 million barrels per day (bpd) since Jan. 1. Kuwait was “fully committed” to the OPEC+ agreement, Oil Minister Khaled al-Fadhel said, adding that Kuwait has cut its own output by more than required by the accord. He said fears of a global economic downturn were “exaggerated,” and[Read More…]

Marathon Oil Profit Jumps 50% on Higher U.S. Shale Production

Marathon Oil Profit Jumps 50% on Higher U.S. Shale Production

From Reuters Marathon Oil Corp (MRO.N) reported a 50% jump in quarterly adjusted profit on Wednesday, as higher U.S. shale output countered lower realized crude prices and production costs fell. The company, like many other U.S. oil producers, is extracting more crude from its wells in the prolific shale basins against the backdrop of pressure to cut back on spending to boost shareholder returns. Marathon’s shares were up about 5% at $12.65 in extended trading. U.S. production at the company jumped 11.4% to 332,000 barrels of oil equivalent per day (boepd) in the second quarter, while total production rose 3.8% to 435,000 boepd. Marathon, which raised its share buyback program to $1.5 billion, said realized per barrel of crude oil and condensate price 10.4% to $59.18 per barrel in the United States in the quarter. Oil prices have come under pressure from a surge in U.S. production and fears of[Read More…]

Brent Oil in Bear Market as China-U.S. Trade Tensions Mount

Brent Oil in Bear Market as China-U.S. Trade Tensions Mount

From Reuters Oil prices fell more than 1% on Tuesday, with Brent crude settling near seven-month lows below $60 a barrel as trade tensions between the U.S. and China intensified worries about weakening global demand. During the session, Brent traded at a low of $58.81 a barrel, down more than 22% from its peak in April. That decline puts the global benchmark in “bear market” territory. Brent prices have lost more than 9% in the past week, with U.S. President Donald Trump vowing to impose new tariffs on Chinese imports and Beijing making further moves against U.S. agricultural cargoes. The United States also responded to a decline in China’s yuan on Monday by branding China a currency manipulator. Trump on Tuesday dismissed concerns over a protracted trade war with China, as Beijing warned that Washington’s decision the day before would lead to chaos in financial markets. International benchmark Brent futures[Read More…]

Oil’s Post-Crash Bounce Fades as Buy-the-Dip Proves a Bust: Kemp

Oil’s Post-Crash Bounce Fades as Buy-the-Dip Proves a Bust: Kemp

From Reuters Oil prices have continued to drift lower after plunging last week, highlighting the risk for traders trying to exploit mean-reversion strategies by buying futures contracts after a sharp fall in prices. Front-month Brent futures prices tumbled by more than 7% on Thursday, a percentage change equivalent to more than three standard deviations for all daily price moves since 1990. The one-day percentage decline was largest for more than three and a half years since February 2016, when prices were still close to their cyclical lows at just over $30 per barrel. But if some traders were hoping prices would show a significant short-term bounce after such a severe sell off, they have been disappointed. Front-month futures prices rose by just 2.3% on Friday, then fell again by 3.4% on Monday, and are still trading below last Thursday’s close. Experience suggests prices do tend to bounce slightly in the[Read More…]

Source: Sweetcrudereport.com

Bank of America Sees Oil Gains in 2019, but That Forecast is Far from Universal

From CNBC A year ahead outlook report from Bank of America Merrill Lynch expects Brent crude to regain its recent losses in 2019 and settle at $70 a barrel. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus. After a dramatic summit of OPEC and non-OPEC members over the weekend that triggered an immediate boost in oil prices, the commodity has already dropped back to pre-meeting levels, falling 3.1 percent by the end of Monday. Despite dramatic slides in the oil market, some forecasters remain positive on prices and demand going into 2019. A year ahead outlook report from Bank of America Merrill Lynch expects Brent crude to regain its recent losses in 2019 and settle at $70 a barrel. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus. “Volatility[Read More…]

December 12, 2018 - 2:03 pm Closing Bell Story, Energy News, Finance
Courtesy of RSP Permian

OECD Inventories Lowest in Three Years: IEA

Inventory declines have brought prices to three-year highs The International Energy Agency (IEA) released its monthly Oil Market Report today, outlining the group’s analysis of the overall oil market. In March 2018, OECD stocks declined by 27 million barrels to 2,819 million barrels – 214 million barrels below year-ago levels. This is the lowest level in three years, the IEA said. Crude oil prices have risen by nearly 75% since June 2017. Because of rising prices, the IEA lowered its estimate for 2018 global oil demand growth by 40 MBPD to 1.4 MMBPD, and the agency has increased its expectations for U.S. oil production growth this year by 120 MBPD. The DOE’s total crude oil inventory has fallen to 432,354 MBBL – down 17% from the 520,772 MBBL that was in storage at this point last year. The IEA said to be “mindful” of current constraints that have manifested in[Read More…]

A Deep Dive into the Mind of the EIA

A Deep Dive into the Mind of the EIA

The EIA’s Jeff Barron joined the EnerCom Dallas conference last week, both as an attendee and as a presenter. At lunch time Thursday he laid down a detailed, analytical presentation that spoke volumes to the analysts, institutional investment officers and the oil and gas management teams in the room. Barron serves the U.S. Department of Energy’s Energy Information Administration (EIA) as an industry economist. Working with the Office of Energy Markets and Financial Analysis, his work is focused on petroleum and petroleum products and the linkages between the physical and financial markets. Barron is a writer of the Monthly Markets Review for the EIA’s Short-Term Energy Outlook (STEO), and he is a contributor to the STEO price forecast. And he is a regular contributor to EIA’s This Week in Petroleum and its Today in Energy articles, writing analyses of quarterly and annual financial performances of global and U.S. companies. Taking[Read More…]

Hi-Crush Sells 8.93 Million Tons of Frac Sand in 2017

Hi-Crush Sells 8.93 Million Tons of Frac Sand in 2017

Hi-Crush Partners LP (ticker: HCLP) reported its Q4 and full year 2017 results. Revenues for the fourth quarter of 2017 totaled $216.5 million on sales of 2,985,115 tons of frac sand. This compares to $167.6 million of revenues on sales of 2,456,195 tons of frac sand in the third quarter of 2017. “Hi-Crush’s performance in the fourth quarter is the result of a year of strategic planning and focused execution,” said CEO Robert E. Rasmus. “We acted quickly, proactively and also took advantage of an improved environment in the frac sand space. From the first quarter, with our purchase of Whitehall and the development of our Permian Basin Kermit facility, to the fourth quarter, when we achieved full utilization at our Kermit facility, while placing into service our Pecos terminal and our tenth PropStreamTM crew, our team worked tirelessly to get us where we are today.” Q4 2017 Average sales[Read More…]

IEA World Oil Demand (mb/d = Millions of Barrels per Day), Feb. 2018

World Hungers for Oil: IEA

The International Energy Agency (IEA) released a new Oil Market Report (OMR) today. In its OMR, the IEA said countries across the globe have been steadily consuming more and more oil over the past few years. The IEA said that global oil demand growth for 2018 has increased slightly to 1.4 million barrels per day (mb/d), partly due to an optimistic GDP forecast from the IMF. This is down from 2017’s gain of 1.6 mb/d, but still remains higher than 2013-15’s level of demand. OECD commercial stocks fell in December 2017 by 55.6 million barrels (m/b), the steepest drop since February 2011, to reach 2,851 m/b. In 4Q17, stocks fell sharply by 1.3 mb/d across the OECD. The United States experienced several bouts of extreme winter cold, leading to record draws. Overall, stocks drew by 154 m/b during 2017 and ended the year 52 m/b above the five-year average, the[Read More…]

February 13, 2018 - 5:55 pm Closing Bell Story, International, Oil and Gas 360 Articles
Natural Gas Production Turns the Corner in 2017: EIA

Natural Gas Production Turns the Corner in 2017: EIA

Natural gas production is expected to increase in 2017, after seeing its first decline in over a decade in 2016 Natural gas production is expected to increase during the course of 2017, according to the Energy Information Administration (EIA). The agency expects the U.S. to produce 73.7 Bcf/d this year, up approximately 2% from last year. The increase in production marks a turn for natural gas production in the U.S. following the most recent downcycle. Lower oil prices and unseasonably warm weather during 2016 saw production decline for the first time since 2005, according to the EIA. Warmer weather continues to affect the price of natural gas, with Henry Hub prices down $0.45 in February compared to January averaging $2.85 per MMBtu during the second month of the year. The EIA expects that Henry Hub prices will average $3.03 per MMBtu over the course of 2017. The agency said new[Read More…]

OPEC Compliance Might Cause Global Crude Deficit in 2H 2017

OPEC Compliance Might Cause Global Crude Deficit in 2H 2017

Demand could outstrip supply in the back-half of next year, but only if OPEC and non-OPEC producers follow through on cuts Oil prices leapt over $50 per barrel following OPEC’s agreement to cut production last week, and they could be headed higher next year as the decision leads to a supply deficit in the second-half of 2017. If both OPEC and non-OPEC participants comply with their production cuts, there could be more than a 1.5 MMBOPD deficit in Q3, and a 1.0 MMBOPD deficit in Q4, according to a presentation from Argus Wednesday. Actual cuts coming or just empty words? The question remains though: will producers both inside and out of the cartel actually follow through with production cuts? Oil prices were down Tuesday as preliminary reports indicated that OPEC continued to increase production up to its meeting last week in Vienna, and non-OPEC members like Russia have a history[Read More…]

December 7, 2016 - 5:07 pm Closing Bell Story, Oil and Gas 360 Articles, OPEC
Indian Crude Oil Imports Up 17.7% from Last Year – Hitting Record High

Indian Crude Oil Imports Up 17.7% from Last Year – Hitting Record High

Crude oil imports in India reach 4.47 MMBOPD Demand for crude oil in India remains a bright spot in the markets as imports continue to grow month-over-month. Imports of crude oil grew to a record high 4.47 MMBOPD in September, according to Reuters, 17.7% higher than this time last year. The increased imports lent some support to oil prices today, which were down this morning on concerns over whether or not OPEC will be able to come to an agreement on production. September marked the second month in a row that Indian crude oil imports set record highs, with August imports up 9.1% year-over-year as well, according to the oil ministry’s Petroleum Planning & Analysis Cell. India imports over 80% of its crude oil requirements, and continues to look for new ways to increase its refining capacity to meet the needs of its 1.3 billion-person population. Indian Oil Corp. said[Read More…]

October 12, 2016 - 5:24 pm Closing Bell Story, International, Oil and Gas 360 Articles
China May Be Storing More than 150% More Oil than Official Estimates

China May Be Storing More than 150% More Oil than Official Estimates

New third-party estimates put Chinese strategic oil reserves at 600 MMBO, 366 MMBO more than official reports The actual amount of crude oil stored in China may be significantly higher than official reports indicate, according to geospatial analytics company Orbital Insights. Using satellite imaging, the company estimates oil storage in China, the world’s largest energy consumer, was at 600 MMBO in May, 156% more than the 234 MMBO reported by the Chinese government in its most recent release, reports Bloomberg. Orbital Insights estimates there were about 2,100 strategic and commercial petroleum reserve tanks capable of storing 900 MMBO as of the end of 2014, not including underground caverns. China’s reserves totaled 31.97 million tons – equivalent to about 234 MMBO – in early 2016, the National Bureau of Statistics said in a report this month. “I’m not surprised,” Michal Meidan, an analyst with London-based consultancy Energy Aspects, said of Orbital’s[Read More…]

September 30, 2016 - 6:02 pm Closing Bell Story, International, Oil and Gas 360 Articles
IEA: Essentially No Oversupply in Second Half of the Year

IEA: Essentially No Oversupply in Second Half of the Year

Supply and demand beginning to cool as oversupply shrinks – IEA, OPEC weigh in The International Energy Agency sees supply and demand coming into balance during the third quarter of the year, according to its August Oil Market Report. From July through September, demand will outpace the supply of crude oil by almost 1 MMBOPD, even as OPEC producers continue to increase output. “Our balances show essentially no oversupply during the second half of the year,” the IEA said in its report Thursday. While the agency sees supply and demand beginning to balance in the third quarter, the IEA believes both will weaken through the remainder of this year and next. In its August release, the IEA reported oil demand growth will slow from 1.4 MMBOPD in 2016 to 1.2 MMBOPD next year, “as underlying support from low oil prices wanes.” While the agency’s 2017 demand outlook is still above[Read More…]

Not Just Another Cycle: Major Shifts Between 2008 and Today

Not Just Another Cycle: Major Shifts Between 2008 and Today

Just because it’s cyclical, doesn’t mean every cycle is the same They say history repeats itself, and given the cyclical nature of the oil and gas business, many look to the past when trying to guess what is coming next, but past experience doesn’t always offer an exact model for the present. Much has changed between the 2008 oil and gas downcycle and the one the industry is currently working through today. The drop in oil prices that started in 2008 took place against the backdrop of the Global Financial Crisis, aka The Great Recession. Economies all around the world sputtered to a halt, and demand for oil dropped.  Lehman Brothers filed for bankruptcy protection on September 15, 2008.  It was the all-time largest bankruptcy filing. Oil prices dropped from historic highs of $144.29 in July 2008, to $33.87 five months later. OPEC, the world’s traditional “swing crude oil producer,”[Read More…]

Oil Surplus Smaller than Expected, but Downward Pressure on Prices Remain – IEA

Oil Surplus Smaller than Expected, but Downward Pressure on Prices Remain – IEA

Oil surplus about 40% smaller than thought a month ago The global glut of oil is shrinking, and the oil surplus is smaller than it was believed to be a month ago, according to the IEA’s June Oil Market Report. The oil surplus in the first half of 2016 is 800 MBOPD, about 40% smaller than estimated in May, and growing demand is expected to help bring the market back into balance in 2017, the agency reported. Despite the bullish outlook, the IEA said the “enormous inventory overhang” which built up since the end of 2014 will be enough to limit a significant increase in price. Global oil supply saw its “first significant drop since early 2013” in May as outages in OPEC and non-OPEC countries removed approximately 800 MBOPD from the market. Wildfires in Canada, along with rebel activity in Nigeria accounted for much of the decline. Total production[Read More…]

OPEC Report Calls for Market Balance in Second Half of 2016

OPEC Report Calls for Market Balance in Second Half of 2016

Unplanned outages continue to shore up the market quicker than expected – OPEC The OPEC Monthly Oil Market Report released Monday shows the group expects oil markets to balance out in the second half of this year. Unplanned supply outages in Nigeria and Canada will help to tighten up markets more quickly, the group said. In its report, OPEC maintained its expectations for world supply and demand in 2016 from last month. The group expects demand to grow 1.2 MMBOPD this year driven largely by India, while supply falls another 140 MBOPD from the first half of the year. OPEC predicts that supply in the second half of this year will be down 1 MMBOPD from the same time in 2015. The group’s own production was down 99.8 MBOPD in April compared to May, according to secondary sources cited in the report. The declines were largely from Nigeria, which reported[Read More…]

Demand Cools: IEA Oil Market Report Has Demand Growth Slowing 0.6 MMBOPD

Demand Cools: IEA Oil Market Report Has Demand Growth Slowing 0.6 MMBOPD

Production outside of OPEC has started to show more significant signs of rolling over recently, with U.S. production falling below 9.0 MMBOPD for the first time since 2014. Global oil supplies fell 0.3 MMBOPD in March to 96.1 MMBOPD, according to information from the IEA. Along with the fewer supplies is slowing demand growth as well, though, said the IEA. Growth in global oil demand will fall to about 1.2 MMBOPD in 2016, the agency said in its monthly report. Last year, demand grew by 1.8 MMBOPD. Information from the first quarter of the year already shows signs of cooling off, with demand growing 1.2 MMBOPD in Q1’16 after growing by 2.3 MMBOPD and 1.4 MMBOPD in Q3’15 and Q4’15, respectively. On the supply side, the IEA not expects supply to grow 0.2 MMBOPD, down significantly from 1.7 MMBOPD in 2015. The agency said the outlook for OPEC is largely[Read More…]

OPEC Trims 100 MBOPD Off Demand Expectations

OPEC Trims 100 MBOPD Off Demand Expectations

OPEC expects demand to be around 100 MBOPD lower than last month’s forecast In its March Oil Market Report, OPEC said it is now forecasting weaker demand for its own crude for 2016. The group revised demand expectations for oil produced by OPEC down by 100 MBOPD for full-year 2016. “In 2016, demand for OPEC crude is expected to stand at 31.5 MMBOPD, 0.1 MMBOPD lower than last month, and representing an increase of 1.8 MMBOPD over the previous year,” the report read. OPEC left its demand expectations for global oil growth unchanged at 1.25 MMBOPD over the year to average 94.23 MMBOPD for full-year 2016, 0.19 MMBOPD lower than demand growth last year. The supply is slowly shrinking OPEC’s forecast also revised up supply growth from non-OPEC countries, forecasting a supply contraction of 0.7 MMBOPD, 0.1 MMBOPD more production growth than the group saw last month. The increased production was[Read More…]

March 16, 2016 - 4:08 pm Closing Bell Story, Oil and Gas 360 Articles, OPEC
Signs Point to Prices Bottoming Out – IEA

Signs Point to Prices Bottoming Out – IEA

Production overhang beginning to slow,  but “sustainable price recovery more likely a 2017 event”: Wells Fargo Oil prices continued their gains today as a report from the IEA indicated that prices may have finally bottomed out, and are beginning to recover. In the agency’s March Oil Market Report (OMR), the IEA noted that oil supplies decreased by 180 MBOPD in February to 96.5 MMBOPD, as production from both OPEC and non-OPEC sources declined. Production remains 1.8 MMBOPD higher than a year ago, however, as gains from OPEC over the last year more than offset the decline in other oil producing regions of the world. Non-OPEC production is estimated to fall by 750 MBOPED to 57 MMBOPD in 2016, 100 MBOPD more than in the IEA’s previous OMR. OPEC production fell by 90 MBOPD in February due to lower volumes from Iraq, Nigeria and the UAE, partially offset by increases from[Read More…]

Rising Gasoline Demand Sparks Increased Oil Prices

Rising Gasoline Demand Sparks Increased Oil Prices

Stronger economic data helps lift oil prices Oil prices are on track for the first weekly gain in a month today with both WTI and Brent crude prices up on Friday. U.S. Department of Energy numbers this week showed another build in U.S. crude oil stocks, but gasoline demand rose, stoking some crude oil price gains. Data from the EIA last week showed gasoline inventories falling for the first time since early November, suggesting that consumers were looking to put more in their fuel tanks than analysts expected. “The idea that gasoline demand is actually rising suggests that perhaps the lower prices of crude are actually prompting a greater usage of this product (gasoline),” said Vyanne Lai, oil analyst at National Australia Bank. Also helping push prices higher was an upward revision to the country’s economic growth for the fourth quarter. Revised data for the final quarter of last year[Read More…]

Higher Gasoline Costs Sent Consumer Price Index Soaring in April - 360

Gasoline Consumption Remains Low Despite 4% Higher Travel

Increased vehicle fuel efficiencies keeping gasoline consumption low despite increased U.S. mileage Travel by vehicle is up almost 4% from its previous peak in 2007 in the U.S., but motor gasoline consumption remains below previous highs due to increased fuel efficiencies, reports the Energy Information Administration. Improvements in light-duty vehicle fuel economy have been the primary source for lower consumption despite the higher miles, the EIA said in its report. The EIA’s Short-Term Energy Outlook predicts that motor gasoline consumption will average 9.23 MMBOPD in both 2016 and 2017, about 0.6% below its 2007 level. In contrast, vehicle travel is expected to grow to levels 5% and 7% above the 2007 level in 2016 and 2017, respectively. Gasoline consumption accelerated at breakneck speed in 2015, with U.S. drivers using approximately 240 MBOPD more over the course of the year. That’s three times as large as the growth in 2014 (78[Read More…]

February 23, 2016 - 4:50 pm Closing Bell Story, Oil and Gas 360 Articles
The Leading Source of Oil in 2035—It’s Not OPEC:  BP

The Leading Source of Oil in 2035—It’s Not OPEC: BP

Non-OPEC unconventional sources expected to provide growth in supply through 2035 The continued growth of global economies will continue to drive demand for energy around the world, according to BP’s (ticker: BP, BP.com) 2016 Energy Outlook. According to the study’s base case scenario, global GDP will more than double in the next 20 years, with energy demand growing by about one-third. BP expects that 80% of total demand will continue to be met through the use of fossil fuels, but OPEC will not be the primary source of that crude supply. BP expects that OPEC’s share of global markets will remain relatively unchanged over the next two decades, staying at about 40%, with most increases coming from non-OPEC unconventional sources. A supplement to the study titled “The Shale Revolution Continues” said the company expects tight oil production to more than double to 10 MMBOPD globally, driven largely by production in[Read More…]

Source: BP

KLR Group Sees Markets Rebalancing in 2017

OPEC production expected to stabilize A recent analyst note from KLR Group indicated that oil and gas markets could balance in 2017 as OPEC production begins to stabilize and U.S. production rolls off. Saudi Arabia’s oil production is expected to stay at about 10.4 MMBOPD, while Iran gradually ramps up production and Iraq’s output moderates. The crash in oil prices followed OPEC’s decision to continue pumping in order to defend market share, a move in late 2014 that sent the market into a tailspin. KLR expects that Iran will increase production to 3.5 MMBOPD by early 2017, while Iraq’s production will stabilize at 4.4 MMBOPD in 2016-2017. This, in combination with level production from Saudi, should allow markets to rebalance. With OPEC producing to defend market share, the group will have 1.7 MMBOPD of spare capacity, made up entirely by Saudi Arabia, Iran and Libya. Saudi’s spare capacity will be[Read More…]

Source: BP Offshore Azerbaijan

Oil Could Go Lower: IEA

The IEA sees continued pressure on oil potentially pushing prices down further In its first Oil Market Report of the year, the International Energy Agency painted a pessimistic picture for the outlook of oil prices. Even as the IEA expects 600 MBOPD of non-OPEC production to fall off during the year, “this will inevitably be largely offset by higher production from Iran,” it said in its release. Oil demand growth flipped from a near five-year high of 2.1 MMBOPD in Q3’15 to a one-year low of just 1.0 MMBOPD in the final quarter of the year. Mild temperatures in the early part of the winter in Japan, Europe and the U.S., combined with weak economic growth in emerging markets like China, Brazil, Russia and other commodity-dependent economies gave little support to further demand growth. During Q4’15, OPEC’s production eased by 90 MBOPD, but the IEA anticipates that this will be[Read More…]

Waning Coal Demand in Asia Pushes Global Trade Down for the First Time in 21 Years

Waning Coal Demand in Asia Pushes Global Trade Down for the First Time in 21 Years

Coal loses support as demand in China falters The global coal trade declined for the first time in 21 years in 2014, and likely contracted further this year as well, according to information from the Energy Information Administration (EIA). The global coal trade grew rapidly from 2008 to 2013 as demand in Asia picked up to support expanding economies in the region, particularly in China. Declines in China’s import demand have led to declines in total world coal trade in 2014 and, based on preliminary data, in 2015 as well. Nearly all of the 47% growth in total world coal trade between 2008 and 2013 was driven by rising coal import demands by countries in Asia, specifically China and India. Coal trade in the rest of the world declined over the same period. However, data for 2014 and 2015 indicate a reversal of this trend, with declines in China’s coal[Read More…]

November 20, 2015 - 6:18 pm Closing Bell Story, International, Oil and Gas 360 Articles
OPEC Lifts Demand Expectations as Reference Basket Prices Fall 10%

OPEC Lifts Demand Expectations as Reference Basket Prices Fall 10%

Selloff pushes OPEC crude basket lower Even OPEC has been feeling the pressure of low oil prices brought on by the decision to maintain production in November of last year. The organization released its monthly Oil Market Report (OMR) for July today, showing that the average price for the OPEC reference basket of crude oil declined 10% from June to $54.19 per barrel. The decline in the reference basket was caused by a selloff of oil futures contracts, according to OPEC. The selloff was triggered by concerns around the Greek financial crisis and weakness in the Chinese stock market, on top of the announcement that the global community would lift sanctions from Iran, allowing the country’s crude oil back into the market. Net-long positions in WTI declined by more than 50% in July, according to the OMR. Demand expected to climb 1.38 MMBOPD in 2015 The OMR released today raised[Read More…]

August 11, 2015 - 12:07 pm International, Oil and Gas 360 Articles, OPEC
China Used 10.56 MMBOPD in June, but could Face Oversupply in NatGas by 2020

China Used 10.56 MMBOPD in June, but could Face Oversupply in NatGas by 2020

Oil demand driven by growth in air travel and vehicle usage China’s implied oil demand grew 3.5% in June, as rising air travel and vehicle usage boosted fuel consumption, reports Reuters. A drop in passenger car sales amid recent stock market weakness could limit future demand growth, however. China consumed about 10.56 MMBOPD of oil in June, up from 10.20 MMBOPD from June 2014, and up from 10.32 MMBOPD in May of 2015. Those numbers put China’s implied oil demand in the first half of 2015 up 5.7 % year-on-year at 10.43 MMBOPD, according to preliminary government data and calculations done by Reuters. The growth may not be sustainable though, with China’s automakers association cutting its 2015 forecast for vehicle sales growth to 3% following a major slump in the Chinese stock market that contributed to a 7.5% one-day decline in WTI prices. Chinese gas market faces oversupply In a[Read More…]

July 22, 2015 - 1:36 pm International, LNG, Oil and Gas 360 Articles
IEA Revises Down Natural Gas Demand Growth

IEA Revises Down Natural Gas Demand Growth

Weaker than expected demand in Asia prompts agency to lower future growth expectations The International Energy Agency (IEA) revised down its expectations for natural gas global demand growth to 2% from 2.3% a year ago in it its latest Medium-Term Gas Market Report. One of the main drivers behind the revision was lower than expected gas demand in Asia, said the report. “One of the key – and largely unexpected – developments of 2014 was weak Asian demand,” said IEA Executive Director Maria van der Hoeven. “The experience of the past two years has opened the gas industry’s eyes to a harsh reality: in a world of very cheap coal and falling costs for renewables, it is difficult for gas to compete.” Since gas prices to Asian markets are indexed to oil prices, the IEA expects that demand will pick up as gas prices remain low. This may not be[Read More…]

June 4, 2015 - 3:13 pm International, Oil and Gas 360 Articles