Oil Prices

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Russia may let China have share in Vankor oil and gas field
DOW JONES SEPTEMBER 02, 2014 10:45AM

Russia President Vladimir Putin said Monday the Kremlin may let China have a share in one of the largest Siberian energy projects, the Vankor oil and gas field.

"Vankor is one of the biggest production operations today and very promising. Overall, we take a cautious approach to letting in our foreign partners, but we of course set no restrictions for our Chinese friends," Mr. Putin told China Vice Premier Minister Zhang Gaoli.

According to the transcript of the meeting, published on the Kremlin website, the idea of inviting the Chinese came from the chief executive of Russia's largest state-controlled oil company Rosneft.

"The state authorities support this idea and we would welcome your participation," said Mr. Putin.

For more than a decade now the Kremlin has been increasing the state's hold of Russia's vast oil and gas resources, driving both local and Western energy companies out of developing the large hydrocarbons fields.

However the Russian oil and gas industry needs money and expertise, and state-controlled company Rosneft, which owned the Vankor field, is keen on accepting foreign companies, including ExxonMobil, BP and Indian state-run ONGC, as junior partners in new projects.

As the West is pondering a new set of economic sanctions against Moscow for stirring up the armed conflict in Ukraine, the Kremlin is keen to show that it has more options eastwards. Russia's gas monopoly Gazprom in May signed a US$400 billion deal with China National Petroleum Corp. which envisages a supply of an average of 38 billion cubic meters of gas annually for a period of 30 years to China.

The construction of the pipeline was opened Monday in the presence of Mr. Putin and Mr. Zhang.

The mammoth Vankor field was discovered in eastern Siberia in 1988, just before the collapse of the Soviet Union. The field has oil reserves of 3.8 billion barrels of oil and 95 billion cubic meters of gas.

After almost two decades of different Russian and international companies' attempts to get hold of the giant field, or at least part of it, Russia's state-controlled Rosneft started production in 2009.

[specuvestor]

China's stance continue to be: The enemy of my enemy is my friend. The collorary is also that if the enemy or threat no longer exist, things will change.

China has been extremely quiet in the whole saga. I think Ukraine saga is shaping up the geopolitics power rebalancing in the next decade, especially if the next US president continues to be Democrat.

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http://www.cnbc.com/id/101961638

Crude crushed by demand woes, Brent slides to 15-month low
Reuters with CNBC.com
4 Hours Ago
Reuters


Huyangshu | iStock / 360 | Getty Images
Brent crude fell to its lowest level in 15 months on Tuesday, pressured by the prospect of slowing oil demand growth in China and Europe, while a strong dollar and ample supplies pressured U.S. oil prices.

Oil prices on both sides of the Atlantic have been in steady decline since the end of June as concerns faded over supply disruptions from Iraq, Libya and Russia. Continued supply from key producing regions and tepid demand has left global markets well stocked.

Brent crude for October delivery fell $2 to near $100 a barrel, after earlier hitting $100.67, the lowest since May 31, 2013. U.S. crude dropped by $3.08 to settle at $92.88 a barrel.


The euro sagged on Tuesday to fresh one-year lows against the dollar on bets the European Central Bank will do more to help a wobbly euro zone economy, while the pound fell to a near five-month low versus the greenback on worries about a Scottish secession.

Further pressure came from the prospect of resuming oil supplies from the Buzzard field in the North Sea and discouraging economic data from Europe and China. China's factory sector growth slowed to a three-month low last month.

Demand for physical crude has withered in recent months, creating a glut in Asia and the Atlantic basin and causing the futures market to flip into contango, in which oil for delivery in the future is priced higher than that for immediate delivery.
--By Reuters, with CNBC.com

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Crude oil price slips below $US100 a barrel

AFP SEPTEMBER 09, 2014 8:33AM

OIL prices have dropped with the European benchmark contract slipping below $US100 a barrel on concerns about fragile demand, heavy supply and a strengthening US dollar.

US benchmark West Texas Intermediate for October delivery fell US63c to $US92.66 a barrel on the New York Mercantile Exchange on Monday, its lowest level since January.

European benchmark Brent oil for October delivery declined US62c to $US100.20 a barrel, after earlier falling below $US100 a barrel for the first time since June 2013.

Matt Smith, analyst at Schneider Electric, cited weak economic data from China and Japan, two major oil consumers, as “not the best start to the week on the economic data front.”

China showed a surprising drop of 2.4 per cent in imports, while Japan said its economy shrank 1.8 per cent on-quarter in April-June, worse than the previously estimated contraction of 1.7 per cent.

Analysts also cited reports that suggest lofty supplies of oil remain on the market as refineries in North America and North America shift into maintenance mode and run less crude through their plants.

Tim Evans, analyst at Citi Futures, pointed to “ongoing concern regarding an apparent physical surplus, with some estimating inventories held on tankers used as floating storage at the highest level since 2009”.

Finally, the big jump in the dollar against some other leading currencies has also pressured oil.

Because crude is traded in dollars, the commodity becomes more costly outside the US when the dollar strengthens.

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OPEC says world will need less of its oil next year
DOW JONES NEWSWIRES SEPTEMBER 11, 2014 12:00AM

OPEC said demand for its crude oil will be lower than expected next year, with a surge in US output potentially bringing its production to levels not seen since the past decade.

In its monthly oil-market report, the Organization of the Petroleum Exporting Countries said it had lowered the estimate of demand for its crude by 200,000 barrels a day for 2015 and by the same amount for this year. As a result, markets will need 300,000 barrels a day less of OPEC crude next year, it said.

OPEC's statement comes after the Brent oil contract -- the most widely traded international benchmark -- fell below $US100 a barrel on Tuesday for the first time in 16 months.

The new OPEC demand forecast would bring its expected production next year to 29.2 million barrels a day, a level not see since the group was forced to slash its output in 2009 following a global financial crisis.

The group attributed lackluster appetite for its oil to mounting competition from rival producers and sluggish demand in industrialized nations.

The US, which is undergoing a boom in nonconventional fields, is to boost its oil output by 780,000 barrels a day in 2015, OPEC said.

OPEC also downgraded its global demand forecast by 20,000 barrels a day for next year. Though the revision is tiny compared with OPEC's expectation that consumption will increase by 1.19 million barrels a day, the group said it reflected slower consumption growth in industrialized nations.

Despite lower demand for its crude, OPEC said its production rose by 231,000 barrels a day in August as Libyan oil ports and fields reopened.

Based on secondary sources cited by the group, the group's August output stood at 30.35 million barrels a day -- nearly a million barrels a day higher than average daily demand for its crude this year.

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Brent crude falls to 16-month low
DOW JONES NEWSWIRES SEPTEMBER 11, 2014 10:15PM

Brent crude Thursday fell to its lowest level in 16 months, after the International Energy Agency reported low demand and high supply across the globe.

Brent was falling toward $US97 per barrel this morning, "as the recent disappointing oil fundamentals weigh heavily on market sentiment, offsetting any geopolitical risks in Middle East," according to Myrto Sokou, senior research analyst at Sucden Research.

Today, the IEA said in its monthly report that prices have been "weighed down by abundant supplies and further indications of slow global economic and oil -- demand growth."

The watchdog trimmed its forecast for the rise in oil demand this year for the third month in a row. It now expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month's forecast and down by 300,000 barrels a day since July.

The fresh lows come after yesterday's OPEC report, which "paints an even gloomier picture than a month ago," analysts Tamas Varga and Stephen Brennock of brokerage PVM wrote in a note to clients.

The falling price and growing contango -- a market condition in which prices of oil for immediate delivery are lower than those for further-out months -- is turning investors bearish.

"Only contrarians will contemplate investing in oil in the first half of 2015," or the first half of next year, PVM's analysts said.

On Wednesday, Brent crude oil for October delivery was down 59 cents at $US97.45 a barrel on ICE Futures Europe. October WTI was down 47 cents at $US91.19 a barrel on the New York Mercantile Exchange.

Recently, ICE Gasoil for September delivery was down $US1.75 at $US829.25 a metric ton on ICE futures Europe. Gasoline for October was down 87 points at $US2.5178 gallon.

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Brent crude hits two-year low
AFP SEPTEMBER 16, 2014 6:45AM

Global oil prices have finished mixed after weak US and Chinese industrial data clouded the outlook for demand in the world's largest economies.

The US benchmark futures contract, West Texas Intermediate for delivery in October, rose US65c to finish at $US92.92 a barrel, rebounding a bit from recent steep losses. On Friday WTI had closed at its lowest since January.

In London, on the final day of its October contract, Brent North Sea crude sank US46c to settle at $US96.65 a barrel, its lowest level since late June 2012.

The oil market on both sides of the Atlantic was under pressure earlier in the day after China reported over the weekend that industrial production stuttered in August, with growth dropping sharply to 6.9 per cent, the slowest pace in more than five years.

The data added to worries about weakening growth in the world's number two economy even after the Chinese government's stimulus measures.

"Less-than-expected Chinese growth translates into lower demand for oil," Andy Lipow, of Lipow Oil Associates, said.

The Chinese data was followed Monday by official data showing an unexpected fall in US industrial output in August after six months of gains.

Mr Lipow said the WTI rebound was not due to any particular factor but came amid "historically high utilisation of oil refineries for this time of the year, and that creates demand for oil".

Meanwhile, traders mulled an OECD downgrade of economic growth forecasts for most of the major advanced economies, particularly highlighting the sluggish eurozone recovery as "the most worrying feature of the projections."

The Organization for Economic Cooperation and Development slashed its 2014 growth forecast for the 18-nation eurozone to 0.8 per cent from its May estimate of 1.2 per cent.

For Tim Evans of Citi Futures, the WTI uptick suggested that the market had reached levels "where selling may be drying up, and bargain-hunting emerges".

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Oil prices dip on US crude data
AFP SEPTEMBER 18, 2014 7:45AM

Oil prices have dipped following mixed US crude-inventory data and reports suggesting an OPEC production cut is unlikely when the organisation meets in November.

US benchmark West Texas Intermediate for October delivery shed US46c to close at $US94.42 a barrel on the New York Mercantile Exchange.

European benchmark Brent oil for November delivery slipped US8c to $US98.97 a barrel in London.

US crude inventories unexpectedly increased by 3.7 million barrels for the week ending September 12, according to the Department of Energy. Analysts had expected inventories to fall by 1.2 million barrels, a survey by Dow Jones Newswires showed.

However, John Kilduff, founding partner at Again Capital, said the surprising increase in crude stocks was countered somewhat by other aspects of the US oil-supply report.

The report showed a drop of 1.6 million in gasoline stocks, whereas analysts had expected the level to be unchanged.

Analysts also cited a decline in oil inventories in Cushing, Oklahoma, a key trading hub.

Mr Kilduff said oil prices took a hit from "mixed messages" out of OPEC regarding its plans for its November meeting.

Abdullah El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), said on Tuesday the cartel would cut output in November, a statement that helped lift prices from a two-year low.

But a Dow Jones Newswires report Wednesday, citing unnamed OPEC delegates, said the organisation was unlikely to cut in November.

The oil market was monitoring the latest monetary policy decision by the US Federal Reserve, which, as expected, held to its expectation for an initial rise in short-term interest rates in 2015.

The dollar rose modestly after the Fed announcement. A stronger dollar adds downward pressure to oil, which is traded in dollars and becomes more costly for buyers using weaker currencies.

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Oil prices continue to fall amid renewed Libya supplies
DOW JONES NEWSWIRES SEPTEMBER 24, 2014 8:15PM

Brent crude was trading lower Wednesday morning, as renewed supplies from Libya flowed into a market already overloaded with oil.

A price slide over the summer, which leveled off last week, is back, with oil falling every day this week amid "signs of very ample supply on the oil market in the near future," wrote analysts at Commerzbank in a note to clients.

The market has been flooded since Libya's Sharara oil field reopened, allowing production to rise back up to 800,000 barrels a day, while Iraqi oil exports have continued to be strong and Nigeria's prospective exports are also high.

"All of this, coupled with weak demand in Europe, is putting pressure above all on Brent contracts with maturity dates in the near future," Commerzbank said.

But while Brent crude is trading close to two-year lows, as the winter months approach it is unlikely to fall very much lower, said Andrey Kryuchenkov at VTB Capital

November Brent crude on London's ICE Futures exchange was down 23 cents at $US96.62 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in November were up 7 cents at $US91.63 a barrel.

ICE gas oil for October was down $US1.00, at $US810.50 a metric ton. Gasoline was down 82 points at $US2.4958 a gallon.

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http://www.businesstimes.com.sg/premium/...y-20141001

PUBLISHED OCTOBER 01, 2014
Oil trading mired in crude oversupply
But oil trading firms expect volatility to return, though not in the short term
BYANDREA SOH
sandrea@sph.com.sg @AndreaSohBT

The trend: Industry players expect the oil markets to become more transparent. More informed buyers will impose heavier demands on oil traders - PHOTO: BLOOMBERG
[SINGAPORE] Crude oil prices are likely to stay low for a few more years as a result of an oversupplied market.
But oil trading firms, having had to stifle yawns with an insipid oil market in recent years, are hopeful that volatility will return to the market soon, given geopolitical uncertainties.
Moiz Saleem, the chief operating officer at Emirates National Oil Company (Enoc) Singapore, said: "In the near future, I expect volatility to return to the markets."
Currency movements, in particular that of the US dollar, are starting to have a stronger impact on oil prices in recent weeks, as the US Federal Reserve begins to tighten its monetary policy; meanwhile, geopolitical events in Ukraine and the Middle East continue to threaten to erupt, he said.