CALGARY — Massive spending cuts by oil producers are bound to push oil prices upward, analysts say, despite recent concerns over high storage volumes that have battered international benchmarks for crude.
CALGARY — Oil prices tumbled Tuesday on a report from the International Energy Agency that global demand growth is shrinking, raising concerns over whether the economic boost from low fuel prices has run its course.
In its latest monthly oil report, the Paris-based agency signaled that the economy may have wrung dry any savings from prolonged low prices, saying “stimulus from cheaper fuel is fading” as the global supply glut persists.
LONDON: OPEC on Tuesday raised its forecast of oil supplies from non-member countries in 2015, a sign that crude's price collapse is taking longer than expected to hit US shale drillers and other competing sources. In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) forecast no extra demand for its crude oil this year despite faster global growth in consumption, because of higher-than-expected production from the United States and other countries outside the group. Oil is trading below $50 a barrel, close to its 2015 low after an 18 per cent drop in July.
Coal will nearly overtake oil as the dominant energy source by 2017, and only a drop in world gas prices could curb the use of the dirtier fossil fuel in the absence of high carbon prices, the International Energy Agency said.
The IEA, the energy agency for developed countries, said earlier this year that without a major shift away from coal, average global temperatures could rise by 6 degrees Celsius by 2050, leading to devastating climate change.
Crude oil prices fell to their lowest level since 2009 in Tuesday's global trading.
The latest in a long string of price plunges follows Friday's meeting of the Organization of Petroleum Exporting Countries that failed to reach a consensus to cut oil production. They might have raised prices by limiting supplies.
Experts say current oil supplies are significantly higher than oil demand. That oversupply is expected to grow even more as Iran, one of the world's largest oil...
NEW YORK — The almost 10 per cent nosedive in headline oil prices this week has many hallmarks of a shocking but short-lived slump, triggered by a confluence of external events and exacerbated by safety-seeking investors and momentum-chasing traders.
The fact that Saudi Arabia produces nearly 10 million barrels of oil a day is not the only reason it’s been called “the central bank of oil.” The desert kingdom has earned that designation by using that massive output to have a singular influence on the oil market for decades. Most recently, it has used its heavy hand to help keep the average annual price of Brent crude hugging $110 for each of the past three years.
LONDON — Brent oil held above US$70 a barrel on Wednesday in choppy trading as the market searched for a price floor after a nearly 40 per cent fall since June.
Trade in oil has been volatile since the Organization of the Petroleum Exporting Countries (OPEC) said last week it would not lower output despite an oversupplied market.