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.
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.
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.
London (AFP) - Global oil prices tanked Friday to fresh five-year lows, sending European stocks sliding, after a gloomy crude demand downgrade from the International Energy Agency and more weak Chinese economic data.
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.
Russia will struggle to avoid falling into a recession if oil prices are allowed to drop to $80 a barrel — and could face calamity if prices fall below that level. Brent crude oil prices have fallen from a June high of $115 a barrel to just over $86 a barrel Wednesday. This poses a huge problem for Russia as oil and gas account for around two-thirds of total exports from the country:
Alberta, which derives a quarter of its economy from the oil sands and other energy resources, is poised to grow at the slowest pace in five years as crude prices slump, ATB Financial’s Todd Hirsch said.
The western Canadian province’s economy will expand by 2.5% to 3% in 2015, about half a percentage point less than this year, the bank’s chief economist said at an event in Calgary Thursday. The slowdown follows annual average growth of 4.6% in the past four years.