Top oil exporter Saudi Arabia told OPEC it reduced its oil output in August by 400,000 barrels per day (bpd), a cutback coinciding with a drop in oil prices towards the kingdom’s preferred level of $100 a barrel.
In a monthly report issued on Wednesday, the Organization of the Petroleum Exporting Countries also cut its forecasts for demand for OPEC crude this year and next, pointing to a supply surplus of more than 1 million bpd in 2015 if OPEC keeps output at current levels.
LONDON: Brent crude oil fell below $66 a barrel on Tuesday as the dollar strengthened and on evidence of ample supplies of Middle Eastern oil despite wars in northern Iraq, Syria and Yemen. The dollar rose to almost a one-week high against a basket of currencies, recovering from a four-month low and making oil and other commodities more expensive for consumers in non-dollar economies. Crude rallied on Monday on worries that Middle Eastern oil supplies could be disrupted by escalating fighting in the region, but data suggested production from the Gulf was increasing.
LONDON: Brent crude oil prices declined on Monday after Goldman Sachs slashed its forecasts on a persistently high supply outlook, offsetting fears over deepening violence in the Middle East. A major advance by Islamic State militants in Iraq and renewed air strikes by a Saudi-led coalition against Houthi militia in Yemen heightened concerns that turmoil could impact Middle East oil production. Analysts nevertheless said oil markets remained oversupplied, and that the glut could worsen if US production picked up and output by producer group OPEC stayed strong.
London (AFP) - Oil prices slid Tuesday to the lowest points for more than five and a half years, plagued once again by a global supply glut, demand fears and the soaring dollar.US benchmark West Texas Intermediate for February tanked to $48.49 a barrel, touching a low last witnessed in late April 2009.
LONDON (Reuters) - OPEC trimmed its forecast for world oil demand growth in 2013 due to a slowing global economy and said it expected a trend for ample supply to persist next year, even after a drop in supplies in September.
LONDON (Reuters) - OPEC trimmed its forecast for world oil demand growth in 2013 due to a slowing global economy and said it expected a trend for ample supply to persist next year, even after a drop in supplies in September. The Organization of the Petroleum Exporting Countries, in a monthly report, trimmed its forecast for growth in world oil demand in 2013 by 30,000 barrels per day (bpd) to 780,000 bpd and said the risk remained skewed to the downside. ...
While the US decides takes the day off after another near-record low volume surge to a new all time high in the S&P500, a level which is now about 125 point away from Goldman's year end target for 2016, the rest of the world will be patiently awaiting to see if oil's next step, as a result of today's OPEC meeting will be $60 or $100.
Economics professor Lutz Killian, University of Michigan, has a research paper titled "The Role of Speculation in Oil Markets: What Have We Learned So Far?" co-authored with Bassam Fattouh and Lavan Mahadeva, here's the abstract (emphasis added):
OPEC could lose almost 8% of its oil market share in the next five years as the shale energy boom and other competing sources boost rival supply, offering the exporter group little benefit from rising world demand.
The Organization of the Petroleum Exporting Countries has been slower than some to acknowledge the impact that hydraulic fracturing, or fracking, is having on supply. Earlier this year, it decided to carry out its own research into shale oil.