oil price

Opinion

Opinion: Paris attacks and commodities, history shows us what to expect

Geopolitical developments often have a major impact on oil prices since they can affect oil supply directly and since the threat of future supply disruptions can also build a risk premium into oil prices. As a notable example, in the early part of 2014, conflicts in Libya and Iraq led to temporary outages in their oil production, keeping world prices high, even as supply elsewhere in the world continued to ramp up. When production from those two countries came back on stream, that was an important trigger for the plunge in oil prices later in the year. Notice how much oil price spiked at the historical times of war.

Markets

FTSE 100 oil stocks rise despite Paris attacks shockwave

The London market climbed despite the continuing fallout from the Paris terror attacks. The FTSE 100 Index was 29.8 points up to 6148.1, buoyed by a robust mining performance. UK and European markets had been knocked in the first hour of trading but recovered, with Germany’s DAX up 0.3% while France’s Cac 40 was flat.

Markets

Crude heading for sub-$40 as oil keeps pumping

Oil headed for a second weekly decline in New York, trading near its lowest level in two months, as US crude stockpiles rose three times more than forecast and the IEA said inventories in developed nations have reached a record.

Oil & Gas

Oil glut to persist as global demand slows says IEA

A global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC producers maintain near-record output, the International Energy Agency said on Tuesday, even as low prices curb supply outside OPEC.

Other News

Collapse in crude hits hotels

Aberdeen hotels have been hit by an 18% decrease in prices since the collapse in oil prices started biting at the start of the year, new figures have shown. The Hotel Price Index on room prices across the UK found that the Granite City was the hardest hit in the six months to June compared to the same period last year. Aberdeen room rates fell to an average paid per night of £97 from £118. Dundee followed with a rates decrease of 8% to £83 from £90 per night last year.