Kemp: cause for optimism towards 2017 but 2016 will be “painful”
Oil expert Professor Alex Kemp has said there is some cause for optimism that the oil price may rally in 2017, but not before it endured a "painful" 2016.
Oil expert Professor Alex Kemp has said there is some cause for optimism that the oil price may rally in 2017, but not before it endured a "painful" 2016.
Investors around the world have seen $240 billion wiped off the value of oil companies in the week since OPEC sent crude prices plunging to a seven-year low by abandoning its output limit.
Oil declined to the lowest level since 2008 in London amid estimates that OPEC’s decision to scrap production limits will keep the market oversupplied.
OPEC raised crude output to the highest in more than three years as it pressed on with a strategy to protect market share and pressure competing producers.
Oil traded near the lowest close in more than six years as speculation OPEC will keep markets oversupplied countered a drop in US crude stockpiles. Futures slipped 0.5 percent in New York after closing 9.5 percent lower in the four days since OPEC’s Dec. 4 decision to effectively abandon its output target. The exporters’ group raised production in November to a three-year high, according to its monthly report. US stockpiles along the Gulf Coast fell the most since December 2012, according to government data Wednesday. Refiners typically drain tanks to reduce their tax burden, which is determined by year-end levels.
OPEC has seemingly dropped any attempt at trying to fulfill its founding mission and manage the oil market, sending global benchmark Brent crude to a six-year low. For Saudi Arabia’s Ali al-Naimi, the most powerful and longest- serving of the group’s oil ministers, it may have seemed like history was repeating itself.
Friday’s OPEC meeting in Vienna confirmed what the global oil and gas industry was already resigned to – no curb to production, the supply overhang extending and more pain for the upstream industry as a whole.
On Friday, OPEC concluded its 168th Meeting of the Oil Production and Exporting Countries Conference, with members agreeing to effectively abandon the 30 million barrel per day (mmbbl/d) production limit which has been in place since 2011. Brent crude, the international standard benchmark, fell some 3.23% on Monday to the lowest front month futures price since late 2008.
Oil extended losses below $40 a barrel amid speculation a record global glut will be prolonged as OPEC abandoned its long-time strategy of limiting production to control prices.
OPEC has agreed to set a new oil-output ceiling of 31.5 million barrels a day, according to a delegate with knowledge of the decision.
Iran joined Saudi Arabia in saying it would keep on pumping despite oil prices hovering near a six-year low, giving the strongest signal yet that OPEC wouldn’t act at the group’s meeting in Vienna to curb the global supply glut.
For the first time in seven years, OPEC’s newest member will increase crude production. It will likely be just a blip.
OPEC's widely anticipated decision not to cut production could have far reaching consequences for the global oil markets - and the North Sea oil industry - according to experts at KPMG.
Saudi Arabia, the world’s largest crude exporter, may propose an eventual OPEC production cut of 1 million barrels of oil a day that may take affect in 2016, Energy Intelligence reported Thursday, citing a group delegate it didn’t identify.
The majority of OPEC members would agree to a reduction in crude production at Friday’s meeting, with the exception of Saudi Arabia and the Persian Gulf Arab countries, Shana reported, citing Mehdi Asali, director general of OPEC and energy forums at the Iranian Ministry of Petroleum.
Russian oil output in November hovered near a post-Soviet record set the previous month, shrugging off a crude-price slump before OPEC gathers for its biannual meeting in Vienna.
Saudi Arabia will discuss all issues at the OPEC meeting on Friday and listen to concerns of other members, said the nation’s Oil Minister Ali al-Naimi.
Hedge funds are betting this week’s OPEC meeting will deliver another bearish blow to crude.
Oil headed for its largest monthly drop since July as Iran signaled the Organization of Petroleum Exporting Countries won’t reduce its production target at a meeting this week.
Oil buyers in Asia are sure of one thing as OPEC prepares to meet: They’ll emerge as winners from the group’s rift over production.
It’ll take more than $40 crude to make OPEC change its mind, analysts said before the group’s Dec. 4 meeting in Vienna.
Saudi Arabia’s government has reiterated its commitment to work with OPEC members and other producers to stabilise the oil market.
Oil extended its decline amid a broader commodity rout while Venezuela predicted crude prices may drop as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market.
Hedge funds are betting OPEC won’t do anything next month to keep crude oil above $40 a barrel.
Oil's global glut will be prolonged as US stockpiles see their longest run of gains in seven months.