March 11th, 2009 at 05:53am
Under China Oil+ Crude oil+ OPEC+ Oil+ Oil Price 2009+ Oil Price 2010+ Production levels
OPEC has more reason than ever to cut the oil productions. Will the oil cartel be able the push back oil prices again?
“A price of 75 dollars a barrel is fair for oil producers and consumers. This is said by Saudi Arabia last year, according to Bloomberg. With this in
mind is a further reduction of the oil production by OPEC this week is certainly not unlikely. With over 40% of the total world production is the power of OPEC
very big.
Since the Brent Crude Oil futures on July 11, 2008 set a record oil price of $ 147.50 it got in a free fall. On December 24, 2008 the oil price hit as low as USD36.20, a decrease of 75% in five months. It is therefore not surprising that oil producers benefit of oil production cuts. Since September 2008, the OPEC production is already decrease with 13%. The oil price is now stabilized, the crude oil futures move since early 2009 within a bandwidth of 39 and 52 dollars.
Market focus mainly on oil demand failure
The oil markets focussed in the past few months with more attention to OPEC and the production side. Traders look today way more to the demand side of the oil market. That is not crazy, given the recession in the U.S. The U.S. labor market figures on Friday March 6 to speak for it self. Unemployment rose to 8.1% in February 2009, the highest level in 25 years. Moreover the U.S. lost in the last quarter a small 2 million jobs, the fastest pace since 1939 when analysts began tracking the data. With one quarter of the global oil consumption is the demand from the U.S. very important.
The recession & financial crisis is for sure not limited to the USA only. For example, the World Bank stated that the entire world economy will show shrinkage for the first time since 1945. Proving the demand for oil is closely connected with the growth of world economy. The black gold is indispensable for transport, industry and many other sectors. If economic activity is declining, falling demand for oil is a logical trend you can expect. The International Energy Agency (IEA) are taking into account a decline in demand for oil in 2009 by 1.1% year on year to 84.7 million barrels of crude oil per day, even after a decline in 2008 0.4% 5. Two years of falling demand figures didn’t occurred since 1982/1983, says the IEA.
Where should an oil investor look out for?
The oil price is obviously determined by demand and supply at this moment. If OPEC again decreases the oil production, it can have a big impact on current oil prices. In the last few days we already could notice some upwards movements: the price of oil rose Monday in New York to the highest level in six weken. In the upcoming months, for each oil investor of today it is important to focus on the development of both demand as the supply side of crude oil. This week first - very cautious - Signs of recovery on the demand side were noticed. The U.S. business confidence ISM rose for the second month in a row. While China - the second biggest oil consumer in the world - takes an economic growth in 2009 8% in to account.
On the supply side are the current developments around OPEC of big importancy. Geopolitical tensions in Nigeria, Iran could influence worldwide oil markets. In time, the crisis could trigger higher oil prices says the IEA. The sharp drop in oil prices makes investing in new oil production capacity unattractive and can put the oil supplies in 2009 further under pressure.
By Oilism.com
February 21st, 2009 at 05:37pm
Under Crude oil+ Future Chain+ Oil Price 2010+ Oil business+ Oil industry+ energy prices
Crude Oil exchange is described as a free market economy because investors are not really sure whether their invested money will get any revenue or not, because of it’s volatile nature. We do not have to mention that the price of barrel of crude was just less than 7 months ago above 130 USD! Some may say that it’s a gamble but it’s also a form of a rich quick scheme when you hit the jackpot on the low levels of today. Oil exchange has this flexibility that no other investment option can offer, as quick as we go up we go down and the other way around. There’s little harm, if you look it risk-wise to start trading oil today and invest some of your savings left to take some long term oil positions.
You decide on how you will use your money when trading in oil related investments, this can be in the form of day trading or as a stored value of oil assets. You can buy big oil company shares as your form of oil investment and will gain profits if the prices of the oil company shares increase in line with the oil price when the recession comes to its end. Otherwise we advice you to trade directly in NYMEX or North sea Crude oil futures.
Even though stock and oil markets have unsure possibilities it also depends on intelligent moves taken by the oil investor himself. This is reflected on how deep the investor really knows oil market, is not really that tough to understand as many people will perceive initially but you need to investigated and do your homework. Internet has a big role in gaining knowledge of the worldwide oil & stockmarkets. On Internet you can find information related to any subject of the crude oil industry, like companies, forecasts and researches.
Moreover, your life as an oil investor will be much easier because of the use of online trading systems. Today’s oil trading process is much easier as compared with earlier system and has various advantages.
Think over today’s situation on the oil markets and reconsider if it is not the perfect time to start building your own oil related share portfolio. Many investment companies also offer oil related mutual funds. A mutual fund diversify your investment among many oil companies and you can earn easily with less risk.
By Oilism.com
February 20th, 2009 at 05:44pm
Under China Oil+ Middle East+ Oil+ Oil Price 2010+ Oil politics+ Production levels
From next year a lack of oil arise as the world economy recovers from the current deep recession.
This is said by the chief executive of the International Energy Agency (IEA) Nobuo Tanaka, he states that oil producers are investing too little in new projects with current market circumstances.
”The demand for oil is very low because of the extremely poor economic conditions. But if the recovery quick, likely first signals occur after 2010, we face a serious supply problem, if the investments do not increase’’said Tanaka.
Oil Projects
The members of oil cartel OPEC said earlier this month that they are disappointed, because of demand for oil thirty-five of all new oil projects are set on the long term.
Tanaka expects oil demand will grow next year by 1 percent, thanks to the recovery of growth in emerging economies like China and India. This year, the need for oil by the global recession is likely(for sure) lower than a year earlier.
Production
The chief executive of French oil group Total, Christophe De Margerie, warned Monday in the British newspaper Financial Times that oil producers already are near their production levels. Worldwide, the crude oil production is never higher than 89 million barrels per day. These are four million barrels per day less than he previously thought. The current demand for oil is about 84 million barrels per day. The IEA expects that the long term oil need for 2030 will certainly have grown to 100 million barrels per day.
Tension
According to De Margerie, the companies limited by the high cost of new projects, for example, in Canada and the continued political tensions in Iran and Iraq.
The current low oil revenues, according to him not only at the expense of new projects. They shall also ensure that existing projects are more likely to be stopped because it is too expensive they are longer in operation.
By Oilism.com
January 21st, 2009 at 05:31am
Under China Oil+ Middle East+ OPEC+ Oil Price 2009+ Oil and gas+ Oil politics+ Russian Oil & Gas
By signing the gas agreement between Russia and Ukraine the oil price fell back sharply. The price of a barrel of U.S. light crude oil now hovers around 34 dollars, a decrease of over 7 percent with earlier this week.
In December 2008, crude oil prices fell for the first time since the summer of 2004 under the 40 dollar per barrel barrier. In July 2008, oil prices showed a record of more than 147 dollars a barrel.
The oil price now strongly react on the developments in the Middle East and the gas conflict between Russia and Ukraine. According to the Ukrainian Prime Minister Julia Timosjenko Russian gas will continue to flow to Ukraine and other European customers as from yesterday.
Credit Crisis & Oil demand
The oil price falls due a weakening oil demand. After 25 years of growth, the demand for oil in 2008 decreased by 0.3 percent. The International Energy Agency (IEA) has estimated that the worldwide oil demand in 2009 will fall further, probably by 0.6 percent.
For 2009, the IEA expects we will see a bottom in the oil demand, lowering with 940,000 barrels of crude oil per day to 85.3 million in total. “It’s the biggest change in our estimate over the last couple of years,” said David Fyfe of the IEA chief marketing officer.
In earlier reports, the institute published a growth for 2009 in oil demand after the losses of 2008, this mainly based upon the increasing demand of the emerging economies. But, these estimates are now showing that the Chinese oil demand will grow with just 90,000 barrels a day, which is the lowest increase in eight years time.
By Oilism.com
January 7th, 2009 at 05:43am
Under Oil Price 2009+ Oil and gas+ Oil business+ Oil politics+ Russian Oil & Gas
KIEV - On Wednesday Russia shut down all gas deliveries intended for the European market through the pipelines in the Ukraine because of the gas conflict between Kiev and Moscow.
This is said by the Ukrainian national gas company Naftogaz. About 80 percent of Russian natural gas that is destined for Europe passes through pipelines in Ukraine.
Czech Republic
The Czech Republic is without any Russian gas. Local news agency CTK reported Wednesday all supplies of Russian gas are interrupted. Gas company RWE Transgas has taken steps to increase imports from Norway to help people who are trapped without gas.
Austria & Romania
Austria also announced Wednesday that all gas supplies from Russia are stopped. Futher more Romania reported not receiving any more gas from Russia since Wednesday. Tuesday, the gas supplies to Romania were already down by 75 percent.
Supplies
Gazprom chief executive Alexei Miller said Tuesday that if the Ukraine does not pass the gas to Europe, there is no point supplying this country with gas. Kiev and Moscow are arguing over an unpaid gas bill and the gas prices in general. Three years ago, Russia turned off the gas tap to Ukraine due a similar dispute.
Ukrainian President Viktor Yushchenko asked Russia in a letter to President Dmitri Medvedev to resume gas deliveries to European countries immediately.
Criticism EU summit on Russian oil conflict
José Manuel Barroso, President of the European Commission, thinks it is unacceptable that Russia stopped supplying oil & gas to Western Europe. Barroso said this today after consultations with German Chancellor Angela Merkel, who joined in the criticism against Russia.
Especially German and Polish refineries are the victims of the oil conflict. Russia closed yesterday by the oil Belarus to these countries. In a package of proposals from the European Commission, which will be presented tomorrow, has been clear that the EU should take action to reduce the reliance on Russia as an energy supplier. Half of the oil in Europe comes from Russia. According to a report, the European economy will crash sooner or later when the energy policies are not drastically changed. Barroso askes for joint energy policy in Europe.
By Oilism.com
December 28th, 2008 at 03:22pm
Under Crude oil+ Historical oil prices+ Oil Price 2008+ Oil Price 2009+ energy prices
Oil prices significantly lower! In London quoted a barrel of Brent oil $ 37.49, its lowest level since December 2004.
The prices of crude oil fell more than expected last week on US oil markets. Due an Oil stock report published on Wednesday by the U.S. Department of Energy. These figures showed a stronger increase than most analysts expected. The stocks of crude oil increased with 3.101 billion barrels to 318.188 billion barrels of crude oil.
In Cushing, Oklahoma, oil stocks rose with 1.2 million barrels to a record high of 28.7 million barrels. This stock is used for the distribution of the oil used for Nymex future trading markets. Petrol stocks rose by 3.336 billion barrels to 207.295 billion barrels. Analysts here calculated an increase of 600,000 barrels. The stocks of heating oil and diesel increased also a lot stronger than expected, 1814 million barrels to a grand total of 135.337 billion barrels. Analysts here assumed a decline of 100,000 barrels. It is obvious our oil specialist, future brokers and technical analysts were betting on the wrong side again the last couple of weeks. Worldwide oil markets are showing drastic volatile downwards moves since the summer of 2008. This picture shows oil prices from 2001 till 2009 and it may be clear that oil prices of 200 USD are far away and we are back on the levels of 2004 within six months time.
(more…)
By Oilism.com
November 12th, 2008 at 05:55pm
Under OPEC+ Oil Price 2008+ Oil Price 2009+ Oil price+ Production levels+ energy prices
NEW YORK - Oil prices fell Wednesday to its lowest level in 22 months time. That was caused by speculation about a reduction in demand due to the deteriorating economic conditions.
A barrel of U.S. crude oil (159 liters) fell by 5.8 percent to 55.86 dollars.
The U.S. government gave an extra boost to speculations by downwards adjusting the forecast for global oil demand for 2009.
Oil Consumption
The U.S. Energy Information Agency (EIA) expects that consumption will decline slightly next year to an average 85.9 million barrels per day.
The demand in the United States, the largest buyer of crude oil in the world, will decrease with more than 1 million barrels per day. That is since 1980 not seen on the world wide oil markets.
OPEC
The Organization of Petroleum Exporting Countries (OPEC) told earlier this week oil productions will further decrease as the oil price continues to fall.
Last week, OPEC reduced production already with 1.5 million barrels per day, but the price of crude oil barely reacted to this production cut.
Last July, oil prices reached another record high of 147 dollars per barrel. Then the price plummet quickly followed by an OPEC production cut not long after that .
By Oilism.com
July 17th, 2008 at 11:39am
Under Fuel Oil+ Oil+ Oil business+ Oil price
Today we find ourselves in a very unique position. We are facing unusually high oil hikes. Oil has become so very expensive that people are trying all kinds of extreme measures to lower the price. In fact the hike in price of oil is a bit of a controversial issue. The hike in price has affected every nation; the entire world is trying to find a way out of the soaring prices. The price hike in oil has even started the blame game between several countries. The need for oil has increased in most countries today; we really ought to find an alternative resource. (more…)
By Oilism.com
July 17th, 2008 at 11:31am
Under Oil Price 2008+ Oil Price 2009+ Oil price+ energy prices+ peak oil
The recent hike in prices of crude oil and fuels has affected the life of common man. It was rather a slap on his face which has put the nations with economic problems in serious desperation, affecting their growth. Rather than to criticize the government and putting the blame on each other, we have to go for an analysis which will help in evaluating the reasons behind this increase in prices of essential oils and fuels.
The real reason behind such an increase in the price of oils is the scarcity of oil supply. The critical reason behind such an increase is closely connected to the global financial market. Even though this is not a single reason, this is in fact a primary reason. The increasing demand in the industrialized nations for a huge supply of oil made oil an essential commodity with large volume of trade around the globe.
The oil is sold and priced in dollar. So speculation is the major reason which dominates even the reduced supply, in case of an increase in oil prices. When dollar loses its value, oil producers will have to increase the prices. (more…)
By Oilism.com
February 12th, 2008 at 04:52pm
Under Crude oil+ Fossil fuels+ Fuel Oil+ Fuel Prices+ Oil Price 2008+ bio ethanol+ energy prices
As the world knows, the prices of crude oil are jumping up fast, and show no signs of slowing down. The same price effect is seen with the fuel prices for gasoline and diesel. The average fuel price for a gallon gasoline in the US is now over $3.00 and Americans are getting used to the fact that “Buying a Car is much easier than Keeping it Rolling”. Car owner costs are increasing lately by raising concerns about the insurance/banking sector and the sharp raise of crude oil prices.
As gasoline prices has jumped above $3 several times lately it made me think “Will we get used to gas prices going over $4.00 or $7.00 or even higher?? Many experts are saying other fuel sorts like bio-ethanol will take over this market, but these new energy products don’t show signs of taking over the market any time soon as it isn’t even publicly available yet. And even if new energy products like bio ethanol, wind energy, solar and others take over, it will take awhile… at least 15-20 years according the international energy advisory board. Still at the demand side for crude oil there are absolutely no signs of slowing down. (more…)
By Oilism.com
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