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| Rising US output weighs on oil prices |
| 2017-12-15 |
| [ENGLISH.ALARABIYA.NET] Oil prices came under pressure on Thursday after the International Energy Agency (IEA) increased its forecast for growth in US oil output next year, raising the prospect of excess supply. US West Texas Intermediate futures fell 29 cents to $56.31 a barrel, down from a high of $56.93. Brent crude futures were at virtually unchanged at $62.45 a barrel at 14.44 GMT, after hitting a session high of $63.14. The Gay Paree-based IEA said US crude output next year would increase by 870,000 barrels per day (bpd), up from its November forecast of 790,000 bpd. The change mirrors upward revisions issued by the Organization of the Petroleum Exporting Countries and the United States government. "The IEA underlined the same take that the US Energy Department had the day before yesterday and OPEC had yesterday," said Bjarne Schieldrop, chief commodities analyst with SEB Bank, adding that further upward revisions might follow. With cash pouring into the US shale oil industry, the United States is on track to deliver up to 80 percent of the world’s oil production gains through 2025, the IEA estimates. Revised estimates OPEC revised its estimate for US oil output growth for 2018 to 1.05 million bpd, while the US Energy Information Administration increased its growth forecast to 780,000 bpd. The IEA expects the oil market to have a surplus of 200,000 bpd in the first half of next year before reverting to a deficit of about 200,000 bpd in the second half. That means 2018 overall should show "a closely balanced market"". For now, Brent prices remain underpinned by an outage on the Forties crude pipeline that is expected to last several weeks. Operator Ineos declared force majeure on crude oil, gas and condensate deliveries from the pipeline, a source familiar with the matter told Rooters on Wednesday. A fall in US crude inventories last week also lent some support. Stocks fell by 5.1 million barrels in the week to Dec. 8, the fourth consecutive week of decline, to 442.99 million barrels, the lowest since October 2015. |
| Posted by:Fred |
| #5 actually copper price per pound averaged about $3 in 2007 and is averaging about the same amount in 2017 during the 2008-09 crash, it went down to $1.50 but quickly recovered in 2010 most of the copper mined in the world is used in industry although a significant amount becomes jewelry or currency |
| Posted by: lord garth 2017-12-15 09:14 |
| #4 If you are concerned about the price at the pump, don't blame Big Oil. Look at the Fed and Treasury debasing the currency for the last 10 years. Currency debasing is a debt reduction strategy. It's been around for a while, possibly since coming off of the gold standard. Need evidence? Take a Morgan Silver Dollar to any bank and see what they give you for it. Big business and big oil have pretty much always been targeted as the enemy. |
| Posted by: Besoeker 2017-12-15 08:04 |
| #3 If you are concerned about the price at the pump, don't blame Big Oil. Look at the Fed and Treasury debasing the currency for the last 10 years. 'Creating' money without backing. 10 years ago a penny could be produced at par, 100 for a dollar. Today, they can mint about 42 for a dollar. It's not that gas has gone up, rather the dollar down. |
| Posted by: P2kontheroad 2017-12-15 07:54 |
| #2 Along with increased consumption in China, India, Indonesia and any number of other places. I'm all foor increasing milage standards to a point. But like all mandated technology fixes the last 10% is very expensive. |
| Posted by: Cheaderhead 2017-12-15 06:43 |
| #1 US oil consumption has probably increased in 2017 so that is one thing keeping prices up. |
| Posted by: lord garth 2017-12-15 00:36 |