With a stronger US dollar and a fading possibility of a freeze on production, oil prices fell sharply. Crude oil for October delivery on the New York Mercantile Exchange slumped 76 cents, or 1.6%, to trade at $46.88 a barrel. Meanwhile, on the ICE Futures Exchange in London, Brent oil for November delivery declined 79 cents, or 1.58%, to trade at $49.36 a barrel. Oil prices fell after Federal Reserve signalled a growing conviction that the central bank would raise short-term interest rates in the weeks or months ahead. Any rise in U.S. interest rates usually doesn’t bode well for oil prices, which are priced in dollars. Higher interest rates could push the dollar higher, making oil products more expensive for oil traders who hold a different currency. There is a continued speculation over whether major oil producers, including Russia and members of the Organization of the Petroleum Exporting Countries, will agree to limit output. Any consensus reached when officials meet in Algeria in late September would give the market a long-term boost. However, chances of the OPEC members arriving at a consensus was remote as Iran said it would only cooperate in talks to freeze output if fellow exporters recognized its right to fully regain market share.
Read more: http://www.researz.com/oil-prices-fall-federal-reserve-indicate-hike-short-term-interest-rates
As part of the economic development plan for 2016, the Russian government is planning to partially privatize its flagship oil producer, Rosneft. Russia is hoping to get more than US$11 billion from the sale of a minority stake of Rosneft before the end of the year. This will help plug financial deficits in the Russian economy caused due to low crude prices. However, sanctions imposed on Moscow over its actions in Ukraine and the cautious approach of investors in investing money in Russia can prove to be detrimental for the Russian market. Added to this is the volatile nature of the commodity market. Rosneft is hoping to repeat the success it had a decade ago, when it managed to raise US$11 billion from its initial share offering.
Read more: http://www.researz.com/russia-partially-privatize-rosneft-aiming-raise-us11-billion
GS Caltex of South Korea, fourth-largest single-site oil refinery in the world, is heading towards becoming an export-driven profitable company due to its aggressive overseas marketing strategy and continuous R&D investments. It is an oil refiner founded in 1966 and provides more than one-third of Korea’s oil requirements and exports over 50% of its products. The company’s export ratio of its total sales was about 70% last year. In 2002 it was at 26% only but went beyond 50% in 2006. It became 67% in 2012 and 68.2% in 2013. The export sales of Caltex reached $20 billion in 2011, becoming the first oil refinery and the second private company in the country to record such overseas performance. During the next year, its export sales exceeded $25 billion. This stupendous growth in the export market is due to the company’s timely investments in refinery and production facilities translating to crude oil-refining facilities with a capacity of 785,000 barrels per day. It can also desulfurize 272,000 barrels of kerosene and diesel per day.
Read Full News At: http://www.researz.com/south-koreas-gs-caltex-becoming-export-driven-company
The prices of crude oil went up to $50 a barrel for the first time in nearly seven months, lifting commodity and energy-related shares in Europe and Asia. However, there is concern about gains being limited by US interest rates and a slowdown in China. This took the levels to more than 80% above January’s 12-year low and has been fuelled partly by a weak dollar. The basic resources and oil and gas sectors are driving the hike in European energy shares. The pan-European FTSEurofirst 300 index rose by 0.2%, pushing a four-week hike. The STOXX 600 basic resources index rose by 2.4%, whereas oil and gas added 0.8%. Oil inventory data has been mixed over the last six months but this depends on how many believe that we are on the edge of an increase in global demand and economic recovery.
Read Full News At: http://www.researz.com/oil-price-lift-50-commodity-stocks-also-lift
Two of the major oil suppliers to China; Saudi Arabia and Iran, are experiencing a decline in orders year-over-year. This phenomenon is due to Russia doubling its exports to China in April 2016, compared to the exports for the same period last year. About 52% year-over-year increase between the two countries accounted for a transfer of 4.81 million metric tonnes. In March, the exports by Russia to China was 4.65 million tonnes. Oil imports from Saudi Arabia declined by 22% to 4.12 million tonnes and that from Iran fell by 5.1% to 2.76 million tonnes during the same period. According to a report by the International Energy Agency (IEA), Saudi Arabia ceased to be the leading supplier of crude oil during the end of the last year. Alternatively supplies from Angola, China’s third major supplier, increased by 39% to 3.98 million tonnes in an April year-over-year analysis.
Read Full News At: http://www.researz.com/russia-becomes-major-supplier-oil-china-replacing-saudi-arabia-iran
The turmoil in Nigeria, bankruptcy of energy firms in US and the crisis in Venezuela have contributed to disruptions in the global supply of oil, resulting in the rise of oil prices. The International Brent crude futures LCOc1 were trading at $49.10 per barrel, up 29 cents or 0.59% from their last settlement. US West Texas Intermediate (WTI) crude futures CLc1 was up 39 cents, or 0.81% at $48.55 a barrel. This unexpected disruptions in the supply amounted to about 2.5 million barrels production per day. It almost wiped out the surplus production between 2014 and early 2016 that brought down the prices by more than 70%.
Read Full News At: http://www.researz.com/disruptions-oil-output-across-africa-americas-hike-prices
A strong dollar on Friday made the oil prices to slip encouraging investors to cash in on gains for the second week. The market was more focused on how unplanned supply outages due to wildfires in Canada and disruptions in supply in Nigeria, Libya and Venezuela can reduce a persistent global surplus. The political turmoil and militant activities in Nigeria cut oil exports to below 1.4 million barrel per day (bpd), the lowest in more than 22 years. Oil supply from Libya was also hit by internal conflicts. However, in Canada wildfires forced closures of around 1 million bpd, although it is gradually returning to normal output.
Read Full News At: http://www.researz.com/oil-prices-slip-strong-dollar-surplus-supply