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
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
Wildfires that have been raging in the Fort McMurray, Alberta in Canada, the oil sand region, has resulted in the loss of production capacity of a million barrels daily. This has contributed to the tightening of the markets. This capacity lost is equal to more than one-third of Canada’s normal daily production. Normally, as almost the complete crude from the oil sands produced is exported to the US the loss of production capacity has cause the US crude futures to rise by 84 cents or 1.9% to $45.50 per barrel. The international Brent crude rose by 62 cents or 1.4% to become $45.99 per barrel.
Read Full News At: http://www.researz.com/oil-prices-increase-wake-wildfires-canada-market-watchful-new-energy-minister-saudi
Saudi Arabia’s market share of oil has witnessed a decline in 9 out of 15 top markets in the past three years, despite production touching record levels. These included China, South Africa and the United States. Saudi Arabia’s overall share of Chinese oil imports dropped from over 19% in 2013 to nearly 15% in 2015 as a result of increased supplies from Russia. On the other hand, the kingdom’s share of South African oil imports fell dramatically from almost 53% to 22% due to increased shipments from Nigeria and Angola. A boom in shale oil gas extraction in the United States saw Saudi Arabia’s share of US imports decline from 17% to almost 14% between 2013 and 2015. Saudi Arabia also lost market share in South Korea, Thailand, Taiwan and some Western European countries but secured gains in Brazil, India and Japan.
Read Full News At: http://www.researz.com/saudi-arabia-witnesses-decline-oil-market-share