OPEC+ Sees No Need to Meet US Call for More Supply
OPEC and its allies, including Russia, believe oil markets do not need more oil than they plan to release in the coming months, despite U.S. pressure to add supplies to check an oil price rise, four sources told Reuters.The price of international benchmark Brent crude has risen 35% this year towards $70 a barrel, driven by economic recovery from the pandemic and supply restraint by the Organization of the Petroleum Exporting Countries and its partners in the alliance known as OPEC+.Last week, U.S. President Joe Biden's administration urged the producer…
EU Energy Watchdog Sanctions Bosnia over Non-compliance with Rules
The European Union's energy watchdog has extended sanctions against Bosnia for another two years over the Balkan country's failure to comply with the body's gas and electricity sector regulations.Bosnia has been sanctioned for much of the period since 2015 due to its persistent failure to amend legislation in accordance with the Second Energy Package in the gas sector, the Sulphur in Fuels Directive, and the Third Energy Package in both electricity and gas."Bosnia and Herzegovina will not participate in the decision-making on matters of budget and enforcement for a period of two years…
IEA: Early Signs of Recovery Visible, But Oil Demand Still Set For Record Fall
Oil demand is still set for a record fall in 2020, the International Energy Agency (IEA) said on Thursday, but it trimmed its forecast for the drop citing easing lockdown measures.Demand is expected to fall by 8.6 million barrels per day (bpd), the IEA said in its monthly report, raising its estimate by 690,000 bpd compared to last month.Around 2.8 billion people will be living under confinement measures aimed at containing the novel coronavirus at the end of May, down from 4 billion in April, the Paris-based IEA said.In revising its forecast, the…
IEA: New Cuts by Saudi Arabia and Others Unlikely to Balance Oil Market
International Energy Agency (IEA) Executive Director Fatih Birol said on Thursday that recently announced oil output cuts by major Gulf Arab producers would likely not be enough to balance global markets as coronavirus lockdowns hollow out demand."I am happy to see Saudi Arabia, the Emirates and Kuwait - on top of their existing commitments - are now going to make further cuts.
April May Prove Worst Ever Month for Oil Industry - IEA's Birol
International Energy Agency (IEA) Executive Director Fatih Birol said on Wednesday this month could prove the worst ever experienced by the oil industry."In a few years' time, when we look back on 2020 we may well see that it was the worst year in the history of global oil markets," Birol told reporters on a conference call after the IEA energy watchdog released its monthly report."During that terrible year, the second quarter may well have been the worst of the lot. During that quarter, April may well have been the worst month - it may go down as Black April in the history of the oil industry." (Reporting by Noah Browning; editing by Jason Neely)
OPEC, Russia Approve Biggest-Ever Oil Cut to Support Prices
OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States, that could curb global oil supply by 20%. Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs. The group, known as OPEC+, said it had agreed to reduce output by 9.7 million barrels per day (bpd) for May and June, after four days of talks and following pressure from U.S.
UK Energy Watchdog Proposes Tests for New Suppliers
Britain's energy regulator Ofgem has proposed financial and customer service tests for new suppliers after several smaller energy providers went bankrupt over the last year, it said on Wednesday.Ofgem said the tests should ensure new entrants are robust while encouraging competition in the market."Companies would have to demonstrate they have adequate financial resources and can meet their customer service obligations before Ofgem awards them a licence to supply energy," the regulator said in a statement.It said the tests should be in place by spring 2019.(Reporting by Sabina Zawadzki; Editing by Jan Harvey)
Rising Use of Plastics to Drive Oil Demand to 2050 - IEA
Plastics and other petrochemical products will drive global oil demand to 2050, offsetting slower consumption of motor fuel, the International Energy Agency (IEA) said on Friday.Despite government efforts to cut pollution and carbon emissions from oil and gas, the Paris-based agency said it expected the rapid growth of emerging economies, such as India and China, to propel demand for petrochemical products.Petrochemicals that are derived from oil and gas feedstocks form the building blocks for products that range from plastic bottles and beauty products…
Turkey's Tupras Reduces Iranian Crude Purchases as U.S. Sanctions Loom
Turkey's biggest oil importer Tupras has cut back purchases of Iranian crude since May, when the United States said it would re-impose sanctions on Tehran, and analysts say Tupras is likely to stick to lower volumes in coming months.NATO member Turkey depends heavily on imports to meet its energy needs and neighbouring Iran has been one of its main sources of oil because of its proximity, crude quality and favourable price differentials, traders say.In the first four months of 2018, Tupras, Turkey's largest refiner, bought an average of 187,196 barrels per day of Iranian oil…
US Oil Rig Count Steady this Week -Baker Hughes
U.S. energy companies kept the oil rig count unchanged this week, General Electric Co's Baker Hughes energy services firm said on Friday, as some analysts expect a gradual decline in overall rigs in the fourth quarter and in 2018. The rig count, an early indicator of future output, held at 738 in the week to Nov. 17, still much higher than 471 rigs a year ago as energy companies boosted spending plans for 2017 as crude started recovering from a two-year price crash. The increase in drilling lasted 14 months before stalling in August, September and October after some producers started trimming their 2017 spending plans when prices turned softer over the summer. So far in 2017, U.S.
Peak Gasoline Demand Looming as Engine Efficiencies Grow
Global gasoline demand to peak in 2021 - WoodMac. Demand for gasoline in the United States, which accounts for a tenth of global oil consumption, is expected to peak next year as engines become more efficient, WoodMackenzie analysts said. Global demand for gasoline, which accounts for more than a quarter of the world's oil consumption, is set to peak as early as 2021 even in the face of relentless growth in the vehicle fleet, according to the Edinburgh-based consultancy. A rise in the number of hybrid and electric cars such as the Nissan Leaf, Toyota Prius and Tesla as well as tighter fuel standards in Europe and the United States will contribute to a historic shift in consumption.
Peak Gasoline Demand Looms with Engine Efficiency Gains
Demand for gasoline in the United States, which accounts for a tenth of global oil consumption, is expected to peak next year as engines become more efficient, WoodMackenzie analysts said. Global demand for gasoline, which accounts for more than a quarter of the world's oil consumption, is set to peak as early as 2021 even in the face of relentless growth in the vehicle fleet, according to the Edinburgh-based consultancy. A rise in the number of hybrid and electric cars such as the Nissan Leaf, Toyota Prius and Tesla as well as tighter fuel standards in Europe and the United States will contribute to a historic shift in consumption.
Saudi Aramco in Lead to Buy OMV's Turkish Unit Petrol Ofisi
Oil giant Saudi Aramco is believed to be the front-runner to buy Turkish fuel stations business Petrol Ofisi from Austrian oil group OMV , sources familiar with the matter said. Saudi Aramco has placed a bid and is awaiting the result, said one source who declined to be identified because the matter is not public. An OMV spokesman said the firm had received binding offers for Petrol Ofisi, which generated sales of around 10 billion euros ($10.5 billion) in 2015, but declined to give details. A Saudi Aramco spokesman said the company did not comment on rumour or speculation. Other sources aware of the matter said State Oil Company of Azerbaijan (SOCAR) had also placed a bid.
Austrian Power Prices to Rise if Separated From German Market
The head of Austria's energy regulator said he is concerned about likely price rises if the European energy watchdog ACER decides next month to separate Austrian and German power markets, which have been bundled together since 2002. "We would appeal against this if they decide this plan," the head of Austria's E-Control, Wolfgang Urbantschitsch, told reporters on Tuesday, adding he expected prices to rise "noticeably" in Austria. ACER is expected to decide in November whether to create a bottleneck between Austria and Germany, in order to restrict oversupply from northern German wind parks flooding other countries' grids…
Crude Oil Prices Slip from 1-year High
Crude oil prices slipped on Tuesday, retreating from one-year highs, after mixed responses by Russian oil industry officials toward an OPEC call for all major crude producers to cut output. The International Energy Agency, the energy watchdog of the West, also said it unclear how rapidly global oil supply could fall in line with demand even if Russia and the Organization of the Petroleum Exporting Countries agreed on a steep enough cut. "Net, we find that an agreement to cut production, while increasingly likely, remains premature given the high supply uncertainty in 2017 and would prove self-defeating if it were to target sustainably higher oil prices…
Oil Steady on Short-covering After 2-day Drop; Dollar Weighs
Oil prices steadied on Thursday as short-covering stemmed a two-day rout, but gains were capped by a rebounding dollar and concerns about returning crude supplies from Nigeria and Libya. Crude futures lost a combined 6 percent in the past two sessions, pressured by weekly builds in U.S. petroleum products and forecasts by the world's energy watchdog and OPEC that signaled the global crude glut could persist into next year. Selling in oil has abated since, with some traders and investors buying back to cover short positions. Still, gains in crude and other-greenback denominated commodities were capped by a dollar firming on data showing robust U.S. labor market conditions.
Global Diesel Demand Crumbling -IEA
European demand for diesel is expected to have fallen in the first three months of 2016 for the first quarterly decline in nearly two years, the International Energy Agency reported on Thursday, the latest sign of distress in the fuel market. Europe, where roughly half of cars are fuelled by diesel, joins the United States, China and Japan which saw demand contract for a second consecutive quarter in January-March, according to the IEA. "Global gasoil demand crumbles," the Western energy watchdog said in its benchmark monthly report. Gasoil includes several different grades of fuel but diesel is the most important.
Oil Skidding Toward 11-year Low
Oil prices extended their freefall on Friday, flirting with 11-year lows, after the International Energy Agency (IEA) warned that global oversupply of crude could worsen next year. Brent and U.S. crude's West Texas Intermediate (WTI) futures fell as much as 5 percent on the day and 12 percent on the week as mild pre-winter weather and a plummeting U.S. stock market added to the toll on oil prices. Oil traders and analysts alike have been perplexed by oil's decline since the Dec. 4 meeting of the Organization of the Petroleum Exporting Countries which all but abandoned price support for crude by removing OPEC's production ceiling in an oversupplied market.
Oil Steady on IEA, U.S. Output Forecast
IEA sees world oversupply lasting through 2016; U.S. crude inventories rising. Brent crude oil steadied near $50 a barrel on Tuesday after the west's energy watchdog forecast a global supply glut would last through 2016 thanks to slowing demand growth and a supply glut. The International Energy Agency (IEA) said the world oil market would remain oversupplied for at least another year despite falls in output from non-OPEC producers. North Sea Brent crude was up 24 cents a barrel at $50.10 by 1210 GMT. U.S. light crude was up 12 cents at $47.22. Both benchmarks have been volatile over the last year.
Oil Supply Tightens as Prices Drop
Oil markets are beginning to tighten after a dramatic collapse in prices over the last year, reducing production in many parts of the world and stimulating extra fuel consumption, the West's energy watchdog said on Friday. The International Energy Agency (IEA) said a move by the world's big oil exporters in OPEC, led by Saudi Arabia, to defend their market share "regardless of price" appeared to be working. The strategy was driving out costly, inefficient production from other parts of the world, it said. "Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea," the IEA said in its monthly report.
