Libya’s oil production could soar higher despite OPEC weighing cuts

As OPEC members weigh oil production cuts for the start of 2019 to keep prices from falling amid a potential oversupply, conflict-weary Libya is hoping for an exemption. “The OPEC community has understood the difficulties we face –- Libya has withheld more than any other country from the global market,” Mustafa Sanalla, chairman of the country’s National Oil Corporation (NOC), told Bloomberg on Monday. The comments come on the back of months of increased production for Libya, which along with Ni


As OPEC members weigh oil production cuts for the start of 2019 to keep prices from falling amid a potential oversupply, conflict-weary Libya is hoping for an exemption. “The OPEC community has understood the difficulties we face –- Libya has withheld more than any other country from the global market,” Mustafa Sanalla, chairman of the country’s National Oil Corporation (NOC), told Bloomberg on Monday. The comments come on the back of months of increased production for Libya, which along with Ni
Libya’s oil production could soar higher despite OPEC weighing cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: natasha turak, leon neal, afp, getty images
Keywords: news, cnbc, companies, opec, nigeria, withheld, higher, libyas, oil, despite, soar, market, production, weighing, libya, worry, prices, cuts


Libya's oil production could soar higher despite OPEC weighing cuts

As OPEC members weigh oil production cuts for the start of 2019 to keep prices from falling amid a potential oversupply, conflict-weary Libya is hoping for an exemption.

“The OPEC community has understood the difficulties we face –- Libya has withheld more than any other country from the global market,” Mustafa Sanalla, chairman of the country’s National Oil Corporation (NOC), told Bloomberg on Monday. “This should be factored in.”

The comments come on the back of months of increased production for Libya, which along with Nigeria has been exempt from OPEC cuts since January 2017 because of internal conflict.

Now, with oil prices toying with bear market territory — down from a nearly four-year high in October to a 10-day fall that by last Friday became the longest losing streak for crude in 34 years — OPEC is in talks with both Libya and Nigeria about a production cut deal.

Saudi Arabia, the 15-member cartel’s top exporter, has said the group needs to shave production by about 1 million barrels per day (bpd). The worry over a supply glut comes after the kingdom initially moved to bolster inventories ahead of U.S. sanctions on Iran’s energy sector, which turned out to be less harsh than markets expected.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: natasha turak, leon neal, afp, getty images
Keywords: news, cnbc, companies, opec, nigeria, withheld, higher, libyas, oil, despite, soar, market, production, weighing, libya, worry, prices, cuts


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Here’s where holiday drivers will get the biggest break on gasoline prices

Drivers heading out for the Thanksgiving holiday will find gasoline prices lower than they’ve been in nearly a year, thanks to a sharp drop in the cost of crude oil and a surge in fuel production driven by big demand for diesel. That leaves the average price just 7 cents above this time last year — the lowest yearly change since July 2017. “I think that we’ll probably have 18 states that are cheaper than last year on Thanksgiving weekend,” said Tom Kloza, global head of energy analysis at Oil Pr


Drivers heading out for the Thanksgiving holiday will find gasoline prices lower than they’ve been in nearly a year, thanks to a sharp drop in the cost of crude oil and a surge in fuel production driven by big demand for diesel. That leaves the average price just 7 cents above this time last year — the lowest yearly change since July 2017. “I think that we’ll probably have 18 states that are cheaper than last year on Thanksgiving weekend,” said Tom Kloza, global head of energy analysis at Oil Pr
Here’s where holiday drivers will get the biggest break on gasoline prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: john w schoen, tom dichristopher, -matt smith
Keywords: news, cnbc, companies, heres, drivers, biggest, price, week, youre, break, thanks, oil, lowest, thanksgiving, production, gasoline, prices, holiday


Here's where holiday drivers will get the biggest break on gasoline prices

Drivers heading out for the Thanksgiving holiday will find gasoline prices lower than they’ve been in nearly a year, thanks to a sharp drop in the cost of crude oil and a surge in fuel production driven by big demand for diesel.

The average pump price for a gallon of regular gasoline fell to $2.62 this week, 7 cents less than a week ago and the biggest one-week decline this year, according to the latest price survey from AAA. That leaves the average price just 7 cents above this time last year — the lowest yearly change since July 2017.

“I think that we’ll probably have 18 states that are cheaper than last year on Thanksgiving weekend,” said Tom Kloza, global head of energy analysis at Oil Price Information Service.

Pump prices remain substantially higher in the West, however, thanks the high cost of transporting motor fuel to the region and the relative dearth of local production capacity. Prices are lowest in Texas and the Midwest.

“If you’re east of the Rockies, there’s a good chance you’re going to be able to find gasoline between $1.90 and $2.25,” said Kloza.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: john w schoen, tom dichristopher, -matt smith
Keywords: news, cnbc, companies, heres, drivers, biggest, price, week, youre, break, thanks, oil, lowest, thanksgiving, production, gasoline, prices, holiday


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Oil treads water amid expected OPEC cuts, gloomy economic outlook

Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC). Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close. U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd)


Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC). Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close. U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd)
Oil treads water amid expected OPEC cuts, gloomy economic outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, markets, outlook, water, cuts, million, opec, production, treads, economic, supply, record, expected, amid, recent, oil, barrels, gloomy, crude


Oil treads water amid expected OPEC cuts, gloomy economic outlook

Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC).

Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $57.07 per barrel, 13 cents, or 0.2 percent, below their last settlement.

Oil prices are almost a quarter below their recent peaks in early October, weighed down by surging supply, especially from the United States.

U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd).

This comes amid widespread market expectations of an economic slowdown, which saw Asian stock markets tumble on Tuesday, adding to sharp losses on Wall Street during the previous day.

As a result, financial traders have become wary of oil markets, seeing further price downside risks from the soaring U.S. shale production as well as the deteriorating economic outlook.

Portfolio managers have sold the equivalent of 553 million barrels of crude and fuels in the last seven weeks, the largest reduction over a comparable period since at least 2013.

Funds now hold a net long position of just 547 million barrels, less than half the recent peak of 1.1 billion at the end of September, and down from a record 1.484 billion in January.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, markets, outlook, water, cuts, million, opec, production, treads, economic, supply, record, expected, amid, recent, oil, barrels, gloomy, crude


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Apple shares fall into bear market again after report of slashed iPhone production orders

Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders. The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September. Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal rep


Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders. The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September. Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal rep
Apple shares fall into bear market again after report of slashed iPhone production orders Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, aris oikonomou, afp, getty images
Keywords: news, cnbc, companies, xs, shares, fall, xr, bear, slashed, apple, production, iphone, report, suppliers, told, reported, journal, market, models, orders


Apple shares fall into bear market again after report of slashed iPhone production orders

Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders.

The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September.

Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal reported. It added that in the past week the company told suppliers it plans to trim production of the XR again.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, aris oikonomou, afp, getty images
Keywords: news, cnbc, companies, xs, shares, fall, xr, bear, slashed, apple, production, iphone, report, suppliers, told, reported, journal, market, models, orders


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Oil rises on expected OPEC cuts, but surging US supply drags

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged. Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel. “OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.” Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017. “We expect


Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged. Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel. “OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.” Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017. “We expect
Oil rises on expected OPEC cuts, but surging US supply drags Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, surging, production, crude, bpd, barrels, expected, rises, oil, opec, drags, cuts, supply, record, million


Oil rises on expected OPEC cuts, but surging US supply drags

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged.

U.S. West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 percent, from their last settlement.

Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel.

Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

OPEC’s de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 percent of global supply, sources told Reuters this week.

However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect.

“The main oil price benchmarks – Brent and WTI – are both light-sweet crudes and reflect this glut,” the U.S. bank said.

“OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.”

Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that “OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another”.

While OPEC considers withholding supply, U.S. crude oil production reached another record last week, at 11.7 million bpd, according to U.S. Energy Information Administration (EIA) data published on Thursday.

U.S. output has surged by almost a quarter since the start of the year.

The record output meant U.S. crude oil stocks posted the biggest weekly build in nearly two years.

Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017.

This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise.

“Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year,” Bank of America Merrill Lynch said in a note.

While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected.

“We expect 2019 oil demand to reach 101.1 million bpd,” natural resources research and investment firm Goehring & Rozencwajg said, up from just under 100 million bpd this year.

At the same time, the firm said production outside North America was set to disappoint.

Add OPEC’s expected supply cuts, and Goehring & Rozencwajg said “those investors who are able to adopt a contrarian stance … and stomach the volatility … are being presented with an excellent investment opportunity” to buy into oil after the recent slump.

Bank of America agreed, saying “we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December”.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, surging, production, crude, bpd, barrels, expected, rises, oil, opec, drags, cuts, supply, record, million


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Lockheed Martin starts production of its experimental supersonic plane

Lockheed Martin and NASA are building a supersonic plane that will be as quiet as closing a car door 7:11 PM ET Tue, 3 April 2018 | 01:12″The start of manufacturing on the project marks a great leap forward for the X-59 and the future of quiet supersonic commercial travel,” said Peter Iosifidis, Low Boom Flight Demonstrator program manager for Lockheed Martin Skunk Works. As we enter into the manufacturing phase, the aircraft structure begins to take shape, bringing us one step closer to enablin


Lockheed Martin and NASA are building a supersonic plane that will be as quiet as closing a car door 7:11 PM ET Tue, 3 April 2018 | 01:12″The start of manufacturing on the project marks a great leap forward for the X-59 and the future of quiet supersonic commercial travel,” said Peter Iosifidis, Low Boom Flight Demonstrator program manager for Lockheed Martin Skunk Works. As we enter into the manufacturing phase, the aircraft structure begins to take shape, bringing us one step closer to enablin
Lockheed Martin starts production of its experimental supersonic plane Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: amanda macias, michael sheetz, lockheed martin, source
Keywords: news, cnbc, companies, plane, sr72, starts, quiet, production, supersonic, hypersonic, aircraft, travel, flight, martin, experimental, lockheed


Lockheed Martin starts production of its experimental supersonic plane

Lockheed Martin and NASA are building a supersonic plane that will be as quiet as closing a car door 7:11 PM ET Tue, 3 April 2018 | 01:12

“The start of manufacturing on the project marks a great leap forward for the X-59 and the future of quiet supersonic commercial travel,” said Peter Iosifidis, Low Boom Flight Demonstrator program manager for Lockheed Martin Skunk Works.

“The long, slender design of the aircraft is the key to achieving a low sonic boom. As we enter into the manufacturing phase, the aircraft structure begins to take shape, bringing us one step closer to enabling supersonic travel for passengers around the world,” he added.

The X-59 will conduct its first flight in 2021. It will be used to collect community response data on the acceptability of the quiet sonic boom generated by the aircraft, helping NASA establish an acceptable commercial supersonic noise standard to overturn current regulations banning supersonic travel over land.

Read more: Lawmakers pave the way for the return of supersonic flight

This new contract is a separate venture from Lockheed Martin’s work with Aerion Corp. to develop a supersonic business jet, the AS2, which has its first flight planned for 2023.

Lockheed Martin is also in the process of developing the SR-72, a hypersonic unmanned plane dubbed the “son of the Blackbird.” And when it comes to developing a high-speed reconnaissance aircraft, the Pentagon’s top weapons supplier is playing in its home court.

In 1976, the Air Force flew Lockheed Martin’s SR-71 Blackbird from New York to London in less than two hours — at speeds exceeding Mach 3, or three times the speed of sound.

The SR-72 is envisioned to operate at speeds up to Mach 6. And while the hypersonic SR-72 isn’t expected to be operational until 2030, the company sees developing a platform of that magnitude as a game changer.

“This could forever change our ability to deter and respond to conflict, allowing warfighters to quickly address threats before an adversary may have time to react,” Lockheed Martin CEO Marillyn Hewson said of the hypersonic plane in March.

Hewson also said the development of the aircraft, which is estimated to cost $1 billion, will change the “definition of air power by giving the U.S. significant tactical and strategic advantages.”


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: amanda macias, michael sheetz, lockheed martin, source
Keywords: news, cnbc, companies, plane, sr72, starts, quiet, production, supersonic, hypersonic, aircraft, travel, flight, martin, experimental, lockheed


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24-year-old NYSE equity trader Lauren Simmons’ career inspired a film

Equity trader Lauren Simmons has signed a deal with production company AGC Studios to turn the inspiring story of her journey to becoming the youngest full-time female trader on the floor of the New York Stock Exchange into a film. In June, CNBC Make It explored Simmons’ journey in a widely-circulated profile and video. Simmons moved to New York after graduating from college in December 2016 with an initial plan for a career in medicine. She passed, becoming the youngest, and at the time, only,


Equity trader Lauren Simmons has signed a deal with production company AGC Studios to turn the inspiring story of her journey to becoming the youngest full-time female trader on the floor of the New York Stock Exchange into a film. In June, CNBC Make It explored Simmons’ journey in a widely-circulated profile and video. Simmons moved to New York after graduating from college in December 2016 with an initial plan for a career in medicine. She passed, becoming the youngest, and at the time, only,
24-year-old NYSE equity trader Lauren Simmons’ career inspired a film Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: courtney connley
Keywords: news, cnbc, companies, equity, floor, kiersey, journey, youngest, simmons, fulltime, studios, inspired, york, career, film, production, 24yearold, trader, lauren, nyse


24-year-old NYSE equity trader Lauren Simmons' career inspired a film

Equity trader Lauren Simmons has signed a deal with production company AGC Studios to turn the inspiring story of her journey to becoming the youngest full-time female trader on the floor of the New York Stock Exchange into a film.

Actress Kiersey Clemons will produce the film and also play Simmons on the big screen.

In June, CNBC Make It explored Simmons’ journey in a widely-circulated profile and video. Simmons moved to New York after graduating from college in December 2016 with an initial plan for a career in medicine. A love of math drove her to pursue finance instead, and she landed a job at Rosenblatt Securities after applying through LinkedIn. She had one month to study for and take the Series 19, the exam all floor brokers must pass to earn their badge. She passed, becoming the youngest, and at the time, only, full-time female trader at the NYSE.

She says that in June, multiple production studios reaching out to her to discuss developing a biopic.

“I ultimately decided [on] AGC because of Kiersey,” says Simmons. “I got to meet Kiersey and felt she resembled me a lot. She has such a beautiful personality and she genuinely wanted to share my story. Out of everyone that I met, I knew that she would do it very [honestly], and not make it into a story that isn’t true.”


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: courtney connley
Keywords: news, cnbc, companies, equity, floor, kiersey, journey, youngest, simmons, fulltime, studios, inspired, york, career, film, production, 24yearold, trader, lauren, nyse


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Apple enters multiyear agreement with Oscar-winning production company to make original movies

Apple has entered a multi-year agreement with entertainment company A24 to create produce films for the company, sources familiar with the agreement told CNBC. The movie deal comes as Apple is ramping up its foray into original content. The company plans to give away free movies and TV shows to device owners sometime next year as part of a strategy to build consumer loyalty, according to several sources familiar with negotiations. The New York-based media company started in 2012. Other individua


Apple has entered a multi-year agreement with entertainment company A24 to create produce films for the company, sources familiar with the agreement told CNBC. The movie deal comes as Apple is ramping up its foray into original content. The company plans to give away free movies and TV shows to device owners sometime next year as part of a strategy to build consumer loyalty, according to several sources familiar with negotiations. The New York-based media company started in 2012. Other individua
Apple enters multiyear agreement with Oscar-winning production company to make original movies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: michelle castillo, source, lucy nicholson
Keywords: news, cnbc, companies, oscarwinning, movies, apple, best, enters, deal, multiyear, produce, sources, production, original, films, familiar, content, company, agreement


Apple enters multiyear agreement with Oscar-winning production company to make original movies

Apple has entered a multi-year agreement with entertainment company A24 to create produce films for the company, sources familiar with the agreement told CNBC.

The movie deal comes as Apple is ramping up its foray into original content. The company plans to give away free movies and TV shows to device owners sometime next year as part of a strategy to build consumer loyalty, according to several sources familiar with negotiations.

A24 has been a critics’ favorite, releasing several Academy Award-winning films including “Room,” “Amy,” “Lady Bird,” and “Moonlight,” which won the Academy Award for Best Picture, Best Adapted Screenplay and Best Supporting Actor in 2017. The New York-based media company started in 2012. The terms of the deal were not disclosed.

Other individuals and companies slated to produce content for the upcoming Apple offering include Oprah, Sesame Workshop and a reboot of “Amazing Stories,” which will be produced by Steven Spielberg and Bryan Fuller.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: michelle castillo, source, lucy nicholson
Keywords: news, cnbc, companies, oscarwinning, movies, apple, best, enters, deal, multiyear, produce, sources, production, original, films, familiar, content, company, agreement


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Oil has become a ‘very political tool’: Bank of Singapore

Oil has become a ‘very political tool’: Bank of Singapore10 Hours AgoGareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.


Oil has become a ‘very political tool’: Bank of Singapore10 Hours AgoGareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.
Oil has become a ‘very political tool’: Bank of Singapore Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, tool, oil, opec, political, bank, singapore10, production, pressure, washington, singapore


Oil has become a 'very political tool': Bank of Singapore

Oil has become a ‘very political tool’: Bank of Singapore

10 Hours Ago

Gareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, tool, oil, opec, political, bank, singapore10, production, pressure, washington, singapore


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Oil extends slide from 7 percent slump the day before as outlook darkens

U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement. International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel. The slump in spot prices has turned the entire forward curve for crude oil upside down. By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. “This will, in our view, cap any upside above $85 p


U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement. International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel. The slump in spot prices has turned the entire forward curve for crude oil upside down. By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. “This will, in our view, cap any upside above $85 p
Oil extends slide from 7 percent slump the day before as outlook darkens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, crude, million, output, extends, surge, slump, supply, later, slide, day, oil, outlook, prices, darkens, production, opec


Oil extends slide from 7 percent slump the day before as outlook darkens

Oil markets slipped again on Wednesday, extending losses from a 7 percent plunge the previous session as surging supply and the spectre of faltering demand scared off investors.

U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement.

International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel.

Crude oil has lost over a quarter of its value since early October in what has become one of the biggest declines since prices collapsed in 2014.

The slump in spot prices has turned the entire forward curve for crude oil upside down.

Spot prices in September were significantly higher than those for later delivery, a structure known as backwardation that implies a tight market as it is unattractive to put oil into storage.

By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. That implies an oversupplied market as it makes it attractive to store oil for later sale.

Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown.

U.S. crude oil output from its seven major shale basins is expected to hit a record of 7.94 million barrels per day (bpd) in December, the U.S. Department of Energy’s Energy Information Administration (EIA) said on Tuesday.

That surge in onshore output has helped overall U.S. crude production hit a record 11.6 million bpd, making the United States the world’s biggest oil producer ahead of Russia and Saudi Arabia.

Most analysts expect U.S. output to climb above 12 million bpd within the first half of 2019.

“This will, in our view, cap any upside above $85 per barrel (for oil prices),” said Jon Andersson, head of commodities at Vontobel Asset Management.

The surge in U.S. production is contributing to rising stockpiles.

U.S. crude stocks climbed by 7.8 million barrels in the week ending Nov. 2 to 432 million as refineries cut output, data from industry group the American Petroleum Institute showed on Tuesday.

The producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) has been watching the jump in supply and price slump with concern.

OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices.

“OPEC and Russia are under pressure to reduce current production levels, which is a decision that we expect to be taken at the next OPEC meeting on Dec. 6,” said Andersson.

That puts OPEC on a collision course with U.S. President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.


Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, crude, million, output, extends, surge, slump, supply, later, slide, day, oil, outlook, prices, darkens, production, opec


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