Friday, December 13, 2019

Oil Consumption News

Oil Consumption Tracking is All About Asia

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Oil market analysts must make sense of a bewildering array of statistics about production, consumption and inventories, compiled and published with varying definitions and degrees of accuracy and timeliness.The challenge is to form an accurate and nuanced picture of the whole market capable of generating useful forecasts, without becoming lost in the insignificant details.The World Bank identifies around 200 economies in the world…

Oil Traders Bet on Economic Upswing in 2020

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Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.Most of the divergence can be explained by differing assumptions about global growth in 2020.The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the…

Training on Ship Fuel Data Collection in China

Pic: International Maritime Organization (IMO)

The International Maritime Organization (IMO)-led GloMEEP project has delivered a training course in China last week to help maritime administrations and classification societies play their part in an ambitious scheme to collect fuel consumption data from ships.The data collected will provide vital information to support IMO’s global efforts to reduce greenhouse gas emissions from international shipping.

Oil Higher as U.S. Sanctions on Iran Raise Supply Concerns

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Oil prices rose on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies.U.S. Energy Secretary Rick Perry said in an interview with Reuters on Friday that he did not expect any price spikes and that the world's top three oil producers could…

As Renewables Soar, BP sees China Hitting Brakes

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Global demand for renewable power will soar at an unprecedented pace over the coming decades, BP said in a benchmark report on Thursday, while China's energy growth is seen sharply decelerating as its economic expansion slows.Still, China is set to remain the largest energy consumer by a long stretch into 2040 although India should overtake it in terms of demand growth beginning in the next decade…

India's Oil Imports at 3-year Low

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India's oil imports fell to their lowest in more than three years in September to 3.82 million barrels per day (bpd), data obtained from industry and shipping sources showed, as some refiners cut purchases due to shutdowns for maintenance and fuel upgrades.Last month, Saudi Arabia replaced Iraq as top oil supplier to India after a gap of about 13 months, the data showed.September oil imports, which dropped below 4 million bpd for the first time since June 2016…

U.S. Motorists React to Rising Pump Prices: Kemp

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U.S. traffic volumes are levelling off in a sign the previous stimulus from cheap gasoline prices is fading as pump prices rise. The volume of traffic on U.S. roads was down by almost 0.6 percent in April compared with the same month a year earlier, after seasonal adjustments, according to statistics released on Monday. Traffic volumes declined year-on-year for the first time since the first quarter of 2014…

Rising Oil Prices Herald Next Phase in Cycle

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Oil prices are now in the top half of the cycle, with benchmark Brent on Thursday trading above $80 per barrel for the first time since November 2014.In real terms, prices averaged $75 per barrel over the course of the last full cycle, which lasted from December 1998 to January 2016.The recent rise in prices sends a strong signal about the need for more production and slower growth in oil consumption.In the next few months…

Denmark Swings to Net Oil Importer as North Sea Production Dips

file Image: CREDIT Maersk

A 25-year period for Denmark as a net oil exporter is set to end this year following output declines in the North Sea, the country's energy agency said on Thursday after slashing its long-term oil production forecast.The Danish Energy Agency expects this year's oil production to reach 128,000 barrels per day (bpd), down from 138,000 bpd last year and 10 percent lower than an estimate given a year ago.The lower production forecast was due to downward adjustments of North Sea resources…

Kongsberg to help outfit Awilco Rig

Photo: Kongsberg Maritime

Kongsberg Maritime has been selected by global offshore and marine group Keppel Offshore & Marine to provide an extensive and integrated technology delivery for a new semi-submersible drilling rig ordered by UK-based drilling contractor Awilco Drilling PLC. The contract is valued at around $18 million. Based on the Moss Maritime CS60 ECO MW design, Awilco Drilling’s new rig is designed for harsh environment use…

Shell Active in Mideast, Russia Crude Liftings

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Oil major buys various grades from Qatar, UAE, Russia; re-sells Qatar Marine and Sokol. Royal Dutch Shell has snapped up more than 8 million barrels of Middle East and Russian crude oil loading in June and resold some cargoes at higher premiums as it profits from robust demand in Asia, five trading sources said on Friday. The region's pull on Middle East and Russian grades, priced off Middle East crude benchmark Dubai…

Hedge Fund Oil Bulls on Rampage as Bears Vanish

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Hedge fund managers have never seemed so convinced that oil prices are set to rise rather than fall in the near term, according to the latest positioning data published by regulators and exchanges. Fund managers remain super-bullish even though benchmark Brent prices have almost tripled over the last two years and are now trading at the highest level since November 2014. Hedge funds and other money…

Rising Oil Prices put 'Demand Destruction' Back on the Agenda

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Rising oil prices over the last two years have put the issue of demand destruction back on the agenda, as producers, traders and analysts try to estimate how consumers will respond. Demand destruction always becomes a topic of discussion during this stage of the price cycle, and the current discussion resembles previous episodes of high and rising prices in 2005-2008 and 2011-2014. Brent prices have…

Sanctions spell the end of OPEC output deal

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President Donald Trump’s decision to withdraw from the nuclear agreement with Iran marks the end of the current output agreement between OPEC and its allies.OPEC is likely to insist the current agreement remains in effect, at least for now, but the prospective removal of several hundred thousand barrels per day of Iranian exports from the market will require a major adjustment.Saudi Arabia has already promised to "mitigate" the impact of any potential supply shortages…

Is Aramco Share Sale Distorting OPEC Policy? Kemp

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By restraining production, OPEC and its allies have succeeded in eliminating excess oil stocks and accelerating the recovery in prices, but they are paying an increasingly high price in terms of market share. U.S. producers will capture all the growth in global oil consumption this year, according to forecasts from the U.S. Energy Information Administration ("Short-Term Energy Outlook", EIA, March 2018).

Oil Impacted by Broader Market Trends

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Soaring U.S. crude output, rising stocks also weigh. Oil fell on Wednesday as financial markets slid after a free trade advocate in the U.S. government resigned, feeding concerns that Washington's plans for import tariffs could spark a trade war. Rising U.S. crude output and climbing U.S. inventories have also weighed. The United States is set to become the world's biggest oil producer this year, threatening to offset supply cuts by the OPEC, Russia and other producers. "Rising U.S.

Oil Rally Stalls as Production Forecasts Soar

Despite the overwhelmingly bullish sentiment that still dominates talk about oil prices, the rally that started at the end of June 2017 seems to have run out of momentum. Front-month Brent futures prices peaked in the final week of January and have since been on a gently declining trend ( Brent calendar spreads peaked even earlier in January and have also been gently softening for nearly two months now.

Oil Price Volatility at Lowest Since Before the Slump: John Kemp

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If the oil market has felt unusually quiet in recent weeks and months, that probably reflects the almost complete lack of sharp daily price movements. While prices have soared by more than 40 percent since the middle of 2017, day-to-day volatility has fallen to its lowest level since 2014, with a relatively smooth and orderly upward adjustment in prices. Short-term volatility has been trending downwards since early 2016 and in January fell to its lowest since August 2014.

OPEC Switches Focus From Inventories to Investment

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OPEC appears to be reformulating its target in terms of upstream investment rather than oil inventories, according to an analysis of recent statements made by ministers from member countries. “There is no such thing as a target price by Saudi Arabia,” the kingdom’s energy minister, Khalid al-Falih, told reporters on Wednesday (“Saudi Arabia happy with oil market, won’t let another glut form”, Reuters, April 11). “We’re seeing (production in) many regions declining.

Hedge Funds Build Record Bullish Brent Positions

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Hedge funds are holding a near-record bullish position in crude oil and refined fuels but the buying seems to have run out of momentum and is increasingly concentrated only in Brent. Hedge funds and other money managers increased their net long position in the six most important futures and options contracts linked to petroleum by 12 million barrels in the week to April 10. The net long position has increased by 149 million barrels over the last four weeks to 1.365 billion barrels.