The US Energy Information Agency reported another build in fuel supplies last week on low demand and high production. If crude supplies continue on this trajectory another few weeks, they may hit record levels. And lower heating needs from the fast-approaching Spring mean that diesel prices are indeed close to the parity with gasoline I mentioned (more…)
Posts Tagged ‘OPEC’
US Oil Supplies Climb Further – Records May be Tested
Wednesday, March 18th, 2009Economic Woes Subdue Global Oil Demand Further
Wednesday, March 11th, 2009
Global GDP forecasts for 2009 fell again this week as news of contraction emerged in recent economic powerhouses such as Australia, Brazil, and even China. And since oil demand is closely linked to economic output, the 2009 forecast is for even lower demand than the EIA projected last month. They now see global oil consumption falling (more…)
Oil & Gas Inventories Remain High
Saturday, January 24th, 2009The EIA released its weekly inventory reports for oil and natural gas these past two days, and even the cold weather hasn’t been able to bring supplies down to the historical average. Industrial demand has fallen so significantly that our inventory numbers leave little cause for worry in the weeks ahead. For instance, crude supplies are (more…)
Can the Current Cold Snap Raise Fuel Prices?
Thursday, January 15th, 2009
This week is a cold one in the Midwest and East. Here in New York City the high is below 20 degrees and we’ll see single digits at night. Luckily I’m headed South for the inauguration tomorrow, but temperatures will still be below freezing in DC. Can this cold snap raise oil and natural gas prices from their current lows? (more…)
Saudi Arabia good at limbo: Oil prices may rise
Wednesday, January 14th, 2009It seems pretty silly to caution that oil prices could rise in 2009 as we face the worst recession in decades. Demand fell more than 5% in the largest oil consumer in 2008 (our United States of America) and global oil demand is expected to fall another significant amount in the year ahead. But the long-term supply picture is not a rosy one and Saudi Arabia has shown a willingness to lower production in such circumstances. (more…)
Russian oil decline accelerates & other supply concerns
Thursday, January 8th, 2009With the price of oil pretty low below $45 per barrel and global demand falling, it seems to be a silly time to bring up supply worries. But recent numbers on Russian oil production and some other major non-OPEC producers show we need to keep our eye on this biggest source of world energy. (more…)
Oil in 2009: Where are we headed?
Tuesday, December 30th, 2008
Before we get deep into the coming year, I would like to share some views on potential global energy shifts in 2009. Today, I’ll start with our biggest energy source — oil.
Looking back at 2008, oil has been perhaps the wildest ride. Most analysts had no clue oil could rise to its July record ~$147 per barrel and then were equally caught off guard by the recent lows below $40. It is projected that 2008 will be the first year with a global demand decrease since the early 1980s. So, what shifts can we try to anticipate in the year ahead? (more…)
Record OPEC cut overshadowed by recession
Wednesday, December 17th, 2008Even OPEC’s announced cut of 2.2 million barrels per day (Mbd) couldn’t send oil prices higher today. Recessionary demand continued to out-muscle supply cuts as prices remained below $45 per barrel (more than $100 below the July peak). Two new reports confirming US demand woes ruled another day of oil price determination. (more…)
After 86 days: Gas prices stop falling
Sunday, December 14th, 2008
As I guesstimated might happen a few days back, the record string of consecutive days with falling gasoline prices at the pump has come to an end. AAA reports that prices increased from $1.656 on Friday to $1.66 Saturday and then $1.663 today. I thought the $1.60-$1.65 range was a likely bottom based on wholesale gasoline prices, and that has proved to be correct for now. But OPEC decisions and the weather will determine whether this temporary bottom ends up (more…)
OPEC looks to cut supply again to stop oil price slide
Tuesday, November 18th, 2008
OPEC has decided to have another extraordinary meeting this month in an effort to keep recessionary demand from sending prices even further down toward $50 per barrel. The meeting will be November 29th in Cairo in conjunction with an Organization of Arab Petroleum Exporting Countries gathering. OPEC’s president, Chakib Khelil, says OPEC plans to defend the price band of $70-$90, but the key question is will Saudi Arabia (more…)