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Power Politics in the Oil Markets

For the first time in five years, one can buy a metaphorical barrel of crude oil – variant on the extraction point – for below $60. 1,150 more words


Middle East News reblogged this on Eastern Mediterranean News Agency-Actualités du Proche-Moyen Orient and commented:

Very consistent article , i loved it , article can be resumed in 4 points as it is described in oilvoice.com and chatman house editions: OPEC is caught in the a big shift in world oil markets reflecting fundamental changes: Market discipline among OPEC members. The Saudi’s grew tired of being taken advantage of by their OPEC partners who often cheat on production targets taking Saudi market share. Leaving production targets in place forces all OPEC members to face the music of lower prices. OPEC and Non-OPEC member competition. Non-OPEC crude oil production growth is coming largely from the Caspian region, Russia and the United States. Russian and Caspian crude is finding a market in China because of their locational advantages. But it is the US supply growth from the shale revolution under way that presents the biggest threat to OPEC market power. Regional energy competition between the West, Russia and China. Even though China’s economic growth is slowing its energy appetite is still huge. Lower oil prices are like winning the lottery for China. It will strike hard bargains with Russia stung by Western sanctions. China is pouring capital into Caspian infrastructure to assure its access. US shale supply growth is reducing its oil imports and only infrastructure congestion and political correctness prevent the North America from further expanding crude oil exports. These factors limit the use of energy as a political weapon by Russia and other Middle East oil suppliers changing the market dynamic in the Kingdom’s favor. Weak Global Economic Growth Increases Oil Market Competition. The economic fundamentals tell us that world oil demand growth has weakened in China, the EU, Brazil and Russia. Overall world crude production is projected to grow at an annual rate of about 1%, with OPEC production expected to grow at annual rate of 1.4% but so is its domestic demand. But OPEC faces increasing global competition from North America and fears the spread of the shale revolution worldwide.

Oil Market Gyrations Creating an Altered Horizon

The timeframe of November through the first part of December saw levels of volatility in oil prices unseen for years. This article details some of the numbers supporting the shapeshifting market. 63 more words

The Price of Oil and World Peace

ALI AKBAR DAREINI of the Associated Press reported this today:

TEHRAN, Iran (AP) – Iran’s President Hassan Rouhani said Wednesday that the sharp fall in global oil prices is the result of… 606 more words


Changes in Global Energy Supply Balance seen causing falling Oil prices

Oil has dropped into a bear market this year with prices falling roughly 30% since June 2014. Contributions to failing prices lay at the feet of both a weakness in the global economy resulting in weaker demand, and perhaps more importantly, significant increases in oil supply from varying regions of the world. 563 more words