LONDON (Reuters) – The U.S. shale oil boom has meant a bumper pay day for U.S. refiners, but its light, sweet composition is leading to a shortage of heavy material, distorting product prices around the globe, refiners and consultants say.
Speaking at a the Oil & Money conference in London on Wednesday, Dario Scaffardi, general manager of Saras Group, an independent refiner, said there was a shortage of heavy crude in the Mediterranean basin, even as it was being priced out of the United States by cheap light, sweet Bakken crude.
LONDON (Reuters) – Up to five VLCC North Sea crude oil shipments could move to Asia this autumn after a long hiatus, as the trade becomes more viable following a fall in Brent’s premium over Dubai crude.
Asia’s low sulphur, or sweet, crude and condensate supplies are very tight as arbitrage flows were curbed in August.
LONDON, Aug 12 (Reuters) – European refiners are set to cut
crude oil processing rates this week by around 500,000 barrels
per day (bpd) as soaring oil prices bite deeper into their
already weak profit margins, traders and industry sources said.
The sources said on Monday that refiners, including BP
, Royal Dutch Shell and Total, would
reduce total output to around 11.5 million bpd.
LONDON, July 30 (Reuters) – Increased North Sea oil output
is the wrong sort of crude to replenish the Brent benchmark – a
diminishing base on which the price of more than half of the
world’s international oil trade rests, industry experts say.
The benchmark is underpinned by only four North Sea crudes -
Brent, Forties, Oseberg and Ekofisk (BFOE).
LONDON, July 19 (Reuters) – Pension funds and hedge funds,
which invest in commodities, have rarely been more in accord
over which oil benchmark they prefer.
Despite a July rally in U.S. crude oil futures, which
took most funds by surprise, investors say the momentum is
behind European benchmark Brent even though the
relationship between the two is expected to remain volatile.
LONDON (Reuters) – An end to U.S. monetary stimulus may not necessarily spell doom for commodity prices if a strong U.S. economic recovery boosts demand for oil and base metals, leading commodity managers say, but gold and silver are to be avoided.
Commodities sold off heavily in June following signals from the U.S. Federal Reserve that it would wind down its stimulus program, as long as the U.S. economy continues to improve. The shift in direction led to investors dumping bonds, a sharp rise in real interest rates and a stronger dollar – all of which clobbered commodity prices, particularly gold.
LONDON, July 5 (Reuters) – Britain must get tough with major
oil firms that prevent smaller producers from getting access to
platforms and pipelines, or risk leaving as much as $500 billion
worth of oil in the ground, North Sea oil companies say.
Output from the North Sea has been in steep decline as
mature fields are exhausted and global firms such as BP
and Shell focus on more promising projects elsewhere.
LONDON (Reuters) – Investors sold out of commodity exchange-traded products (ETPs) in June after the U.S. Federal Reserve signalled it would wind down its economic stimulus programme, pushing up real interest rates and making gold less attractive.
But the June outflow of $4.7 billion from commodity ETPs was less than May’s $6.3 billion and April’s record of $9.3 billion, according to data from BlackRock, the world’s largest asset manager. Gold ETP outflows at $4.1 billion accounted for most of the June total.
LONDON, May 24 (Reuters) – A tighter oil market in the
second half of 2013 will boost some energy stocks, which have
trailed the rest of the equity market though the rally, said
Charles Whall, co-manager of Investec’s $1 billion-plus energy
Although investors have flocked to equity markets since the
start of 2013, they have shunned energy stocks. Only basic
materials equities have put in a worse performance.
LONDON, May 22 (Reuters) – Europe’s energy price
manipulation probe has turned regulatory attention to secretive
trading units at oil companies with huge turnover and
millionaire staff with risk appetite higher than at Wall
Street’s biggest banks.
Regulators have scrutinised banks, trading houses and
commodities markets more closely following the Libor benchmark
rigging scandal but trading desks at oil majors have largely