LONDON, May 14 (Reuters) – U.S. shale producers are the new
“swing producers” in the oil market, as many analysts have
noted, but the status of swing producer is hugely misunderstood.
It is often portrayed as if it confers power and control. In
fact, it often means the opposite. The swing producer often
becomes the passive absorber of shifts in market supply and
LONDON, May 12 (Reuters) – “The data must be wrong,”
according to veteran oil analyst Phil Verleger, who wrote in a
blistering note that the Energy Information Administration is
probably overestimating U.S. oil production by 1.6 million
barrels per day.
Verleger argues substantially lower U.S. production is the
most likely explanation for why global stocks are not rising as
fast as predicted and discounts for storing barrels are
narrowing (“Notes at the margin” May 11).
LONDON (Reuters) – Oil’s sharp rally since the middle of March has been driven by a race among bearish hedge funds to cover loss-making short positions rather than any great bullishness about the outlook.
On the eve of the rally, hedge funds and other money managers had amassed record short positions in WTI-linked futures and options amounting to 209 million barrels of oil.
LONDON, May 8 (Reuters) – Underground disposal of waste
water produced from oil and natural gas wells has been blamed
for triggering thousands of small earthquakes in Oklahoma and a
number of other U.S. states since 2009.
Heightened seismic activity corresponds closely with the
timeframe and location of increased drilling and hydraulic
fracturing across the southwest United States, according to the
U.S. Geological Survey (“Incorporating induced seismicity in the
2014 United States national seismic hazard model”, 2015).
LONDON, May 6 (Reuters) – U.S. refineries are running at
near-record levels to turn the glut of crude into gasoline and
other refined fuels ahead of the summer driving season.
U.S. refineries processed an average of 16.347 million
barrels per day (bpd) last week, an increase of almost 250,000
bpd compared with the previous week.
LONDON, May 5 (Reuters) – U.S. gasoline demand is running
around 300,000 barrels per day above last year’s level, as lower
pump prices and continued economic expansion encourage motorists
to use their cars more.
Estimates for gasoline supplied to U.S. customers published
by the Energy Information Administration (EIA) show demand
consistently running above the same point in 2014 (link.reuters.com/wav64w).
LONDON, May 1 (Reuters) – Market participants expect the
price of Brent to average around $75 per barrel through the rest
of the decade, not much above the current level.
Spot Brent prices have risen around $20 per barrel from
their mid-January low, from $46 to $66, an increase of more than
LONDON, April 30 (Reuters) – California’s gasoline sales are
rising rapidly as cheaper fuel, rising consumer confidence and a
steadily improving economy encourage motorists to use their cars
Fuel wholesalers reported sales of 1.216 billion gallons of
gasoline in January, up by 3.6 percent or 42 million gallons
compared with the same month a year earlier.
LONDON, April 29 (Reuters) – By focusing on operational
improvements, shipping companies are reducing fuel consumption,
saving money and cutting greenhouse emissions, while continuing
to increase the amount of freight transported.
Maersk Line, the world’s largest container carrier, cut fuel
consumption by more than 13 percent between 2012 and 2014, while
increasing the number of boxes carried by 11 percent, according
to company records.
LONDON, April 28 (Reuters) – Flying has become less energy
intensive than driving, at least in the United States, according
to the surprising findings of an analysis of energy consumption
by the University of Michigan’s Transportation Research
Transporting one person a distance of one mile by aircraft
consumed on average the energy equivalent to 2,465 British
thermal units (BTUs), compared with 4,211 BTUs for moving one
person one mile by car, in 2012.