Senior Market Analyst, Commodities and Energy
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Jan 9, 2015

Bakken oil producers need $55 to keep production steady: Kemp

LONDON, Jan 9 (Reuters) – North Dakota needs an oil price of
around $55 per barrel and a fleet of around 140 rigs to sustain
production at the current level of 1.2 million barrels per day,
the state’s chief regulator told legislators yesterday.

Department of Mineral Resources Director Lynn Helms outlined
breakeven rates for wells across the state and production
projections for a range of prices in a presentation for the
House Appropriations Committee of the State Legislature (here).

Jan 8, 2015

Facts and fantasies about commodities (revisited): Kemp

LONDON, Jan 8 (Reuters) – Commodities were the worst
performing asset class for the third year running in 2014.

Investors, including some of the world’s largest pension
funds, have seen billions of dollars of wealth disappear as a
result of investing in commodity index products over the last
decade.

Jan 7, 2015

Bakken oil prices not far from 2008-09 lows: Kemp

LONDON, Jan 7 (Reuters) – Prices received by oil producers
in North Dakota’s Williston Basin have averaged less than $34
per barrel so far this month, according to the list of posted
prices issued by Plains Marketing.

Prices have fallen by almost two-thirds since June 2014,
when Plains posted an average price of nearly $92 per barrel for
Williston Sweet (www.paalp.com).

Jan 7, 2015

U.S. oil production will be falling by end of 2015: Kemp

LONDON, Jan 7 (Reuters) – Unless prices recover, U.S. oil
production will start falling before the end of 2015 as new
drilling is insufficient to replace declining output from wells
completed in 2013 and 2014.

Future production depends on the rate of decline from
existing wells (known as the decline curve) and the average age
of old oil wells as well as the number of new ones drilled and
their productivity.

Jan 6, 2015

China’s Xi proves keen student of U.S. power: Kemp

LONDON, Jan 6 (Reuters) – Xi Jinping is China’s first
U.S.-style president.

Many commentators have noted Xi is the most powerful leader
since Deng Xiaoping and even Mao Zedong. But a better comparison
might be with the style and powers of the American president.

Jan 5, 2015

Catching a falling knife in the oil market: Kemp

LONDON, Jan 5 (Reuters) – “Don’t try to catch a falling
knife” is sage advice for investors trying to identify the
trough in a market like oil following a sharp selloff.

Yet big moves also create the greatest potential for the
mispricing of financial assets and commodities, which is what
makes them attractive to contrarians and specialists.

Dec 30, 2014

Oil prices and Saudi diplomacy: Kemp

LONDON (Reuters) – Saudi Arabia sets oil market policy purely on an economic basis, no less and no more, the kingdom’s oil minister reiterated in a broad-ranging interview with the newspaper Al-Hayat.

Ali al-Naimi rejected “conspiracy theories” that Saudi Arabia was using oil as a diplomatic weapon against Iran, Russia or any other country, calling such beliefs a misunderstanding, tendentious and a fantasy without foundation.

Dec 22, 2014

Oil prices and Saudi diplomacy

LONDON (Reuters) – Saudi Arabia sets oil market policy purely on an economic basis, no less and no more, the kingdom’s oil minister reiterated in a broad-ranging interview with the newspaper Al-Hayat.

Ali al-Naimi rejected “conspiracy theories” that Saudi Arabia was using oil as a diplomatic weapon against Iran, Russia or any other country, calling such beliefs a misunderstanding, tendentious and a fantasy without foundation.

Dec 22, 2014

Oil prices and Saudi diplomacy: Kemp

LONDON, Dec 22 (Reuters) – Saudi Arabia sets oil market
policy purely on an economic basis, no less and no more, the
kingdom’s oil minister reiterated in a broad-ranging interview
with the newspaper Al-Hayat.

Ali al-Naimi rejected “conspiracy theories” that Saudi
Arabia was using oil as a diplomatic weapon against Iran, Russia
or any other country, calling such beliefs a misunderstanding,
tendentious and a fantasy without foundation.

Dec 18, 2014

Clausewitz and oil prices: Kemp

LONDON, Dec 18 (Reuters) – “If we consider the actual basis
of this (intelligence), how unreliable and transient it is, we
soon realise that war is a flimsy structure that can easily
collapse and bury us in its ruins.”

German military theorist Carl von Clausewitz was writing
about the role of intelligence in warfare, but his insight about
unreliable information is equally applicable to traders,
investors and business leaders trying to understand whether oil
prices have fallen far enough or have further to drop.

    • About John

      "John joined Reuters in 2008 as one of its first financial columnists, specialising in commodities and energy. While his main focus is on oil markets, he has written broadly on the emergence of commodities as an asset class, regulatory issues and macroeconomic themes. Before joining Reuters, John spent seven years as a senior analyst for Sempra Commodities (now part of JP Morgan) covering base metals and crude oil. Previously, he worked as an analyst on world trade, banking and financial regulation for consultancy Oxford Analytica."
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