LONDON, Aug 17 (Reuters) – Hedge funds remained unusually
bearish on U.S. oil prices last week even as the cost of WTI
tumbled towards the lowest level since 2009.
Hedge funds and other money managers held short positions in
WTI-linked futures and options equivalent to more than 193
million barrels of oil, according to the U.S. Commodity Futures
LONDON, Aug 13 (Reuters) – U.S. shale oil production
amounted to just 5 million barrels per day (bpd) at the end of
2014, less than 6 percent of world production and consumption.
Despite the shale sector’s small market share, it has
disrupted the entire oil industry because it emerged in the
middle of the cost curve and has accounted for more than half of
the increase in global supplies since 2010.
LONDON, Aug 12 (Reuters) – North America’s leading
independent oil and gas producers reported large losses in the
second quarter despite cutting costs and increasing output.
Ten of the largest independent oil and gas producers in the
United States reported total losses of almost $15 billion
between April and June, compared with profits of almost $3.5
billion a year earlier.
LONDON, Aug 7 (Reuters) – North America’s shale drillers are
struggling with the renewed slump in oil prices, despite cutting
costs, boosting output, and in some cases employing hedging to
improve realised prices.
Stock prices for most of the main shale drillers have fallen
faster than the price of U.S. light crude since the middle of
LONDON, Aug 6 (Reuters) – Low crude prices and strong demand
for gasoline are creating near-perfect conditions for oil
refineries across the United States, especially those geared
towards maximising gasoline production.
Valero, the country’s largest independent refiner, made a
gross margin of more than $13 on every barrel of oil processed
in the second quarter, and a net margin of almost $8.50, both
the highest since 2007.
LONDON, Aug 4 (Reuters) – Oil is an inherently cyclical
business. The point is remarkably simple but it is amazing how
often it gets forgotten by forecasters and investors.
In the century and a half since the modern oil industry was
founded with the drilling of Edwin Drake’s well in 1859, real
prices have doubled in the space of three years on no fewer than
six separate occasions, and halved on four (link.reuters.com/hys35w).
LONDON, Aug 3 (Reuters) – The biggest losers from the
current price war between OPEC and the shale producers seem set
to be producers outside the Middle East and North America caught
in the cross-fire.
Expensive production from the North Sea, Canada’s oil sands,
offshore megaprojects, weaker African and Latin American members
of OPEC, and frontier exploration areas around the world are all
being squeezed hard by the price slump.
LONDON, July 30 (Reuters) – Commercial crude stocks across
the United States rose by 105 million barrels early this year to
peak at 490 million barrels, the highest level in eight decades.
Despite some draw downs in recent weeks, which have reduced
inventories to 460 million barrels, stocks are still 92 million
barrels higher than this time last year (link.reuters.com/jan35w).
LONDON, July 27 (Reuters) – Hedge funds are more bearish
about the outlook for U.S. oil prices than at any time for
almost five years, according to data from the U.S. Commodity
Futures Trading Commission.
Hedge funds and other money managers had a net long position
in WTI-linked futures and options equivalent to just 118 million
barrels of oil on July 21, down from a recent high of 294
million barrels 11 weeks earlier (link.reuters.com/pug35w).
LONDON (Reuters) – “The Strategic Petroleum Reserve is not an ATM,” Lisa Murkowski, chair of the Energy and Natural Resources Committee warned the Senate this week. “It is certainly not the petty cash drawer for Congress.”
The senator from Alaska was criticizing a proposal to sell 101 million barrels of crude from the government’s stocks to offset a shortfall in funding in the highway trust fund.