Senior Market Analyst, Commodities and Energy
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Jul 24, 2015

U.S. oil imports rise, WTI contango deepens: Kemp

LONDON (Reuters) – Futures prices are making it increasingly profitable to store surplus crude in the United States, coinciding with a strong period of oil imports and a further build up of already swollen stockpiles.

WTI crude futures prices imply the market is paying more than 61 cents per month to cover the cost of financing and storing oil at the Cushing delivery hub during the fourth quarter of 2015.

Jul 22, 2015

North Dakota oil well completions slow sharply: Kemp

LONDON, July 22 (Reuters) – No new well completion reports
have been filed in North Dakota since July 10, the longest gap
this year, according to daily activity records published by the
state’s Department of Mineral Resources (DMR).

Completions, rather than wells drilled, provide the best
guide to short-term changes in output, since operators can
always delay completing a well and putting it into production,
either because they are waiting for completion crews to be
available or to wait for better prices.

Jul 21, 2015

California drivers pay dearly for refinery problems: Kemp

LONDON, July 21 (Reuters) – California motorists are paying
$1 per gallon more for gasoline than drivers in the rest of the
country as problems at state refineries leave the state fuel
market unusually tight.

The average price of gasoline sold in the state was $3.95
per gallon on Monday, compared with a nationwide average of
$2.89, according to the U.S. Energy Information Administration

Jul 20, 2015

Hedge funds turn unusually bearish on oil: Kemp

LONDON, July 20 (Reuters) – Hedge funds and other money
managers have rarely been so bearish about the outlook for oil
prices, according to the latest positioning data from the U.S.
Commodity Futures Trading Commission.

Hedge funds boosted short positions in futures and options
linked to the price of U.S. crude to 138 million barrels by July
14, from 84 million four weeks earlier. Over the same period,
they cut long positions from 340 million to 292 million barrels.

Jul 17, 2015

Crude spreads remain firm in the face of “massive oversupply”: Kemp

LONDON, July 17 (Reuters) – The oil market was massively
oversupplied in the second quarter and remains so today, the
International Energy Agency (IEA) wrote in its latest monthly
oil market report.

“The market’s ability to absorb that oversupply is unlikely
to last. Onshore storage space is limited. So is the tanker
fleet. New refineries do not get built every day. Something has
to give,” the agency warned starkly.

Jul 16, 2015

Iran’s possible oil production response post-sanctions: Kemp

LONDON, July 16 (Reuters) – Iran could increase its oil
production by up to 1 million barrels per day within 12 months
of sanctions being lifted, provided it can find buyers for the

In 2014, the country produced an average of just over 1,350
barrels per day (bpd) per well, from 2,280 wells, according to
the OPEC Annual Statistical Bulletin (

Jul 15, 2015

Iran needs time and favourable conditions to boost oil output: Kemp

LONDON, July 15 (Reuters) – Iran has big ambitions to
increase oil and gas production once sanctions are lifted but a
substantial increase in exports is probably years away.

The country has the world’s fourth-largest proved reserves
of crude oil (behind Venezuela, Saudi Arabia and Canada) and the
largest proved reserves of natural gas (ahead of Qatar and
Russia), according to BP.

Jul 13, 2015

North Dakota’s oil output stabilises but does not fall: Kemp

LONDON, July 13 (Reuters) – Crude oil production data
published by the state of North Dakota on Friday contained
something for both bulls and bears.

Bears can point to the unexpected resilience of shale
production in the face of lower oil prices while bulls can point
to the fact that production is no longer growing after five
years of tremendous gains.

Jul 10, 2015

U.S. gasoline cracks hit multi-year highs on strong fuel demand: Kemp

LONDON, July 10 (Reuters) – Tremendous demand for gasoline
in the United States has pushed refining margins for motor fuel
to the highest seasonal level in a decade.

U.S. refiners currently earn a gross margin before costs and
taxes of 65 cents per gallon for turning Brent into gasoline and
77 cents for processing WTI (

Jul 9, 2015

U.S. gasoline demand roars back to life: Kemp

LONDON, July 9 (Reuters) – Consumption of gasoline in the
United States is surging according to estimates prepared by the
Energy Information Administration.

More than 9.5 million barrels per day (bpd) of gasoline were
supplied to domestic customers over the last four weeks.

    • 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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