Jonathan's Feed
Jun 8, 2015

OPEC oil price anchor could be easy to unmoor

VIENNA (Reuters) – To hear OPEC ministers in Vienna last week, one would think the cartel’s battle for market share is a complete success and oil prices are now firmly anchored where they are.

“The strategy is working… It will take time for markets to rebalance,” was the mantra from OPEC kingpin Saudi Arabia’s oil minister Ali al-Naimi and his peers.

Jun 8, 2015

Analysis – OPEC oil price anchor could be easy to unmoor

VIENNA (Reuters) – To hear OPEC ministers in Vienna last week, one would think the cartel’s battle for market share is a complete success and oil prices are now firmly anchored where they are.

“The strategy is working… It will take time for markets to rebalance,” was the mantra from OPEC kingpin Saudi Arabia’s oil minister Ali al-Naimi and his peers.

Jun 4, 2015

OPEC poised to keep pumping even as global oil glut persists

VIENNA (Reuters) – Oil group OPEC is set on Friday to stick by its policy of unconstrained oil output for another six months, setting aside warnings of a second lurch lower in prices as some members like Iran look to ramp up exports.

By agreeing to maintain its existing output ceiling, the Organization of the Petroleum Exporting Countries will renew its support for the shock market treatment it doled out late last year, when Saudi Arabia, the world’s top exporter, said it would no longer cut production in order to keep prices high.

May 22, 2015

U.S. drivers yield ‘swing’ oil demand crown to Saudis

NEW YORK (Reuters) – As the United States raced over the past five years toward becoming a global petroleum powerhouse, the world’s biggest oil exporter Saudi Arabia quietly seized a market milestone from America: the largest source of peak summer demand.

From June through August, when temperatures in Riyadh routinely rise above 100 degrees Fahrenheit (38 degrees Celsius), Saudi Arabia diverts as much as a tenth of its crude output to fuel power plants that run full tilt to meet surging demand from air conditioners.

May 22, 2015

Analysis – U.S. drivers yield ‘swing’ oil demand crown to Saudis

NEW YORK (Reuters) – As the United States raced over the past five years towards becoming a global petroleum powerhouse, the world’s biggest oil exporter Saudi Arabia quietly seized a market milestone from America: the largest source of peak summer demand.

From June through August, when temperatures in Riyadh routinely rise above 100 degrees Fahrenheit (38 degrees Celsius), Saudi Arabia diverts as much as a tenth of its crude output to fuel power plants that run full tilt to meet surging demand from air conditioners.

May 11, 2015

Castleton joins oil trade titans with Morgan Stanley deal

NEW YORK (Reuters) – Castleton Commodities International will buy Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) physical oil business, the largest and oldest on Wall Street, vaulting the Connecticut-based merchant into the big leagues of global crude and fuel traders.

In a long-awaited deal that appears to mark the end of the Wall Street bank’s more than three-decade history as a major player in physical oil markets, Castleton will gain several dozen oil tank storage leases, physical oil supply and purchase contracts, and a team of about a hundred traders.

May 11, 2015

Some U.S. oil drillers see more output, but not by much

By Jonathan Leff

(Reuters) – At least half a dozen U.S.-focused energy firms say they will pump more oil and gas this year than initially expected, adding to a sense that eager drillers are quickly pivoting from months of retrenchment toward renewed growth.

A closer look at the figures, however, suggests upgrades to their full-year output forecasts reflect minor adjustments rather than an emerging trend. At most they add up to around 50,000 barrels per day (bpd), according to data compiled by Reuters. On the low end, they might be shy of 20,000 bpd.

May 11, 2015

Analysis – Some U.S. oil drillers see more output, but not by much

By Jonathan Leff

(Reuters) – At least half a dozen U.S.-focused energy firms say they will pump more oil and gas this year than initially expected, adding to a sense that eager drillers are quickly pivoting from months of retrenchment toward renewed growth.

A closer look at the figures, however, suggests upgrades to their full-year output forecasts reflect minor adjustments rather than an emerging trend. At most they add up to around 50,000 barrels per day (bpd), according to data compiled by Reuters. On the low end, they might be shy of 20,000 bpd.

Apr 21, 2015

Oil to climb ‘substantially’ higher as cycle turns sharply: PIRA’s Ross

NEW YORK (Reuters) – World oil prices will rise “substantially” in the coming months after hitting the bottom of a months-long rout several weeks ago, with a supply squeeze looming as early as this summer, according to PIRA Energy’s Gary Ross.

The “magic of price” has caused a rapid resurgence in global oil demand and triggered a surprisingly steep collapse in the number of U.S. drilling rigs that may be more difficult to reverse than many expect, Ross, a founder and executive chairman of influential consultants PIRA Energy Group, told Reuters in an interview.

Apr 11, 2015

Big funds turn bullish on oil; Hall bets on rally H2 onwards

NEW YORK (Reuters) – Big money investors are calling a bottom in oil prices, U.S. government data showed on Friday, with hedge fund heavyweight Andy Hall predicting “much stronger prices” from the second half onwards.

Money managers and other big speculators in U.S. crude oil futures and options raised net long positions that call for higher prices by some 52 million barrels in the week to April 7, data from the U.S. Commodity Futures Trading Commission showed.