Jonathan's Feed
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.

Apr 8, 2015

US oil output is falling! Or maybe not – market’s data quandary

NEW YORK, April 8 (Reuters) – The immediate outlook for U.S.
oil production has rarely been more important for the financial
world, with traders scrutinizing every scrap of data for signs
of a sustained pull-back in output. It has also rarely been
harder to predict.

Until late last year, a handful of energy analytics firms
had honed the art of real-time oil production forecasts to a
near science, running reams of information through complex
models that account for everything from a well’s production
curve to weather patterns. With the price slump, however, these
firms are struggling to keep up with the rapid pace of change.

Apr 2, 2015

Nuclear deal means more Iran oil – just not this year

WASHINGTON/NEW YORK (Reuters) – A framework accord to curb Iran’s nuclear program forged on Thursday could eventually allow Tehran to reclaim lost ground in the global oil market. Yet the deal all but guarantees that cannot happen before next year.

By ensuring that sanctions remain intact until Western powers are satisfied Tehran is adhering to the terms, and giving negotiators until June 30 to hammer out a comprehensive agreement, the deal offers little chance for any significant increase in exports until 2016.

Apr 2, 2015

Analysis: Nuclear deal means more Iran oil – just not this year

WASHINGTON/NEW YORK (Reuters) – A framework accord to curb Iran’s nuclear programme forged on Thursday could eventually allow Tehran to reclaim lost ground in the global oil market. Yet the deal all but guarantees that cannot happen before next year.

By ensuring that sanctions remain intact until Western powers are satisfied Tehran is adhering to the terms, and giving negotiators until June 30 to hammer out a comprehensive agreement, the deal offers little chance for any significant increase in exports until 2016.