Joshua's Feed
Feb 24, 2011

Pimco’s Worah says $100 oil to dent U.S. growth

CHICAGO/NEW YORK (Reuters) – Oil at $100 a barrel would dent U.S. economic growth, while the world’s top economy would probably slide back into recession if Middle Eastern unrest pushed prices up to $150 for a sustained period, the manager of Pimco’s largest commodity fund said on Thursday.

Mihir Worah, who manages the $25.7 billion Pacific Investment Management Co’s Commodity Real Return Fund, said U.S. oil futures could remain in the $90 to $100 a barrel range if the unrest doesn’t move beyond Libya to bigger oil exporters like Saudi Arabia or Iran.

Feb 24, 2011

Analysis: Revolt in Libya likely to scar its oil sector

NEW YORK (Reuters) – Regardless of what comes next in Libya’s lethal political standoff, the OPEC country’s oil sector is nearly certain to suffer, bringing long-lasting supply disruptions or even permanent damage.

None of several potential outcomes is benign for Libya’s oil industry — the lifeblood of its economy — or for oil prices. The scenarios run the gamut from all-out civil war and attacks on energy infrastructure to low-level neglect and reservoir damage, as foreign expertise flees the country.

Feb 24, 2011

U.S. oil soars as high as $100 on Libya unrest

NEW YORK (Reuters) – U.S. crude jumped to a 28-month high of $100 a barrel on Wednesday, as investors weighed the risk of Middle East unrest spreading from Libya to bigger exporters including Saudi Arabia.

U.S. crude for April delivery rose 2.8 percent to settle at $98.10 per barrel after soaring as high as $100.

Feb 23, 2011

Oil touches $100 a barrel as Libya standoff worsens

NEW YORK (Reuters) – Oil surged to a 28-month high of $100 a barrel on Wednesday as escalating violence in OPEC producer Libya slashed output there and investors bet the unrest could spread to other oil exporters.

Brent has posted the biggest three-day gain since October 2009, rising to as much as $111.85 a barrel. That marked its highest since October 2008, shortly after the collapse of U.S. investment bank Lehman Brothers.

Feb 23, 2011

Analysis: Libyan revolt likely to leave deep scars on oil sector

NEW YORK (Reuters) – Regardless of what comes next in Libya’s lethal political standoff, the OPEC country’s oil sector is nearly certain to suffer, bringing long-lasting supply disruptions or even permanent damage.

None of several potential outcomes is benign for Libya’s oil industry — the lifeblood of its economy — or for oil prices. The scenarios run the gamut from all-out civil war and attacks on energy infrastructure to low-level neglect and reservoir damage, as foreign expertise flees the country.

Feb 23, 2011

Libyan revolt likely to leave deep scars on oil sector

NEW YORK (Reuters) – Regardless of what comes next in Libya’s lethal political standoff, the OPEC country’s oil sector is nearly certain to suffer, bringing long-lasting supply disruptions or even permanent damage.

None of several potential outcomes is benign for Libya’s oil industry — the lifeblood of its economy — or for oil prices. The scenarios run the gamut from all-out civil war and attacks on energy infrastructure to low-level neglect and reservoir damage, as foreign expertise flees the country.

Feb 14, 2011

Brent premium could be the new norm in oil markets

NEW YORK/LONDON (Reuters) – Oil traders are almost unanimously betting that Europe’s Brent crude will retreat from its record $16 premium over U.S. benchmark oil. What they don’t expect for years, however, is a return of West Texas Intermediate premiums that have been the norm for decades.

Shifts in physical oil flows and new supply risks — increasing the chance of oil gluts in the U.S. Midwest and tighter supplies in Europe – mean that a highly unusual $5 to $10 a barrel premium for Brent could become the standard through 2013.

Feb 14, 2011

Analysis: Brent premium could be the new norm in oil markets

NEW YORK/LONDON (Reuters) – Oil traders are almost unanimously betting that Europe’s Brent crude will retreat from its record $16 premium over U.S. benchmark oil. What they don’t expect for years, however, is a return of West Texas Intermediate premiums that have been the norm for decades.

Shifts in physical oil flows and new supply risks — increasing the chance of oil gluts in the U.S. Midwest and tighter supplies in Europe – mean that a highly unusual $5 to $10 a barrel premium for Brent could become the standard through 2013.

Feb 11, 2011

Government finds major safety issues on Alaska oil line

NEW YORK (Reuters) – A U.S. government investigation of the Trans Alaska oil pipeline, which delivers 12 percent of domestic oil supply, has found potentially major safety issues on the line that make its operation risky until repairs are made, according to a letter from regulators to the operator, and obtained by Reuters.

In the February 1 letter addressed to operator Alyeska from the U.S. Department of Transportation’s pipeline safety division, regulators said the 800-mile line appears to have “multiple conditions” that “pose a pipeline integrity risk to public safety, property or the environment.”

Feb 4, 2011

Analysis: Oil returns to U.S rails to avoid mammoth Midwest glut

NEW YORK (Reuters) – Trains once revolutionized the U.S. oil trade by getting barrels to market faster than horse and buggy. Some 150 years later, crude is hopping the rails again as today’s oil barons look to cash in on the biggest domestic price gap in decades.

Shipments of oil in rail tankers, though still small, may have already doubled from a year ago, industry estimates show. They could soon surge further as producers, railways and storage firms build up to a dozen crude-by-rail terminals, allowing oil from an oversupplied U.S. Midwest to flow to destinations where it’s priced much higher, including on the Gulf Coast.