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Showing posts with label oil price. Show all posts
Showing posts with label oil price. Show all posts
Thursday, April 21, 2011
OIL PRICE WATCH: Crude remains strong above USD120
Saturday, January 8, 2011
OIL PRICE: Strong demands keeps oil in the mid 90s
with the economy picking up and winter freezing millions in Europe and North America, the price of oil remains around USD95 per barrel and is likely to stay there for at least until the winter chill disappears
| MARKET METRICS Thu., Jan. 6, 2011 | |||
| Crude Oil | Opec Basket | 91.27 | 0.00 |
| ($/bbl) | ICE Brent | 94.52 | -0.98 |
| Nymex Lt Swt | 88.38 | -1.92 | |
| Products | Nymex (¢/gal) | ||
| Gasoline | 244.30 | -0.21 | |
| Heating Oil | 251.12 | -3.10 | |
| ICE ($/ton) | |||
| Gas Oil | 775.25 | -2.25 | |
| Natural Gas | New York | 6.20 | +0.45 |
| Spot Prices | Henry, LA | 4.48 | -0.03 |
| ($/MMBtu) | Katy, Texas | 4.44 | -0.02 |
| AECO, Canada | 3.81 | -0.07 | |
Tuesday, January 4, 2011
OIL PRICE: Black Gold set to average USD90 per barrel in 2011
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Bernstein, the research house whose forecast for the average 2010 crude oil price came within 1pc of the actual $79.60 a barrel, is predicting that oil will average $90 this year, an increase of 13pc.
Based on the median estimate of 34 industry analysts surveyed by Bloomberg, crude futures will average $87 a barrel on the New York Mercantile Exchange. This level would be the second highest recorded in a year after the $99.75 of 2008, and 40pc more than the $62.09 of 2009.
Oswald Clint, Bernstein's head oil analyst in London, said: "We expect OPEC to have to increase their production, causing a reduction in spare capacity, which to us is increasingly becoming a more important determinant of oil prices. Since China became a more important part of the demand pie, the spare-capacity factor has become more important."
The forecasts have been revealed as oil begins to flow through a new pipeline between Russia and China, linking the world's largest oil producer and biggest energy consumer for the first time.
"The operation of the China-Russia crude oil pipeline is the start of a new phase in China-Russia energy cooperation," Yao Wei, general manager of the Pipeline Branch of PetroChina, said.
Source: Telegraph
Sunday, January 2, 2011
OIL PRICE WATCH: Brent slides to low USD93
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Brent continues its gentle decline while Opec basket wallows near the USD90 mark, where it had settled for some time.
Some US economists say that oil at USD90 is not a burden that the world's largest economy can carry lightly, some are predicting that such high oil prices may cause economic decline however others say that oil prices are shooting up in light of the dollar's devaluation and they say if handled correctly with a strong export drive, the cheaper dollar could help sustain the US economy and bring forex values back into familiar territory.
Either way, it looks like Oil will cling on to USD90 for a while yet and there is every danger that it may rise ever so slightly and settle on the USD95 perch thanks to the exceedingly cold and snowy winter all over the US and Europe.
Friday, December 31, 2010
ENERGY LITERACY 101: Would you change your lifestyle if oil hits USD200 per barrel? (That's RM5/litre for petrol)
Mail Motor's theme for 2010 is Cars That Care and this means our editorial will examine wasy that cars and car companies care abotu their occupants, abotu the environment and also society at large.
Within that context we will begin a series of campaign related to the theme and one of them is ENERGY LITERACY.
We want to promote greater understanding about the use of energy and its impact on the global ecosystem, this is the first in our series of ENERGY LITERACY 101 series which takes a look at the basics of Energy Literacy. This week we examine something quite simple, the cost of energy and our lives.
For the longest time, the cost of energy has not been calculated on a holistic basis, oil companies add all their costs and margin and that is what we pay at the pumps but the energy that we use generally cost more than that.
So here we go
In 2007-2008 we saw some of the biggest fluctuations in oil prices, going way past USD100 for the first time and stayed there for a few months before coming back down to around USD65 per barrel.
To put that into perspective, just a few years earlier oil executives would have laughed at the suggestion of USD50 barrel, at that time oil was struggling to stay at the USD35 barrel mark.
Oil is ending its run at the USD94 barrel mark in 2010 and with the Chinese, Indian and Korean economies steaming on and Asean economies recovering from their sputter demand for black gold is expected to remain strong for 2011 and all the way to 2015.
Some experts predict oil may hit USD200 in the mid term and this is based on predictions of continuing crisis in the usual hot spots plus the decline in the number of new economically feasible finds.
So if oil actually hits USD200 per barrel, which probably means petrol would be hovering near the RM5 per litre mark and a full tank of RON97 in the average family car would set you back RM200 would it force a change in your lifestyle?
For the average family that travels about 60 kilometres per day commuting and/or sending the brood to school, the fuel bill would be about RM100-RM120 per week, assuming you drive a 1.6-litre car or smaller.
If fuel were to rise to RM5 per litre that fuel bill would jump to about RM300 per week.
On a monthly basis, fuel cost would increase from about RM500 per month to RM1200 per month.
That is a substantial increase even for a family that earns RM8,000 per month because the increase would also mean that other necessities would rise in price.
Who can say how much the usual barometer, teh tarik and roti canai would increase in price.
Given this scenario, it is likely that we will be forced to change our lifestyle, how would yours change?
Thursday, December 30, 2010
OIL PRICE: Technical correction see price easing
Oil price dipped by just over a dollar after a steady rise but this is probably just a technical correction and it would continue to rise on the back of cold winds blowing across much of North America and Europe.
While demand for petrol may ease slightly as motorists cut back on unnecessary driving in the inclement weather, heating oil price would probably be under steady upwards pressure.
Demand for oil across Asia is expected to increase with their economic growth, expect oil prices to move up a steady mild incline throughout 2010 as the global economy picks up cautiously.
Strong supply is helping to stabilise price but Opec has made it known that they are not keen to increase output until their next review in July.
While demand for petrol may ease slightly as motorists cut back on unnecessary driving in the inclement weather, heating oil price would probably be under steady upwards pressure.
Demand for oil across Asia is expected to increase with their economic growth, expect oil prices to move up a steady mild incline throughout 2010 as the global economy picks up cautiously.
Strong supply is helping to stabilise price but Opec has made it known that they are not keen to increase output until their next review in July.
| MARKET METRICS Thu., Dec. 30, 2010 | |||
| Crude Oil | Opec Basket | 90.22 | +0.14 |
| ($/bbl) | ICE Brent | 93.09 | -1.05 |
| Nymex Lt Swt | 89.84 | -1.28 | |
| Products | Nymex (¢/gal) | ||
| Gasoline | 239.18 | +0.14 | |
| Heating Oil | 248.54 | -3.61 | |
| ICE ($/ton) | |||
| Gas Oil | 765.75 | -14.25 | |
| Natural Gas | New York | 5.33 | +0.08 |
| Spot Prices | Henry, LA | 4.23 | +0.05 |
| ($/MMBtu) | Katy, Texas | 4.17 | +0.02 |
| AECO, Canada | 3.74 | +0.10 | |
Wednesday, December 29, 2010
OIL PRICE: Brent breaks USD94 barrier and Kuwait thinks world can handle UISD100/barrel
| MARKET METRICS Tue., Dec. 28, 2010 | |||
| Crude Oil | Opec Basket | 90.67 | -0.06 |
| ($/bbl) | ICE Brent | 94.38 | +0.53 |
| Nymex Lt Swt | 91.49 | +0.49 | |
| Products | Nymex (¢/gal) | ||
| Gasoline | 240.56 | -1.53 | |
| Heating Oil | 252.43 | +0.77 | |
| ICE ($/ton) | |||
| Gas Oil | 780.25 | +2.75 | |
| Natural Gas | New York | 8.03 | -5.47 |
| Spot Prices | Henry, LA | 4.11 | +0.05 |
| ($/MMBtu) | Katy, Texas | 4.03 | +0.02 |
| AECO, Canada | 3.54 | +0.08 | |
Reuter quoted Mr Shaikh Ahmad Al Abdullah Al Sabah oil minister of Kuwait as saying that the global economy can withstand an oil price of USD 100 a barrel as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
Analysts have said oil producing countries are likely to raise output after crude rallied more than 30% from a low in May because they fear prices could damage economic growth in fuel importing countries.
Mr Ali Al Naimi oil minister of Saudi Arabia said that he was still happy with an oil price of USD 70 to USD 80 a barrel and there was no need for an extra OPEC meeting before the next scheduled one in June. Others in the group have been pressing for a higher price, arguing that quantitative easing and a weakened US dollar that spurred gains across financial markets mean the oil price strength is partly nominal.
Mr Sameh Fahmy oil minister of Egypt said that the current increase in oil prices was the result of higher demand on heating fuel because of the cold weather in Europe.
Mr Mohammed bin Dha’en Al Hamili energy minister of UAE said that crude oil inventories are quite high. It's the highest over the five years average. The market is well supplied.
European benchmark ICE Brent crude for February closed at USD 93.46 after hitting USD 94.74 a barrel, its highest level since October 2008.
Arab oil exporters meeting in Cairo this weekend said they saw no need to supply more crude as stocks were high and prices had been inflated temporarily by cold weather in Europe.
Asked by Reuters if the world economy could stand a USD 100 oil price, Mr Shaikh Ahmad Al Abdullah Al Sabah said that "Yes it can."
As demand has risen steeply in 2010 and is expected to rise further in 2011, the market is watching closely whether OPEC can release at least some of its spare capacity to prevent prices from soaring to around USD 150 per barrel as they did before the crisis struck in summer 2008.
Tuesday, December 28, 2010
OIL PRICE: Brent inches beyond USD93 - Former US Shell boss predicts near doubling next year
| MARKET METRICS Mon., Dec. 27, 2010 | |||
| Crude Oil | Opec Basket | 90.73 | 0.00 |
| ($/bbl) | ICE Brent | 93.85 | +0.08 |
| Nymex Lt Swt | 91.00 | -0.51 | |
| Products | Nymex (¢/gal) | ||
| Gasoline | 242.09 | -2.17 | |
| Heating Oil | 251.66 | -2.42 | |
| ICE ($/ton) | |||
| Gas Oil | 777.50 | -1.50 | |
| Natural Gas | New York | 13.50 | +4.77 |
| Spot Prices | Henry, LA | 4.06 | -0.02 |
| ($/MMBtu) | Katy, Texas | 4.01 | -0.00 |
| AECO, Canada | 3.47 | -0.06 | |
This is the CNN report
NEW YORK (CNNMoney.com) -- The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012.
In an interview with Platt's Energy Week television, Hofmeister predicted gasoline prices will spike as the global demand for oil increases.
"I'm predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices," he said.
Tom Kloza, chief oil analyst with Oil Price Information Service says Americans will see gasoline prices hit the $5 a gallon mark in the next decade, but not by 2012.
"That wolf is out there and it's going to be at the door...I agree with him that we'll see those numbers at some point this decade but not yet." Kloza said.
"The demand is still sluggish enough in some of the mature economies."
Thursday, December 23, 2010
OIL PRICE WATCH: Brent inches up past USD93
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Wednesday, December 15, 2010
OIL PRICE UPDATE - Oil continues slow simmer at USD90
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The good news is that the desperately cold winter seem to have minimal effect on oil price right now, maybe all the cold-weather push on price has spent it force.
But then again we are at least two months away from any likely improvement in European and US weather.
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