No Picture

Did Oil Markets Overreact To The Saudi Purge?

November 6, 2017 Nick Cunningham 0

Saudi Arabia’s powerful crown prince led a massive purge over the weekend, ousting around a dozen royal cousins in a bid to consolidate power. The removal and detentions of so many members of the royal family were ostensibly the outgrowth of an anti-corruption campaign, but the actions put the top security institutions under the control of the king and the crown prince after having been distributed among different family factions for decades. In essence, Crown Prince Mohammed bin Salman (aka, MBS) has ended decades of tradition and has consolidated…

The post Did Oil Markets Overreact To The Saudi Purge? appeared first on aroundworld24.com.

No Picture

Can $60 Oil Last?

October 30, 2017 Nick Cunningham 0

Brent is back at $60 for the first time in more than two years, but the big question is: Can crude hold onto its gains? Oil prices firmed up in recent weeks, but held back from key resistance points—roughly $60 per barrel for Brent, and around $55 per barrel for WTI. Oil traders were reluctant to test the upper limits of the “shale band” at $60, a threshold that has repeatedly forced traders to liquidate their bullish bets or get burned. Top analysts argue that it would take something really significant to allow oil to break above…

The post Can $60 Oil Last? appeared first on aroundworld24.com.

No Picture

The Return Of Deepwater Oil

October 30, 2017 Nick Cunningham 0

In a historic auction for deepwater oil assets in Brazil, the oil majors showed up on October 27 and bought several offshore blocks, indicating a high level of interest in the country after a major policy overhaul allowed private investment. Royal Dutch Shell won half of the blocks that were offered, and Shell was already one of Brazil’s largest foreign investors. After purchasing BG Group for around $50 billion, Shell took a large presence in Brazil. The logic behind Shell’s strategy is that the company argues it can breakeven with…

The post The Return Of Deepwater Oil appeared first on aroundworld24.com.

No Picture

The Rise Of The Petroyuan

October 26, 2017 Nick Cunningham 0

China is aiming to overthrow the U.S. dollar as the currency of choice for the oil market, a move that could have far-reaching consequences. Since the 1970s, the oil trade has almost entirely been conducted in U.S. dollars, even when buyers and producers are not American. The ramifications of the dollar-denominated oil trade are immense: Because oil is priced in dollars, there is huge demand for dollars, lending the U.S. economic and strategic power.   Beijing hopes to challenge the dollar by setting up a futures market with its own currency,…

The post The Rise Of The Petroyuan appeared first on aroundworld24.com.

No Picture

Iraq Conflict Won’t Trigger Oil Rally

October 25, 2017 Nick Cunningham 0

The standoff between the Iraqi government and Kurdistan over the past month helped push up oil prices, due to the idling of a sizable portion of the country’s crude oil exports. But Iraq probably won’t be the spark that starts a new bull run for crude oil. The seizure of the Kirkuk oil fields a few weeks ago, coming on the heels of the Kurdish referendum for independence, led to a temporary sidelining of some 400,000 bpd. The oil fields near Kirkuk—the Bai Hassan and Avana fields—are still reportedly not exporting crude,…

The post Iraq Conflict Won’t Trigger Oil Rally appeared first on aroundworld24.com.

No Picture

Can Oil Prices Go Above $60?

October 25, 2017 Nick Cunningham 0

Oil prices flirted with $60 per barrel a few weeks ago, but stopped short of that key psychological threshold and quickly retreated. What will it take to break above $60? Brent hit $59.77 per barrel on September 26, but was back to $55 per barrel a few days later. There are many reasons why oil prices are struggling to break above $60 even though OPEC continues to hold back about 1 million barrels of supply per day and tensions in the Middle East have risen sharply. For example, oil inventories are declining, but storage remains elevated. Also,…

The post Can Oil Prices Go Above $60? appeared first on aroundworld24.com.

No Picture

BP’s Dangerous Track Record In Alaska

October 24, 2017 Nick Cunningham 0

BP’s Alaska unit had at least 27 serious safety incidents this year, raising concerns that the oil major has not corrected course after the Deepwater Horizon explosion and oil spill. Seven years after BP’s disaster in the Gulf of Mexico, the British oil giant is still wrangling with serious problems in its safety culture. BuzzFeed News obtained internal emails and recordings that painted a worrying picture of BP’s operations in Alaska. According BuzzFeed, the oil company had 27 safety events in Alaska, five of which were classified…

The post BP’s Dangerous Track Record In Alaska appeared first on aroundworld24.com.

No Picture

Trump’s Iran Decision Haunts Big Oil

October 18, 2017 Nick Cunningham 0

United States President Donald Trump’s decision to “decertify” the Iran nuclear deal probably won’t have an immediate impact on oil prices, but the decision could plant the seeds of problems further down the road. That is because nothing happens right away—Trump kicked the decision to Congress. But he still significantly increases confrontation with Tehran, and is somewhat backing himself into a corner if Congress does nothing, or if Iran doesn’t offer concessions regarding its missile program—two scenarios…

The post Trump’s Iran Decision Haunts Big Oil appeared first on aroundworld24.com.

No Picture

Iraq Seizes Kirkuk, Briefly Knocks 350,000 Bpd Offline

October 16, 2017 Nick Cunningham 0

Oil prices spiked on Monday after Iraqi forces seized the oil fields around Kirkuk, which had largely been under Kurdish control since 2014. There were conflicting reports as of Monday, but oil supplies from the region may have been disrupted, although perhaps only temporarily. The military maneuver by Iraqi forces comes as retaliation for the Kurdish independence vote staged a few weeks ago, a move condemned by Baghdad, as well as the governments of Turkey and Iran, both of which have their own Kurdish populations. Iran closed border crossings,…

The post Iraq Seizes Kirkuk, Briefly Knocks 350,000 Bpd Offline appeared first on aroundworld24.com.

No Picture

IEA: Oil Prices To Hit A Ceiling In 2018

October 12, 2017 Nick Cunningham 0

The global oil market continues to make progress, but the ongoing production gains from non-OPEC countries will probably act as a “the ceiling for aspirations of higher oil prices” in 2018, according to a new report from the International Energy Agency. In its monthly Oil Market Report published Thursday, the IEA cataloged the long list of indicators that suggests the oil market has made huge strides this year towards rebalancing. In the second and the third quarter, the global supply/demand balance was in a deficit, putting total inventories…

The post IEA: Oil Prices To Hit A Ceiling In 2018 appeared first on aroundworld24.com.