Archive for the ‘barrel’ Category

OPEC slashes production; crude continues to tumble

October 24, 2008

OPEC said at an emergency meeting Friday that it will slash oil production by 1.5 million barrels to stem the “dramatic collapse” of oil prices, but crude prices plunged 7 percent anyway as financial markets spiraled downward across the globe.

By GEORGE JAHN, Associated Press Writer

Demand for crude has evaporated and the supply levers held by the Organization of Petroleum Exporting Countries appear to have little influence in the current economic climate.

Iran and Venezuela pushed for a cut of 2 million barrels a day, but there were concerns among other OPEC members that a more severe production cut would exacerbate a deteriorating economic crisis and further destroy demand.

OPEC officials, however, signaled they were prepared to slice deeper quickly if crude continues its freefall.

OPEC is already producing 300,000 barrels a day above its own quota of about 29 million barrels.

If that overproduction is stopped, and all members comply with the 1.5-million cut, OPEC would produce about 1.8 million fewer barrels of oil a day.

OPEC officials, however, left no doubt that they were ready to slice production again quickly if Friday’s decision does not end the price freefall.

The emergency meeting was initially scheduled for Nov. 18, but that was abruptly rescheduled for Friday in response to prices that have entered a tailspin since their historic high of nearly $150 in July.

OPEC President Chakib Khelil said OPEC was ready to convene another emergency session before its next planned gathering in December in Algeria “if there are further decisions that have to be made.

Analyst John Hall of London-based John Hall Associates said the OPEC decision will not have a dramatic effect, adding he assumed any upward trend would stop at between $80 and $90.

But there was no such trend Friday as markets plunged global and fear of an extended recession spread.

Wall Street joined world stock markets in a precipitous plunge, with the Dow Jones industrials dropping more than 400 points in the opening minutes of trading.

Oil futures slid $4.46 to $63.38 a barrel on the New York Mercantile Exchange.

“It’s clear that the ministers are attempting to underpin at $60 a barrel,” said James R. Crawford an analyst with Inter Emirates. “But where the market will settle remains open.”

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http://news.yahoo.com/s/ap/20081024/ap_on_bi_ge/eu_opec_
meeting;_ylt=AtVi.2T5ipPpGTmFXXdm3Ais0NUE

OPEC Ponders Price Rise, Production Cut

October 23, 2008

VIENNA (AFP) – OPEC President Chakib Khelil said Thursday that the oil producers’ cartel will decide to cut production at an emergency meeting due in Vienna but was wary of worsening a global financial crisis.

Chart showing the price of New York light sweet crude from January ... 

“We are going to reduce (output on Friday). By how much? We don’t know. This is something we are going to decide tomorrow,” Khelil, who is also the energy minister of OPEC member Algeria, told reporters in Vienna.

“It’s a concern that we could make the financial crisis worse by taking too strong a reduction,” said Khelil, adding however that the decision “should not impact the world economy which is already in pretty bad shape.”

Iran — OPEC’s second biggest oil exporter — and Libya both called for a reduction of two million barrels per day, while Venezuela said there should be a cut of at least one million barrels.

British Prime Minister Gordon Brown recently said that any reduction made in a bid to push up oil prices would be “scandalous” at a time when major economies are close to recession.

The price of New York oil dived Thursday to a 16-month low, as recession fears stoked concerns about falling crude demand, traders said.

New York’s main contract, light sweet crude for December delivery, sank as low as 65.90 dollars per barrel — a level last seen on June 13, 2007.

Crude futures in New York and London have plunged 56 percent from record highs of above 147 dollars a barrel reached only three months ago when supply concerns sent prices soaring.

“The market focus today (Thursday) and particularly tomorrow will be on the OPEC emergency meeting,” said analysts at Barclays Capital in London.

“Indicating the inevitability of a substantial cut, Chakib Khelil, the OPEC president, commented yesterday that ‘the stocks are very high… some of us are not able to sell the crude.'”

The Organization of Petroleum Exporting Countries produces 40 percent of the world’s oil and its official output quota stands at 28.8 million barrels per day.

Saudi Oil Minister Ali al-Nuaimi refused to be drawn on talk of a scaling-back to output as he arrived in the Austrian capital on Thursday.

However Libya’s Oil Minister Shukri Ghanem told reporters that “a huge cut” of “two million barrels” was required to create a balance between supply and demand.

Venezuelan Energy Minister Rafael Ramirez said there should be a cut of at least one million barrels. Ramirez added that he believed there was a consensus among OPEC’s 12 members for a cut.

OPEC’s Gulf state members led by Saudi Arabia, the world’s biggest oil exporter, are expected to oppose a reduction of more than one million barrels, analysts said on Thursday.

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http://news.yahoo.com/s/afp/20081023
/bs_afp/opeccommoditiesoilprice

Oil falls to 14-month low on bad US economic data: $71.64/Barrel

October 16, 2008

The good news is that the price of oil is down.  The bad news is that most suppliers are seeing falling demand and they have to get more cheep oil out to make sales goals….

By ALEX KENNEDY, Associated Press Writer

SINGAPORE – Oil prices fell to a 14-month low Thursday in Asia as bad U.S. economic news stoked fears that a significant global economic slowdown will undermine demand for crude.
Light, sweet crude for November delivery was down $2.90 to $71.64 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell overnight $4.09 to settle at $74.54, the lowest settlement price since Aug. 31, 2007.

Oil prices are now half of the peak they reached in July.

“The market is just very worried about a severe international economic downturn,” said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. “They’re thinking that oil consumption will be weaker than expected.”

Investors were discouraged Wednesday by a U.S. Commerce Department report that showed retail sales dropped in September by 1.2 percent, a sign that turmoil in the credit markets has begun to slow consumer spending. Later in the day, the Beige Book, the assessment of business conditions from the Federal Reserve, said that the economy continued to slow in the early fall.

Japan’s benchmark Nikkei 225 stock average was down nearly 10 percent Thursday while the Dow Jones industrials plummeted 733 points Wednesday, or 7.9 percent, it’s second-largest point loss ever.

“If we’re in the grips of a severe downturn, it’s very hard to pick where things will bottom,” Moore said. “There’s the potential that bad economic news will continue to rattle markets.”

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http://news.yahoo.com/s/ap/20081016/ap_on_bi_ge/oil_
prices;_ylt=AsQzgl5dhz9fpKUSOz3kqjSs0NUE

Oil Below $72 Per Barrel

October 15, 2008

AFP

The price of oil slumped below 72 dollars on Wednesday, its lowest level for more than 13 months, as recession fears raised concerns about a prolonged drop in energy demand, analysts said.

The global financial crisis will give a vicious twist to an economic slowdown and is hitting world demand for oil, although the effect on emerging economies is unclear, OPEC said on Wednesday.

A motorist holds a fuel pump at a service station. Oil prices ...

The Organization of Petroleum Exporting Countries slashed its estimate of growth in demand this year and shaved its estimate for 2009, largely because of an “excessive” easing of demand in the United States, the single biggest energy market.

Prices also fell Wednesday on news that a Nigerian court has ordered Anglo-Dutch energy giant Royal Dutch Shell to hand over land to locals, a key demand of armed rebels camped in Nigeria’s oil-producing region.

Brent North Sea crude for November delivery fell to 71.60 dollars a barrel — the lowest level since August 2007 — before recovering to 72.41 dollars, down 2.12 dollars compared to Tuesday’s close.

New York’s main contract, light sweet crude for November, shed 1.98 dollars to 76.65 dollars.

Brent crude has fallen by more than half from a record high 147.50 dollars in July, when prices rocketed on fears of supply disruptions.

Oil prices are sliding on “concerns that the coordinated action by central banks over the last week will not be enough to rescue economies from falling into a global recession and hence weighing on oil demand,” Sucden analyst Nimit Khamar said.

 

A top US central banker, Janet Yellen, said Tuesday that the United States “appears to be in a recession.” There are also growing fears Japan and Europe are heading for a spell of economic stagnation or recession.

The German economy is heading for a slowdown but the downturn will not be a long-lasting one, Chancellor Angela Merkel said Wednesday.

Meanwhile a Nigerian court ordered Shell to hand over land around its giant Bonny oil terminal to the local population, the multi-national said Wednesday.

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http://www.breitbart.com/article.php?id=081015121543.ct10v95y&show_article=1

Oil jumps above $104 as supply drops, OPEC stands pat

March 6, 2008
NEW YORK — Oil prices surged Wednesday, rising a remarkable $5 a barrel to a record above $104 after the government reported a surprise drop in crude oil stockpiles and OPEC held production levels steady.

Most analysts had expected the Energy Department’s Energy Information Administration to report oil supplies rose last week for the eighth straight time. Instead, they fell by 3.1 million barrels.

In Vienna, meanwhile, the Organization of Petroleum Exporting Countries said it would hold production levels steady, at least for now.

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http://www.usatoday.com/money/industries/energy/2008-03-05-opec_N.htm?csp=34