Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Saturday, November 25, 2006
Sunday, November 19, 2006
World's fastest economy could speed to trouble
Article from Yahoo! Finance UK&Ireland about robust speed of Azeibardjan economy caused oil price increase along with the launch of the pipeline through Turkey that opens country's oil export direct access to the Western markets (bypassing Russia)
Wednesday, October 04, 2006
Canadian oil production may boost Loonie
Canada currently had enough oil reserves to supply all US oil needs for the next three years. The only problem is that much of this oil is trapped in Canada’s oil sands, and it may be costly and difficult to extract. Once the oil starts to flow, however, Canada will likely become one of the world’s top 10 oil exporters, behind such powerhouses as Venezuela, Russia, Saudi Arabia, and Iran. The recent strength of Canada’s currency, the Loonie, can be almost entirely attributed to the high price of commodities, especially oil. It seems forex traders would benefit from studying a little geology
Source Forexblog
Source Forexblog
Monday, October 02, 2006
Update -- Venezuela, Nigeria To Cut Oil Production
The decision by Venezuela and Nigeria to cut crude oil production will have little immediate impact on U.S. gasoline prices because storage tanks are filled to the brim, an oil analyst says.
Venezuela said on Friday it plans to cut crude oil production by about 50,000 barrels a day. On the same day, Nigeria said it plans to hold back about 120,000 barrels a day.
The cuts, scheduled to take place Oct. 1, are an apparent attempt to jack prices as demand falls.
The price of a barrel of oil has lost about 20% from its July peak of $78.40 on the New York Mercantile Exchange. On Friday, crude oil declined 1cent to $62.90 a barrel. The price for gasoline fell, but heating oil edged up about 3.5 cents. In London, Brent crude declined 6 cents to $62.48 a barrel.
Full text on Forbes.com
Venezuela said on Friday it plans to cut crude oil production by about 50,000 barrels a day. On the same day, Nigeria said it plans to hold back about 120,000 barrels a day.
The cuts, scheduled to take place Oct. 1, are an apparent attempt to jack prices as demand falls.
The price of a barrel of oil has lost about 20% from its July peak of $78.40 on the New York Mercantile Exchange. On Friday, crude oil declined 1cent to $62.90 a barrel. The price for gasoline fell, but heating oil edged up about 3.5 cents. In London, Brent crude declined 6 cents to $62.48 a barrel.
Full text on Forbes.com
Tuesday, September 26, 2006
Tuesday, September 19, 2006
Wednesday, August 09, 2006
Don't Bank On SPR - Forbes.com
WASHINGTON, D.C. -
Don't look to the Strategic Petroleum Reserve to ease surging oil prices after the shutdown of BP's pipeline in Prudhoe Bay: If history is any guide, any release from the SPR will be too little, too late. Or it might not come at all.
The 700-million-barrel stockpile sitting in salt caves along the Gulf Coast has been used only three times since it was created in the wake of the 1973 Arab oil embargo. And it is unclear whether it has ever successfully mitigated an oil price shock.
Not surprisingly, markets greeted with a yawn assurances by energy czar Samuel Bodman on Monday that he would come to the rescue in the event of an oil shortage. After closing at a near record in nominal terms of $76.98 the day before, prices edged off just slightly but remained above $76, as officials suggested that Prudhoe Bay's reserves might be offline until February.
There is no reason the SPR couldn't have a major impact during a price shock. Its drawdown capacity of 4 million barrels of oil per day is roughly equal to the amount Iran adds daily to the world oil supply. With the stockpile releasing at full tilt, the government would be able to replace over a third of oil imports and add about 5.9% to the world's daily oil supply for roughly 163 days before the reserve ran dry, according to a study last year by economists Jerry Taylor and Peter Van Doren of the libertarian Cato Institute.
The problem is the government's shoddy management of the reserves. It has tended to buy oil as prices are rising and then hoard it in a time of crisis.
"It's a policy of buying high and selling never," says Taylor.
Don't Bank On SPR - Forbes.com
Don't look to the Strategic Petroleum Reserve to ease surging oil prices after the shutdown of BP's pipeline in Prudhoe Bay: If history is any guide, any release from the SPR will be too little, too late. Or it might not come at all.
The 700-million-barrel stockpile sitting in salt caves along the Gulf Coast has been used only three times since it was created in the wake of the 1973 Arab oil embargo. And it is unclear whether it has ever successfully mitigated an oil price shock.
Not surprisingly, markets greeted with a yawn assurances by energy czar Samuel Bodman on Monday that he would come to the rescue in the event of an oil shortage. After closing at a near record in nominal terms of $76.98 the day before, prices edged off just slightly but remained above $76, as officials suggested that Prudhoe Bay's reserves might be offline until February.
There is no reason the SPR couldn't have a major impact during a price shock. Its drawdown capacity of 4 million barrels of oil per day is roughly equal to the amount Iran adds daily to the world oil supply. With the stockpile releasing at full tilt, the government would be able to replace over a third of oil imports and add about 5.9% to the world's daily oil supply for roughly 163 days before the reserve ran dry, according to a study last year by economists Jerry Taylor and Peter Van Doren of the libertarian Cato Institute.
The problem is the government's shoddy management of the reserves. It has tended to buy oil as prices are rising and then hoard it in a time of crisis.
"It's a policy of buying high and selling never," says Taylor.
Don't Bank On SPR - Forbes.com
Sunday, July 23, 2006
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