Markets News Oil 

History could be repeating itself in the oil market

“The reason why the oil market might suffer from a renewed glut largely comes down to soaring U.S. shale production” writes Nick Cunningham for businessinsider.com. But even as the elusive “balance” in the oil market is within reach, the IEA says things might quickly reverse.That was the warning from the International Energy Agency, which said in its latest Oil Market Report that a “second wave” of shale supply threatens another downturn.Total global oil supply is expected to grow faster than demand this year, which could lead to another downturn.Meanwhile, Venezuela’s rapid…

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OPEC will be forced to ‘play second fiddle’ to the US in 2018, analyst says

“U.S. shale producers are churning out crude oil at such a relentless pace that the country will soon become the most influential player in the energy market, according to an analyst” writes Brittany Sowacke for cnbc.com. “Few can dispute that 2017 belonged to OPEC after it successfully reasserted its pricing influence over the oil market,” Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note Wednesday. “This year, however, its production curbs will increasingly have to make do with playing second fiddle to a Texas-sized wave of…

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U.S. oil ends slightly lower as market weighs forecast for increased demand against shale output

“Oil prices turned finished lower Tuesday in up-and-down trade, as investors digested a report from the International Energy Agency forecasting strong global crude demand amid rising production from non-OPEC countries” writes Mark Decambre for marketwatch.com. March West Texas Intermediate crude oil CLH8, -0.19% finished off 10 cents, or 0.2%, at $59.19 a barrel.The IEA said an inundation of the market from outside of the Organization of the Petroleum Exporting Countries, mostly driven by shale-oil producers in the U.S., might resemble a period back in 2014, when ballooning production capsized crude…

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BHP flags $1.8 bln expense due to U.S. tax laws

“MELBOURNE, Australia–BHP Billiton Ltd. (BHP.AU) said it expects to recognize a $1.8 billion income-tax expense to reflect the reduction in the U.S. federal corporate-tax rate and other changes” writes Robb M for marketwatch.com. However, in the longer term it expects the overhauls to have a positive effect on profit from the U.S. The British-Australian resources major said Tuesday it would book an exceptional item consisting of a remeasurement of deferred taxes in the U.S. of $898 million and a $834 million impairment of foreign tax credits. BHP, whose U.S. operations…

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Oil price rally skids into reverse as US shale returns

“The oil price rally has swung into reverse amid signs that US shale is surging” writes Jillian Ambrose for telegraph.co.uk. Its latest monthly report forecast that oil demand would grow by 1.59 million barrels a day this year, around 60,000 barrels higher than its previous forecast.However the Vienna-based group warned that oil producers outside the cartel were likely to boost their output by more than expected, too. Source: telegraph.co.uk Share This:

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Exxon, Chevron report sharply higher 4Q profit on tax gains

“In midday trading, Exxon shares fell $5.05, or 5.7 percent, to $84.02, while Chevron shares dropped $4.78, or 3.8 percent, to $120.79” reports foxbusiness.com. Both companies are counting on higher production from U.S. shale formations to boost production and profits.Irving, Texas-based Exxon Mobil Corp. lost money on U.S. oil and gas production after excluding the tax gain.Stripping away the tax gain and the write-down of operations in Canada and the Gulf of Mexico because of Exxon’s long-term forecast of natural gas prices, adjusted profit was 88 cents per share.But $5.94…

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Goldman Sachs raises oil price forecasts on speedy market rebalancing

“The bank’s three, six and twelve-month Brent oil price forecasts were raised to $75, $82.50 and $75 a barrel respectively, from $62 previously” reports foxbusiness.com. Goldman sees a global oil market deficit of 0.2 million barrels per day (mb/d) in 2018, followed by a global surplus of 0.73 mb/d in 2019.Goldman Sachs raised its Brent crude price forecasts on Thursday, saying oil markets have rebalanced six months sooner than expected, citing steady demand growth and continuing compliance with OPEC-led supply cuts.However, Goldman expects the price to dip again as U.S.…

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Oil resurgence gives the U.S. a new edge in energy and diplomacy

“Nothing like the current situation was foreseen in late 2014, when rising domestic production began weighing on global oil prices” writes Clifford Krauss for seattletimes.com. Energy companies and their financial backers were able to weather market turmoil — and the maneuvers of the global oil cartel — by adjusting exploration and extraction techniques.HOUSTON — A substantial rise in oil prices in recent months has led to a resurgence in U.S. oil production, enabling the country to challenge the dominance of Saudi Arabia and dampen price pressures at the pump.The response…

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The Dark Side of America’s Rise to Oil Superpower

“Those tend to spike when oil prices rise, so enthusiasm for nonpolluting, nonwarming energies of the future could wane” writes unknown author for bloomberg.com. The quality of shale oil is so high that it yields little diesel, the fuel that powers manufacturing.The survivors have transformed themselves into leaner, faster versions that can thrive even at lower oil prices.There’s a chance the world will witness that rarest of market loop-de-loops—high oil prices as well as rising U.S. production. Source: bloomberg.com Share This:

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Fossil fuels can provide ‘better quality of life,’ Rick Perry tells Davos energy forum

“Even if we consider shale oil production, the overall balance is positive” writes Josh Siegel for washingtonexaminer.com. The U.S. is expected to reach a historic high above 10 million barrels of oil production per day, an amount that would overtake Saudi Arabia and rival Russian oil production.Combined, the three countries represent more than one-third of global oil production. Source: washingtonexaminer.com Share This:

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