Crude Prices Will Continue To Slide For A While

[Anonymous]

Alberta shed 14,000 jobs last month. Newfoundland lost jobs too and Saskatchewan will be in trouble too if potash exports slide. Sorry kiebs, Keeps and Fash, but there is no immediate relief in sight for the hard hit conventional oil patch.



BC is the place to be in Canada this year for jobs and economic growth. If they can get LNG exports up and running and off to Asia where prices are 4-5 times higher that province will boom like we did under Ralph Klein.

A recent rebound in oil prices may be short-lived, the International Energy Agency has warned, with another sharp fall possible due to unabating US output and in spite of higher demand projected for later this year.



In its monthly report released Friday, the International Energy Agency (IEA) said steep drops in the United States rig count had been the "key driver" of a recent recovery in oil prices, which had seen crude prices increase to $60 (56 euros) per barrel after falling as low as $46 in January.



IEA warned, however, that the actual US supply was showing "precious little sign of slowing down," causing non-OPEC production in February to increase by about 270,000 barrels per day (bpd) over January.



As US oil production was continuing to "defy expectations," IEA said: "Behind the façade of stability, the rebalancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly."



The Paris-based energy watchdog believes that the United States may soon run out of spare capacity to store crude, leading to more oil on markets and additional downward pressure on prices. This process would last until the second half of 2015, when US production was expected to start abating, IEA added.



Little support from higher demand



According to IEA data, the slump in global oil demand bottomed out in the second quarter of 2014 and had since risen steadily. As a result, the organization raised its forecast for 2015 demand growth from 680,000 bdp seen in 2014 to 1 million bpd now. Total oil demand for 2015 is expected to reach 93.5 million bpd.



"Tentative signs of a demand recovery have emerged with the turn of the year, with a heavy emphasis reserved for the word 'tentative'," IEA said.



Moreover, the projected increase was somewhat deceptive, IEA added, because it rested partly on one-off factors such as cold weather and a low point of comparison in the previous year.



The IEA's findings appear set to disappoint the members of the Organization of Oil Exporting countries (OPEC), which decided in November to keep its output stable at high levels in an effort to stifle US oil output and regain market share.

http://www.msn.com/en-ca/money/topstories/iea-sees-new-pressure-on-oil-prices-as-glut-worsens/ar-AA9J2fB?ocid=mailsignoutmd">http://www.msn.com/en-ca/money/topstori ... lsignoutmd">http://www.msn.com/en-ca/money/topstories/iea-sees-new-pressure-on-oil-prices-as-glut-worsens/ar-AA9J2fB?ocid=mailsignoutmd

[Anonymous]

Alberta shed 14,000 jobs last month. Newfoundland lost jobs too and Saskatchewan will be in trouble too if potash exports slide. Sorry kiebs, Keeps and Fash, but there is no immediate relief in sight for the hard hit conventional oil patch.



BC is the place to be in Canada this year for jobs and economic growth. If they can get LNG exports up and running and off to Asia where prices are 4-5 times higher that province will boom like we did under Ralph Klein.

A recent rebound in oil prices may be short-lived, the International Energy Agency has warned, with another sharp fall possible due to unabating US output and in spite of higher demand projected for later this year.



In its monthly report released Friday, the International Energy Agency (IEA) said steep drops in the United States rig count had been the "key driver" of a recent recovery in oil prices, which had seen crude prices increase to $60 (56 euros) per barrel after falling as low as $46 in January.



IEA warned, however, that the actual US supply was showing "precious little sign of slowing down," causing non-OPEC production in February to increase by about 270,000 barrels per day (bpd) over January.



As US oil production was continuing to "defy expectations," IEA said: "Behind the façade of stability, the rebalancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly."



The Paris-based energy watchdog believes that the United States may soon run out of spare capacity to store crude, leading to more oil on markets and additional downward pressure on prices. This process would last until the second half of 2015, when US production was expected to start abating, IEA added.



Little support from higher demand



According to IEA data, the slump in global oil demand bottomed out in the second quarter of 2014 and had since risen steadily. As a result, the organization raised its forecast for 2015 demand growth from 680,000 bdp seen in 2014 to 1 million bpd now. Total oil demand for 2015 is expected to reach 93.5 million bpd.



"Tentative signs of a demand recovery have emerged with the turn of the year, with a heavy emphasis reserved for the word 'tentative'," IEA said.



Moreover, the projected increase was somewhat deceptive, IEA added, because it rested partly on one-off factors such as cold weather and a low point of comparison in the previous year.



The IEA's findings appear set to disappoint the members of the Organization of Oil Exporting countries (OPEC), which decided in November to keep its output stable at high levels in an effort to stifle US oil output and regain market share.

http://www.msn.com/en-ca/money/topstories/iea-sees-new-pressure-on-oil-prices-as-glut-worsens/ar-AA9J2fB?ocid=mailsignoutmd">http://www.msn.com/en-ca/money/topstori ... lsignoutmd">http://www.msn.com/en-ca/money/topstories/iea-sees-new-pressure-on-oil-prices-as-glut-worsens/ar-AA9J2fB?ocid=mailsignoutmd

 ac_crying

[Anonymous]

U.S. oil prices were dipping lower in early Tuesday trade after sinking to a six-year low on persistent worries about a supply glut on Monday.



On the New York Mercantile Exchange, light, sweet crude futures for delivery in April  traded at $42.85 a barrel, down $1.04, or 2.4%, from Monday's settlement on the New York Mercantile Exchange.



May Brent crude   lost 84 cents, down 1.6%, to trade at $53.10 on London's ICE Futures exchange.



The tumbling prices in oil come after both Brent and Nymex crude-oil suffered a more than 2% drop as a monthly report released by the Organization of the Petroleum Exporting Countries forecast a drop in U.S. output by the end of the year. However. that OPEC news was mostly shrugged off amid nagging signs of further supply increases and dwindling storage, which threatens to send prices lower yet.



Several withering days of trading has resulted in Nymex crude oil sinking around 14% and Brent losing 13% since the beginning of last week.



"The current [oil] surplus on top of already high U.S. inventories is proving a highly visible driver of short-term bearishness, not just in the U.S. but across the global oil market," Paul Horsnell, head of commodities research at Standard Chartered, said in a report.



He said U.S. crude inventories are likely to rise over coming weeks, and until they stabilize short-term oil prices will remain vulnerable. However, shale oil output is expected to start falling in April in three of the four main producing regions--Bakken, Eagle Ford and Niobrara, Horsnell said.



The American Petroleum Institute will publish its inventory data later Tuesday. The U.S. Energy Department's weekly update is due on Wednesday.



OPEC said its oil production fell slightly in February from the previous month, due to volatile output in Iraq, Libya and Nigeria. But the small fall in OPEC's production still leaves a large supply glut in the market, Capital Economics said.



Meanwhile, investors are watching the U.S.-Iran nuclear talks for signs of progress and the two-day meeting of the Federal Open Market Committee which begins Tuesday.



Rising U.S. oil production has added to a growing sense of disappointment that non-OPEC output hasn't weakened as quickly and broadly as anticipated, analyst Tim Evans at Citi Futures said. "The demand side of the market also has yet to show any clear measurable signs of firming in response to lower prices," he said.

http://www.msn.com/en-ca/money/topstories/oil-prices-march-lower-after-cracking-six-year-low/ar-AA9Sz2W?ocid=mailsignoutmd">http://www.msn.com/en-ca/money/topstori ... lsignoutmd">http://www.msn.com/en-ca/money/topstories/oil-prices-march-lower-after-cracking-six-year-low/ar-AA9Sz2W?ocid=mailsignoutmd

[Anonymous]

U.S. oil prices were dipping lower in early Tuesday trade after sinking to a six-year low on persistent worries about a supply glut on Monday.



On the New York Mercantile Exchange, light, sweet crude futures for delivery in April  traded at $42.85 a barrel, down $1.04, or 2.4%, from Monday's settlement on the New York Mercantile Exchange.



May Brent crude   lost 84 cents, down 1.6%, to trade at $53.10 on London's ICE Futures exchange.



The tumbling prices in oil come after both Brent and Nymex crude-oil suffered a more than 2% drop as a monthly report released by the Organization of the Petroleum Exporting Countries forecast a drop in U.S. output by the end of the year. However. that OPEC news was mostly shrugged off amid nagging signs of further supply increases and dwindling storage, which threatens to send prices lower yet.



Several withering days of trading has resulted in Nymex crude oil sinking around 14% and Brent losing 13% since the beginning of last week.



"The current [oil] surplus on top of already high U.S. inventories is proving a highly visible driver of short-term bearishness, not just in the U.S. but across the global oil market," Paul Horsnell, head of commodities research at Standard Chartered, said in a report.



He said U.S. crude inventories are likely to rise over coming weeks, and until they stabilize short-term oil prices will remain vulnerable. However, shale oil output is expected to start falling in April in three of the four main producing regions--Bakken, Eagle Ford and Niobrara, Horsnell said.



The American Petroleum Institute will publish its inventory data later Tuesday. The U.S. Energy Department's weekly update is due on Wednesday.



OPEC said its oil production fell slightly in February from the previous month, due to volatile output in Iraq, Libya and Nigeria. But the small fall in OPEC's production still leaves a large supply glut in the market, Capital Economics said.



Meanwhile, investors are watching the U.S.-Iran nuclear talks for signs of progress and the two-day meeting of the Federal Open Market Committee which begins Tuesday.



Rising U.S. oil production has added to a growing sense of disappointment that non-OPEC output hasn't weakened as quickly and broadly as anticipated, analyst Tim Evans at Citi Futures said. "The demand side of the market also has yet to show any clear measurable signs of firming in response to lower prices," he said.

http://www.msn.com/en-ca/money/topstories/oil-prices-march-lower-after-cracking-six-year-low/ar-AA9Sz2W?ocid=mailsignoutmd">http://www.msn.com/en-ca/money/topstori ... lsignoutmd">http://www.msn.com/en-ca/money/topstories/oil-prices-march-lower-after-cracking-six-year-low/ar-AA9Sz2W?ocid=mailsignoutmd

There were two more layoffs today at my husband's shop.

 ac_crying