Monday, August 17, 2015

Oil Prices Drop on Glut Supply Fears

Oil prices resumed their fall on Monday edging down to just under $42 a barrel.

Brent crude, the global oil benchmark, fell 1.14 percent to $48.63 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 1.25 percent at $41.97 a barrel.

The slide has prompted fears that the market may be oversupplied with oil and the lifting of sanctions from Iran will only add to the current glut.

The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing the nation’s OPEC representative Mehdi Asali.

The Organization of Petroleum Exporting Countries may boost output to 33 million barrels a day after Iran’s international export restrictions are removed, according to the nation’s OPEC representative.

Meanwhile, the number of rigs seeking oil in the US rose by two to 672, the most since May, Baker Hughes Inc. data showed.

“There is no change to the fundamentals,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone.

“The market is continuing to drift lower and it’s doing so without pause. Inventories in the US remain large for this time of the year, the draw-down over the summer driving season has been relatively disappointing.”


  1. Le pétrole russe à peine rentable désormais...

    La Russie dirigée par Vladimir Poutine , est à coup sûr un des pays les plus affectés par la chute des cours. Compte tenu de ses coûts d'extraction très élevés dans le sol gelé de Sibérie (de 40 à 50 dollars le baril), la plupart des puits du numéro un mondial des hydrocarbures ne sont plus rentables au niveau de cours actuel. Moscou qui tire du pétrole le tiers de ses recettes en devises peut puiser dans ses fonds souverains pour maintenir son niveau de vie. Mais la chute des cours du pétrole, conjuguée aux sanctions occidentales en raison de la crise ukrainienne, fait baisser le PIB de 4 % en rythme annuel actuellement et menace même à terme l'excédent des paiements courants.

  2. barrel of U.S. crude oil fell below $40 per barrel for the first time since the end of the global economic crisis...

    Friday's fall, to $39.86, was just the latest indicator of a vast shift in the energy landscape over the past year. U.S. Oil bounced back a bit to close down 87 cents at $40.45, the lowest close since March 3, 2009.

    The price of oil has fallen for eight consecutive weeks, the longest streak since 1986. Oil is down 34 per cent from its high of $61.43 this year, and 62 per cent from its high of $107.26 last


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