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oil
Posted: Mon Oct 12, 2015 12:14 pm
by mkarpoff
Any idea why energy was so weak today?
Re: oil
Posted: Mon Oct 12, 2015 1:42 pm
by bigtex
opec announced pumping at all time high
Re: oil
Posted: Mon Oct 12, 2015 5:37 pm
by dan_s
EIA bullish on product demand. According to EIA short term energy outlook, it expects global consumption of petroleum and other liquids to grow by 1.3MMbpd in 2015 and by 1.4MMbpd in 2016. After falling by 0.3 million b/d in 2014, OECD petroleum and other liquids consumption is expected to rise by 0.5 million b/d in 2015 and by 0.2 million b/d in 2016, reaching an average of 46.4 million b/d, the highest annual average level of OECD consumption since 2010. U.S. consumption is expected to grow by an average of 0.3MM b/d in 2015 and by 0.1MMb/d in 2016.
Re: oil
Posted: Mon Oct 12, 2015 5:47 pm
by dan_s
Investing.com - Crude oil futures reversed earlier gains to trade lower on Monday, following the release of the latest supply estimates from the Organization of the Petroleum Exporting Countries.
I think part of the dip in price today was caused by light electronic trading since NYMEX was closed for the U.S. holiday. Profit taking. - Dan
On Friday, Nymex oil prices rallied to $50.92, a level not seen since July 21 amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
In its October monthly report released earlier in the day, OPEC said oil supply from countries outside the organization is expected to fall further in the months ahead.
The oil cartel cut its U.S. oil production forecast by 280,000 barrels a day next year, leading to a decline of 60,000 barrels a day in 2016 instead of a previously predicted increase. The news comes after industry group Baker Hughes (N:BHI) said last Friday that the number of rigs drilling for oil in the U.S. decreased by 9 last week to 605, the lowest since July 2010 and the sixth straight weekly decline. [The U.S. active rig count will continue to fall to below 500 rigs drilling for oil by December.- Dan]
My SWAG is that U.S. oil production will drop by over 400,000 barrels per day in the 4th quarter. For the six months that ended September 30, U.S. production fell by almost 600,000 barrels per day. With much fewer wells being completed in Q4, the rate of decline will accelerate. - Dan