WIA: The Resurrection of Peak Oil

1) The Resurrection of Peak Oil It has been a long wait for “peak oilers,” whose passionate belief is that the world will run out of oil in coming years, sending prices through the roof. This splinter religion came into being in 1956 when M. King Hubbert produced some simple supply/demand charts showing that US reserves of Texas tea would dry up by 1965-70, forcing a heavy reliance on imports with which we have become all too familiar

Can Saudi Arabia boost oil output in times of tight supply?

With recent unrest sweeping the Middle East and Northern Africa, oil supply concerns are a big factor pushing prices higher, and one possible solution to capping prices has been raised that Saudi Arabia, OPEC’s leading oil exporter should lift oil output quotas to balance any shortfall in oil supply. But is this a real possibility, or just small talk?

Brent oil trading over $117, oil supply now a real concern

Brent oil futures open today’s trading session firm over $117 a barrel as traders and investors resume buying into crude, which is driving oil prices higher, but the real concern is oil supply, as Libya oil production goes offline and unrest in the Middle East is set to escalate this week. Latest Brent Oil Price In London, Brent crude oil futures for April 2011 delivery was trading at $117.38 a barrel, 07.40 GMT this morning on the ICE Futures Exchange.

OPEC star Saudi Arabia looks to raise oil export capacity

Last weekend OPEC’s star crude oil exporter Saudi Arabia called apon top oilfield service firms to help the country quickly boost its oil rig count by 30 percent to help give Saudi Arabia additional capacity to export oil as the world faces tighter supplies. Saudi Arabian state run oil giant Aramco met with leading oil service companies and announced plans to quickly expand its oil rig count to ensure it has extra production capacity, and in turn, exports. “The rig count leap is likely imminent, and expected to accelerate in the second half of 2011 and into 2012.

WTI oil trading firm over $104 amid higher US inventories

WTI oil futures open today’s trading session firm over $104 a barrel as the latest EIA data showed that US crude oil inventories rose higher than many analysts had forecast, while the US President called for more oil production at home. Latest WTI Oil Price US Light crude oil futures for May 2011 delivery was trading at $104.68 a barrel, 05.55 GMT this morning in electronic trading on the NYMEX.

Oil settles lower on weak economic data

Oil fell again Tuesday after disappointing reports on factory production and new home construction raised more concerns about the economic recovery and future demand. The dollar fell against other currencies as well, which helped crude regain some losses.
Benchmark crude for June delivery lost 47 cents to settle at $96.91 per barrel on the New York Mercantile Exchange. It dropped as low as $95.02 at one point in the session.
The price of oil has fallen over 14 percent from a high of $113.52 on May 2.
The Federal Reserve said factory production fell 0.4 percent in April, the first decline in 10 months. A key reason was a drop in auto manufacturing after the Japan earthquake and tsunami led to a parts shortage. Industrial production has risen nearly 11.5 percent since hitting a recession-low in June 2009 but is still below its pre-recession peak in September 2007.
“If your industrial production is down, it means you’re not creating as much. It means the overall economic situation isn’t that good, meaning that demand for goods probably isn’t going to be as strong, including crude oil,” Telvent DTN analyst Darin Newsom said. “It’s just another bearish economic indicator that we aren’t fully on the road to recovery yet.”
Meanwhile the Commerce Department reported that new home construction fell 10.6 percent last month from March. Much of the decline occurred because apartment and condominium construction plummeted. The seasonally adjusted rate fell to 523,000 homes per year, which is less than half the 1.2 million homes per year that economists consider a sign of a healthy market.
The dollar initially got a boost from Europe’s debt woes, particularly worries that more will have to be done to rescue the Greek economy. Since commodities like oil are priced in dollars, a weaker dollar makes them more of a bargain for buyers who use foreign currencies, so the price falls. Oil got back some of its losses as the dollar weakened later in the day.
Lower oil prices are leading to lower prices at the gas pump. The national average for regular gasoline was $3.944 a gallon on Tuesday. That’s about 4 cents less than on Friday but still 11.7 cents more than a month ago, according to AAA, Wright Express and the Oil Price Information Service.
Cameron Hanover analyst Peter Beutel expects pump prices to decline 60 cents a gallon by Memorial Day. He said that would be the equivalent of putting $80 billion to $85 billion back into the pockets of consumers on an annualized basis.
Drivers across the country have been buying less gas because of high pump prices. The latest weekly survey of retail gas sales from MasterCard SpendingPulse shows demand down for the eighth straight week. Analysts expect the Energy Department on Wednesday to report that the nation’s gasoline supplies grew last week, because Americans are using less and refineries are starting to produce more.
Natural gas on Tuesday fell 3 percent, down 13.3 cents to settle at $4.246 per 1,000 cubic feet. Lower factory production means less natural gas is used to generate power.
In other Nymex trading in June contracts, heating oil fell 2.93 cents to settle at $2.8451 per gallon and gasoline futures lost 1.18 cents to settle at $2.9193 a gallon.

Brent oil price nears $116, traders eye Libyan conflict

Brent oil futures open the week’s trading session near $116 a barrel and oil prices are set to remain bullish as traders and investors eye up the Libyan conflict as international coalition forces conducting air strikes over the country. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.64 a barrel, 06.00 GMT this morning on the ICE Futures Exchange. Oil Prices to Remain Elevated “Oil prices are likely to remain elevated while the situation in the Middle East and North Africa remains volatile.

Brent oil trading at $115, Libya airstrikes push prices higher

Brent oil prices open Tuesday’s trading session at $115 a barrel as airstrikes in Libya continue to push crude oil prices higher, while analysts forecast that Libyan oil production is likely to remain suspended for the rest of the year.

Brent oil trading near $115, Middle East driving oil prices

Brent oil futures open Wednesday’s trading session near $115 a barrel as the latest developments out of the Middle East continue to be the main driving force for short term oil price direction. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.57 a barrel, 08.00 GMT on the ICE Futures Exchange

Brent oil trading near $115 as Middle East unrest continues

Brent oil futures open today’s trading session near $115 a barrel as unrest which has sweeped the Middle East continues in Syria, with security forces opening fire on antiregime protesters in the southern town of Daraa. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.32 a barrel, 07.00 GMT this morning on the ICE Futures Exchange

Brent crude trading at $115, Middle East still driving oil prices

Brent crude oil futures open Friday’s trading session flat, near $115 a barrel as investors weigh up rising unrest in the Middle East which continues to be the main driver of short term oil price direction. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.68 a barrel, 06.30 GMT this morning on the ICE Futures Exchange. Middle East Unrest Spreading Airstrikes from the US and its allies intensified in Libya while forces loyal to Moammar Gadhafi remain entrenched, leaving little hope that the 1.6 million barrels a day of oil from the country will return to the market any time soon.

Brent oil futures close the week’s trading session at $116

Brent oil futures close off the week’s trading session back near $116 a barrel as crude oil supply concerns from Libya has traders and investors uncertain about short term oil price direction. Brent Oil Futures – Closing Price Brent crude oil futures for May 2011 delivery ended the week’s trading session at $115.95 a barrel on the ICE Futures Exchange yesterday evening, $1.44 higher than last week’s closing price of $114.51 a barrel. JP Morgan Forecasts Higher Brent Price JP Morgan analysts warned in a research note yesterday that higher oil supplies from OPEC will be needed to meet summer demand and sees the strong likelihood of a price spike of up to $130 a barrel for Brent crude oil

Brent oil trading near $114 as Libyan oil exports resume

Brent oil prices open today’s trading session near $114 a barrel as news that Libya issued a shorter than anticipated timetable for the resumption of oil exports from the country. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $114.56 a barrel, 06.15 GMT this morning on the ICE Futures Exchange, after slipping 0.8 percent lower in Monday’s trading session. Libya Oil Exports Could Resume in a Week Crude oil exports from Libya, which had fallen to virtually zero since the early stages of the conflict, could resume in less than a week, rebel representative Ali Tarhoni said, according to Agence France Presse

Brent oil trading near $115, Libya tensions prop up prices Brent oil prices open today’s trading session slightly lower, near $115 as tensions in Libya continue to prop up both Brent and WTI oil prices as doubts emerge over the resumption of Libyan crude oil exports. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $114.63 a barrel, 04.30 GMT this morning on the ICE Futures Exchange. Brent oil closed off yesterday’s trading session up 0.4 percent at $115.20 a barrel

Brent oil prices open today’s trading session slightly lower, near $115 as tensions in Libya continue to prop up both Brent and WTI oil prices as doubts emerge over the resumption of Libyan crude oil exports. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $114.63 a barrel, 04.30 GMT this morning on the ICE Futures Exchange. Brent oil closed off yesterday’s trading session up 0.4 percent at $115.20 a barrel

Brent crude oil hangs near $115 in thin trading volumes

Brent crude oil futures open Thursday’s trading session hanging near $115 a barrel while investors watch oil prices from the sidelines as trading volumes slip to their lowest levels of the year. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.47 a barrel, 06.15 GMT on the ICE Futures Exchange. The contract closed yesterday’s session at $115.10.

Geopolitical Worries Boost Crude

Crude oil futures jumped nearly 3.6 percent Tuesday, driven by worries that geopolitical tensions could impede global supplies, as well as encouraging U.S. economic data that boosted the stock market as well. Light, sweet crude for January delivery ended the day up $3.34, at $97.22 a barrel on the New York Mercantile Exchange.