Oil Steady Around Multi-Year Lows

Oil Steady Around Multi-Year Lows

Oil prices steadied around 11-1/2-year lows, after rising earlier during the day following Chinese shares higher, as persistent global oversupply and a bleak demand outlook weighed on prices.
Oil prices plunged to 12-year lows on Thursday after leading energy consumer China allowed its yuan currency to slip, sending stock markets tumbling globally, Reuters reported.
Brent rose 9 cents to $33.84 a barrel, near a low of $34.18 reached in July 2004. US West Texas Intermediate was flat at $33.27 a barrel.
Over the past year, the world has been producing 1.5 million barrels per day more oil than it consumes. OPEC and the International Energy Agency expect global demand growth to slow in 2016 to around 1.20-1.25 million barrels per day from a very high 1.8 million bpd in 2015.
The US Energy Information Administration said last month that production in 2016 would fall by 570,000 barrels per day to 8.76 million bpd, an upward revision from its 520,000 bpd forecast in November.
The options market is showing there are concerns oil prices can fall further. Some investors are protecting themselves by acquiring put options, giving them the right to sell at $25 a barrel, anticipating that Brent will fall below that.
Oil bull Andy Hall's Astenbeck Capital Management lost about 35% in 2015, CNBC reported on Thursday, citing a source who reviewed the fund's performance.
OPEC's smallest member Ecuador, which has increased debt and reduced investments due to the oil price plunge, said it would continue to press for production cuts when the organization meets next on June 2 in Vienna.

Short URL : http://goo.gl/fiua2K
  1. http://goo.gl/QL9qZW
  • http://goo.gl/qGMhvq
  • http://goo.gl/Lqw3i0
  • http://goo.gl/v5RHxq
  • http://goo.gl/3txBfH

You can also read ...

All renewable sources, including solar and wind, make up only a fraction of Iran's installed power generating capacity.
With a national energy system that chiefly runs on fossil...
NIOPDC Details Diesel Export to Iraqi Kurdistan
The National Iranian Oil Products Distribution Company in...
Oil Rises Nearly 1%
Oil prices ended nearly 1% higher on Friday, close to their...
Total won six offshore exploration licenses for the Gulf of Mexico in August.
French Total has expanded its presence in the Gulf of Mexico...
Russia Open to OPEC Cuts While Mulling Exit Plan
Russia signaled that it would be willing to prolong the...
Iran's Light Crude Hits $54
Iran's light crude extended its rally to $54 per barrel in the...
Merkel’s Green Energy Policy Has Fueled Demand for Coal
By 2030, the eastern German town of Poedelwitz will likely be...
Sri Lanka, China Discuss $3b Refinery
Sri Lanka is in talks with two Chinese companies about...