China Is Missing Ingredient in Oil’s Recovery From Six-Year Low

By Moming Zhou (Bloomberg) -- Oil bulls who’ve cheered a rebound of 40 percent from a six-year low should take heed: Unless demand accelerates, the rally is in danger. The omens aren’t good. The U.S. government expects global consumption to grow next year at less than half the rate of 2010, when the world was emerging from a previous recession. The growth is insufficient to … [Read more...]

Traders Seen to be Underestimating Future Oil Prices

(Bloomberg) -- Oil traders are mispricing crude futures for later this decade because they’re underestimating how a collapse in spending will affect supplies, according to consultants who advise energy producers and analysts. Prices could rise to about $100 a barrel by 2019, about 34 percent above where Brent crude oil futures for that year are trading, says JBC Energy GmbH, … [Read more...]

Iraq Will Export New Crude Grade in May After Setting Discounts

By Khalid Al-Ansary and Kadhim Ajrash (Bloomberg) -- Iraq, OPEC’s second-biggest producer, will start exporting Basrah Heavy crude next month after offering discounts for the new grade in Europe, Asia and the Americas. The heavy grade “will help us to preserve our oil qualities” and increase “output chances,” Iraq’s Oil Minister Adel Abdul Mahdi said on his Facebook page. … [Read more...]

Saudi Arabia’s Solution to Global Oil Glut: Pump Ever More Crude

By Grant Smith (Bloomberg) -- Saudi Arabia has a response to the global surplus of oil: Raise output to near-record levels and then pump even more. The world’s biggest oil exporter, having abandoned last year its role of keeping global markets in balance, now has incentive to maximize output and undermine rival producers by using its reserve capacity, according to … [Read more...]

Strong Demand to Rebalance Oil Market by Early 2016

By John Kemp LONDON, April 22 (Reuters) - Global oil demand is set to rise by 1 million or even 1.5 million barrels per day (bpd) in 2015, according to a range of forecasters. Coupled with a fall in shale output in the second half of the year, as the decline in the U.S. rig count takes effect, that should be enough to bring the oil market near to balance by early … [Read more...]