Crude oil market

[waltky]

Another OPEC meeting to try and raise oil prices...

Amid low crude prices, world oil officials meet in Abu Dhabi
Nov 7,`16 -- Leading oil officials from around the world meeting in Abu Dhabi remain tense over low crude prices, though they are trying to sound optimistic.

That's in contrast to last year's Abu Dhabi International Petroleum Exhibition & Conference, which had a more-upbeat tone. Monday's event started with the officials acknowledging the pinch of low oil prices, now around $50 a barrel, down from over $100 in mid-2014.

An Emirati journalist films the audience as OPEC Secretary-General Mohammad Sanusi Barkindo of Nigeria gives a speech at the annual Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Monday, Nov. 7, 2016. Those attending the onference this week remain worried about low global oil prices.

OPEC Secretary-General Mohammad Sanusi Barkindo of Nigeria warned those prices were cutting into development of new fields. ExxonMobil CEO and chairman Rex W. Tillerson says: "We don't need any more uncertainty."

But with U.S. shale oil posed to re-enter the market if prices rise much higher and OPEC members still with high production, the uncertainty and lower prices may continue.

http://hosted.ap.org/dynamic/stories...11-07-03-21-51

[MRogersNhood]

Why hasn't the price of quarts of oil come down at the store?

[Docthehun]

Why hasn't the price of quarts of oil come down at the store?

Additives, not to mention a huge profit margin.

[waltky]

Oil goes up $2.50/bbl. Oil Rallies On Renewed OPEC Cut Hopes Nov 15, 2016 - After a strong sell-off in recent days, option expiry combines with OPEC cut expectations to emphatically rally prices on this third Tuesday in November. Hark, here are five things to consider in oil markets today:

1) We said in the aftermath of the Algiers meeting that if an OPEC production cut were to be forthcoming, Saudi Arabia would have to do the heavy-lifting. A production cut still appears a likely scenario, as does some back-breaking work by Saudi. With the OPEC meeting in Vienna in fifteen days, the cartel is entering the final stretch of diplomacy, via the medium of closed-door meetings. The situation for OPEC has only become more complicated since the end of September, however.

Libyan oil production is on the rise, exhibited via their increased exports both this month and last (hark, at 550,000 bpd so far in November, according to our ClipperData). And despite reports of a renewed surge in sabotage in Nigeria, export loadings have clambered above 2 million barrels per day so far in November. Exports for the two are up over 1mn bpd compared to September:

2) Rising OPEC production means that the cartel is going to have to dig even deeper in terms of production cuts. At the time of the Algiers meeting, the latest data showed OPEC producing 33.237mn bpd. Last week's November report from OPEC pegged production at 33.64mn bpd - a record.

This is reflected in the middle bar below; the cartel has to cut by at least 0.64mn bpd, or by 1.14mn bpd, depending upon the production target they choose (32.5mn bpd or 33mn bpd). Including a rebound in Angolan production (as well increasing flows from Libya and Nigeria, as highlighted above), the cartel is going to have to cut by an even larger amount. MORE

See also: Oil Prices Resilient Despite API Reported Crude Inventory Build Nov 15, 2016 - A larger than expected build in United States crude inventories caused West Texas Intermediate prices to fall slightly after the American Petroleum Institute’s weekly supply report hit the press Tuesday afternoon.

Crude inventories were up 3.65 million barrels. Supplies at the Cushing, Oklahoma, storage site saw the biggest increase since August, storing 1.13 million barrels more than last week. According to Zerohedge, experts expected the build to equal just 150,000 barrels. Distillates jumped by almost 3 million barrels after eight weeks of consistent draws. The only dip this week was gasoline inventories, which declined by 155,000 barrels – far less than the 1.1 million drop that industry insiders predicted. Overall, oil prices still saw a day of good returns. At the time of this article’s writing, WTI prices traded at a premium of 5.52 percent at $45.71, while Brent prices stood 5.55 percent higher at $46.88.

Last week – just a few hours after Donald Trump won the presidential election - the Energy Information Administration (EIA) reported a build of 2.4 million barrels of crude in U.S. commercial inventories. The latest API report will either be confirmed or denied by tomorrow’s official EIA figures. After the Republican win, benchmark oil prices quickly recovered the losses registered on voting day, and even started climbing up. Trump has vowed to make the United States energy independent by cutting off access to foreign sources of oil, while promising a go-ahead for the Keystone XL pipeline and new clean coal and shale projects. http://oilprice.com/Latest-Energy-Ne...ory-Build.html

[waltky]

Means oil prices goin' up...

Major indexes hit records as post-election rally goes on
November 21, 2016 - All three major U.S. stock indexes set record closing highs on Monday, extending their post-election rally as energy and other commodity-related shares gained and Facebook led a jump in technology.

Small caps added to recent gains as well, pushing the Russell 2000 index <.RUT> to a record high close. The session marked the first time all four indexes hit closing records since Dec. 31, 1999. Stocks have mostly rallied since the Nov. 8 U.S. election, with investors snapping up shares of banks, health care and other companies expected to benefit from President-elect Donald Trump's policies.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, NY

The energy index <.SPNY> jumped 2.2 percent, leading gains among major S&P sectors, as U.S. oil prices jumped 3.9 percent. Hopes that the OPEC would agree to an output cut next week lifted oil prices. The S&P materials index <.SPLRCM> was up 1.3 percent. "The post-election rally is continuing," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. Optimism that Trump will ease regulations and reduce taxes "keeps pulling money into the market," he said. "A lot of money came out of bond funds last week into stocks, and I think that can continue given the potential spread between what stocks can do versus bonds."

Data from TrimTabs Investment Research showed investors moved $45.7 billion into U.S.-listed equity exchange-traded funds in the eight trading days ended Thursday, the biggest eight-session inflow on record. The Dow Jones industrial average <.DJI> ended up 88.76 points, or 0.47 percent, at 18,956.69, while the S&P 500 <.SPX> gained 16.28 points, or 0.75 percent, to 2,198.18 and the Nasdaq Composite <.IXIC> added 47.35 points, or 0.89 percent, to 5,368.86. The S&P 500 had last set a closing record on Aug. 15. All three major indexes hit record intraday highs as well.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, NY

Expectations may be building that the new administration will bring tax breaks that will help corporations and consumers, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. But, he said, "you're betting an awful lot on something that hasn't even been introduced before Congress yet."

MORE

[waltky]

Gonna cause gas prices to go up here...

U.S. opens door to oil exports after year of pressure
Tue Dec 30, 2014 | The Obama administration on Tuesday bowed to months of growing pressure over a 40-year-old ban on exports of most domestic crude, taking two steps expected to unleash a wave of ultra-light shale oil onto global markets.

The Bureau of Industry and Security, or BIS, which regulates export controls, said it had granted permission to "some" companies to sell lightly treated condensate abroad. Condensate is a form of ultra-light crude. Some two dozen energy companies had asked the agency for clarification on permissible exports earlier this year, but until Tuesday those requests had been put on indefinite hold.

The BIS also released guidance in the form of frequently asked questions, or FAQs, to explain what kind of oil was generally allowed under the ban, the first effort by the administration to clarify an issue that has caused confusion and consternation in energy markets for more than a year. The two measures are clearest signs yet that the administration is ready to allow more of the booming U.S. shale oil production to be sold overseas, where drillers have said it can fetch a premium of $10 a barrel or more. They follow a year of murky messages and widespread uncertainty over what is or is not allowed under a trade restriction that critics say is a relic of a bygone age, when oil was seen as scarce after the 1970s Arab oil embargo.

An offshore oil platform is seen in Huntington Beach, California

A domestic drilling boom of the past six years has transformed the United States into an energy powerhouse, boosting U.S. production by more than 50 percent and reversing decades of decline. Output of very light oil has been especially strong, leading to a glut that threatens to overwhelm domestic demand. The constraints helped fuel bumper profits for refiners such as Valero Energy Corp (VLO.N) and PBF Energy Inc (PBF.N), but angered drillers such as Hess Corp (HES.N) that say they were selling at a discount.

Jamie Webster, the senior director of oil markets at research firm IHS, said the FAQ "takes the leash off of (the U.S. Department of) Commerce" and signals it may take additional action on crude exports after several months of inaction. While likely to draw broad support from many quarters, the measures also open the Obama administration to attack by environmentalists and Democrats who may see it encouraging more hydraulic fracking and as a sop to big oil companies.

STEPS TO CLARIFY

[waltky]

Look for gas prices to go down... Oil tumbles as output cut looks elusive; dollar sinks November 28, 2016 - The dollar and U.S. bond yields fell on Monday as investors reversed a "Trumpflation" trade that has gripped markets since the U.S. elections, after oil prices slid on fears that producer countries meeting this week could fail to agree an output cut.

Though Brent crude futures last traded at $47.02 per barrel , almost flat on the day, prices had been down by as much as 2.0 percent in early Asian trade, following on from a 3.6 percent fall on Friday as doubts arose over whether the Organization of the Petroleum Exporting Countries would reach a deal later this week. Prospects of reduced upward pressure on inflation from oil prices, prompted investors to temper expectations for rises in U.S. interest rates, bring down treasury yields and the dollar. That gave some relief to Asian shares, which had underperformed on worries about capital flight to higher-yielding U.S markets in the weeks since Donald Trump's Nov.8 election win. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, led by gains in Hong Kong and Taiwan . In contrast, U.S. stock futures slipped 0.2 percent after their stellar performance this month on hopes President-elect Trump's policy of fiscal spending, deregulation and protection of domestic industries will boost U.S. inflation and benefit Corporate America. Japan's Nikkei average , which had performed even better than Wall Street thanks to the yen's fall, also lost its lustre, falling 0.3 percent. "It will be scary to think markets may fully reverse their moves since the elections, changing their mind that Trump's policy may not be so good after all," said Bart Wakabayashi, head of Hong Kong FX sales at State Street Global Markets. Wall Street's four main indexes all hit record highs last week, a feat last achieved in 1999. Yet some investors question whether the market may have got carried away with optimism on Trump's policy, given the uncertainty on the political neophyte's presidency, including on how closely he can work together with the Congress. But it was doubts about inflationary expectations, due to languishing oil prices that gave investors a more immediate reason to have second thoughts. Saudi Arabia said on Friday it will not attend talks on Monday with non-OPEC producers to discuss supply cuts. "Oil prices have fallen considerably on worries about the deal. That would pressure energy shares, and could hit the entire stock markets. Given their rally in recent days, it's no surprise to see some adjustment," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. MORE

[resister]

Look for gas prices to go down... Oil tumbles as output cut looks elusive; dollar sinks November 28, 2016 - The dollar and U.S. bond yields fell on Monday as investors reversed a "Trumpflation" trade that has gripped markets since the U.S. elections, after oil prices slid on fears that producer countries meeting this week could fail to agree an output cut.

I ride a self made recumbent bicycle.I get 12 miles to a 4 pack.I look at gas prices once in ahwhile while I pass.Beer price's catch my eye

[waltky]

Will determine if crude oil prices go up... OPEC begins debate on oil cuts amid deep disagreement Wed Nov 30, 2016 | OPEC began on Wednesday debating a deal to curtail oil production and prop up the price of crude, with Iran and Iraq resisting pressure from Saudi Arabia to participate fully in any action.

Ministers from the Organization of the Petroleum Exporting Countries met informally at 0700 GMT at the Vienna Park Hyatt hotel and were due to begin a formal gathering at OPEC headquarters at 0900 GMT. "I'm optimistic," said Iranian Oil Minister Bijan Zanganeh, adding there had been no request for Iran to cut output. "I think we are looking at a very positive meeting," said UAE Energy Minister Suhail bin Mohammed al-Mazroui. His colleagues from Angola, Algeria and Nigeria also said they believed OPEC would reach a deal on Wednesday. Brent crude rose more than 4 percent to over $48 a barrel, after heavy losses a day earlier. On Tuesday, Iran wrote to OPEC saying it wanted Saudi Arabia to cut production by as much as 1 million barrels per day (bpd), much more than Riyadh is willing to offer, OPEC sources who saw the letter told Reuters. The 14-country group, which accounts for a third of global oil production, made a preliminary agreement in Algiers in September to cap output at around 32.5-33 million bpd versus the current 33.64 million bpd to prop up oil prices, which have halved since mid-2014. OPEC said it would exempt Iran, Libya and Nigeria from cuts as their output has been crimped by unrest and sanctions.

A soldier patrols in front of the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Austria

The deal was seen as a victory for Iran. Tehran has long argued it wants to raise production to regain market share lost under Western sanctions, when its political arch-rival Saudi Arabia increased output. In recent weeks, Riyadh changed its stance and offered to cut its output by 0.5 million bpd, according to OPEC sources, while suggesting Iran limit production at around 3.8 million bpd - in line with or slightly above the country's current output. Tehran has sent mixed signals, saying it wanted to produce as much as 4.2 million bpd. Iran's letter to OPEC suggested Saudi Arabia should cut output to 9.5 million bpd. Documents prepared for Wednesday's meeting propose the group cut production by 1.2 million bpd from October levels, an OPEC source familiar with the papers said. The papers also propose Saudi Arabia reduce production to 10.07 million bpd from 10.54 million bpd in October and that Iran freeze output at 3.797 million bpd. Iraq has also been pressing for higher output limits, saying it needs more money to fight the militant group Islamic State. Iran and Iraq together produce over 8 million bpd, only slightly behind long-time leader Saudi with 10.5 million bpd. The argument between Iraq and Saudi Arabia mainly focuses on whether Baghdad should use its own output estimates to limit production or rely on lower figures from OPEC's experts. Some analysts including Morgan Stanley and Macquarie have said oil prices will correct sharply if OPEC fails to reach a deal, potentially going as low as $35 per barrel. http://www.reuters.com/article/us-op...-idUSKBN13P0JA

[waltky]

Sounds like gas prices gonna go up - better gas up now... OPEC closer to deal to cut oil output, sparking price rally Nov 30,`16 -- In an all-out effort to restore OPEC's faded clout, the 14-nation cartel moved Wednesday to end infighting and agree to cut output for the first time in eight years. Crude prices surged as a result.

The international benchmark for oil soared $3.56, or 7.7 percent, to $49.97 a barrel amid signs that oil ministers were now focusing less on whether there would be a cut and more on how it would be shared among members. "There will be a cut, yeah, definitely," Iraqi oil minister Jabbar Ali Hussein Al-Luiebi, told reporters. A cut could have a lasting impact on consumers as oil price increases feed into the cost of car fuel, heating and electricity. It could also restore some authority to OPEC as an arbiter of prices and supplies after years of inconclusive meetings undermined by infighting. Underlining the significance of the meeting, Saudi oil minister Khalid Al-Falih spoke of a "critical day for us in OPEC." An agreement appeared distant as late as the eve of the cartel's meeting due to a rivalry between Saudi Arabia, OPEC's top producer, and Iran, whose struggle for dominance in the Mideast is also playing out in the Organization of the Petroleum Exporting Countries. The Saudis have long been hesitant to shoulder the lion's share of a cut, while Iran has resisted reducing its own production. It argues it has yet to recover its output levels hit by years of sanctions.

Khalid Al-Falih Minister of Energy, Industry and Mineral Resources of Saudi Arabia speaks to journalists prior to the start of a meeting of the Organization of the Petroleum Exporting Countries, OPEC, at their headquarters in Vienna, Austria

But as ministers headed into their closed decision-making session, comments from both sides suggested a compromise could be reached. "We have agreed to a waiver from a cut to Iran in recognition of the impact of the sanctions on their economy and their industry," said Khalid Al-Falih, the Saudi oil minister. Iran's oil minister, Bijan Zanganeh, confirmed that "for Iran, no reduction, no freeze." OPEC in September laid out the contours of a cutback the ministers needed to sign off on Wednesday. That agreement aims to pare over 1 million barrels a day off total OPEC production, which is now over 33 million barrels a day. If implemented, it would send a signal that the cartel, which accounts for about a third of the world crude output, is once again focused on regulating supplies and prices after years of inaction that dented its image. Any lasting effect on oil prices is unclear, even if cuts are agreed on. Russia, a major non-OPEC oil producer also must join in, and with the world economy feeble and oversupplied with oil, a bounce may be only temporary. MORE

Related: S&P, Dow hit record highs as oil, bank stocks gain November 30, 2016 - The Dow and the S&P 500 hit record intraday highs on Wednesday, fueled by gains in energy and bank stocks.

Oil prices soared 7.4 percent as some of the world's largest producers agreed to curb oil output for the first time since 2008. Shares of oil majors Exxon and Chevron rose more than 2 percent and were the top stocks on the S&P and the Dow. The S&P 500 energy index rose 3.65 percent as oil prices were on track for their best day since February. November is set to be Wall Street's best month since March, with the markets rallying on Donald Trump's victory in the U.S. presidential election. Investors expect the market to benefit from Trump's policies, including higher spending on infrastructure and simpler regulations in the healthcare and banking industries. U.S. private employers stepped up hiring in November and consumer spending increased last month, the latest signs of economic strength that could further cement the case for an interest rate hike. Traders have currently priced in an 89 percent chance of the Fed raising rates at its meeting next month, according to Thomson Reuters data. A crucial monthly hiring report on Friday is likely to play a big role in the central bank's deliberations. The financial index rose 1.42 percent, while seven of the 11 major S&P sectors fell.

A specialist trader works at his post on the floor of the NYSE

At 9:43 a.m. ET the Dow Jones industrial average was up 94.4 points, or 0.49 percent, at 19,216, after hitting an all-time high of 19,225.29. The S&P 500 was up 9.08 points, or 0.41 percent, at 2,213.74. The index hit a high of 2,214.10. The Nasdaq Composite was up 11.68 points, or 0.22 percent, at 5,391.60. Fed Board Governor Jerome Powell and Cleveland Fed president Loretta Mester are due to speak at separate events later in the day. Splunk rose 7 percent to $61.40 after the data analytics provider forecast full-year revenue above analysts' expectations. GoPro rose 3.3 percent after the wearable camera maker said it would cut 15 percent of its workforce and shut its entertainment business. Teen apparel retailer American Eagle Outfitters dropped 10.6 percent to $16.88 after providing a disappointing profit forecast for the crucial holiday quarter. [L4N1DV3YU] Advancing issues outnumbered decliners on the NYSE by 1,592 to 1,152. On the Nasdaq, 1,443 issues rose and 913 fell. The S&P 500 index showed 41 new 52-week highs and no new lows, while the Nasdaq recorded 82 new highs and 12 new lows. https://www.yahoo.com/news/u-stock-f...ce.html?ref=gs

See also: GoPro to cut 15 percent of workforce amid sales slump November 30, 2016 - Wearable action-camera maker GoPro Inc said on Wednesday it would cut about 15 percent of its workforce and shutter its entertainment business, as the one-time Wall Street favorite cuts costs to help it return to profitability.

Shares of the company, which had about 1,500 employees at the end of 2015, rose 4.7 percent in early trading. The company has been struggling with slowing sales of its helmet- and body-mounted cameras as cheaper rivals emerge and smartphones feature increasingly advanced cameras. A recall of about 2,500 of its recently launched Karma drones could also hit revenue. The company said on Wednesday it would cut about 200 full-time positions, cancel open positions and close its entertainment division, which makes original content. GoPro said the cost-cutting would help it achieve its goal of returning to profitability on an adjusted basis next year. The latest job cuts are in addition to a 7 percent workforce reduction announced at the beginning of the year. GoPro went public in 2014 amid investor enthusiasm that the California company's focus on social media would make it stand out among other makers of consumer electronics. The company's shares, which closed at $9.83 on Tuesday, have fallen about 60 percent since its market debut, including a 45 percent drop this year. GoPro's sales have been in decline for the last four quarters, but it has said it expects to return to double-digit revenue growth in the coming year. Earlier this month, the company forecast revenue for the holiday shopping quarter below market expectations, citing production issues with its Hero 5 camera. GoPro also said on Wednesday that President Tony Bates would step down at the end of the year. The company said it expected to take a charge of $24 million to $33 million, related to the cost-cutting, mostly in the quarter ending December. However, GoPro said sales of its cameras in the week of Black Friday increased more than 35 percent from a year earlier at major U.S. retailers. https://www.yahoo.com/news/gopro-cut...ce.html?ref=gs