SK READ this Report ... Too Much Oil Is BAD Biz Thanks Mullah !!
mullahpaloozer
DIAMOND DIGGER
Markets | Wed Jul 8, 2015 3:51pm EDT
U.S. crude falls more than 1 percent on surprise stockpile build
NEW YORK | By Barani Krishnan
Reuters/Lucy Nicholson/Files U.S. crude futures fell more than 1 percent on Wednesday after a surprise build in stockpiles while gasoline rallied on bets for strong fuel demand through the peak summer driving season.
The U.S. Energy Information Administration said inventories rose last week for crude, gasoline and distillates. That surprised market players a day after industry group the American Petroleum Institute had reported a draw of 1 million barrels. Analysts polled by Reuters had forecast a crude draw of 700,000 barrels.
"We were not supposed to be building crude inventories in early July. This tells me the data will be additive to the macro-based selloff and perhaps make it worse," said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington.
Earlier this week, oil prices tumbled to three-month lows on worries about the impact of Greece's debt woes and China's stock market plunge on the world economy and fuel demand.
Oil prices also felt pressure from Iran's eagerness to seal a nuclear accord that will allow it to resume crude exports without sanctions into an already glutted global market.
U.S. crude's front-month contract CLc1 settled down 68 cents, or 1.3 percent, at $51.65 a barrel. It had fallen on Tuesday to $50.58, its lowest since April 8.
Brent LCOc1 settled up 20 cents, or 0.4 percent, at $57.05, bucking the trend in U.S. crude for a second straight day.
Gasoline was the day's outlier, rallying 2.5 percent. The gasoline crack CL-RB1=R, or profit refiners get for producing the fuel from crude, hit a 3-month high as U.S. crude prices went the opposite way.
"The forward WTI is making new lows and is starting to look cheap if you have a longer-term time horizon," Thompson said, referring to the widening discount between nearby and farther-dated in the benchmark U.S. West Texas Intermediate crude. <0#CL:>
In China, the world's second-largest oil consumer, the stock market fell again, with the country's securities regulator speaking of "panic sentiment" among investors.
Greece, meanwhile, has been given until Sunday to come up with sweeping reforms for loans and to stay with the euro currency.
"Turmoil in China and Greece may put recent robust demand growth at risk," Morgan Stanley's oil analysts wrote.
In Vienna, nuclear talks between Iran and six global powers went beyond Tuesday's deadline. Market bulls fear an onslaught of Iranian crude supply from sanctions being lifted if a nuclear deal goes through.
www.reuters.com/article/2015/07/08/us-markets-oil-idUSKCN0PI02F20150708 mullahpaloozer
DIAMOND DIGGER
Post by mullahpaloozer on Jul 10, 2015 at 9:48am
Fri Jul 10, 2015 4:14am EDT
Oil may have further to fall due to oversupply: IEA
LONDON | By Dmitry Zhdannikov and Christopher Johnson
Reuters/Lucy NicholsonOil prices are set to come under further pressure from easing global demand and an expanding glut of crude while a rebalancing of the markets may last well into next year, the West's Energy watchdog said on Friday.
The International Energy Agency (IEA) said it expected global demand growth to slow next year to 1.2 million barrels per day (bpd) from 1.4 million this year - far less than needed to balance stubbornly growing non-OPEC and OPEC supply.
"The bottom of the market may still be ahead," the IEA said in its monthly report.
"The rebalancing that began when oil markets set off on an initial 60 percent price drop a year ago has yet to run its course. Recent developments suggest that the process will extend well into 2016."
"The oil market was massively oversupplied in the second quarter of 2015, and remains so today. It is equally clear that the market’s ability to absorb that oversupply is unlikely to last. Onshore storage space is limited. So is the tanker fleet ... Something has to give," it said.
The global glut arose from a steep spike in U.S. oil supply on the back of the shale revolution and OPEC's decision not to reduce output but rather to fight for market share with rival producers.
But the fall in prices to $50-$60 per barrel in recent months from as high as $115 a year ago has yet to depress North American supply.
"The expected timing of the rebalancing has shifted a bit, but the story line has not changed. The supply response to lower prices is on the way," the IEA said, adding it may take another price drop for a full supply response to unfold.
"Cost savings, efficiency gains and producer hedging have let light tight oil producers defy expectations until now, but growth ground to a halt in May and will likely stay there through mid-2016," it said.
U.S. supply grew by 1.0 million bpd in the first five months of 2015, down from 1.8 million in 2014, according to the IEA.
"Total U.S. supply will keep growing through 2016, but much more slowly than in 2014, and thanks to natural gas liquids and new deepwater plays rather than onshore crude supply," it said.
Non-OPEC supply as a whole, after expanding by a massive 2.4 million bpd in 2014, looks on track to slow to growth of 1 million bpd in 2015 and stay flat in 2016, the IEA said.
Among other bearish signals, the IEA said world oil demand growth appeared to have peaked in the first quarter of 2015 at 1.8 million bpd and would continue to ease throughout the rest of this year and into next.
That means the need for OPEC's oil will stand at 30.3 million bpd next year, up 1 million bpd on 2015, but still a whopping 1.4 million bpd below current OPEC production.
"And the group is not slowing down," the IEA said. "On the contrary, its core Middle East producers are pumping at record rates and the outlook for Iraqi capacity growth – accounting for most projected OPEC expansions – keeps improving."
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