México

Guyana

Trinidad
& Tobago

 




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

 

Oil's record plunge is a ‘Made in America' phenomenon, Citi says


Source:Bloomberg

- Iran waivers and tweets at OPEC producers created glut: Morse
- U.S. shale output and demand-sapping trade war also factors

By Dan Murtaugh / Bloomberg

SINGAPORE
Petroleumworld 11 15 2018

American fingerprints are all over oil's record losing streak that's plunged prices into a bear market.

The State Department's zigzag on Iran sanctions, President Donald Trump's tweets about OPEC supply, the demand-sapping trade war with China and the explosion of shale oil production are all key factors leading to the collapse in crude prices since early October, Ed Morse, head of commodities research at Citigroup Inc., said in a phone interview.

“The oversupply in the market is a made-in-America phenomenon,” Morse said Wednesday. “It's the unexpected consequences of American policy and the unintended impact of technological changes that made this historically unprecedented arena for production growth blossom.”

Morse was among several commodity traders and experts who less than two months ago said global benchmark Brent crude could spike above $100 a barrel if the U.S. followed through with its threat to use sanctions to drive Iranian oil exports to zero. The fear of a supply crunch helped drive the marker to as high as $86.74 a barrel in early October, the highest level since 2014.

Then the Trump administration changed its mind, granting waivers that allowed eight countries to continue purchasing limited amounts of Iranian oil. Brent traded at $65.91 at 12:10 p.m. Singapore time. West Texas Intermediate, the U.S. benchmark, was at $56 a barrel, following a record 12 session slide through Nov. 13.

Even as the U.S. was planning to grant the Iran waivers, Trump was badgering other members of the Organization of Petroleum Exporting Countries to boost production in order to make up for any loss of Iranian supply. He's kept at it even as prices have plunged, tweeting on Nov. 12 that he hoped Saudi Arabia and OPEC wouldn't cut output.

Market Oversupply

“The head fake on Iranian sanctions, which turned out to be misleading when U.S. actions were limp, combined with putting more pressure on producers helped create the oversupply in the market,” Morse said.

Supplies have also been boosted by surging output from U.S. shale fields, which has lifted the U.S. past Saudi Arabia and Russia as the world's largest crude producer, Morse said. Additionally, global oil demand growth has also been hurt by an escalating trade war between the U.S. and China that was instigated by the Trump administration, he said.

 

Original article

_________________________

Story by Dan Murtaugh from Bloomberg

bloomberg.com 11 14 2018

_________________________

We invite all our readers to share with us
their views and comments about this article.


Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.