• 11 hours Russia Approves Profit-Based Oil Tax For 2019
  • 15 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 17 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 19 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 21 hours Aramco In Talks With Chinese Petrochemical Producers
  • 22 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 23 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 1 day Bidding Action Heats Up In UK’s Continental Shelf
  • 1 day Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 8 days Rosneft Announces Completion Of World’s Longest Well
Alt Text

New Battery Design Could Crush Tesla

Elon Musk’s old rival, Henrik…

Alt Text

Tesla Investors Are Losing Patience

Elon Musk has a history…

Alt Text

Is U.S. Energy Independence Realistic?

The recent IEA report shocked…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Could Oil Sink Below $40 Per Barrel Again?

Could Oil Sink Below $40 Per Barrel Again?

Arightee folks, this week is set to be a scream (R.I.P. Wes Craven) as we shimmy from August into September (hark, 114 shopping days until Xmas), and into a deluge of new economic data. Chinese equities overnight have wilted into the end of the month, racking up a 12.5% loss for August, while we’ve had a few tidbits of data out of Europe.

While the UK is kicking back and enjoying a summer bank holiday, we’ve had strong tales of retail sales out of Germany (up 1.9% MoM versus 1.0% expected), while Italy’s were softer than gelato on a summer’s day, coming in -0.3% versus +0.1% expected. Eurozone CPI continues to try and stave off deflation, holding at +0.2% YoY. As we know all too well, all paths lead back to energy, hence falling oil prices are reining in inflationary pressures once again. Related: We Could See An Economic Collapse As Debt Defaults Pile Up

The biggest data point of note in the US today is the Chicago PMI, which gauges the health of manufacturing in the Chicago area. It generally gives us a heads-up as to what to expect from tomorrow’s PMI print. China kicks off the procession of new PMI prints this evening, while the week culminates in Nonfarm Friday here in the US (complete with fanfare). Related: OPEC Divorce And Self-Destruction Thanks To Saudi Oil Strategy?

From their annual retreat at Jackson Hole, Wyoming, members of the Federal Reserve have fanned the embers of hope for a potential interest hike in September. Markets have responded accordingly with a risk off stance (A Nightmare on Wall Street?), and equities are selling off to start the week / finish the month. After last week’s emphatically emphatic rally, crude prices are retracing strongly thus far, falling in line with general risk appetite and spooked by Chinese economic fears.

As we fast approach refinery maintenance season, the return to action at the Whiting refinery is helping to ease retail gasoline prices lower in the Chicago area once more. California prices are also falling in line with a typical seasonal descent as supply concerns ease in the Golden State. Retail prices on the national average are now dropping below $2.50/gallon, and should continue to retrace in the coming months – despite the expectation of a deep refinery maintenance season.

(Click to enlarge)

We’ve had a few developments on the European front over the weekend in terms of oil and gas. Yesterday it was announced that Italian oil and gas company Eni has discovered a huge natural gas field about 80 miles off the coast of Egypt. It is the largest ever find in the Mediterranean Sea, holding 30 Tcf – enough to supply Egypt for decades. Related: Oil Prices Compound Iraq’s Stability Concerns

It was also announced yesterday that Maersk oil has received approval to develop the Culzean gas field, the largest discovery in the North Sea for a decade. The field contains between 250 million and 300 million barrels of oil equivalent, and production is set to start in 2019, and run for 13 years. Production is expected to plateau at 60,000 to 90,000 boe/d – around 5% of Britain’s demand come 2021.

Finally, the EIA’s monthly petroleum supply report out today is set to highlight the below revisions to U.S. oil production for January through May. June’s number is at 9.3 million barrels per day (b/d), a decrease of approximately 100,000 b/d from the revised May 2015 figure.

The reason for the revisions is due to the EIA trying to improve its accuracy. Previous estimates of have been based on tax information and other production data obtained directly from state agencies, while the new estimates incorporate survey-based methodologies also.

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News