• 17 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 19 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 21 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 22 hours Schlumberger Warns Of Moderating Investment In North America
  • 23 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 24 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Alt Text

Why U.S. Crude Exports Are Booming

U.S. crude oil exports are…

Alt Text

India’s Urban Explosion Boosts Oil Demand

As India sees incredible growth…

Alt Text

A New Oil Crisis Is Developing In The Middle East

As Iraqi-Kurds prepare to fight…

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

Oil Prices Fall From Fresh Highs As OPEC Talks Hit A Snag

Oil refinery

And it is Groundhog Day again, as the OPEC rumor-mill gets cranked up once more. Fortunately we get the welcome distraction of an inventory report tomorrow, while some respite follows that in the form of Thanksgiving. But for now, hark, here are five things to consider in oil markets today:

1) Looking for some sense in the current oil market kerfuffle, a seemingly timeless quote resonates from Ahmed Zaki Yamani, the Saudi oil minister from 1962 to 1986: 'in the short run, oil prices are determined by politics, in the long run, they are determined by economics'.

2) As an OPEC agreement is seemingly edging closer to becoming a reality, it is worth considering who relies most on the cartel for their crude.

The top five destinations of OPEC crude account for ~16 million barrels per day of deliveries. As we have discussed recently, U.S. imports of OPEC crude are up nearly 20 percent compared to year-ago levels, at an average of 3.2mn bpd - putting the U.S. in third place. But is the demand hubs of China and India that pull in more crude from the cartel; together they account for 7.4 million barrels per day, with China pulling in slightly more.

Japan is the fourth largest importer of OPEC crude, although volumes are flat on year-ago levels at 2.75mn bpd. South Korea is fifth, pulling in 2.45mn bpd, up 7.5 percent on year-ago levels. Eighty-eight countries have imported OPEC crude since the beginning of last year.

(Click to enlarge)

3) Our ClipperData below show U.S. LPG exports continue to show strength, rebounding from summer lows. Last week's LPG exports were a split of ~84 percent propane and ~16 percent butane, with volume boosted by the first export from Phillips 66' Freeport LPG terminal.

The first ever VLEC (Very Large Ethane Carrier) is on its way to Enterprise Product Partners' Morgan's Point terminal - the world's largest ethane export terminal. The VLEC is expected to arrive in the second week of December with a 48,600 MT cargo, after passing through the Panama Canal.

(Click to enlarge)

4) The chart below relates to the IEA's world energy outlook released last week, highlighting how global gasoline consumption is expected to level off from here, as growing emerging market demand is offset by an increase in electric vehicles. The IEA projects there will be more than 150 million electric vehicles by 2040. Related: Will We Ever See $100 Oil Again?

Although petroleum demand in transportation is projected to increase through to 2040, this is to come from the maritime, aviation and freight sectors - and their higher consumption of diesel, fuel oil and jet fuel. The petrochemicals sector is projected to be the leading source of demand growth over the coming decades.

(Click to enlarge)

5) Through to 2040, renewable energy is still expected to see the most growth in energy use for heating and electricity, than it is for transportation:



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