• 2 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 5 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 7 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 8 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
Alt Text

A New Oil Crisis Is Developing In The Middle East

As Iraqi-Kurds prepare to fight…

Alt Text

Brazil Sees Oil Exports Soar

Latin America has seen significant…

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 Slammed By Bearish IEA Data And Strong Dollar

Oil drillers

The combination of a strong US dollar and a weak IEA report is clobbering crude today. As the market limbers up for tomorrow's EIA report, hark, here are five things to consider in oil markets today.

1) The release of the monthly IEA report has served to wop-bom-a-loo-mop-a-lomp-bam-wallop crude prices today, as it delivered a plethora of bearish prognostications. The agency revised demand growth lower for this year by 100,000 barrels per day to +1.3 million bpd, driven by 'wobbling' Asian demand, and falling consumption in Europe. (nice execution of the word 'wobbling').

Next year's oil demand growth was also revised lower, by 200,000 bpd to +1.2 million bpd. Given this expectation for easing growth, in combination with a rebound in non-OPEC supply next year, IEA sees a situation of oversupply persisting into 2017.

Oh, and OECD total inventories reached a new record of 3,111 million barrels in August.

2) While much focus remains on Saudi, Iraq and Iran, UAE has seen production reach a new record high last month at 3.09mn bpd, according to IEA (OPEC direct communications have it pegged at 3.15mn bpd).

As our ClipperData illustrate below, UAE consistently exports ~2.6 million bpd, with three key grades - Murban, Upper Zakum and Das - all light sour crude. The vastedly vast majority of these crude exports head to Asia, with Japan the leading destination by a country mile.

(Click to enlarge)

3) Just when things were looking glum for the Chinese economy, we get a solid bout of better-than-expected economic data overnight from the Asian powerhouse. Not only did industrial production rebound to a 5-month high at +6.3 percent YoY, but retail sales rose +10.3 percent YoY, and fixed asset investment ticked held at +8.1 percent YoY for August.

4) The chart below is from EIA, showing drilled but uncompleted wells (DUCs) at the end of August totaled 4,117 for the four key U.S. shale plays. While DUCs rose through 2014 and 2015, we have seen them decline since last December, declining by about 400 over the last 5 months. Related: Is This Oil Rich Iraqi Province About To Split Off?

(Click to enlarge)

5) Finally, UK day-ahead power prices have seen the most epic of price swings in recent days, turning negative on Sunday amid strong wind power and low weekend demand.

The next day, however, the combination of the lowest wind generation in over two weeks and warmer weather spiked prices to their highest level in nearly three-and-a-half years. Makes volatility in the crude complex look rather tame, doesn't it?

(Click to enlarge)

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