• 4 minutes Will Libya Ever Recover?
  • 9 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 minutes What Can Bring Oil Down to $20?
  • 16 minutes Venezuela continues to sink in misery
  • 22 hours Alberta govt to construct another WCS processing refinery
  • 9 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 13 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 24 hours Let's Just Block the Sun, Shall We?
  • 15 hours Water. The new oil?
  • 10 hours Storage will in time change the landscape for electricity
  • 2 days U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 mins Anti-pipeline activism isn't generating more investment in renewable energy
  • 2 days Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days OPEC Cuts Deep to Save Cartel
  • 13 hours Regular Gas dropped to $2.21 per gallon today

Global Energy Advisory – 24th July 2015

Oil Market Update

Oil entered another bear market with prices down 20 percent since their June highs. Everywhere you look there are reasons to feel pessimistic. Iranian crude could come back online, adding around half a million barrels per day in production later this year or next. Iran will also sell off about 40 supertanker’s worth of crude sitting in storage.

But Iraq could pose another conundrum for oil markets. According to Deutsche Bank, Iraq’s oil output hit 4.1 million barrels per day in June, a surge from around 3.8 million barrels per day month earlier. Amid all the violence and instability, Iraq continues to post impressive gains in production.

Saudi Arabia also lifted output by 230,000 barrels per day in June, to a record high.

“On current trajectory, this downturn could become worse than 1986,” Martijn Rats, head of European oil and gas equity research at Morgan Stanley, wrote in an investor’s note this week. The depths of the current oil bust have surprised the investment bank. “We have been expecting the current downturn to be as severe as the one in 1986 – the worst for at least 45 years – but not worse than that.”

U.S. oil production is taking longer to adjust than many anticipated, although debt is piling up throughout the industry.

All of this points to the possibility of deeper cuts to capital spending plans for the oil sector. “Oil companies are hunkering down…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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