• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 9 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 hours China goes against US natural gas
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 9 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 3 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 day Why hydrogen economics does not work
Shale Profits Remain Elusive

Shale Profits Remain Elusive

Despite higher oil prices, U.S…

Venezuela’s Key Refineries At Risk Of Seizure

Venezuela’s Key Refineries At Risk Of Seizure

A decade ago, analysts suggested…

Eni CEO: Oil Market May Need Regulation As Speculators Rule

Barrels

Faced with a wave of speculation on crude futures and shares of oil majors, the oil market could probably benefit from adopting regulation the way banks are regulated, the chief executive of Italy’s major Eni, Claudio Descalzi, told Italian business daily Il Sole 24 Ore in an interview published on Saturday.  

Not only rising U.S. supply and geopolitical tensions are weighing on oil prices; there is also unprecedented speculation on futures and shares, which is depressing prices, the manager noted.

Therefore, it could make sense to adopt some form of market control, Descalzi said, adding that OPEC was a kind of regulator in the past, but it no longer plays the role it used to play.

In addition, Descalzi doesn’t believe that it’s possible for OPEC to prop up prices with further cuts, and he doesn’t believe that countries like Saudi Arabia can act unilaterally with consistent production cuts, the manager said in the interview which was also linked to on Eni’s website.

Asked about what his expectations of the ongoing OPEC/non-OPEC monitoring committee meeting in Russia were, Descalzi said he was not optimistic that there would be an agreement on new production cuts to lift the price of oil.

The oil market is in a difficult situation—there is less confidence even by institutional investors who are usually long on oil, the manager added. Even long-term investors have become shorters, and hedge funds and speculators have been given more room to act. Probably they don’t believe that OPEC is capable of taking radical initiatives as it has done in the past, Descalzi told Il Sole 24 Ore.

The sentiment in the oil market has soured so much over the past two months that investors seem to be reacting to every piece of bearish news, and largely ignoring bullish signs from the industry. Money managers had piled up a record number of short positions, amassing 510 million barrels in the major contracts on Brent, WTI, U.S. gasoline, and U.S. heating oil on June 27.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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