• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 51 mins One Last Warning For The U.S. Shale Patch
  • 3 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 3 hours Chile Tests Floating Solar Farm
  • 2 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 10 hours Poll: Will Renewables Save the World?
  • 8 hours Modular Nuclear Reactors
  • 19 hours China's E-Buses Killing Diesel Demand
  • 19 hours Trump sells out his base to please Wallstreet and Oil industry
  • 15 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 1 day Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 1 day Read: OPEC THREATENED TO KILL US SHALE
  • 1 day Trump Tariffs On China Working
  • 1 day Biomass, Ethanol No Longer Green
  • 7 hours US-backed coup in Venezuela not so smooth
Oilfield Services Might Not Fully Recover Till 2025

Oilfield Services Might Not Fully Recover Till 2025

The global oilfield service sector’s…

Oil Is Set To Rise, But The Rally May Not Last

Oil Is Set To Rise, But The Rally May Not Last

The comparative crude oil inventories…

Will Oil Prices Sink Back To $30? OPEC Adds To Bearish Sentiment

Just when you thought it couldn't get any worse - amid supply gluts, production surges, market share scrambles, and demand disappointment - it does. OPEC this morning confirmed not only no change in the already weak global demand picture but the current oil inventory surplus is the largest in at least a decade. This has driven WTI prices down close to a $41 handle this morning (from over $48 a week ago) as simply put, there's too much oil and OPEC's grand strategy for solving this imbalance - pray for a colder winter...

Crude is down 7 of the last 9 days...

As Bloomberg reports, OPEC's new statement does not bode well for the short- or medium-term future...

Surplus oil inventories at highest level in at least a decade on increased global production, OPEC says in Monthly Oil Market report.

Related: How To Play A Potential Collapse In The HAL/BHI Merger

Stockpiles in developed economies 210m bbl higher than their 5-yr avg

Compares w/ 180m bbl overhang in 1Q 2009, which is only other occasion in past 10 yrs when inventory surplus has surpassed 150m bbl

Excess supply may be pared in coming months on slowing non-OPEC supply, rising demand for winter fuels

(...)

Non-OPEC supply to contract next year for 1st time since 2007; down 130k b/d to 57.11m b/d

OPEC keeps 2015, 2016 forecasts for global oil demand unchanged

And so here, in one simple chart, is why this will not end well... There's too much oil!!

Supply and demand growth so far in 2015...

Related: Will Floating Wind Farms Be A Panacea For UK's Energy Quagmire?



And OPEC's strategy to 'solve' this? Pray for a colder winter!!

The recent decline in oil prices has encouraged additional oil demand. It has also provided a challenging market environment for some higher-cost crude oil production, which has already shown a slowdown. Moreover, strategic oil reserves have grown as some countries – including China and India – have taken advantage of lower prices to add to their reserves, a trend that is likely to continue.

In addition, a colder- or longer-than-expected winter, as well as better-than-projected economic activities, could support incremental demand. This would help alleviate the current overhang and support a recovery of crude oil prices in the coming months.

By Zerohedge

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