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Oil after Opec expected to remain in $55-$60 range: QNB

Opec cuts have expedited the clearing of the global oil market, the key determinant of oil prices is shifting to US shale oil breakevens, which are expected to remain in the $55-60 range, QNB has said in an economic commentary. This, QNB said, keep oil prices at around this level in 2017. Oil markets have been in waiting mode during the early part of this year to see how effective Opec’s November agreement to cut production in 2017 would actually be. The first round of January data has now come ...

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Oil volatility migrates from flat prices to spreads: Kemp

“Volatility can be neither created nor destroyed, rather it transforms from one form into another,” is a pretty fair summary of how the oil market works (with apologies to physicists). The benchmark price of Brent crude has been unusually stable since the middle of December, but there has been plenty of movement in the futures strip and crack spreads. Hedge funds have amassed an unusually large net long position in crude futures and options betting on a further increase in benchmark prices, but the position has not yet yielded much ...

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US turns into ‘oil nation’ with record exports, ‘eating’ OPEC market share

The U.S. exported a record amount of crude oil, topping a million barrels a day for a second week and filling the gap in world markets created by OPEC cutbacks. Shale and other U.S. producers sent 1.2 million barrels of crude oil onto world markets last week, up nearly 200,000 barrels a day from the week earlier and about 350,000 barrels above the four-week average, according to Energy Information Administration data. Until recently, the U.S. was exporting about 500,000 barrels a day. “OPEC’s got a competitor. No doubt about it,” ...

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Mexico’s Pemex Jan crude output drops 10.6 pct from a year ago

Mexican national oil company Pemex produced 10.6 percent less crude oil in January than in the same month last year, the company said. January crude output averaged 2.02 million barrels per day (bpd), down from 2.26 million bpd during the same month in 2016, according to company data released on Friday. Meanwhile, crude oil exports were down 3 percent in January compared to the year-ago period. Shipments for the month averaged nearly 1.09 million bpd, compared to 1.12 million bpd exported in January 2016. About half of Mexico’s crude exports ...

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Canada energy sector sidelined as Big Oil chases fatter profits

Canada’s energy sector has fallen out of favour with international oil majors, who are scaling back ambitions and walking away from reserves in the ground there to focus on lower-cost and higher-margin opportunities elsewhere. Billion-dollar bets on Canada’s oil sands went sour this week for Exxon Mobil Corp (XOM.N) and Conoco Phillips (COP.N). Between them, the two companies erased from their books nearly 5 billion barrels of bitumen, the heavy, viscous oil found under Alberta’s boreal forest. This has wiped about $250 billion (200.56 billion pounds) worth of oil from ...

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America returns to the oil battlefield

US shale oil production could grow by 3.5million b/d to 2022… Many oil companies around the world have survived the price meltdown by bringing down breakeven costs in the last two years. But what parts of the world can grow output in the years ahead? According to BofA Merrill Lynch, US shale oil producers will come out ahead and deliver outsized market share gains by 2022. Shale oil output in the US may grow sequentially by 600 thousand b/d from 4Q16 to 4Q17 on increased activity in oil rigs and ...

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Canada’s Fading Oil Promise Leaves U.S. Majors Struggling

Oil-sands investments in Western Canada that gobbled tens of billions of dollars over the past decade are proving an Achilles heel for some of the world’s biggest energy producers. Exxon Mobil Corp. slashed proved reserves the most in its modern history after removing the entire $16 billion, 3.5-billion-barrel Kearl oil-sands project from its books on Wednesday. That followed ConocoPhillips’ announcement a day earlier that erased 1.15 billion oil-sands barrels, plunging its reserves to a 15-year low. While prolific shale plays in Texas and Oklahoma are going through an investment boom ...

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U.S. drillers add oil rigs for sixth week in a row – Baker Hughes

U.S. drillers added oil rigs for a sixth consecutive week, extending a nine-month recovery as shale producers ramp up spending to take advantage of a recovery in oil prices. Drillers added five oil rigs in the week to Feb. 24, bringing the total count up to 602, the most rigs since October 2015, energy services firm Baker Hughes Inc said on Friday. RIG-OL-USA-BHI During the same week a year ago, there were 400 active oil rigs. Since crude prices first topped $50 a barrel in May after recovering from 13-year ...

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Price of Iran’s heavy crude keeps rising

The rise in value of Iran’s heavy oil has demonstrated a new record high for the second consecutive week as it was traded at over $53 per barrel. Following the upward trend in crude oil prices in global markets, all credible indexed of Black Gold went through an upsurge in the transactions leading to February 17. Accordingly, OPEC oil basket price rose by 30 cents to reach $53.23 per barrel while the figure for America’s sweet gas (West Texas) increased by 32 cents to $53.02 and Brent crude oil was ...

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W. Africa Crude-Diffs for Angola’s Dalia hit record high on OPEC cuts

April loading cargoes of Angola’s heavy Dalia grade traded at record levels at small discounts to dated Brent. Traders said the offers firmed to premiums to dated Brent this week with ExxonMobil offering the grade at around dated Brent plus 10-20 cents a barrel. Dalia typically trades at steep discounts of $2-3 a barrel. OPEC cuts have reduced the abundance of heavy grades favoured by Chinese refiners, who are the big buyers of Angolan crude. State-owned Sonangol issued its April term allocations while little was heard on Nigerian April loading ...

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OPEC compliance seen growing as laggards Iraq and UAE pledge action

OPEC has so far surprised the market by showing record compliance with oil-output curbs and could do so further in coming months as the biggest laggards – the United Arab Emirates and Iraq – pledge to catch up quickly with their targets. The Organization of the Petroleum Exporting Countries has pledged to curb its production by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years, to boost prices and get rid of a supply glut. Compliance with output restrictions has often been problematic ...

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Bizarre Oil Trades Pose Menace for OPEC in Its Prized Market

OPEC pumped at will the past two years to defend its turf against rivals. Its recent volte-face has left it contending with additional threats in the world’s biggest oil market. Crude that’s rarely or never-before seen coming to Asia is now sailing from all over the globe to the region, with the door to the market seemingly held open by its traditional suppliers from the Middle East. Would a South Korean buyer like a taste of Russian Urals oil it hasn’t touched in a decade? Sure. What about some West ...

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Traders drain pricey U.S. oil storage as OPEC deal bites

Traders are turning the spigots to drain the priciest storage tanks holding U.S. crude stockpiles as strengthening markets make it unprofitable to store for future sale and cuts in global production open export opportunities. That could signal the beginning of the end for a two-year trade play that came about during an international price war and global oil glut. It is also what the world’s largest oil exporters wanted to see when they agreed last year to work together in a historic supply cut to end the glut. From Houston ...

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North Sea oil output jumps for second year

UK oil production rose for a second year in a row in 2016, increasing by 5% to 1.01 million b/d of oil equivalent, according to figures released Thursday, encouraging those who argue the North Sea industry still has life in it yet. For the full year, UK crude output increased by 3.2% to 914,000 b/d, while output of natural gas liquids rose 30% to 99,000 b/d, the government’s department for business, energy and industrial strategy said. “Following strong production in 2015, crude oil production from the North Sea has been ...

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Oil stocks are lagging, but analysts see a path to growth for some drillers

Energy stocks have been lagging the S&P 500, but some analysts see a path to growth for some well-positioned U.S. drillers. The energy sector managed to rally about half a percent on Thursday, but it’s still down about 6 percent this year. Meanwhile the S&P 500 has gained about 5.5 percent this year. For some, the disparity comes down to the belief that oil prices will remain stuck in a narrow range as OPEC continues to cut output and U.S. drillers increase production. That will cap the recovery for oil ...

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