by Daniel J. Graeber
Washington (UPI) Sep 11, 2017
Some of the metrics gauging the health of the Norwegian economy were pulled higher by higher prices for crude oil and related products, the government said.
Norway is one of the top oil and gas producing nations in the world. It designates nearly all of its offshore oil and gas production for exports to the European market, putting it behind Russia as a top regional supplier.
Statistics Norway, the country's record-keeping agency, said the producer price index from July to August improved by 0.4 percent, reversing a trend for the previous five months.
"Higher prices on crude oil, petroleum products and extraction services were the main contributors for the rise," the agency said in a statement.
The PPI for July was pulled down by lower natural gas prices and the agency said that trend was still weighing on the index for August. The index for services related to the extraction, part of the upstream sector, increased by 3.3 percent, the second month in a row for a gain. The consecutive PPI gain in the upstream sector was the first time for Norway since 2015.
PPI can serve as an indicator of inflation, which could be good for consumer spending and corporate profits if it's low and a signal an over-heated economy if it's too high.
In minutes published from its June meeting, the Norwegian Central Bank said in August the economy was underperforming.
"The executive board judges that there is a continued need for an expansionary monetary policy. Interest rates abroad are low," it said. "Capacity utilization in the Norwegian economy is still below a normal level, and the outlook suggests that inflation will range between 1 percent and 2 percent in the coming years."
Last month, Statistics Norway said prices for the oil and gas services sector had been moving lower for the last two years, dropping 20 percent between July 2016 and July 2017. Since 2014, oil prices have been low by historic standards and prices related to new services contracts are down as a result.
The price for Brent crude oil, the global benchmark, was trading near $53.75 per barrel early Monday, up about $6 per barrel from this time last year, but $42 per barrel lower than for 2014.
The Norwegian Petroleum Directorate, the nation's energy regulator, said preliminary figures for July show total average daily production of oil, natural gas liquids and condensate, an ultra-light form of oil, was 2 million barrels, an increase of 93,000 bpd from the previous month.
Washington (UPI) Sep 11, 2017
An effort to raise up to $4.8 million to help fund drilling operations at a reservoir in Cuba fell well short of its goal, Melbana Energy Ltd. said. Melbana is one of the few Western companies, and the only one listed on Australia's stock exchange, with an established footprint in Cuba. It initiated a push last month to raise capital for its preliminary efforts and said that through the ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|