Subscribe to our free daily newsletters
  Oil and Gas News from OilGasDaily.Com  

Subscribe to our free daily newsletters

Oil prices inch lower after Monday's massive rally
by Daniel J. Graeber
Washington (UPI) Nov 7, 2017

Crude oil prices lingered slightly in negative territory in early Tuesday trading after OPEC said it saw demand increasing, but some deceleration ahead.

Economists at the Organization of Petroleum Exporting Countries painted a mixed picture on long-term trends in the energy market, but noted some of the shift is coming from an Asian pivot for economic growth. Short-term demand for oil, through 2022, was revised higher by 2.24 million barrels per day, compared with the organization's World Oil Outlook from last year.

"Global oil demand growth is forecast to decelerate steadily to a level of only 300,000 barrels per day every year between 2035 and 2040," the report added.

Crude oil prices were relatively muted in early Tuesday trading. A rally Monday was triggered by lingering geopolitical uncertainty in the Middle East. Tensions between Saudi Arabia and Lebanon are intensifying, and Riyadh is in the midst of a major crackdown that has spooked some investors.

The price for Brent crude oil was down 0.28 percent to $64.09 per barrel as of 9:20 a.m. EST. West Texas Intermediate, the U.S. benchmark for the price of oil, was down 0.17 percent to $57.25 per barrel.

OPEC economists said they lowered their long-term forecast in part because of an expected decline in the global economy, structural shifts and "fuel switching, particularly in the road transportation sector."

The fuel switching reflects trends toward electric and alternative vehicles, which still make up for a small fraction of the global transportation fleet. OPEC economists said alternative-fuel vehicles made up about 2 percent of the market last year and will increase to 16 percent by 2040.

Through 2022, demand accelerates, but the pace of growth wanes as the decade draws to an end.

"It should be noted that global annual demand growth decelerates from 1.45 million barrels per day in 2017 to 810,000 barrels per day in 2022, as expected higher oil prices, efficiency improvements, lower population growth rates in the OECD and China, and the further penetration of alternative fuel vehicles limit growth potential," economists said.

Traders may be erring on the side of caution and taking a short-term approach to the market ahead of data on U.S. oil and gasoline inventories. A survey of analysts from commodity pricing group S&P Global Platts found crude oil stocks may decline in the United States by another 2.7 million barrels, while gasoline stocks could drop 2.25 million barrels.

"If confirmed, it would mark the sixth draw in the last seven weeks, and further narrow the surplus to the five-year average, which equaled 14.6 percent in the week ended October 27, down from 25 percent in mid-September," the emailed market report read.

The surplus matters for OPEC, which is working to drain the excess with managed production declines. Ministers are widely expected to call for an extension of an agreement to trim output through the end of 2018, though recent geopolitical tensions could make reaching a comprehensive decision complicated.

Saudi Arabia seals Yemen borders, accuses Iran over missile strike
Riyadh (AFP) Nov 6, 2017
The Saudi-led coalition battling Shiite Huthi rebels in Yemen closed the country's air, sea and land borders Monday and accused Iran of being behind a weekend missile attack on Riyadh, saying it "may amount to an act of war". Saudi Arabia intercepted and destroyed the ballistic missile, which was launched from Yemen as rebels appeared to escalate hostilities, near Riyadh's international airp ... read more

Related Links
All About Oil and Gas News at

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Study identifies additional hurdle to widespread planting of bioenergy crops

Penn researchers mimic giant clams to enhance the production of biofuel

Research aims to help renewable jet fuel take flight

Expanding Brazilian sugarcane could dent global CO2 emissions

OMCO Solar expands to met demand for field-fast racking systems

No tariffs, U.S. solar industry leaders say

European lender closer to green finance goals

US renewable energy booms despite Trump vow to quit Paris deal

New York sets high bar for wind energy

Construction to begin on $160 million Industry Leading Hybrid Renewable Energy Project

A kite that might fly

Scotland outreach to Canada yields wind energy investment

Rutgers-led research could revolutionize nuclear waste reprocessing and save money

Bulgaria extends life of Soviet-era nuclear reactor

South Korea to push ahead with nuclear power plants

AREVA NP awarded contract for safety upgrades in seven reactors

Shortfall in climate action is 'catastrophic': UN

Tiny chip-based methane spectrometer could help reduce greenhouse gas emissions

At climate talks, it's America alone more than America first

A drier south: Europe's drought trends match climate change projections

UK car sales skid in October: industry body

Sandia improving fuel economy, reducing emissions using optical diagnostics

Texas applauds free-market move on electric vehicles

Tesla slides on murky outlook for fixing Model 3 production woes

Iraq to hold parliamentary election in May: PM

IS executed 741 civilians during Mosul battle: UN

Iraqi forces advance to edge of final IS bastion Al-Qaim

Saudi Airlines to operate first Baghdad flight in 27 years

N. Korea slams 'incurably mentally deranged' Trump

South Korea will not develop nuclear weapons: president

Putin visits Tehran for talks on Syria, nuclear deal

EU, Japan ask UN to condemn N. Korea over rights abuses

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

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