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

Subscribe to our free daily newsletters

Oil rally fizzles on OPEC doubts
by Daniel J. Graeber
Washington (UPI) Jul 5, 2017

Pessimism over the appetite of some major oil producers to work hard to balance the market with deeper cuts pushed oil prices lower in early Wednesday trading.

Crude oil prices entered July in the midst of one of the stronger surges in five years after reports last week showed a decline in U.S. crude oil production and a move backward for North American rig counts.

U.S. shale oil production has proven more resilient to lower crude oil prices than initially expected, though oil prices touched historic lows in June and suppressed some of the appetite for spending in the American oil market.

Higher U.S. output, coupled with the previous OPEC policy to defend a market share with production growth, brought an end to $100 per barrel oil roughly three years ago. OPEC in January helped establish a $50 per barrel floor under oil when it implemented an effort to balance the market with managed production declines.

A report emailed from London oil broker PVM said OPEC crude oil exports were higher by about half a million barrels per day in June compared with May. That comes as Russian government officials told Bloomberg News there's little appetite for deeper production cuts.

Crude oil prices declined in late May when parties to the agreement decided to extend, rather than intensify, the terms of the arrangement. The price for Brent crude oil was down 0.83 percent at 9:15 EDT to $49.27 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was down 1 percent to $46.60 per barrel.

Broader markets shrugged off the recent missile test from North Korea, which now says U.S. territory is within striking distance. Energy markets, however, could be under pressure because of the lingering row between Qatar and its Persian Gulf allies.

Qatari officials are using a forum hosted by London think tank Chatham House to outline their response to allegations of supporting terrorism. A report last week from RBC Capital Markets said that, given the number of oil and gas players involved in the spat, it's a crisis that energy markets can't ignore.

Danish investor SaxoBank lowered its year-end forecast for Brent crude oil by about 8 percent, saying OPEC is running out of time to push oil beyond the $50 mark. By early 2018, the formal OPEC-led arrangement ends and opens up markets for additional supply-side strains.

China taps 'combustible ice' for growing energy needs
Beijing (AFP) July 2, 2017
China is drilling deep into the ocean floor in the hope of tapping vast deposits of a frozen fossil fuel known as "combustible ice" but it will be years before it is part of the global energy mix. Gas hydrates are found in the seabed as well as beneath permafrost but experts say extracting methane from the ice crystals is technologically challenging and expensive. Energy-guzzling China, ... 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

Solving a sweet problem for renewable biofuels and chemicals

Cellulosic biofuels can benefit the environment if managed correctly

Biofuel from waste

Cheap, energy-efficient and clean reaction to make chemical feedstock

Environmental groups say G20 paying lip service to clean energy

The Last Day of Net-Metering Brings Memories of Fighting for Every Solar Watt

Air pollution casts shadow over solar energy production

ABB microgrid to power Aruba and support transition to renewable energy

Thrive Renewables delivers mezzanine funded wind farms in Scotland

It's a breeze: How to harness the power of the wind

ADB: Asia-Pacific growth tied to renewables

GE Energy Financial Services Surpasses $15 Billion in Renewable Energy Investments

Sixth MOX nuclear shipment leaves France for Japan

UK nuclear plant to cost consumers billions more

Toshiba delays results again citing US nuclear unit

AREVA obtains transport license for its new cask in France and Belgium

EU girds for stormy G20, climate battle with Trump

Trump 'proud' of leaving Paris climate deal

EU 'more determined' than ever to fight climate change: Merkel

Global companies pledge transparency on climate risk

Baidu CEO's self-driving car stunt stumps police: media

Volvo to phase out petrol-only cars from 2019

China starts regulating bike-sharing as complaints soar

China police probe funding of 'traffic-straddling' bus

Iraq battles last few hundred jihadists in Old Mosul

Tougher fighting, more suicide attacks as IS hits back in Mosul

Mosul victory in 'days' as IS falls back in Syria

Gunfire cuts short celebrations at recaptured Mosul mosque

South Korean president lobbies US leaders on North Korea policy

S. Korea to offer North treaty for denuclearisation: minister

Poland to transfer Soviet relics to nuclear weapons bunker

US sanctions Chinese bank for laundering N.Korean cash

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