15/01/2015
Exploration companies have begun to abandon new projects to expand the fields or building platforms
shrinking US shale oil production boosts hopes for a rebound in crude prices
Waveof decline in oil crudepricesfellandcontinuedat an accelerated pace, despitethe issuance ofUS reportsexpectbetter pricesinthe light of theshrinkingof shaleoil production,whileVenezuelaandAlgeriaarestillpressuringin the direction ofreducing theproduction of "OPEC" to improveprices.
And the US governmentrenewedassurancesthat it expectsto growoil productionin the United Statesin 2016by 2.2per centat the slowest paceof its kindin years,hopes ofturning pointaftershockofhigheroil prices,with theshrinkingof shaleoil productionin the country's boomingsincefiveyears.
He saidto "economic"oiland businessmanwho lives inVienna,"Themystery stillsurroundsthe future ofoil pricesin the new yearamid concernineconomic circlesofthe continuingwave ofsharp declinesresulting from the increaseespecially fromUSshaleoilsupply," theUnited Stateshas surprisedobserversreportconfirms theimprovement inprices, withthe expectation thatthe price ofa barrel of oilthis yearwill beat the level of$ 58 a barrelandthe price will risein thenext yearin 2016to$ 75 a barrel.
Hestressedthat the USreports ofgrowingproductionand the possibility ofbetter pricescontrastswithestimates of theEnergy Information Agencyindicate thatan Americanexplorationcompanies have begunto abandonnew projectsto expand thefieldsorbuildingplatforms.
HeYexplained that theoil investmentsin the United Statesis facing majordifficulties inthe light of currentcircumstances,referring toreports thatthe USoil companieswould give upsome of theproductionofshaleoil,due to the highcost of productioncompared tothe market price,it is known thatthe economic viability ofsome of the companiesstands at40dollars per barrellessthan thatforcedcompaniesto stopproductionto stop thelosses.
According tothe ythere isa remarkable developmentin the oil marketis graduallytaking shapefeatureswheremany companiesresortto directproduction tostoragein anticipation of thehighlevel of demandand the growingconsumptionandpricesand thendischargethe stockand sella goodandsuitablefor operationateconomicimprovement.
HeYhe alsopointed outthat the state ofanticipation andanxietyin the marketis still ongoingdue to growingconcerns about theweak globaldemand,andboosteditfromOPEC, whichadheresto rejectthe idea ofreducing productionto supportoil pricesdatawhich confirmsthat thewaveof pricedeclineswill continuefor some time.
It is noteworthy thatUS Energy Information Administrationhas stressed inthe firstforecastfor next yearthatoil productionin the United Stateswill riseabout 200thousand barrels per dayto9.5 millionbarrels per dayin 2016.This representsan increaseoflesskindsince 2011.
Managementhas keptits estimatesfor 2015, an increase of720thousand barrels per dayto about9.3 millionbarrels per day.Productionroseto9.13 millionbarrels per dayat the end of2014.
Theadministration raised thestatisticalofthe US Department ofEnergyestimatesforgrowthin global oil demandin2015andexpectsthat thisdemandup to93.42 millionbarrels per dayin2016, up1.01 millionbpd fromits forecast for2015.
Managementexpectsoil prices toremain weakthis year andare tradedglobalBrent crudeat$ 58 a barrelin2015andat $75in2016.
In addition to theslowdown inproductivity growthin the United StatesEnergy Information Administrationpredicts thatcrude oil productionfromOPEC countriesremain stablein2015anddown0.3 millionbarrels per dayin2016.
He saysfor "economic"Dr.Christophelitlehead ofthe AustrianEconomic Chamber, said that theacceleration ofgrowth inoil-consuming countrieshas becomean importantandurgentbecause theeconomic conditionsmore favorablethan ever before,pointingtoa report by theEconomic and Social Commissionfor Asiaand the Pacificconfirms that thedecline in oil pricesglobalwill increaseeconomic growth inoil-importing countriesin theAsia-Pacific regionin2015by up to0.5 per cent.
Forproducerstoputhestressed the importance ofcommunication thatledVenezuelawithOPEC countriesandtop producersfrom outside the"OPEC"especiallyRussia, referring to theprospectivemeeting betweenRussian President Vladimir Putinandhis Venezuelan counterpartNicolas Maduroto discuss theoilprice crisis.
President of theAustrianEconomic Chamber, saidthat bothRussiaandVenezuela's economymainlydepends on theexport of crudeoil, whichhit its lowestlevelsinsix previousyears, which promptedfurthercommunication and cooperation,especiallybetween affectedcountriessignificantlyto effectivemechanismsto rescue theeconomies of both countries.
He also calledfora litletocooperation and coordinationare alsoamong theproducersinOPEC, whereit is known thatVenezuelaandAlgeriawedded tothe idea ofreducing theOrganizationproduction,pointingtonewunderstandingsbegan to emergeafter a tourof Venezuelan PresidentinOPEC countries,wherewe find that itannouncedinAlgeriaexclusion ofa summitof the Organization ofPetroleum Exportingin the coming weeksto try to stopthe collapse ofoil prices,also revealed thatthe failure to reachconsensuson the initiativepresented byhis countryalong withAlgeria.
For its part,indicatedyenBeachVietnamese analyst,tothecontinued decline inoil pricesto record levelsoverthe pressuresand burdenson many of theproducing countriesand makespushing hardin the direction ofreducingproductionin the hope ofbetter prices,adding that"the Gulf statesare-withoutthe factorleastaffecteddueprecautionsand financialsurpluses andcan affordthe price ofa barrel of oileven$ 20, "according toofficial statementsof senior officials, but it iseven worseon the economies ofAlgeria, Iran, Venezuela andRussia, whereacollapse in oil pricesto less than$ 50 a barrelasan economic disasterandthe burdens ofgraveontheir balance sheets.
Shesaidfor "economic"that the lowoil pricesinAlgeriacaused, for example,inforeign currencyreservesfellworthten billion dollarsin six months, having achieveda continuous risein a decade,at a time whenAlgeriaurgingOPECconstantlyto reduceoil productionIn order tostop the deterioration ofpricesof crudeand the defense ofthe proceedsof Member States.
At the level ofprices,oil pricesyesterdayfell1 per centafter the World Bankcutits forecastfor economic growthtocontinuethe wave ofthe lossescame downwith crudein the previous sessionto its lowest levelinnearly six years.
Theexposureof oiland other commoditiesunder pressureafter the World Bankcutits forecastfor global growth, thereby strengthening thefears ofweakeconomic performanceinthe time thatmarketsare sufferingfroma glutof crudesupply.
Kaushik Basusaidthe bank's chief economist, "The global economyis workingengine andoneis an Americanengine andthisdoes not allowthe expectations ofrosyfor the world.
Thedecline inthe price ofBrent crude fordeliveryFebruary55cents to $46.04a barrel, whilerawlogWest Texas Intermediateto $45.29, down60 cents.
MichaelMcCarthy,a senior analystwith the"CMC Markets"in Sydney andpointed outthat there is aclear deteriorationinsentimenttowardsindustrial goods andI thinkthat this mightspread tooil.
Adaily reportof the Organizationof Petroleum Exporting Countries"OPEC" yesterday"Thebasket price, which includes12Member Statesreturned tosharp declinesin excess oftwo dollars a dayto losebasketballsince the beginning ofthe new yearto $11intwo weeks, wheretheyhave been registeredat the close oftradingin 2014the value of52dollars per barrel.
US crude oilfellyesterdayahead ofthe report ofthe IAEAonstocksand production of oilin the United Statesfell, Brent crudefor the fourth consecutivedayon expectationsabundantglobal suppliesduring the firsthalf of this year,andtradingUS crudeandBrent crudeatparity$ 45 a barrelfor the firsttime in threemonths.
Yesterday morning,US crude oiltradingaround $45.30a barrel fromthe openinglevelof $46.09andrecorded the highest levelof $46.36and a lowlevelof $45.11.
AndBrent crudetradedat around $45.65a barrel fromthe openinglevelof $46.75andrecorded the highest levelof $46.92and a lowlevelof $45.58.
