Dec

11

Oil prices rise

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Oil rose towards $46 on Thursday after the International Energy Agency predicted a global growth in the oil demand and was expected to resume in 2009. Official sources say that the Saudi oil minister said OPEC’s top exporter pumped less oil than expected last month. World oil demand growth would return in 2009 after shrinking this year for the first time since 1983. The IEA, which advises 28 industrialized nations on energy policy, has stated this in its monthly report. The report also forecasts for supply outside OPEC next year.  

According to the latest reports U.S. crude was up $2.28 at $45.80 a barrel by 1427 GMT, after surging $1.45 to settle at $43.52 on Wednesday. European benchmark Brent crude was up $2.70 at $45.10. The IEA also predicts that the demand would grow in 2009 contrasts with that of the U.S. government’s Energy Information Administration, which forecast this week that consumption would fall by 450,000 barrels per day (bpd) next year.

Dec

6

Gulf Oil Countries in Better Position to Weather Crisis

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Gulf oil exporting countries are well-placed to weather a downturn in the global economy despite a nearly $100 a barrel drop in oil prices from record highs this summer, say reports issued by the Institute of International Finance (IIF).

The IIF is the world’s only global association of financial institutions and its members include most of the world’s largest commercial banks and investment banks. The Gulf oil states are becoming increasingly integrated into the global economy, not only through the trade of oil and natural gas around the globe, but also through their sovereign wealth funds that have invested trillions into both mature and emerging economies, revealed the IIF in its report.

Given the increasing financial integration of the Gulf Cooperation Council (GCC) with the rest of the world, the region is not escaping the fallout from the global financial turmoil.

 

Dec

3

Oil prices on the rise in Asia

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Oil prices have risen on Wednesday in Asia after hitting a three-year low overnight. Investors on the other hand are trying to gauge how much the slowing U.S. and Chinese economies will hurt in their demand for crude.

Light, sweet crude for January delivery was up 74 cents to $47.70 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell $2.32 overnight to settle at $46.96, after touching $46.82, the lowest level since hitting $46.20 intraday on May 20, 2005. Investors have been so far discouraged by China’s economy; the world’s fourth largest, may slow more than previously expected. Property prices in China have dipped leading analysts to expect a drop in construction, an important driver of Chinese growth.

In other Nymex trading, gasoline futures rose 0.57 cent to $1.06 a gallon. Heating oil gained 1.68 cents to $1.60 a gallon while natural gas for January delivery was steady at 6.42 per 1,000 cubic feet.

Jul

27

Oil rates decreases by $5 this week

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Crude oil sinks as new home sales considered as stronger consumer sentiment and falling demand in U.S.

Economic reports calmed nervous investors as the oil prices sank this Friday, by more than $5 this week. Drop in demand also pressured prices to fall reports says.

A survey from the University of Michigan revealed that, consumer sentiments had a boost by government’s economic stimulus package, and the prices fell as new home sales were stronger than expected last month according to government report.

Above reports indicates that the increase in orders for durable goods drive the investors away from oil which has been used as a hedge against economic downturn.

A senior market analyst with Alaron Trading in Chicago said “The investors bought oil because they were worried about the economy”.

The reports from The Dow industrials gave the investors a confidence after a sharp sell off on previous day, the gains were nearly 100 points on Friday morning trading and were still up about 40 points till midday, as investors invest their money in the stocks.

Due to high fuel prices in recent days demand has indeed declined, which in turns causes fall in oil prices as confirmed by reports.

As compared to last year the gasoline demand in the United States had fallen 2.4% from the same period as per a report released on Wednesday from an Energy Department. For the 13th week in a row a weekly survey of filling station credit card swipes from MasterCard recorded a declining demand.

Fall in demand in July is of a main concern as usually Americans use maximum fuel in summers. This helps to push prices down $24 a barrel from a record trading high of $147.27. And some investors fear that the U.S. demand decline may spread to other countries as well.

The tensions between the Western countries, Iran and militant attacks in Nigeria the largest oil producer, has been main concerns that drove oil prices to their record highs.