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TonyPrep wrote:OilFinder2 wrote:in response to the fallback in oil prices
But oil prices are not falling back, unless you regard WTI, and Alaska North Slope, as the only grades of oil available for making US gasoline. Heck, even Louisiana Sweet is over $101 per barrel and Tapis is over $105 per barrel, spot prices. I can't see any overall fallback in prices and the WTI trend is a still unexplained phenomenon, relative to other grades.
TonyPrep wrote:Wow, that's a lot of grades of cheap oil, Oilfinder, but only in the US (and I wonder why it doesn't show the price of Louisiana Sweet, which is over $100/bbl).
OilFinder2 wrote:On the other hand, there are a lot of grades of oil which are priced at a discount to WTI, often by a large margin. Some examples in the US can be found in the chart on the right side of this link:
To me, the big question is whether Bakken oil shale, other oil shales, and all of the additional NGLs can really be made economic.
OilFinder2 wrote:The topic here was/is the US.
dolanbaker wrote:Below is an interesting chart that shows WTI & Brent tracking each other from 2008 until about the end of November 2010 at which point they diverge quite noticably.
Could it just be an indicator highlighting the fact that global demand is rising while US demand is falling, Posted elsewhere on peakoil.com is a report that China is temporarily replacing Australian coal with oil, could that be the cause?
Will we see the gap shrink when the Australian coal is back on line, or will this become the "new normal" as the west continues to decline and the BRIC's continue to grow.
http://www.livecharts.co.uk/daily_chart ... futures_wi
Could it just be an indicator highlighting the fact that global demand is rising while US demand is falling,
Valero, the largest independent US refiner, has admitted it had “underestimated” the price spread, saying WTI has “almost become irrelevant” as a benchmark. ... The problem for Cushing, known as the “pipeline crossroads of the world”, is that it has no major pipelines to evacuate oil beyond nearby refineries. So stocks in the town’s tanks have risen to a record 38.3m barrels. This glut will probably worsen when a new pipeline extension adds 155,000 barrels a day from Canada.
The trains are adding to the surplus. Drillers in North Dakota have used new technology to tap the oil-drenched Bakken geological formation. The state’s production has since reached a record 355,000 b/d in November, double the 2008 average. That bonanza has boosted oil supplies in the midwest region around Cushing to the highest in three decades, even as local refinery demand has remained roughly steady.
Daniel_Plainview wrote: the artificial stimulus provided by the US federal government is now wearing off, resulting in lower demand for crude
Daniel_Plainview wrote:Brent jumped past $108:
A glitch? An over-reaction to Mideast turmoil? We'll know more tomorrow (Tuesday) ... stay tuned ...
The Organization of Petroleum Exporting Countries will reduce oil shipments this month as demand for winter fuels in the northern hemisphere fades, according to tanker-tracker Oil Movements.
Loadings will slip to 23.79 million barrels a day in the four weeks to Feb. 26, down 0.6 percent from 23.94 million barrels a day in the period to Jan. 29, the tanker-tracker said today in a report. The data exclude Angola and Ecuador. It’s the first monthly decrease since the four weeks to Feb. 5.
OPEC said in a monthly report today that supply concerns that have pushed oil through $100 a barrel in London are “unfounded.” Brent traded around $101 today amid speculation unrest in Egypt may disrupt Middle East oil exports. Global crude demand will slide by 0.4 percent in the second quarter while refiners perform seasonal maintenance, according to OPEC.
OPEC’s oil exports fell 2 percent in December from a month earlier as Saudi Arabia, the world’s largest exporter, reported a decrease of 4.9 percent.
Total exports by the Organization of Petroleum Exporting Countries, excluding Algeria and the United Arab Emirates, fell by 387,000 barrels a day to 19.4 million barrels a day, the Joint Data Initiative website, which compiles data supplied by governments in an attempt to improve transparency, showed today.
Saudi Arabia’s exports fell to 6.05 million barrels a day in December from 6.36 million in November even as Saudi production rose to a two-year high of 8.37 million barrels a day, JODI said.
“This is a huge difference,” said John Sfakianakis, Chief Economist at Riyadh-based Banque Saudi Fransi, noting the 2.32 million barrel per day difference between what Saudi Arabia produced and its exports.
“It’s not clear if Saudi Arabia consumed the full 2.32 million barrels locally during that month, but what’s clear is that rise in local consumption is becoming eminent,” he said.
Angola plans to reduce daily crude oil exports by 13 percent in April from a month earlier, a preliminary loading program obtained by Bloomberg News shows.
Africa’s second-largest oil producer plans to ship 45.1 million barrels, or 1.50 million a day, down from 53.7 million, or 1.73 million a day, according to the program.
The April shipments comprise 47 crude cargoes versus a revised 56 for March. There will be eight Cabinda, four Dalia, seven Girassol, five Hungo, four Kissanje, three Kuito, two Mondo, seven Nemba, one Palanca, four Plutonio, and two Saxi shipments, the program shows.
Each Girassol and Plutonio cargo is 1 million barrels, Kuito 920,000 barrels and Palanca 985,000 barrles. The remaining cargoes are 950,000 barrels each.
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