26/02/2015
Naimi's comments revive oil markets
European Initiative for Energy: «OPEC» succeed ,, the market correct itself
Global oil markets reacted with Ali al-Naimi, Minister of Petroleum and Mineral Resources of Saudi yesterday, which he asserted that the markets calm now and demand is growing statements.
Global Brent crude rose to around $ 59 a barrel after the statements, as prices received support from data showed that the production of Chinese factories came higher than expected.
He said to "economic", oils specialists the market received with satisfaction the statements that they considered such a reassuring message to the market.
He pointed to "economic," said Dr. Philip Depeche President of the European-Mediterranean Energy Initiative, that Ali al-Naimi's comments that oil demand is growing and the market is now quiet, strong statements carried a message of reassurance to the market and reflected the "OPEC" trust mechanism for crisis management.
According to Depeche, that the price swing is a natural phenomenon and return prices to rise confirms that the market is recovering and that what I expected OPEC is true that the market will correct itself, adding that the picture is clear day after day about the growing pressure on oil shale producers and gradually withdraw from the market for their inability to adapt tolow levels of prices.
He Depeche said the announcement of the company "Chevron", a giant oil and gas for the US decision to abandon plans to explore oil shale in Romania, ending the efforts in Europe to explore for oil shale resources as it did other companies.
Depeche pointed out that the state of frustration now dominate the shale oil producers because of the weakness of their ability to continue explaining that "Chevron" confirmed in a statement that its plans for the discovery of oil shale in Romania do not have economic benefit at the moment and therefore the company abandoned drilling concessions in the country,What comes after less than a month after the withdrawal of "Chevron" investments in shale gas discovery in Poland also for a similar reason.
The President of the European Initiative Mediterranean energy, that many of the countries in Eastern Europe was held hopes and wide on the development of rock oil industry, which received a painful blow, according to estimate economists because of current market conditions and lower prices, which prevents the achievement of economic feasibility, noting that "Chevron"owns and operates more than a million and a half acres in the exploration areas to search for oil shale in northern Romania and south east of the country.
For his part, stressed the "economic," Ralph Valtman competent oil in the US Lexapro Foundation, the contraction of drilling rigs and the decline of shale oil production as well as labor strikes and rising inventories greatly affected negatively in the US production level, pointing to a reduction in the energy sector companies in North America budgets for 201530 per cent or about $ 50 billion compared to last year and that by the fall in oil prices.
Valtman "The City Report Bank" refers to the presence of sharp declines in the budgets of 66 companies operating in the energy sector in the United States during 2014 compared to the target budgets for these companies in the year 2015, explaining that, for example, reduced the "Goodrich Petroleum", spent the capitalistmore than 70 per cent.
Valtman predicted to witness the coming period, the continued improvement in crude oil prices and to restore some of the earlier losses, but it is difficult to return to the previous record levels over one hundred dollars referring to the report of the company, "Black Rock" confirms that the new technology pay the cost of production to decline and will lead to a permanent reduction in the cost ofpetroleum products.
He explained that the oil-consuming countries have not yet benefited optimally from the standard dips crude prices, and consumption especially the major states of India and China that accelerated to take advantage of low prices, which could add 1 per cent at least of GDP Indian alone.
He explained for "economic", Christian Honbur competent oil, that rising inventories was the main feature of last week, which contributed to the disabled relative to march improvements and price offset previous losses, because projections indicate rising inventories for the seventh consecutive week by 3.6 million barrels to total 429.3 millionbarrel.
Honbur added that the price of improvement yesterday was a direct motion of the success of the manufacturing sector in China out of the downturn that has become over the two months since grown to the highest pace in the last four months in a positive sign of the growth of demand in the second-largest oil consumer in the world and the largest oil consumer in Asia.
Honbur pointed out that the statistics and economic reports potential expects growing demand for oil in the next short period of time stressing the importance of the demand for oil in China will be more stable because of its role in the global oil market stability and balance between supply and demand.
In terms of prices, Brent crude oil and the US returned to the rise in global markets yesterday after declines limited precedent exceeded while continued OPEC crude basket price declining performance by volatility in the market.
Brent crude toward $ 59 a barrel yesterday, supported by better than expected data for the activity of Chinese factories and flexible attitude of the Federal Reserve (Fed) on interest rates and the approval of the euro zone on the reforms proposed by Greece.
But US crude fell after it closed down at the settlement for the fifth straight session yesterday due to larger than expected increase in oil inventories.
Brent rose 11 cents to $ 58.77 a barrel, while futures US crude fell 17 cents to $ 49.11 a barrel, |, China's manufacturing industry showed limited growth, according to the preliminary reading of the index HP.Feed.Me.C / Market purchasing managers, who rose to the highest level in four months, recording 50.1 in February, exceeding the level of difficulty of the fifty intervals between growth and contraction, while economists had expected a reading of 49.5.
He said Awski Sita sales of primary commodities in the "New - Edge Japan" director, it is good news because it means a potential for oil demand, but I think the market needs to see a more stable and established a Chinese request.
