December 16, 2017

Plunging oil price pushes producers to the brink | The Week UK

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Plunging oil prices have stretched the finances of producer nations and pushed several to the brink of collapse, with little sign of a change in fortunes on the horizon. CNN Money reports that Russia’s rouble hit a six-month intraday low against the dollar on Monday before recovering slightly. The currency has dropped 44.8 per cent against the dollar in the last year and 12 per cent in the last month, contributing to rapant inflation which topped 16 per cent in July, and the oil price is at least partly responsible The economy is struggling with the effects of cheap oil, which…

Lifting Iran sanctions will drag oil prices down by $10 – World Bank — RT Business

Removing the sanctions against Iran over its nuclear program will have a considerable effect on Iran’s economy, the country’s trading partners and the global oil market, according to the World Bank. Experts forecast that oil prices will drop $10 per barrel in 2016. Iran’s return to the world market is expected to add 1 million barrels of oil a day to production, the World Bank said in its report Monday. While the increase will drag oil prices to new lows from the current $49 a barrel, it will also help Iran’s economy grow. The World Bank expects Iran’s economic growth to accelerate…

Nigerian President Denies Oil Savings Account to Be Depleted – Bloomberg Business

Nigerian President Muhammadu Buhari denied that the oil savings account will be depleted to pay government debts, including civil servants’ salaries. The government will use a $2.1 billion dividend paid into the Treasury by Nigeria LNG Ltd., Africa’s biggest producer of liquefied natural gas, to pay wages, Buhari’s spokesman, Femi Adesina, said Tuesday in an e-mailed statement from the capital, Abuja. Nigeria’s 36 states and local arms of the government will also be able to draw “soft loans” from the central bank and have some debt restructured, he said. The comments seek to clarify statements made by Nigeria’s Accountant General Ahmed Idris…

Forget The Noise: Oil Prices Won’t Crash Again | OilPrice.com

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Oil rising to $60/bbl is displeasing some people, particularly the shorts. Some of the more extreme –those calling for oil in the $20’s – have wisely fallen silent. Others, like Goldman Sachs, who a few months ago had set their flag in the 30’s, have unfortunately not gone so silent. They recently moved their flag into the 40’s but they continue to talk a lot. A better strategy – though one that would require some humility — would be to stop talking and listen. Recent and compounding data will soon wash away the walls of worry erected by the experts….

Prices retreat from 2015-highs

Dipping prices: oil prices fell in early trade but are on track for a weekly gain after touching 2015 highs in the previous session

Upstream Online Oil prices on Friday edged back from 2015-highs reached the session before, but remain on course for weekly gains after renewed air strikes in Yemen stoked concerns on the security of Middle East oil shipments. Crude prices have surged about $10 a barrel over the last month amid growing tension in the Middle East, with slowing US production growth and signs of stronger global demand also providing support. The spike in prices on Thursday came as warplanes from a Saudi-led coalition pounded Houthi militiamen and military bases with at least 20 air strikes throughout Yemen, residents said, despite…