(OurFiniteWorld.com) The traditional understanding of supply and demand works in some limited cases–will a manufacturer make red dresses or blue dresses? The manufacturer’s choice doesn’t make much difference to the economic system as a whole, except perhaps in the amount of red and blue dye sold, so it is easy to accommodate.
(Wall Street Journal) After hitting a five-year high in 2015, the global growth in demand for oil is expected to fall by about a third next year, adding further strain to an already oversupplied crude market.
(RigZone.com) While hopes for a reversal in oil prices may have faded just after mid-August when U.S. crude oil futures slipped to a six-and-a half year low, the battered petroleum industry continues to plod along in its search for ways to steer through these difficult times.
(Bloomberg) After a year suffering the economic consequences of the oil price slump, OPEC is finally on the cusp of choking off growth in U.S. crude output.
(Wall Street Journal) The U.S. energy trade has been in the news often recently, with questions such as whether industry will be allowed to send oil overseas or import it via a certain pipeline from Canada. Seemingly forgotten is the historic milestone that will occur early next year when a tanker for the first time ever sets sail from the U.S. lower 48 to deliver liquefied natural gas (LNG) to the global market.
(Oil & Gas Journal) World oil demand growth is forecast to ease closer to a long-term trend of 1.2 million b/d in 2016 as supportive factors that have recently fueled consumption—such as post-recessionary bounces in some countries and sharply falling crude oil prices—are expected to fade, noted the International Energy Agency in its monthly Oil Market Report for November.
(NY Times) Houston— Such is the state of the oil industry these days that there is sometimes nowhere to put the oil. Off the coast of Texas, a line of roughly 40 tankers has formed, waiting to unload their crude or, in some cases, for a willing buyer to come along. Similar scenes are playing out off the coasts of Singapore and China and in the Persian Gulf.
(The Fuse) “I believe we may not see $100 (oil) ever again,” said Vitol’s Ian Taylor last week in London. His rationale for making such a prediction is the belief that global oil demand will peak in the medium term.
(oilprice.com) The rebound in oil prices is still not here, and new data suggests that it will take some more time before the markets start to balance out.
Global supplies are still too large to justify a significant rally in oil prices. The latest indicator that the glut of oil has yet to ease comes from the FT, which concludes that there is 100 million barrels of oil sitting in oil tankers. Oil has piled up in tankers that are floating at sea, as onshore storage space begins to dwindle.
(UPI) Federal review expects most of the lucrative shale basins in the United States are expected to post declines in crude oil production. File photo by Gary C. Caskey/UPI WASHINGTON, Nov. 10 (UPI) — Only the Permian shale basin in the southern United States is expected to record a year-on-year increase in oil production, federal data show.
