OPEC crude oil output is on course to reach its lowest since October 2011 this month as discontent in Libya, pipeline leaks in Nigeria and Iraqi export disruptions weigh on supplies, a Reuters survey found on Thursday.
A brief overview of oil price developments, supply and demand and significant market movers.
Reuters reported that crude oil futures slumped on Wednesday, diving more than $2 per barrel as rumors about a hedge fund being forced to sell out positions across commodities spread.
Bloomberg reported that a surge in United States oil production has led to the country’s biggest output level in over 2 decades, thus threatening OPEC dominance.
Reuters reported that Iran’s crude exports to Asia, which is its biggest customer, went down by a quarter in 2012 and shipments are expected to fall to at least 12% this year due to pressure from US sanctions.
Reuters reported that Brent-US crude oil rose to $112 a barrel on Monday, as a result of a stronger gasoline and diesel market, a weak U.S. dollar, as well as investors weighing in on a statement from Saudi Arabia, which disputed claims that the country has altered its output policy.
Bloomberg reported economist and energy consultant, Mohammad Al-Sabban, has said Saudi Arabia must review its $43B a year domestic subsidy bill.
Bloomberg reported that the United States is set to surpass Saudi Arabia as the world’s top oil producer, even if oil costs $60 a barrel, or $120. The country will see a boost in oil production due mostly to the oil companies’ use of shale formations to extract crude.
The Wall Street Journal reported that in a few years the United States may oust Saudi Arabia from its position as the world's top oil producer.
A brief overview of oil price developments, supply and demand and significant market movers.
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