OPEC's decision to maintain oil production despite falling prices may press U.S. producers to increase pressure on Washington to end its long-standing crude export ban by arguing the move would keep production high even if prices continue to fall, Reuters reports.
Pioneer Natural Resources Chief Executive Scott Sheffield, whose firm is one of two to get a federal green light to export lightly-processed oil condensates, on Tuesday called on the Commerce Department to approve all pending export applications.
Such an approval would push back by up to 18 months the coming problem of domestic light crude production exceeding U.S. refining capacity, he said at a forum hosted by the Aspen Institute in Washington.
After the International Energy Agency scaled back its forecast for 2014 oil demand growth, Brent crude fell $2.65 to settle at $86.24 per barrel while U.S. crude dropped $2.68 a barrel to a $83.06 close, Reuters reports.
Saudi Arabian Prince al-Waleed bin Talal publicly disputed comments from Oil Minister Ali al-Naimi that downplayed the impact of tumbling oil prices on the Saudi economy, citing the government's high budgetary reliance on oil revenue, The Wall Street Journal reports.
The International Energy Agency said OPEC's decision to maintain oil production amid falling prices and slumping demand will challenge Canada and the U.S. by continuing to test the price at which shale oil production remains profitable, Bloomberg reports.
West Texas Intermediate continued its decline from a 22-month low close of $85.74 per barrel yesterday, falling as low as $84.64 in electronic trading in response to International Energy Agency forecasts suggesting slower oil demand growth, Bloomberg reports.
For those hoping the Energy Information Administration will make a definitive case for or against the U.S. oil exports ban, this weekend was a letdown.
EIA's study for the Obama administration on the tie between oil exports and gasoline prices is almost done, and the preliminary numbers don't show a strong link, Administrator Adam Sieminski said Sunday on the Platts Energy Week program.
That's not the news either side of the debate wants to hear. They alternatively contend that lifting the ban would drive gasoline prices down or up. But a finding of little impact takes some of the sting out of both arguments, in a fight that may not be resolved anytime soon.
U.S. stock indexes sank in late trading Monday, led by decline in energy stocks and the price of oil falls further.
The market is coming off a turbulent week during which it was shaken by concerns over shaky global growth prospects. Investors were also looking ahead to earnings news from a number of big companies later this week including General Electric, Intel and Bank of America.
NEW YORK (AP) — If you're a driver, a shipper or an airline, low oil prices sure feel nice. But there are downsides to the recent plunge in oil prices — for the oil industry and for the economy.
Low fuel prices can help boost economic growth by reducing fuel bills and leaving consumers and companies with more money to spend on other things. Problem is, two factors behind the oil-price drop — a weaker global economy and a stronger dollar — could hurt the U.S. economy by reducing exports, employment and spending. And all that, in turn, could outweigh the economic benefit of cheaper fuel.
Prices for Brent crude for November fell 1.5 percent Monday to settle at $88.89 per barrel after dropping to $87.74 per barrel midday, the lowest front-month price since December 2010, Reuters reports. U.S. crude ended at $85.74, down 8 cents.
A senior official with the American Council for Capital Formation, which is funding “Unlock Crude Exports,” a new push to repeal the ban on shipping U.S. crude overseas, says doing so would allow the country to take full advantage of its energy boom, FuelFix reports.
The Environmental Protection Agency’s proposed rule to limit air pollution from refineries could have the opposite effect because it would force installation of new flaring systems instead of continuing the trend of reducing flaring, according to comments the American Petroleum Institute filed on the regulation, The Hill reports.
Oil was sliding again early Thursday after the Federal Reserve wound up its asset-purchase program and the Energy Information Administration reported the highest level of U.S. production since the 1980s. West Texas Intermediate crude for December delivery fell 81 cents to $81.39 a barrel in electronic trading on the Nymex, while in London Brent lost 86 cents to $86.26, Bloomberg reports.
Sen. Mary Landrieu, D-La., made a pointed reference to her influence as chair of the Senate Energy and Natural Resources Committee while Republican candidate Rob Maness emphasized his support for increased oil and gas drilling, during the final debate of the campaign before the state’s Nov. 4 “jungle primary,” The Times-Picayune reports.
Republican Senate candidate Scott Brown visited the Seabrook nuclear plant Wednesday, and later in a statement accused incumbent Sen. Jeanne Shaheen, D-N.H., of failing to support nuclear power, but she responded by saying nuclear energy is an important part of the fight against climate change, The Associated Press reports.
Osaka Gas Co. and Chubu Electric Power Co., which have contracted to buy gas from the proposed Freeport LNG terminal, will also supply $1.2 billion toward construction of the first unit, while $3.85 billion will come from Japanese banks, FuelFix reports.
Plaintiffs in a class action lawsuit against Exxon Mobil over a 2013 oil spill in Arkansas filed a motion in court this week demanding that the company make public documents about the maintenance and repair of the Pegasus pipeline, The Associated Press reports.
A spokesperson for the European Commission says a marathon negotiating session Wednesday failed to generate an agreement in the gas dispute between Russia and Ukraine, and talks are continuing Thursday, Reuters reports.
Iran may still be wrestling with finding a way to cut a deal with the West over its nuclear program, to ease biting sanctions, but falling oil prices have added even more pressure to the situation, The New York Times reports.