File photo of section of an oil platform in the North Sea, around 160 kilometres east of Aberdeen, Scotland. (Photo: AFP/POOL/ANDY BUCHANAN) Reports that non-OPEC producers Russia and the United States were pumping oil at record levels wrong-footed many investors who not long ago had bet on a sharply rising market. Fears that Iran sanctions reimposed by Washington would cause a drastic fall in output, and a corresponding surge in prices, underpinned oil at the start of the quarter, said David Cheetham, chief market analyst at xtb. "But these concerns now look badly misplaced and it seems that a lot of people were caught on the wrong side in looking for US$100 a barrel crude once more," he said. On Tuesday, the main oil contracts were worth only around half that. 'BROADER MARKET MISERY' Brent crude tumbled as low as US$56.97 in the late European afternoon, a drop of over four per cent on the day, while US benchmark WTI plummeted well over five per cent to a US$47.32 low. Such lows … [Read more...] about Oil price skids on oversupply fears and weak world economy
Oil prices will rise
IMF says Gulf economy recovering but faces oil price volatility
GCC economies experienced a 0.4 percent contraction last year - Photo: AFP The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council (GCC) to grow by 2.4 percent in 2018 and 3.0 percent in 2019. The predicted growth follows a contraction of 0.4 percent last year. Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues. The IMF cautioned that "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," in its Regional Economic Outlook for the Middle East and North Africa (MENA). After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April. Growth in non-GCC oil exporters in the MENA region, which includes Iran, Iraq, Algeria and … [Read more...] about IMF says Gulf economy recovering but faces oil price volatility
Rising oil prices to benefit growth
A surge in the price of crude oil on the global market is fueling the state coffers, but may affect the government’s efforts to curb inflation. Growing prices of crude oil to benefit state budget On October 10, 2018, on the London market, the average price of Brent oil rose to US$85.17 per barrel for December contracts, and the average price of WTI oil climbed to US$75.07 per barrel for November contracts. The 30% price climb since early this year followed the US sanctions on Iran and a fear of global supply shortages sparking a debate over the possibility of US$100 Brent. These prices are for contracts of November 2018. The Ministry of Finance yesterday reported that Vietnam’s total state revenue from crude oil exports is estimated to hit VND6.5 trillion (US$287.6 million) in September, and VND48.1 trillion (US$3.13 billion) for this year’s first nine months, up 42.5% in comparison to the same period last year. It is estimated that an increase of US$1 in … [Read more...] about Rising oil prices to benefit growth
VN firms move to counteract oil prices
With the price of oil on a roller-coaster ride over the past few years, companies are pushing ahead with plans to cushion the impacts. Rising oil prices have impacted the overall transportation cost Late last week the prices of WTI and Brent crude oil stood at about $65.51 and $71.49 per barrel in London. It is forecast that the figure may skyrocket to $100 per barrel before the year is over. Rising oil prices are likely to have an adverse effect on the economy, as they mean rising costs for fuel and production for consumers and businesses. Clement Blanc, managing director of DHL Global Forwarding Vietnam, told VIR, “A few years ago, when the price of crude oil dropped, shippers enjoyed significant reductions in their transportation costs. Unfortunately, the market is now going in the opposite direction, and we see no signs of cooling down.” According to Blanc, the rising oil price is a concern, as it is a very important component of overall transportation costs, … [Read more...] about VN firms move to counteract oil prices
Firms move to counteract oil prices
Rising oil prices have impacted the overall transportation cost, Photo: Le Toan Late last week the prices of WTI and Brent crude oil stood at about $65.51 and $71.49 per barrel in London. It is forecast that the figure may skyrocket to $100 per barrel before the year is over. Rising oil prices are likely to have an adverse effect on the economy, as they mean rising costs for fuel and production for consumers and businesses. Clement Blanc, managing director of DHL Global Forwarding Vietnam, told VIR, “A few years ago, when the price of crude oil dropped, shippers enjoyed significant reductions in their transportation costs. Unfortunately, the market is now going in the opposite direction, and we see no signs of cooling down.” According to Blanc, the rising oil price is a concern, as it is a very important component of overall transportation costs, accounting for around 20 per cent of air, sea, and road freight costs. The increase in oil price is definitely impacting the … [Read more...] about Firms move to counteract oil prices