Middle East Crude-Brent/Dubai widest in 3 months, contango steepens – Front-month Dubai crude dropped to its lowest in three months against global benchmark Brent on Wednesday, which could spur greater demand for cheaper Dubai-linked grades against those priced on Brent, like crude from Africa. But in parallel, the supply of Middle Eastern oil may tighten as sellers could choose to store oil to take advantage of a wider Dubai contango, traders said.
Floating Oil Storage and the Crude Market Widening Contango – Tens of millions worth of oil barrels are being purchased cheaply for vessel storage by some of the largest investment banks and oil traders globally. This goes with the desire of earning a huge amount of profit later on in their future sale. Similar to any form of investment, significant risk is involved should one decide to purchase oil now hoping for the prices to rise during the medium term.
Energy job cuts approaching 200,000 worldwide – Nearly half of the oil industry’s reductions over the past year have come from the oil field service industry, firms that provide oil and gas producers with drill bits, well casing, hydraulic fracturing pumps and other technology, says John Graves, president of Graves & Co., who has tracked the layoffs closely.
Why Goldman Sachs Group Inc (GS) Projects Gloomy US Crude Oil Prices For Next 15 Years – Investment bank, Goldman Sachs Group Inc (NYSE:GS) believes that the current excessive oil supply could keep crude oil prices low for the next 15 years. According to the head of commodities research, Jeffrey Currie, there are less than 50% chances that crude oil prices will do go down to $20 per barrel, even at a time when refineries would shut down for maintenance purposes in October and March. On the contrary, Goldman Sachs’ long term forecast for crude oil price is $50 per barrel.
Exxon Mobil California refinery faces more delays after acid leak – A pair of California Democrats in the House of Representatives, Ted Lieu and Maxine Waters, wrote to the U.S. Chemical Safety Board on Wednesday asking for the Sept. 6 acid leak to be included into the broader investigation of Exxon Mobil’s operations as the refinery. Lieu and Waters noted it appeared Exxon Mobil failed to follow proper protocols with the Torrance Fire Department on Sept. 6, adding that the department called it a “significant incident.” They also said Exxon Mobil has not responded to federal subpoenas.
While Casper Energy project director Duncan MacKenzie would not comment on changes to the overall value of the project, stated at US$700million when it was announced back in May, he did confirm it would create more than the 1000 construction jobs originally expected.
Crude oil higher ahead of inventory report – WTI crude oil (CLV5: 45.90 +2.9%) is trading close to a one-week high ahead of the weekly inventory report from the EIA at 1430 GMT. Surveys are pointing to a rise of between 1 and 2 million barrels while the American Petroleum Institute’s own report yesterday showed a surprise drop of 3.1 million barrels.