Citi: Oil prices likely stuck between $40 and $60 for next 5 years with some shocks along way

Citi’s commodities research team has tempered its outlook for oil prices over the next five years, but it sees room for price shocks if oil supply disruptions increase dramatically or fall off significantly in the coming years.

The bank had projected in February that U.S. crude prices would likely trade mostly in a range of $40 to $65 from 2017 to 2022. It now sees prices trading at $40 to $55 a barrel in the 2018 to 2020 period and then $50 to $60 through 2022.

To be sure, the $60 cap through 2022 implies “smooth sailing” for oil markets during that time period, but Citi sees room for significant price volatility…

Click here for remainder of article 

Oil prices end higher after three-session streak of declines

Oil prices finished in the green on Thursday, after posting losses in each of the last three sessions, as traders continued to weigh data showing the biggest weekly fall in U.S. crude supplies in 11 months, but also the highest total domestic production level in more than two years.

Thursday’s move higher was “likely just technical buying interest after breaking below the $47 support level” Wednesday, said Troy Vincent, oil analyst at ClipperData. “Fundamentally speaking, although U.S. crude stocks are set to continue to drop through August, there has been no bullish news since yesterday’s report…”

Click here for remainder of article 

Australia’s Natural Gas Crisis Could Boost Prices

I wrote a few months back about major problems shaping up in Pacific natural gas markets. With key liquefied natural gas (LNG) exporter Australia threatening to restrict outgoing shipments due to looming domestic shortages.

And this week a couple more key developments came down in this unfolding situation.

First, Australia’s LNG exports were confirmed as being one of the biggest stories in global energy. When energy watchdogs EnergyQuest said Tuesday that Australia’s July shipments rose 10 percent compared to June — to hit a record 5.4 million tonnes…

Click here for remainder of article 


Natural-gas prices edge up as traders parse through revised EIA supply data

Data from the U.S. Energy Information Administration on Thursday showed that domestic supplies of natural gas rose by 53 billion cubic feet for the week ended Aug. 11. The data, however, included revisions to figures for previous weeks tied to a reclassification of natural gas in storage from working gas to base gas. On average, analysts were looking for a build of 47 billion cubic feet, according to commodity brokerage firm iiTRADER…

Click here for remainder of article 

The Gas Tankers Lurking at Sea Looking for a Better Deal

When the tanker Provalys left Louisiana for Chile last month with a full load of U.S. liquefied natural gas, it sailed around South America instead of taking a shortcut through the expanded Panama Canal. Not only may the route be cheaper without canal transit fees, but advances in technology mean less of the fuel would end up lost at sea during the journey.

Gas is frozen into liquid for transport over long distances without pipelines, allowing surplus American reserves to be shipped to high-demand regions like Asia. Trouble is, some LNG evaporates on the voyage. A new generation of ships is reducing such losses, giving traders more flexibility to choose the scenic route in search of the highest prices…

Click here for remainder of article 

U.S. Natural Gas Market Sees Big Benefits From Nafta

As Congress begins to examine the North American Free Trade Agreement at the behest of President Donald Trump, lawmakers need to ensure that nothing they decide disrupts one of the more relevant industries in the pact: energy — in particular, natural gas.

U.S. producers need Mexico, their largest customer. The glut of production in the U.S. far exceeds domestic demand; thus, exports prevent a collapse in natural gas prices. More than a quarter of Mexico’s electricity is powered by U.S. natural gas, leaving it vulnerable in a trade battle. Trade disputes mean U.S. producers would suffer a serious loss of income, while Mexico would face an energy shortage that could wreak havoc on its economy, drive up crime and potentially create a new refugee crisis…

Click here for remainder of article 

Oil steady as high U.S. output balances crude stock draw

Oil prices steadied on Thursday after U.S. data showed a big fall in crude stockpiles but also an increase in production, taking U.S. crude output to its highest in more than two years.

Brent crude LCOc1 was down 10 cents at $50.17 a barrel by 1245 GMT. U.S. light crude CLc1 was 15 cents lower at $46.63.

Both benchmarks fell more than 1 percent on Wednesday…

Click here for remainder of article 

Growing Shale Output Drags Oil Prices Lower

Oil prices were down Thursday morning on fresh U.S. data showing a further ramp-up in shale production.

Brent crude, the global benchmark, fell 0.3%, to $50.12 a barrel, in London midmorning trading. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.4%, at $46.61 a barrel.

U.S. crude output rose 79,000 barrels a day, to 9.502 million barrels a day, during the week ended Aug. 11, according to weekly data released Wednesday by the U.S. Energy Information Administration…

Click here for remainder of article 

Oil prices settle lower as U.S. output hits 2-year high

Oil settled lower Wednesday after the Energy Information Administration report revealed a weekly climb in domestic production to the highest level in over two years.

The government data also showed the largest weekly decline in U.S. crude supplies since September of last year and they have now fallen seven weeks in a row, but those figures failed to offer any lasting price support for oil during the session.

September West Texas Intermediate crude CLU7, -0.38%  shed 77 cents, or 1.6%, to settle at $46.78 a barrel on the New York Mercantile Exchange. The decline marked the third-consecutive loss for WTI, which stands at its lowest finish since July 24, according to FactSet data. October Brent crude LCOV7, -0.28%  on London’s ICE Futures fell 53 cents, or 1%, to $50.27 a barrel…

Click here for remainder of article 

Rockcliff Energy Purchases Additional Haynesville Shale Rights in East Texas

Rockcliff Energy announced today that in addition to its pending acquisition of Samson’s East Texas and North Louisiana properties it has acquired approximately 60,000 net acres of Haynesville Shale rights; the seller’s name and terms of the transaction were not disclosed. The properties, which are substantially all held by production, are located primarily in Harrison and Panola Counties, Texas.

“Combined with our previously announced Samson acquisition, Rockcliff will have assembled a large, strategic position of approximately 180,000 net acres in the Haynesville Shale play. We intend to apply the latest technology alongside our team’s deep Haynesville experience to successfully develop this premier acreage position. And in addition to the acreage’s favorable technical merits, we have the added commercial benefit of being located in close proximity to major natural gas markets,” said Alan Smith, Rockcliff’s President and CEO…

Click here for remainder of article