Oil Prices

worldtraveller

The price of oil has gone above $50 a barrel for the first time in 2016 as supply disruptions and increased global demand continue to fuel a recovery.

The benchmark Brent crude price hit $50.07 a barrel in Asian trade.

The rise followed US data on Thursday showing that oil inventories had fallen, largely due to supply disruptions following fires in Canada.

Brent crude has now risen 80% since it hit 13-year lows of below $28 a barrel at the start of the year.

BBC News

worldtraveller

The price of oil has hit $70 a barrel for the first time since December 2014.

Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40% of the world's output, said it would continue to limit supplies.

The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists.

However, the AA said that drivers would benefit if supermarkets resumed their petrol price war.

BBC News

michaels

worldtraveller wrote: »

The price of oil has hit $70 a barrel for the first time since December 2014.

Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40% of the world's output, said it would continue to limit supplies.

The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists.

However, the AA said that drivers would benefit if supermarkets resumed their petrol price war.

BBC News

The theory is that us shale production will ramp up whenever the price climbs much over 65 and thus naturally cap prices. Looks like we are going to see that theory tested....

GreatApe

michaels wrote: »

The theory is that us shale production will ramp up whenever the price climbs much over 65 and thus naturally cap prices. Looks like we are going to see that theory tested....

At current prices USA oil output will increase by 1mbpd per year. So the Americans alone can't satisfy world demand growth and depletion of existing fields.

What really needs to happen is a non USA shale deposit needs to be developed

The Americans are pumping out nearly 18 million barrels a day worth from shale and it is growing.
6.4 mbpd in oil and 11.4 mbpd equivalent in NG&Liquids atm

If Europe or China developed shale it would keep a lid on energy prices for a decade.
It is inconceivable that only North America has viable shale deposits

Or a cheap efficient high volume way to convert NG to petrol/diesel.
USA NG is about $15 while oil is $65 so there should be an economic case to convert one to the other. Before the oil price crash there was a plan to build the worlds biggest NG to liquids plant in north America but it was canceled post oil crash.

Those are the risks to high oil prices.
Shale developed outside of north America and NG to Liquids plants built.
A lessor risk is a rapid development of EVs

worldtraveller

Oil has hit a new three-and-a-half-year peak, and other commodity prices – notably nickel and aluminium – moved sharply higher as Donald Trump’s sanctions and the continuing conflict in Syria fuelled fears of supply shortages.

Brent crude rose 1.7% to $74.74 (£52.67) a barrel on Thursday, the highest level since November 2014 when oil group Opec began increasing production to protect its market share, a move that subsequently led to a supply glut and a price slump to $27 a barrel just over a year later.

The Guardian

GreatApe

ronensimian wrote: »

I think oil prices won't be an issue in the future - solar energy will take it's place.
therefore oil prices will get lower and lower until the point we won't use it anymore.

Sounds like the thinking of a seven year old

worldtraveller

Brent Crude up to $77.8 earlier today, largely based on the Iran situation.

It'll be interesting to see if U.S. shale oil production will, as many analysts have said, take the edge off this soon. Mind you, many of these analysts said that the price would struggle to get above $60 a barrel, as a result of that effect! One of the few that disagreed with that was Morgan Stanley who believed that U.S. shale would not be able to keep up with rising demand and would need to increase production from about 5.9m barrels a day in 2017 to 7m barrels a day this year to put a cap on price.

As always.....only time will tell.

westernpromise

It's about time we had another run up to $150 or so. It's been 10 years now.

GreatApe

With 30% or so inflation over the decade $74 is closer to $57 in 2008 money so still only half of what it was a decade ago. What is really needed is for prolific shale deposits to be developed outside of north America that would keep the oil cartels honest for another decade.

Ideally in Europe or China or India as they are or will be the big importers over the next decade or two.
The UK is just about starting exploring shale this year with a few test Fracks. Fingers crossed we are sitting on a monster field like the Permian formation in Texas. But even the lowest output shale in the USA is huge and would meet 100% of our natural gas usage and 30% of our oil usage.

GreatApe

USA shale oil output expected to increase 144kbpd over the next month.
That is an annualized 1.7 mbpd expansion which is massive

Somethings got to give at this rate if they could sustain it the Americans would exceed 15 mbpd from just shale oil within just five years.