2/10/2015

OilsnapsrisingstreakasUSseenexacerbatingglobalsurplusLivemint

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10FEBRUARY2015

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FIRSTPUBLISHED:TUE,FEB102015.1132AMIST

OilsnapsrisingstreakasUSseenexacerbating
globalsurplus

ArvindKejriwal,therise,
fallandriseoftheAam
Aadmi
TUE,FEB102015.1106AM

AsAAPsweepsDelhipolls,
partyofficesreflecttheir
mood

MON,FEB092015.0309PM

LatestNews

SamSmith,Beyonceand
PharrellWilliamsamongbig
winnersatGrammyawards

06:42PMIST

Kejriwalelectedleaderof
AAPlegislatureparty

2015
SAT,FEB072015.1133AM

06:38PMIST

PhotoEssay:Examtime

PNBraisesRs1,000crore
viaprivateplacement
06:33PMIST

MOREFROMTHISSECTION

PoorshowinDelhitocost
BSPitsnationalparty
status

LATESTNEWS

06:33PMIST

KejriwalelectedleaderofAAP
legislatureparty

Managingfamily
businesses
WTIforMarchdeliverydecreasedasmuchas81centsto$52.05abarrelinelectronic
tradingontheNewYorkMercantileExchangeandwasat$52.10at1:18pm
Singaporetime.Photo:Bloomberg

Melbourne:OilfellforthefirsttimeinfourdaysamidspeculationthatUS

Editor'spicks

supplywillcontinuetoexacerbateaglobalglut.
Futuresdroppedasmuchas1.5%inNewYork.USproductionofoilfrom
hardtopenetraterockformationswillexpandto5.2millionbarrelsaday
bytheendofthisdecadefromabout3.6millionadaylastyear,the
InternationalEnergyAgency(IEA)saidonTuesday.TheUnited
SteelworkersunionandRoyalDutchShellPlcwillresumenegotiationsto

AAProutsBJP,Congress
inDelhielections

WORLDCUP2015

TUE,FEB102015.1146AM

BenSharples

NatcoPharmafilesnew
drugapplicationswith
USFDA

EPAPER

SLIDESHOW

BrentforMarchsettlementslidasmuchas83cents,or1.4%,to$57.51abarrelontheLondon
basedICEFuturesEuropeexchange

06:20PMIST

SPECIALS

PNBraisesRs1,000croreviaprivate
placement
PoorshowinDelhitocostBSPits
nationalpartystatus
ALSOREAD

Managingfamilybusinesses
Sugaryettofindasweetspot
NatcoPharmafilesnewdrug
applicationswithUSFDA

close

MOREFROMTHISSECTION

tryandendthebiggestUSoilworkerstrikesince1980.
RisingUSproductioniscontributingtoasurplusthatdrovepricesalmost
50%lowerin2014.TheOrganizationofPetroleumExportingCountries
(Opec),whichhasresistedcallstoreduceoutput,boostedestimatesfor
theamountofcrudeitwillneedtosupplythisyear.

Fivetakeawaysfrom
AAPslandslidevictoryin
Delhielections

Ifwewanttoseethepricebackto$80or$90,weneedtoseeagood
amountofcurrentproductiontakenoutofthemarket,andthatsnot
happening,DavidLennox,aresourceanalystatFatProphetsinSydney,
saidbyphone.Werecertainlynotexpectinganysustainedrallyuntillater
intheyear,andthatwillrequiresomeonetocutoutput.
WestTexasIntermediate(WTI)forMarchdeliverydecreasedasmuchas
81centsto$52.05abarrelinelectronictradingontheNewYork
MercantileExchangeandwasat$52.10at1:18pmSingaporetime.The

WhytheCongressshould
cheerAAPslandslide

contractgained$1.17to$52.86onMonday.Thevolumeofallfutures
tradedwasabout19%belowthe100dayaverage.
USshale

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2/10/2015

OilsnapsrisingstreakasUSseenexacerbatingglobalsurplusLivemint
BrentforMarchsettlementslidasmuchas83cents,or1.4%,to$57.51a
barrelontheLondonbasedICEFuturesEuropeexchange.Itclimbed54
centsto$58.34onMonday.TheEuropeanbenchmarkcrudetradedata
premiumof$5.44toWTI.
Oilscollapseisunlikepreviousdeclinesasitsdrivenbybothsupplyand

AAPstriumphinDelhi:
Willthesparkspread?

demand,accordingtotheIEA,theenergyadvisertodevelopedeconomies.
TheUShasunlockedavastresourcethathasprofoundlyupendedthe
traditionaldivisionoflaborbetweenOpecandnonOpec,theParisbased
agencysaidinitsMediumTermOilMarketReport.
Thenationsoilboomhasbeendrivenbyacombinationofhorizontal
drillingandhydraulicfracturing,whichhasopenedshaleformationsfrom

WhyKejriwalandModi
winsarenotcontradictory

TexastoNorthDakota.Productionsurgedto9.21millionbarrelsaday
through23January,thefastestpaceinweeklydatacompiledbythe
EnergyInformationAdministrationsinceJanuary1983.
$20oil
UScrudeinventoriesprobablyincreasedby3.5millionbarrelslastweek,
accordingtothemedianprojectioninaBloombergNewssurveyofseven
analystsbeforeanEIAreportonWednesday.Stockpilesinthepriorperiod
wereat413.1million,thehighestlevelinweeklyrecordsfromtheEnergy
DepartmentsstatisticalarmdatingbacktoAugust1982.
Oilmayfalltothe$20rangebythestartofthesecondquarterasan
oversupplyfillsstoragetanksclosetocapacity,CitigroupInc.predicted.
Recentpriceadvancesfromthelowestlevelsinalmostsixyearsaremore
likeaheadfakethanasustainableturningpoint,saidEdwardMorse,the
banksglobalheadofcommodityresearchinNewYork.
Opecsaiditwillneedtoshipmoreoilasitmadethedeepestcutinatleast
sixyearstoitsforecastforoutputgrowthfromnonmemberproducers,
accordingtoareportonMonday.The29.2millionbarrelsadayrequired
remainsabout1millionadaybelowitscurrentoutput.Thegroups12
memberspumpabout40%oftheworldsoil.
Ratingcut
Thecollapseinpriceshasroiledeconomiesofproducingnationsfrom
RussiatoNigeria.Venezuelasgrossdomesticproductcouldshrinkas
muchas7%thisyear,accordingtoStandardandPoors.S&PcuttheOpec
memberscreditratingandsaidthegovernmentwillstruggletoimplement
changesneededtoshoreuptheeconomy,accordingtoa9February
statement.
UnitedSteelworkers,representingemployeesatmorethan200refineries,
fuelterminals,pipelinesandchemicalfacilitiesacrosstheUS,willresume
talksonalaboragreementonTuesday.Shellisbargainingonbehalfof
companiesincludingExxonMobilCorp.andChevronCorp.Theplants
currentlyonstrikecanprocessabout2.36millionbarrelsadayofoil,or
13%oftotalUScapacity.Bloomberg

BRUNT CRUDEOIL OPEC OILPRICE WTI

ALSOREAD
Sugaryettofinda
sweetspot

AAPstriumphin
Delhi:Willthespark
spread?

Kejriwalelectedleader
ofAAPlegislature
party

PNBraisesRs1,000
croreviaprivate
placement

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OilsnapsrisingstreakasUSseenexacerbatingglobalsurplusLivemint

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