Rising inventories as well as a mild winter expected for Europe and North America as a result of an El Niño weather event would likely lead to reduced refinery production and lower use of crude oil by refiners, it said.
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“In our views, non-OPEC producers are more likely to hold OPEC responsible for the price weakness of the past year, than to volunteer production cuts to rebalance the market”, said Tim Evans, an energy analyst at Citi Futures.
“We expect that the focus of the oil markets is rapidly shifting to the surplus of refined products”, analysts at Jefferies said, adding that the bearish mood was aggravated by dropping refining profitability while demand growth slowed.
The assistant professor of the Department on regulation of the economy, Deputy Head of Department of state regulation of the economy on educational work at the Institute of Public Administration and Management (IGSU) RANHiGS Ivan Kapitonov inclines to forecast fall of oil prices in a more careful way. Third-quarter USA growth data slated for release on Thursday could determine whether the central bank “dares move” next month, it said.
“We remain cautious on commodity prices into year-end given weak demand conditions”. The same way that crude was never going to last at plus $100, we are simply at the other end of the extreme and are sure to not trade at these low prices. The traders are awaiting German business climate for October. The USA is also poised to announce new home sales figures for September shortly.
Brent LCOc1 for December delivery had fallen 38 cents to $47.16 a barrel by 10.25 p.m. ET, after settling the previous session down 45 cents, or nearly 1 per cent. RBOB gasoline futures remained flat at 1.296 a gallon at the NYMEX.
Well, so much for that: we actually find new reserves all the time, so much so that total proved reserves of oil are nearly two-and-a-half times greater now than they were in 1980.
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Renewables are powering a rare bright spot in the energy industry, with record job hiring in solar, wind and hydro partly offsetting the biggest round of job losses in the oil and gas sector in nearly two decades. The investment in the oil segment already witnessed a drop of one-fifth this year so far, according the worldwide Energy Agency (IEA).
