02122016Fri
Last update: Fri, 12 Feb 2016 02am

Fuel and Energy: World

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Oil prices seesawed in choppy trade on Wednesday, with US crude slipping and Brent paring gains as worries about a global supply glut offset data showing a surprise drop in US crude stockpiles. Oil prices rallied early, up for the first time in five days, on talk that major producers might try to tackle a glut that had driven prices to 12-year lows.
Iranian Oil Minister Bijan Zangeneh said on Tuesday that Tehran is ready to negotiate with Saudi Arabia over the current conditions in the global oil markets, Iran''s Press TV reported. "We support any form of dialogue and cooperation with Opec member states including Saudi Arabia," Press TV cited Zangeneh as saying.
Opec pointed to a larger oil supply surplus on the world market this year than previously thought as Saudi Arabia and other members pump more oil, helping to make up for losses in non-member producers hurt by the collapse in prices. The monthly report from the Organisation of the Petroleum Exporting Countries indicates supply will exceed demand by 720,000 barrels per day (bpd) in 2016, up from 530,000 bpd implied in the previous report.
US natural gas futures fell 2 percent on Tuesday on mixed weather forecasts calling for higher-than-normal temperatures later in February. After gaining almost 4 percent on Monday, front-month gas futures on the New York Mercantile Exchange closed down 4.2 cents at $2.098 per million British thermal units. While the US weather model continued to call for slightly colder-than-normal weather over the next two weeks, the European model switched from a colder-than-normal forecast during that time on Monday to a seasonably cold forecast on Tuesday.
Oil prices fell 7 percent on Tuesday as equity markets remained weak, forecasts called for record high US crude stockpiles to grow more, and the latest global energy demand outlooks did not look strong enough to eliminate the swelling glut. US gasoline futures fell to a 2008 low ahead of weekly inventory data expected to show crude and gasoline stocks growing to record highs.
Oil prices may have rebounded off 12-year lows struck last month, but any hope for a broader recovery in the market would be misplaced, the IEA said Tuesday, noting Opec is responsible for the latest glut of supplies on the market. The International Energy Agency said in its monthly report that "it is very hard to see how oil prices can rise significantly in the short term ... with the market already awash in oil..."
Kuwait plans to raise its crude oil production by 150,000 barrels per day (bpd) in the third quarter and aims to sign new export deals with European customers soon, a senior Kuwaiti official was quoted as saying on Tuesday. New contracts are to be signed soon with a number of European companies "with good prices and in large volumes", Nabil Bouresli, managing director of international marketing at Kuwait Petroleum Corp (KPC), told state news agency KUNA.