Last update: Wed, 26 Oct 2016 06pm

Fuel and Energy: World


The oversupplied oil market will be rebalanced earlier than expected if major crude producers implement a deal to cap output when they meet next month, the International Energy Agency chief said Tuesday. Under current conditions, the IEA expects global output to exceed demand until the second half of 2017, Fatih Birol told journalists on the sidelines of an energy conference in Singapore.
Oil prices fell more than 1 percent on Tuesday, with US crude settling below $50 per barrel for the first time in a week ahead of data likely to show a build in domestic inventories. Producers' verbal jockeying about the Organisation of the Petroleum Exporting Countries' (Opec) planned output cut weighed further on the market, analysts said, noting Iraq's resistance to the plan and its rising output for October.
Royal Dutch Shell has resumed crude exports from the Forcados terminal in Nigeria's restive Niger Delta following repairs after a militant attack, the Nigerian presidency said on Tuesday. There was no immediate comment from Shell. "The Shell Director, Mr Andrew Brown, informed the President of the resumption of oil exportation through the Forcados terminal following its restoration," the presidency said after a meeting between Brown and President Muhammadu Buhari.
Shareholders of Spanish renewable energy group Gamesa on Tuesday approved a merger with the wind power division of German engineering giant Siemens. This tie-up "will create one of the world's main companies in the sector," with a turnover of around 10 billion euros ($10.9 billion), said Gamesa president Ignacio Martin during the special general assembly at its headquarters in Zamudio in northern Spain.
US natural gas futures on Monday fell 5 percent for a second trading day in a row to a near seven-week low on forecasts for warmer-than-normal weather to continue over the next two weeks, prompting traders who were long in the market to shed November contracts. After falling 5 percent after the close on Friday, front-month gas futures for November delivery fell 16.2 cents, or 5.4 percent, to settle at $2.831 per million British thermal units, the lowest since September 9.
Oil prices dipped on Monday, with US crude briefly falling below $50 per barrel, on news of the impending restart of Britain's Buzzard oilfield and Iraq's wish to be exempted from Opec production cuts. Buzzard, the North Sea field that contributes to the Forties crude stream and which pumps about 180,000 barrels per day (bpd), will restart on Tuesday or Wednesday, from a month-long planned maintenance, an industry source said.
Russian Energy Minister Alexander Novak warned Monday there was an "acute need" to rebalance the oil market and help ease price volatility, after talks with the Opec oil cartel in Vienna. "Probably by winter we will see considerable overkill of supply over demand. Therefore there is an acute and urgent need to speed up the rebalancing," Novak told reporters at the Vienna headquarters of the Organisation of the Petroleum Exporting Countries.