Shell provided an update on its pending merger with BG Group (LON: BG). Following its dreadful quarterly earnings report, Shell provided another defense of its BG purchase, which it says will provide greater savings than previously expected. The tie up will be profitable even if oil prices range in the mid $60s per barrel, Shell argues. It will also create […]
OPEC will probably hold production steady at its meeting next month as the gap between supply and demand for oil closes, according to the analyst who correctly predicted last year’s rout in prices.
“I don’t think they have to do anything,” Gary Ross, founder and chairman of PIRA Energy Group, said in an interview in Singapore on Monday, referring to the Organization of Petroleum Exporting Countries. Global consumption of crude will continue to grow while output from non-OPEC countries will decline next year, helping to bring the market toward equilibrium, he said.
Oil tumbled more than 48 percent last year as U.S. stockpiles and production expanded, creating a global oversupply that the International Energy Agency estimates will persist until at least the middle of 2016. OPEC’s strategy to defend market share has exacerbated the glut as the group, which kept its production target unchanged at 30 million barrels a day at the last meeting in June, exceeded the quota for the past 17 months.
“There has to be a tightening of balances,” said Ross, who last year turned bearish on oil before prices shrank by almost half. While OPEC volumes have increased, both demand and production from outside the group have responded to low prices, he said.
Brent crude for December delivery was unchanged at $49.56 a barrel on the London-based ICE Futures Europe exchange at 12:50 p.m. Singapore time. Prices have decreased 14 percent this year.
PIRA forecasts demand for crude to grow 1.7 million barrels a day in 2016, compared with 1.9 million a day this year. Output outside OPEC is expected to decline next year by “several hundred thousands of barrels a day,” Ross said. Among the 12 members of OPEC, production is predicted to increase only in Iran and Iraq.
“Total non-OPEC crude and condensate production is forecast to fall below last
year’s levels,” said Ross, predicting that Brent may rise to $70 by the end of 2016. “Supply growth is limited to OPEC, which grows just 500,000 to 600,000 barrels a day.” On average, Iran’s output will rise 300,000 barrels a day and Iraq’s will increase 240,000 barrels a day, compared with a year earlier, he estimated.
OPEC, which supplies about 40 percent of the world’s oil, is scheduled to gather in Vienna on Dec. 4, when Iran will officially notify the group of its plans to boost production by 500,000 barrels a day as soon as international sanctions against the Persian Gulf state are lifted, Oil Minister Bijan Namdar Zanganeh said in an interview with Mehr news agency.
The grade or concentration of a mineral or metal in ore directly affects costs associated with mining as well as its subsequent beneficiation and extraction of precious components.
Under otherwise equal conditions, a lower grade means a higher cost per unit weight of extracted metal making high-grade ore deposits a crucial consideration for all types of investors in mining.
The grade of […]
TITAN Group held a sport event titled TITAN Run 2015: Going to The Next Level in Alam Sutra, South Tangerang, Banten, on Saturday (08/08/2015). The event that is held annually, had attracted more than 2,600 participants.
“This year, the theme of the event is being adapted from the company, which is step up to a higher level. When TITAN was born, […]
The Energy and Mineral Resources Ministry is expecting to see rising royalties and fees from the mineral and coal sectors this year despite plunging production due to low selling prices.
According to the proposed state budget for 2016, the non-tax income from minerals and coal is targeted to reach Rp 40.82 trillion (US$3 billion), roughly a 28 percent jump compared with […]
Former secretary general at the Energy and Mineral Resources Ministry Waryono Karno was sentenced to six years’ imprisonment by the Jakarta Corruption Court on Wednesday. Waryono was also required to pay Rp 300 million (US$20,750) in fines.
Previously, the prosecutors had demanded that Waryono be sentenced to nine years and a Rp 200 million fine as well as Rp 150 million […]
Indonesian President Joko Widodo has urged Qatari businessmen to invest in his country and make use of investment opportunities available there.
Addressing Qatar-Indonesia Business and Investment Forum today, President Widodo said his country plans to set up several infrastructure projects, including building pipeline projects in some areas in Indonesia, establishing 24 ports and 15 airports, as well as projects related to […]
Investors in oil, gas, mineral and coal mining sectors are expected to experience an easier and faster business licensing process as some of the permits will be processed under the Investment Coordinating Board’s (BKPM) one-stop service.
Energy and Mineral Resources Minister Sudirman Said on Thursday that he had officially handed the procurement process of 10 out of 42 permits in oil […]