Friday, October 03, 2014

Photos from Mass Fallen Heroes Memorial Ground Breaking Seaport District Boston Oct 3, 2014

OPEC oil supply jumps to highest in almost two years

OPEC's oil supply jumped to its highest in almost two years in September, a Reuters survey found, due to further recovery in Libya and higher output from Saudi Arabia and other Gulf producers in the face of sub-$100 per barrel oil prices.
The lack of any cutbacks underlines the relaxed view of OPEC's core Gulf members to oil's slide from $115 in June to $97 on Tuesday - a level they can tolerate, but which puts budgets in producers such as Iran and non-member Russia under pressure.
Supply from the Organisation of the Petroleum Exporting Countries averaged 30.96 million barrels per day (bpd) in September, up from 30.15 million bpd in August, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants.
"Libya has increased production massively and if you look forward, OPEC is producing more than the (forecast) demand for OPEC crude in 2015," said Carsten Fritsch, analyst at Commerzbank. "This puts pressure on OPEC ahead of their next meeting."...

-bth: In my opinion oil prices are likely to stay below the $100 mark and closer to $90 in order to squeeze the Russian government and Iran. Prices below $85 become problematic now for shale production in the US though costs are tumbling for such alternative methods and the importance of the budget squeeze on Russia is countered only by their move to deliberately undermine the dollar as an international currency.