Oil prices have hovered around US$40/barrel, but have so far resisted plunging much below that level. The trend over the past few weeks is attributed to declining production in the US, though at a slower rate. During this past week, crude inventories leveled off after several weeks of gains, but bearish sentiments prevail.
There is a report of yet another bearish prediction for crude oil that prices may drop to as low as US$20/barrel. While there is not a lot of room on the upside for prices, the fears of downslide are on the rise.
Reportedly 37 oil and gas companies have filed for chapter 11 bankruptcy protection so far this year, as low crude prices impairs their ability to sustain. The bankruptcy cases account for more than US$13.1 billion in outstanding debt among the companies involved.
Mexico’s state-owned oil company Pemex announced that it would be willing to market oil and gas extracting from producers that win an upcoming auction in December. A larger number of companies are expected to participate, including some smaller upstream companies.
Venezuela’s financial position continues to deteriorate ahead of a December election. The situation has become so bad that some oil suppliers are requiring prepayment for selling crude or refined products to Venezuela.
Saudi Arabia is showing all signs of sticking to its guns when OPEC meets in the next few weeks in Vienna. The powerful OPEC member is pursuing market share. At the same time, the Saudi oil minister warned about a future supply crunch as the industry fails to adequately invest in new sources of production. He believes at least US$700 billion will be needed to meet rising demand.
Argentina is about to elect a new President, and it is increasingly showing signs of progress in its oil and gas development. The vast shale formation could allow Argentina to become the first country to truly scale up shale oil and gas drilling outside North America. A report predicts that oil and gas production will rise by a modest 10 percent in 2016, but will double by 2018.
China slashed natural gas prices this week in order to stoke demand. The country cut gas prices for industry and commercial consumers that translate into a 28 percent cut. This may help in boosting demand for natural gas, but will also reduce revenues for upstream gas companies.
- Achieving food security in Pakistan
- Announcement of policy rate by State Bank of Pakistan
- Defending Pakistan's territorial integrity
- Dirty oil politics
- Dishonest Western Media
- Energy Crisis in Pakistan
- Financial Inclusion program of SBP
- Geo political importance of Pakistan
- Geo Politics in South Asia and MENA
- Global Oil Glut
- Importance of remittances in pakistan's economy
- Investing in Commodities
- Investing in Pakistan stock market
- Investing in Pakistan Stock Market
- Investment opportunities in Pakistan
- Islamic Finance in Pakistan
- Making textile insutry robust
- Mutual Funds in Pakistan
- Oil and Gas Production in Pakistan
- Pak Afghan Relations
- Pakistan Foreign Policy
- Pakistan Stock Market Weekly Review
- Perforamance of exploration & production companies
- Performance of cement industry in Pakistan
- performance of commercial banks in Pakistan
- Performance of commerciial banks
- Performance of energy sector companies
- Performance of Fertilizer Industry in Pakistan
- Performance of insurance companies in Pakistan
- Performance of power generation companies
- Performance of textile sector of Pakistan
- Robust agriculture in Pakistan
- State of Pakistan Economy
- State of Pakistan's economy
- State of Pakistan's Economy
- Taxing POL consumers
- Textile Exports of Pakistan
- US-Saudi oil war
- War between shale oil producers and OPEC
- Warehouse Receipt Financing in Pakistan
- Who controls this world