collected by :Frank Ithan
That's causing reserves at major producers to fall and the industry's reinvestment ratio to plunge to the lowest in a generation, paving the way for oil prices to surpass records reached last decade, according to Bernstein. RELATED: Oil prices slip, but it's likely just temporary"Investors who had egged on management teams to reign in capex and return cash will lament the underinvestment in the industry," the analysts wrote. The oversupply of crude globally in recent years has masked "chronic underinvestment," Bernstein said in the report. The producers aim now to pump more to help cool the market, but disruptions from Libya to Venezuela are keeping prices elevated. Proven reserves of the world's top oil companies have fallen by more than 30 percent on average since 2000, with only Exxon and BP showing an improvement, helped by acquisitions, Bernstein said.
![Trump is angry at OPEC over oil prices ...]()
That's causing reserves at major producers to fall and the industry's reinvestment ratio to plunge to the lowest in a generation, paving the way for oil prices to surpass records reached last decade, according to Bernstein. RELATED: Oil prices slip, but it's likely just temporary"Investors who had egged on management teams to reign in capex and return cash will lament the underinvestment in the industry," the analysts wrote. The oversupply of crude globally in recent years has masked "chronic underinvestment," Bernstein said in the report. The producers aim now to pump more to help cool the market, but disruptions from Libya to Venezuela are keeping prices elevated. Proven reserves of the world's top oil companies have fallen by more than 30 percent on average since 2000, with only Exxon and BP showing an improvement, helped by acquisitions, Bernstein said.
Trump is angry at OPEC over oil prices ...
On Independence Day, Trump resumed his Twitter assault on OPEC and high oil prices. Without specifying a number, the official press agency said the kingdom would do what is necessary to balance oil prices. That represents about 2.5 percent of the global oil consumption, but crude oil prices have always been sensitive to pressure on a small portion of the overall market because consumers have trouble doing without gasoline or diesel. Crude oil prices in recent days have hit their highest levels since late 2014. Moreover, Obama was able to do this without increasing oil prices because a surge in U.S. shale oil drilling more than offset lost Iranian exports.Happy July 4th! How oil prices will affect your summer road trip
as declared in How oil prices will affect your summer road tripAs OPEC agrees to boost oil production, motorists are feeling the pain at the pumpGas prices are at their highest point in four years for an Independence Day. While the announcement initially sent oil prices higher, oil markets had largely baked in expectations of an increase in production prior to last month's meeting. Those who live in states like Florida may choose to delay road trip plans until gas prices lower. The majority of motorists in the Great Lakes and Central region are seeing cheaper gas prices , while gas prices in the South and Southeast are seeing volatility over the last week, according to the AAA. While increased oil production among OPEC members will keep oil prices more stable in the longer term, it could cause wide variations in gas prices.Crude palm oil prices likely to have hit rock bottom - Business News
PETALING JAYA: Crude palm oil (CPO) prices may have hit the bottom, as the commodity has been trending between the RM2,350 and RM2,550 per tonne range in the past six months, say analysts. "As we are not expecting further weakness in CPO prices, we reckon the plantation sector is now trading at its near-term fair value. "CPO prices are negatively correlated with palm oil inventory levels. Meanwhile, the Malaysian Palm Oil Board (MPOB) reported yesterday that palm oil stock for May had eased slightly by 0.51% to 2.17 million tonnes from a month earlier. This fell short of most analysts' much lower projection of between 2.07 million and 2.09 million tonnes for end-May palm oil stocks.
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