Category: Oil and Gas Industry

OPEC Split over Supply Levels as Oil Prices Slip

Crude prices fell to an eight-month low yesterday amid market speculation over the future of oil supplies and uncertainty over global energy demand. OPEC oil ministers meet in Vienna later today for a policy meeting, but deep divisions within the group are already surfacing.

Crude prices have fallen more than 20 percent from its peak in May, and price hawks in the Organisation of Petroleum Exporting Countries are concerned that the deepening eurozone crisis and weak global economic climate will send crude prices plummeting further.

Infographic: How Much Do We Spend on Gas?

While gas prices move in tandem with the trends in global oil prices, it is not the only real determinant on domestic gas prices. With the rise in summer travel and an increase in demand for gasoline, history shows that gas prices tend to spike right before the summer holidays. But how to prices differ across the globe, and how much do other countries spend and consume on gasoline? The results might just surprise you.

Oil Prices Climb Despite Saudi Arabia’s Offer To Lower Prices

Oil prices are up 15 percent in 2012 and policymakers are starting to get fearful. After all, the recent financial crisis was exacerbated by the record high prices in 2008.

Despite Saudi Arabia’s oil minister promising to expand oil output by as much as 25 percent this year, the oil market remained unconvinced with Brent Crude closing at $124.43 on Wednesday.

Related News: Saudi Arabia Vows To Lower Oil Prices

11 Nations Exempted From Financial Sanctions On Iran

The Obama administration has said it would exempt Japan and 10 European Union nations from financial sanctions, imposed on countries who deal with Iran. However, countries like India and China who are heavily dependent on Iranian oil are at high risk of being cut off from the U.S. financial system under fresh sanctions meant to increase pressure on Iran.

United States and Mexico Agree On Landmark Oil Deal

The U.S. and Mexico have reached a cooperative agreement for oil and gas drilling along the maritime border in the Gulf of Mexico, ending years of negotiation that has left the area untapped for more than a decade.

The agreement signed on Monday by the United States Secretary of State Hillary Clinton and Mexico’s foreign minister Patricia Espinosa, establishes a legal framework for U.S. companies to develop offshore energy projects with Mexico’s national oil company Petroleos Mexicanos (Pemex).

Russia To Benefit From Western Sanctions On Iran

In the last few months, the United States and Europe have imposed tough sanctions on Iran, especially on Iranian oil exports as a retaliation move against the belligerent state’s nuclear ambitions. But as the New York Times reports, Russia’s oil industry could stand to be the biggest winner from the sanctions.

With Iran’s latest nuclear tests off the Straits of Hormuz, Western nations have been quick to impose tough oil and financial sanctions against Iran, as part of international pressure to force it to reverse course on its nuclear ambitions.

Oil Embargo Alert: EU Moves To Ban Iran’s Crude

Members of the European Union have come to a preliminary agreement to ban the imports of Iranian crude oil, though it has not been confirmed when the embargo will but installed. This follows the United States’ decision to impose financial sanctions on the belligerent country, leaving the future of oil prices in jeopardy.

Oil prices have been increasing since the start of the year, largely on the back of uncertainty over Iran’s future crude trade and security along the Strait of Hormuz.

Oil Crosses $100 On First Trading Day of 2012

Oil prices jumped more than 1.5 percent to cross the $100 mark on Tuesday, the first trading day of 2012, amid new fears that rising tensions between the West and Iran could lead to a future disruption of crude supplies.

The spike occurred after Iran said it has test-fired two long-range missiles on Monday – a show of military might and perceived by the West as a sign of aggression as Iran continues on its nuclear programme.

Iran’s latest tests are part of a 10-day naval drill scheduled to end on Tuesday.