Oil prices fell on Monday as analysts doubted upcoming producer talks would be able to rein in oversupply, saying that Brent would likely fall back below $50 a barrel as August's over 20-percent crude rally looks overblown.
Analysts cast doubt on a recent oil price rally, saying that much of it was a result of short-covering and anticipation of upcoming oil producer talks in September to discuss means to curb ballooning oversupply. With no fundamental tightening of the market in sight, they said that prices would likely come under downward pressure again soon.
Regarding the upcoming producer talks, Morgan Stanley said that it viewed a meaningful agreement as highly unlikely and that there were too many headwinds and logistical challenges to a meaningful deal.
According to Barclays, though Iran now sits roughly 200,000 barrels per day away from its monthly pre-sanctions peak in May 2011, the bank does not see it accepting restraints on its output, and without Iran's inclusion, Saudi Arabia will not take part. As a result, the British bank said that the stars remain misaligned for an OPEC/non-OPEC freeze agreement.
Because of the ongoing production and storage overhang in crude and refined products markets, Barclays said that the 20-percent price rally since early August was unwarranted, and that oil prices of $50 or higher were currently unsustainable. (CNBC)
Skangas duel fuel LNG carrier Coral Energy (image credit/Skangas)
Liquified natural gas (LNG) bunker tanker Coralius has made its first trip loading and delivering LNG to and from Norwegian ports, according to trade press reports.
The 5,800 cubic meter capacity tanker, which is owned by Norwegian gas company Skangas, was delivered to the company in June. Skangas also operates LNG carrier Coral Energy.
OPEC Cutback Extension to be Discussed in November, But Developments Could Render Any Deal Meaningless
Analysts say everything from Saudi exploration to rising tensions with North Korea could radically alter the dynamics of the international market. File Image / Pixabay
Ever since the Organization of the Petroleum Exporting Countries (OPEC) extended the duration of its production cuts earlier this year to March of 2018, speculation has been rampant that the meager cutback volume coupled with the large number of members