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Page added on October 6, 2016
PIRA Energy expects oil surplus to be gone by second half of 2017
The surplus in crude oil supply that has led to a two-year price rout has been eroding since the second quarter and will be “gone” by the beginning of the second half of 2017, PIRA Energy Group founder Gary Ross told reporters on Wednesday.
A massive glut in oil brought crude prices crashing from the $100 a barrel range in mid-2014 to as low as about $27 early this year.
Organization of Petroleum Exporting Countries last week agreed to modest oil output cuts in the first such deal since 2008, limiting production to a range of 32.5 million-33.0 million barrels per day.
Global benchmark Brent crude prices have risen more than 10 percent in the week since the deal.
The decision by OPEC to embrace production cuts will help move crude prices toward a target of $50-$60 per barrel, said Ross, who is now chairman of the consultancy.
OPEC’s policy has shifted as Saudi Arabia is targeting that price range and Iran has become more willing to accept an agreement, Ross said.
On Wednesday oil prices rose about 2 percent, touching their highest since June after an unexpected drop in U.S. crude stocks.[O/R]
Speaking at a news conference on the sidelines of PIRA’s executive energy conference, Ross said that U.S. shale producers were likely to hedge more selectively after OPEC decided to limit output, whereas previously they looked to lock in future output close to the $50 a barrel level.
Shale producers and oil-consuming companies were under-hedged, he said, adding that industrial and airline buying would support prices.
On the upcoming U.S. presidential election, Ross said, if Democrat Hillary Clinton wins, the stock market will likely rally and raise the value of all risk assets, including oil and gas.
“People are going to be relieved that Trump is not there, because of his uncertain policies,” Ross said.
Energy policy has come up only intermittently during the 2016 campaign.
This is the first time in 20 years that gasoline prices have not been a major topic of debate during a U.S. presidential election, said Jim Messina, campaign manager for President Barack Obama who also spoke at the news conference.
15 Comments on "PIRA Energy expects oil surplus to be gone by second half of 2017"
Kenz300 on Thu, 6th Oct 2016 11:05 am
The top 1% want it all and the RepubliCON party will give it to them
What do RepubliCONS believe — depends who is paying, Follow the money, fossil fuels, oil, coal, natural gas, nuclear, NRA, the top 1%. Are RepubliCONS the real EVIL DOERS. They want to end Social Security, Medicare and access to contraception.
RepubliCONS are the reason the middle class is shrinking. The RepubliCON elite want cheap labor. They are no friend of the middle class
penury on Thu, 6th Oct 2016 11:41 am
i am sorry Kenz300, but this is not a Rep article, it is written to support the elect Hillary campaign.
Anonymous on Thu, 6th Oct 2016 2:19 pm
Im sorry pen, but Kenz is a imbecile that has been cut’n&paste’n the same lame-assed statements over and over. Like..since forever.
More or less in order of frequency
The….
Electric car C+P
Overpopulation C+P
and his
‘Republicon’ C+P.
I might have missed one or two of his stupid mantras, but those are his favs.
GregT on Thu, 6th Oct 2016 2:45 pm
The Kenz300 program was in dire need of an upgrade at least three years ago. It is now obsolete.
onlooker on Thu, 6th Oct 2016 2:57 pm
So Kenz is a program masquerading as a human or is it vice-versa
Cloggie on Thu, 6th Oct 2016 3:56 pm
Canadian billionaire David Thomson and owner of Reuters, hides globalist propaganda in a prediction concerning oil price, which may or may not become true (I hope en tentatively think that the oil price will indeed rise).
GregT on Thu, 6th Oct 2016 11:09 pm
“(I hope en tentatively think that the oil price will indeed rise).”
I hope so too cloggie, the sooner the better.
Go Speed Racer on Fri, 7th Oct 2016 12:32 am
Kenzworth has got a point, if only a rehash.
Just he didn’t notice the democrats are as creepy as the republicans.
There is a bird of prey, swooping down to kill you. It has a right wing, and a left wing. But there is only one bird.
mx on Fri, 7th Oct 2016 9:32 am
Yes, if Oil goes Up Solar goes Up too and faster:
ALL the solar stocks are a BUY right now, most are below their 50 day moving average.
So, pick up some TAN, SPWR, FSLR, CSIQ, below their 50 day moving average = Bargains.
And also: SCTY, and RUN, good stocks with a big future.
This is a long term play, buy now as much as possible at these prices and get rich.
mx on Fri, 7th Oct 2016 9:32 am
You’re welcome friends.
mx on Fri, 7th Oct 2016 9:35 am
Trumps 45% tariff on China is a Trade War – Depression Trigger. And a Walmart killer.
If you look at the stock market you can see a BROAD Volume Drop since September, on the off chance Trump wins. They expect a Trump Crash, and are ready to buy in after the crash.
ghung on Fri, 7th Oct 2016 10:13 am
mx; “Trumps 45% tariff on China is a Trade War – Depression Trigger. And a Walmart killer.”
Then, Again: Donald Trump Makes History With Zero Major Newspaper Endorsements:
“With just a little over a month until election day, Donald Trump has racked up zero major newspaper endorsements, a first for any major party nominee in American history.
While newspaper endorsements don’t necessarily change voters’ minds, this year’s barrage of anti-Trump endorsements could actually move the needle come November, experts say.
“It’s significant,” Jack Pitney, professor of government at California’s Claremont McKenna College, told TheWrap. “The cumulative effect of all these defections could have an impact on moderate Republicans.”
Some conservative papers, which have endorsed Republicans for decades, are now breaking with tradition to endorse Hillary Clinton or, at the very least, urge their readers not to vote for Trump.
Several have taken a stand even at the expense of losing subscribers at a time when newspapers are barely staying afloat. Some papers have received death threats…..”
Craig Ruchman on Fri, 7th Oct 2016 11:16 am
“if Oil goes Up Solar goes up too and faster: ALL the solar stocks are a BUY right now, most are below their 50 day moving average.”
+1, I agree
drwater on Fri, 7th Oct 2016 2:05 pm
Doesn’t solar really compete more with natgas than oil?
Anonymous on Fri, 7th Oct 2016 3:37 pm
ghung, you know well as I do, the entire corporate uS media machine works for the deep state, not for ‘political parties’. Trump never would have gotten their ‘seal of approval’ because Killary was the one slated to ‘win’ the phoney uS ‘elections’. Lets pretend that pasty faced, bible-thumping moron, Cruz has ‘won’ the nomination (as script originally called for). He would have gotten a few token endorsements from the usual places, for appearances sake, unlike trumps apparent ‘blacklisting’. But the corporate elite no more wanted ‘cruz’ in the WH or any of the other rebub idiots to win either. IF the deep state wanted a so-called ‘repub’ in the WH, they would have found someone that could actually ‘win’. No, they feel the uS can literally get away with murder, well, more murder with a vagina in the WH, even one as dried up and noxious as shillarys. The uS managed to wage non-stop war with a media-friendly, affable, black man with a well-modulated voice in the ‘white-house’ and they feel they could wring 8 more years of non-stop military escalation and aggression with killarys saggy tits ‘leading’ the empire. Trump, is not part of that whole PNAC circle, so he might, potentially, throw a monkey wrench into the war-machines\Wal St’s plans-can’t risk that can ‘we’, err they.
The ‘fix’ was in for Shillary all along. That’s why the repubs fielded their usual pack of slack-jawed neanderthals, they were never supposed to, or could ‘win’. They are mad at trump, because he ‘could’ potentially win, and upset all their neat, tidy little plans to expand uS wars, the in-security state, along Wall St’s fun and games.