Oil prices stabilize but outlook remains uncertain
October 20, 2015, 5:43 pm   

Oil prices steadied on Tuesday after a week of falls, but the outlook was uncertain as the head of the world`s biggest independent oil trader said the market would struggle to recover much ground over the next year.

Brent crude dropped $1.85 a barrel, or 3.7 percent, on Monday and was up 9 cents at $48.70 by 11:22 a.m. EDT (1522 GMT) on Tuesday.

U.S. light crude was up 23 cents at $46.12 after closing down $1.37, or 3 percent. The November contract expires on Tuesday.

Ian Taylor, the chief executive of trading company Vitol, told the Reuters annual Commodities Summit that slowing oil demand growth and an increase in the volume of Iranian crude supply would help keep a lid on fuel prices.

"If we are above $60 by the end of 2016 I will be a little bit surprised," said Taylor, whose company handled more than 2 billion barrels of oil last year.

Major oil exporters in the Middle East are pumping around 2 million barrels per day (bpd) more crude oil than needed at the moment, analysts say, filling inventories around the world.

On top of this, Iran is expected to boost oil production when international sanctions are lifted after it implements the conditions of a nuclear deal agreed with major world powers.

A senior Iranian oil official said on Monday Tehran planned to increase crude production by 500,000 bpd within a week of the lifting of sanctions, selling the oil to traditional customers in Asia and Europe.

Taylor said he expected a battle for market share between Middle East oil exporters once sanctions were lifted on Iran.

"It will be difficult to place that (Iranian) oil," he said.

Investors are also worried about the world economy and its impact on oil demand as growth in China slows.

China`s GDP growth slowed to 6.9 percent in the third quarter, down on a 7-percent rise in the prior quarter, while implied oil demand was also lower, official figures and Reuters data on Monday showed.

Industry group the American Petroleum Institute (API) will report its stocks data later on Tuesday, while the U.S. government`s Energy Information Administration (EIA) will release oil inventory data on Wednesday.

U.S. commercial crude oil stockpiles are expected to have risen last week for the fourth consecutive week, a Reuters survey showed.


m1.png m2.png m3.png m4.png m5.png
f1.png f2.png f3.png f4.png f5.png
+ =
Exchange Rates
EUR/USD 1.0661
EUR/BRL 3.4097
EUR/AUD 1.4225
EUR/TRY 4.0387


Jan16      01:55
  1. Humidity 47%
  2. Downwind
  3. Winds 0 kph
Latest Videos
VIDEO: The Biology of Bliss and the Human OS - Jamie Wheal
Terror and Tourism: Changing the Travel Landscape
Earth In 2050 - HD Documentary 2015
The drive for gender equality in corporate Japan
Plane touches down then aborts during storm (VIDEO)
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens (VIDEO)
Money Survival Tips for Millennials (VIDEO)
Lightning strike explodes a tree (VIDEO)
The Moons of Mars Explained (VIDEO)
3 Reasons Why Nuclear Energy Is Awesome! (VIDEO)
3 Reasons Why Nuclear Energy Is Terrible! (VIDEO)
Nuclear Energy Explained: How does it work (VIDEO)
Latest Photos
best cities for small businesses
Best Jobs in America (PHOTOS)
Inside the coolest private jets (PHOTOS)
The best hotel club floors in the world
Winning Images from the 2015 National Geographic Traveler Photo Contest
PHOTOS: Raging Wildfires Prompt Major Evacuation
Amazing Geometry Cities from air - Photos
Photos Bangkok Get snow - Opens Snow Village
Stunning Summer Aerials from Around the World (PHOTOS)