2005
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Oil $62, US inflation rises
Oil prices fell below $62 a barrel at the close of trading last week after the biggest rise in energy costs since 1957 in the US. Energy inflation in September stood at a record 12% while US headline inflation of 4.7% was the highest since 1980. Inflation is expected to dampen oil demand and cool prices.
Iran shuts oil fields
Iran has shut down production from two oil fields because of difficulties selling the heavy oil the sites produce, reported Bloomberg. The Soroush and Nowruz fields were producing 130,000 bpd from a capacity of 190,000 bpd. Opec's second largest producer is trying to develop new fields and expand existing ones to make up for a decline in its crude production.
KNPC invites $6bn refinery bids
Kuwait National Petroleum Company will seek bids in February 2006 for the building of a $6bn refinery with a capacity of up to 615,000 bpd, according to Chairman Sami Rushaid quoted by Reuters. He says the refinery and upgrade works at the country's two other plants will boost Kuwait's processing capacity to a maximum of 1.2m bpd from the current 930,000 bpd.
Oil hits back to $64
Oil hit the $64-mark yesterday on winter supply concerns and an International Energy Agency forecast that has oil demand rising at a rate of 1.75m barrels per day in 2006, up from an already strong 1.26m bpd in 2005. US light crude rose 47 cents to $64.00 a barrel. London Brent was up 47 cents at $60.55.
High oil affecting growth
High oil prices are probably affecting world economic growth, but consumer countries should do more to encourage investment in the oil industry, according to Saudi's central bank governor Hamad Al-Sayari quoted by Reuters. He says the main concern is the impact prices are having on developing countries, and that a shortage of refining capacity, not crude production, is driving prices.
Oil up on IEA figures
Oil prices went up after the International Energy Agency made a downward revision to energy demand growth, but which was less than had been expected, according to analysts. US light crude rose 56 cents to $62.36 per barrel, and London Brent went up 50 cents to $59.28 a barrel.
Kuwait oil contracts
Kuwait will offer companies $1.7bn worth of oil industry contracts in 2006, reported Emirates Today. State-owned Kuwait Oil Company will issue 100 tenders, double the number projected for 2005. It has awarded 700 contracts worth $4.79bn over the past six years.
Oil eases below $62
Oil prices steadied below $62 as investors weighed evidence of demand destruction against lost supplies from the Gulf of Mexico and a strike hit French refineries. A Merrill Lynch reports says the surge in petrol prices has resulted in a demand reduction of around 3%, or 320,000 bpd.
Oil firms jostle for Iraq
US and British oil firms should have first right of refusal for developing Iraq's oil reserves because their governments were committed to the liberation of Iraq, Iraq's Energy Council head Ahmad Chalabi told Reuters. He says security at northern installations has been raised to guard against sabotage, and that oil exports should rise by about 300,000 barrels to reach 1.8m bpd by January 2006.
VLCC rates set to rocket
Sky high November rates for Very Large Crude Carriers are likely again this year as the queue in the Gulf of Mexico is shortening and demand is back up from West Africa, reported Gulf News. There is a mood of optimism among ship owners about the months ahead, said analysts, which will be reflected in higher crude prices.
$1bn Egypt, Gulf refinery plan
The privately-owned, Cairo based Investment and Security Group is promoting a $1bn plan to build a refinery east of Cairo on the Red Sea coast, reported Reuters. The Egyptian General Petroleum Corporation has taken a 16% stake and other unnamed shareholders are from Kuwait and Saudi Arabia. The refinery would process 130,000 bpd of local crude and start up is expected mid-2009.
Fluor wins $999m Gasco job
The UAE has awarded US engineering giant Fluor a $999m contract for the first phase of the Habshan gas complex expansion. Abu Dhabi Gas Industries, part of the Abu Dhabi National Oil Company, plans to raise UAE gas production from 5bn cubic feet per day to 7bn. Package-1 will increase the capacity of the pressure boosting units to feed the additional associated gas from Bab oilfield for processing in the current gas treatment trains of the complex, said officials.
Oil prices slump
Oil prices slumped last week on an easing of energy demand in the US. US light crude hit its lowest level since August 3 at $60.70 for November delivery. Brent crude dropped $1.88 to $58.24, its lowest level since July 28. Oil prices hit all-time peaks in late August with US light crude touching $70.85 and Brent $68.89.
IEA, oil demand destruction
International Energy Agency officials said last week that the two US hurricanes had resulted in a demand destruction for oil. Crude oil prices fell sharply towards the end of the week as the reality dawned that with 12 refineries currently closed, the US would not be buying as much.
$1.2bn Kuwait Oil contract
Kuwait Oil has awarded a contract worth $1.2bn in an agreement with Hyundai Heavy Industries to upgrade oil export facilities, reported the Kuwait Times. The agreement covers building storage tanks, pumps and offshore facilities, according to Kuwait Oil Chairman Farouk Al Zanki quoted in the newspaper.
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