| | | ..more death knell for bitumen, it ain't cheap and it's land locked
I reckon Teck's gamble in the oil sands will be worth about what Elmer's is in Arizona
..they just had a larger treasury to piss away when they too ignored what was happening in the world..
Oil Falls to Lowest Since 2008 as OPEC Seen Fueling Supply Glut
Oil declined to the lowest level since 2008 in London amid estimates that OPEC’s decision to effectively scrap production targets will keep the market oversupplied.
Brent futures declined as much as 2.1 percent for a sixth consecutive loss. The global surplus will persist at least until late 2016 as demand growth slows and the Organization of Petroleum Exporting Countries shows “ renewed determination” to maximize production, the International Energy Agency said Friday. The group chose not to curb output at its Dec. 4 meeting.
Oil prices have slumped to levels last seen during the global financial crisis as a result of OPEC’s strategy to defend market share against higher-cost producers. The group’s production rose to a three-year high in November, it said in a report Thursday, as surging Iraqi volumes more than offset a pullback by Saudi Arabia.
“Too much oil is being produced at the moment,” analysts at Commerzbank AG led by Eugen Weinberg in Frankfurt said in a report. “There is unlikely to be any kind of ‘happy ending’ for oil prices this year.”
OPEC SupplyBrent for January settlement declined as much as 83 cents to $38.90 a barrel on the London-based ICE Futures Europe exchange, the lowest since Dec. 31, 2008, and traded for $39.13 a barrel at 11:42 a.m. local time. It has decreased 9.2 percent this week. The European benchmark crude was at a premium of $2.82 to WTI.
West Texas Intermediate for January delivery was at $36.32 a barrel on the New York Mercantile Exchange, down 44 cents. The contract dropped 40 cents to $36.76 on Thursday, the lowest close since February 2009. The volume of all futures traded was about 29 percent above the 100-day average.
OPEC is displaying hardened resolve to maintain sales volumes even as prices fall in an oversupplied market, the IEA said Friday in its monthly report. While its policy is hitting rivals, triggering the steepest drop in non-OPEC supply since 1992, world oil inventories will likely swell further once Iran restores exports on the completion of a deal to lift sanctions, it said.
bloomberg.com |
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