UNSTABLE OIL PRICES
BLOOMBERG wrote, oil prices will become more volatile after next year amid under-investment in production and uncertain growth in demand, Suncor Energy Inc. Chief Executive Officer Steve Williams said.
Crude prices will rise through next year and become more volatile for the following two to five years, Williams said at the Toronto Global Forum. Suncor can operate "successfully" with oil prices between $35 and $40 a barrel, he said.
The collapse of oil prices has forced Canadian and global producers to slash costs and curtail investment over the past two years. Even after a rebound from a 12-year low earlier this year, oil futures in New York are still about 60 percent down from their 2014 peak. Prices have been mostly stuck in the $40-$50 range for the past four months.
Canada's oil reserves are "probably" the largest in the world and eventually there will be more competition to access them, Williams said.
Canada is close to getting an oil pipeline built, most likely Kinder Morgan Energy Partners LP's Trans Mountain or TransCanada Corp.'s Energy East, the Suncor CEO said. The country has a reputation of not being able to get stuff done and is slowly making steps to reverse that, he added.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.