Oil notes
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And this comes as OPEC continues to cut production. We heard that a projection from the tanker tracker firm Oil Movements that OPEC will cut crude-oil shipments by 2.5 percent this month hitting about 80% of their compliance targets. Even though they are short of their targets this is still unprecedented compliance from this merry band of cheaters.
The Organization of Petroleum Exporting Countries, producer of about 40 percent of the worldâs oil, will load about 22.2 million barrels a day in the four weeks ending May 2, down from 22.8 million a day in the month ended April 4.
The other bullish factor is the cut back in production from other producers and the decline in production investment. Take for example a story that Reuters reported just yesterday on the natural gas front, Chesapeake Energy Corp. is going to curtail about 400 million cubic feet of its gross natural gas production cited lower well head prices. The cutback represents about 13% of its current product gas the EIA reported that Natural gas supplies rose 1.3 percent, or 21 billion cubic feet, to 1.695 trillion in the week ended April 10. Still well above the five year average but a little less above the five year average than it has been.
Earlier this week the Energy Information Agency projected that natural gas consumption would fall by nearly 2 percent in 2009,leading to lower natural gas prices.
Industrial natural gas consumption is expected to decline by more than 7 percent which is huge considering that industrial consumption of natural gas is currently down about 4 bcf from this time a year ago.
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And this comes as OPEC continues to cut production. We heard that a projection from the tanker tracker firm Oil Movements that OPEC will cut crude-oil shipments by 2.5 percent this month hitting about 80% of their compliance targets. Even though they are short of their targets this is still unprecedented compliance from this merry band of cheaters.
The Organization of Petroleum Exporting Countries, producer of about 40 percent of the worldâs oil, will load about 22.2 million barrels a day in the four weeks ending May 2, down from 22.8 million a day in the month ended April 4.
The other bullish factor is the cut back in production from other producers and the decline in production investment. Take for example a story that Reuters reported just yesterday on the natural gas front, Chesapeake Energy Corp. is going to curtail about 400 million cubic feet of its gross natural gas production cited lower well head prices. The cutback represents about 13% of its current product gas the EIA reported that Natural gas supplies rose 1.3 percent, or 21 billion cubic feet, to 1.695 trillion in the week ended April 10. Still well above the five year average but a little less above the five year average than it has been.
Earlier this week the Energy Information Agency projected that natural gas consumption would fall by nearly 2 percent in 2009,leading to lower natural gas prices.
Industrial natural gas consumption is expected to decline by more than 7 percent which is huge considering that industrial consumption of natural gas is currently down about 4 bcf from this time a year ago.