World Bank lowers forecast for oil prices

The World Bank has lowered its forecast for crude oil prices for 2016. It had previously predicted prices at $51 (£35.5) per barrel in October but has reduced it to $37 per barrel. The lower forecast reflects a number of supply and demand factors, it states. “These include sooner-than-anticipated resumption of exports by the Islamic […]

Oil prices not expected to recover in 2016

There will be no recovery in oil prices in 2016. That’s according to US statistics firm Fitch Ratings. It also predicts gas prices in Europe will remain low until oil prices start to pick up in 2017. The report states: “Progressive taxation has helped companies ease the impact of low prices but Russia’s mineral extraction […]

UK oil & gas firms ‘could tap into £20bn reservoir’

UK oil and gas firms could have access to a £20 billion investment reservoir if they improve their working capital management. That’s according to a new report by service network PwC UK. It tracked the success of companies with effective working capital in sectors such as exploration and production (E&P) and oil field services (OFS). It found debt is […]

Next year’s oil prices ‘lower than thought’

Brent crude oil prices are expected to be $8 a barrel (£5.2/Bbl) lower compared to earlier projections. They are expected to average $58 a barrel (£37.9/Bbl) in 2016. That’s according to the August Oil Market Report from Thomson Reuters. The report states the expected decrease will be due to a stronger Chinese economy and an […]

Chilly weather keeps gas demand high – DMR

Demand for gas remains high today as the cold weather continues, according to the daily market report. Ben Spry, Optimisation Desk Manager at npower said: “We got a very long gas system this morning at 20 mcm (million cubic meters) long and that’s pressuring prompt prices. We’ve got high consumption, a lot of demand around […]

Drop in oil could be a good thing, says oil and gas boss

Shawn Bartholomae, CEO of Prodigy oil and gas says the sudden drop in crude oil won’t last long. In fact, he claims in future the price to drill will become more efficient, making profit margins higher over time. The CEO says history will repeat itself, when prices have dipped. When oil had previously dipped, so […]

North Sea collapse fears “over the top” says Sir Ian Wood

Billionaire oil businessman Sir Ian Wood believes claims the North Sea oil industry is close to collapse are “over the top”. Earlier this week the chairman of independent oil explorers association Brindex, Robin Allan, told the BBC the industry was “in crisis” because of low oil prices. Sir Ian Wood who led a government investigation into […]

What is OPEC’s role in oil price crash?

Why have oil prices gone below $70 a barrel and threaten to go below $60 – and what does that have to do with OPEC? The oil group which is led by Saudi Arabia and counts countries such as Iraq, Nigeria and Libya has decided to keep pumping the same amount of oil. Some analysts reckon prices could […]

Falling oil price dents Total profits

French oil company Total today blamed falling oil prices for denting its profits. Oil prices recently plummeted from around $100 per barrel to around the $80-85 mark. Total’s financial results reveal profits for the year so far at $10 billion, a drop of 8% compared with this time last year. The news comes a week […]

Expect energy “discounts” after falling oil prices?

With the oil price staying well below $100 per barrel of late, this could have a knock-on effect on UK power prices according to the weekly Y Report from Inenco. Rob Brown, Account Director for the energy consultancy said: “If it stays at these prices for much longer and production levels stay as high as […]