Thai Oil: oil prices tumble on oversupply concerns

[webfact]

Thai Oil: oil prices tumble on oversupply concerns

BANGKOK, 3 July 2015, (NNT) - Thai Oil Public Company Limited reported that fuel prices remained stable today, amid the global oversupply concerns after the U.S. increased its crude production.

the price of West Texas Intermediate crude decreased by 0.03 dollar to 56.93 U.S. dollars a barrel. However, the price of Brent crude oil increased by 0.06 dollar to 62.07 U.S. dollars a barrel. Oversupply concerns were triggered after U.S. oil drilling yesterday increased for the first time after 29 weeks of declines.

According to energy services firm Baker Hughes, the oil rig count rose by 12 to 640, following a six-month slump in activity that reduced the number of active rigs from a peak of 1,609 in October to nearly a five-year low last week.

Analysts expect the oil rig count to continue to rise over the latter half of this year, raising U.S. crude supplies and pulling down oil prices. Currently, U.S. fuel prices are being cushioned by the recent report on the employment figure, which is lower than expected. The unemployment rate reached its the lowest point since May 2008 at 5.3 percent.

Thai Oil suggested that investors keep their eyes on the Greek Referendum on Sunday to decide whether or not the country would accept the terms of the International Monetary Fund and remain a member of the European Union.


-- NNT 2015-07-03

[ratcatcher]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

[Pimay1]

I'm sure we will see a drastic drop in pump prices NOT.

[Soutpeel]

I'm sure we will see a drastic drop in pump prices NOT.

of course not, simply because in "good times" the fuel fund needs to be replenished

[NeverSure]

I'm really glad that OPEC no longer controls the supply and price of oil. They almost devastated the global economy in the 1970's by restricting supply to drive the price up. There were huge lines at gas stations even after rationing was in place including restricting people to amount purchased and days purchased based on last digit of a vehicle's license plate. A lot of businesses like taxis, real estate agents, local delivery etc. were out of business.

The main reason the world isn't sucking up to ME countries this time is that the embargo of 1973 totally changed the US public policy on oil exploration, transportation and refining. The US has more oil than all of the rest of the world combined and that now stabilizes global supplies.

If OPEC still had the world by the ***** it could influence global political policies. As it is they can go suck air.

[BuaBS]

Not very smart , to sell your oil so cheap just to keep your market share. I would cap my oilwells and wait for higher prices. Let the rest sell , I'll keep mine safe underground. Peak oil , has come and gone.

US thinks they have a lot of fracking oil. Reality is different. Let them poison their land and see production with bad ROI .

So what about the palmoil surplus here in Thailand ? Is the 70.000 tons that they put in diesel finnished so that I can finally go to the gasstation and have B3 back instead of the B7 sh-t ?

Edited July 3, 2015 by BuaBS

[tonbridgebrit]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

I think we need to be a bit more carefull when cheering on falling oil prices. Royal Dutch Shell and BP are massive companies, listed on the London stock market, and are big constituents of the FTSE 100. They pay out good dividends, and a lot of people will have their pensions linked to the dividends from those two giant companies. Falling oil prices hurt Shell and BP, and so, might not be great for Britain.

Also, the drop in the world oil price is mainly being caused by the American shale oil industry. Billions has been invested into the shale oil industry, but the Saudis and other Arab countries are able to produce oil at a far cheaper price. So yes, the shale oil has forced the Saudis to compete and to sell the oil at a reduced price, but billions has already been put into the shale oil industry (to set up the new rigs), and some of the shale operators simply can't make a profit at the price of oil today.

Basically, OPEC is, off-course, trying to kill off the US shale industry. Free-market capitalism can sometimes destroy wealth. How much money will be destroyed as shale oil contracts ? How much capital will be lost ?

[Jay Sata]

The capitalist system is driven by supply and demand.

With fracking we now have more supply to the point where the USA is almost self sufficient.

So demand has dropped and so have prices.

I dont think the USA will ever expose their energy needs to the whims of a few Arab sheiks in future.

Towards the end of the war Germany had no oil imports turning instead to coal to oil technology.

The UK has 200 years plus coal reserves.

It also has a vast amount of oil waiting to be fracked.

The great thing about the US or UK supplying their own energy is there are no transportation costs.

Edited July 3, 2015 by Jay Sata

[quandow]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

Oil is not a replenishable resource. If we don't blow ourselves up, then that day will come. And once it does, what friends will they have left? Mwuhahahaha!!!

[hawksway]

So the next big crisis in Thailand (and its Neighbours) will be a drastic fall in the price of Palm, which for a while delivered much of the Countries BIO diesel fuel.

One thing in short supply is good news!

call in the IMF!

[Thai at Heart]

They have just devalued the baht by 10%. No gains for them

[Konaboy1]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

Never underestimate US capitalists!

If Saudi Arabia want' s to play, then the price of oil will just keep going down.

Pump USA pump!

We now have more reserves.anyway and will soon be the #1 producer in the world.

Only problem is that Federal law currently does not allow US producers to export.

That will change soon as major construction is under way in our southern ports to construct export facilities.

Congress will change the law.

Oil rules!

New US technology will just keep improving. Exciting times.

BTW-I can't wait for all you TV'ers to respond!

[ratcatcher]

I'm really glad that OPEC no longer controls the supply and price of oil. They almost devastated the global economy in the 1970's by restricting supply to drive the price up. There were huge lines at gas stations even after rationing was in place including restricting people to amount purchased and days purchased based on last digit of a vehicle's license plate. A lot of businesses like taxis, real estate agents, local delivery etc. were out of business.

The main reason the world isn't sucking up to ME countries this time is that the embargo of 1973 totally changed the US public policy on oil exploration, transportation and refining. The US has more oil than all of the rest of the world combined and that now stabilizes global supplies.

If OPEC still had the world by the ***** it could influence global political policies. As it is they can go suck air.

https://en.wikipedia.org/wiki/List_of_countries_by_proven_oil_reserves

Not sure if this is what you mean, but Canada at 3rd, by this chart, has more reserves than the USA at 11th.

[tonbridgebrit]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

Never underestimate US capitalists!

If Saudi Arabia want' s to play, then the price of oil will just keep going down.

Pump USA pump!

We now have more reserves.anyway and will soon be the #1 producer in the world.

Only problem is that Federal law currently does not allow US producers to export.

That will change soon as major construction is under way in our southern ports to construct export facilities.

Congress will change the law.

Oil rules!

New US technology will just keep improving. Exciting times.

BTW-I can't wait for all you TV'ers to respond!

I'm not really sure about America's oil reserves, but I do reckon that America's increased production in the last few years is due to shale oil. Is this right ?

What I do know is, is that other countries can produce oil much cheaper than America's shale, and that's why American shale oil production has dropped considerably during the past 12 months. With the oil price at 115 US dollars a barrel, yes, shale made sense. The shale production caused the price to fall a bit, and shale can make a profit at above $US80, it's not the same for different shale producers. Other countries responded by increasing their production, sending the price down to the present $US 61.

At this price, a lot of American shale does not make a profit. Hence, the big reduction in shale. Yes, the benefit of American shale is, is that it has forced OPEC to increase production and send the price to it's present low level. I really do wonder if the world oil price will stay at this low level for the long-term, as in for the next two years.

[BSJ]

In time, a new source of energy will be discovered. It could be a new mineral from the moon or further afield. Sound laughable, but NASA and other space agencies aren't sending out rovers for altruistic purposes. They want to cash in on the next big thing!

What company wouldn't want to control the energy from a kilogram of rock that could power Bangkok for a year, or New York, or Tokyo.

[h90]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

Well, look at the gasoline prices in Europe.....My father is always shocked about the low gas prices in Thailand.

Fuel prices is a global rip off of both the large companies and the governments.

The west should do everything to reduce the oil consumption, like China does. China is building a lot Fischer-Tropsch factories (coal to oil conversation). But the west prefers to support Arabs and in particular the Saudis.

Europe should mine coal again, invest in new technologies (solar) and team up with Russia.

What we do:

We stop coal mining

We made huge taxes on solar cells to make them expensive

We try to make Russia our enemy and force them into marriage with China

Conspiration or just stupidness?

[Naam]

Well, shouldn't Thais be hoping for lower fuel costs?

Wouldn't it be nice if one day the rest of the world could say, politely, to the Saudis and other Arab nations "We're sorry, but we really don't need your oil any more, we find we have enough of our own. Al salamah."

Oil is not a replenishable resource. If we don't blow ourselves up, then that day will come. And once it does, what friends will they have left? Mwuhahahaha!!!

they will still have their trillions of "friendly" investment spread all over the world

[Naam]

In time, a new source of energy will be discovered. It could be a new mineral from the moon or further afield. Sound laughable, but NASA and other space agencies aren't sending out rovers for altruistic purposes. They want to cash in on the next big thing!

What company wouldn't want to control the energy from a kilogram of rock that could power Bangkok for a year, or New York, or Tokyo.

they might not look for rocks but for alien fairy queens who can grant energy wishes

[BuaBS]

Last century , we were told that there would be fusion reactors by 2020. Practicly unlimited cheap clean energy . And flying cars in 2015. I'm still waiting.

[impulse]

Last century , we were told that there would be fusion reactors by 2020. Practicly unlimited cheap clean energy . And flying cars in 2015. I'm still waiting.

Flying cars. Thailand.

Put those 2 concepts in the same paragraph and the hair on the back of my neck stands at attention.