World Mining Exploration News

Crude oil for October delivery fell $ 1.91 to settle at $ 68.05 a barrel on the New York Mercantile Exchange. this led to the loss of a contract Monday $ 2.78 to settle at $ 69.96, which means that crude oil has fallen nearly 6 percent in the week.

But on Tuesday, energy prices seem to be improving after the Institute for Supply Management, a trade group of purchasing executives, analyzing the manufacturing index to rise to 52.9 in August.

Bounce Tuesday energy prices and short-lived both equity and energy markets just before noon reversed. Phil Flynn, analyst questioned whether PFGBest manufacturing report gives a distorted image of the economy.

Even though most energy experts believe the government will report the serial-down in gasoline and crude stocks Wednesday as part of a weekly report, the level remained very high and driving season comes to a close. (more…)

OPEC world oil managers had persuaded the ministers of energy to maintain oil production quotas, so that world oil prices do not rise too high.

However, according to the Organization of Petroleum Exporting countries, that reducing it would harm the delivery of global economic recovery. So that the oil price rises to $ 75 per barrel on August 25, which according to Saudi Arabian King Abdullah said the fair for consumers and producers.

“OPEC member countries would be happy with high oil prices, which they can not be anticipated back in January,” said Edward Morse, chief of economic research at LCM Commodities LLC in New York. “They will not seriously consider to deepen or extend the cut at this stage. OPEC has taken a lot of oil out of the market, and it will clean the market up.”
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German import prices fell in November by the most in almost five years on energy products, adding to evidence that cost pressures in the euro area’s largest economy are easing.

Prices dropped 1.3 percent in November from a year earlier after rising 2.9 percent in October, the Federal Statistics Office in Wiesbaden said today. Economists expected a drop of 0.2 percent from last year, a Bloomberg News survey of 14 analysts showed. In the month, prices fell 3.4 percent, the second biggest drop on record after last month’s 3.6 percent decrease.

Declining prices and the recent appreciation of the euro ease pressure on companies’ profit margins as the country is fighting its worst recession in 12 years. At the same time, the stronger euro burdens exports and damps demand for German-manufactured goods. Business sentiment dropped to the lowest level in more than a quarter of a century. (more…)

QANTAS has responded to growing pressure from customers and the travel industry by slashing its controversial tickets levy.

The airline, facing calls to trim the levy because of the recent slump in the price of oil on world markets, yesterday announced across-the-board reductions that will apply from today.

The biggest fall will be a $30 cut – to $160 – on an Australia-London fare. The smallest will be just $3, down from $21 to $18, on the carrier’s domestic tickets.

Yesterday, Jetstar chief Bruce Buchanan hinted that further cuts could follow.

He said his staff were closely monitoring oil and jet fuel prices and surcharges would be revised accordingly. (more…)

The world’s largest oil producers and consumers called for more cooperation Friday on measures to increase stability in oil prices and guarantee the investment necessary for future supplies.

Opening a meeting of ministers from 27 key oil-producing and consuming countries here, British Prime Minister Gordon Brown warned that a failure to tackle volatility in oil prices could cost the global economy trillions of dollars.

“Wild fluctuations in market prices harm nations all round the world,” he said. “They damage consumers and producers alike.”

Oil prices have fallen to four-year lows this week despite OPEC’s agreement on Wednesday to slash global output, (more…)

Officials at Bakersfield oil exploration companies say they are holding off on expansion plans until the price of crude stabilizes.

Projects that seemed viable when oil was more than $100 a barrel are being put on hold as the price hovers just above $50. Ken Hunter of Vaquero Energy Inc. says the lower price “does affect enthusiasm” for a planned project to inject steam into wells to recover hard-to-get oil.

Independent producer Bruce Holmes of Maricopa said he shut down one well and canceled plans for a new 4,000-foot-deep one when prices began to decline.
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Shares in the Dublin-listed, Russia-focused oil exploration company PetroNeft Resources rose over 37 per cent in Dublin this morning after it reported one of its wells in Siberia produced crude oil when tested.

In a statement PetroNeft said its Lineynoye 1 well delivered 271 barrels of oil a day and added this could be improved. A total of five wells are now confirmed as producers on the PetroNeft-operated License 61, the company said.

PetroNeft rose as much as €0.045 cent, or 37.5 per cent, to €0.165 cent at 11.43am in Dublin. Over the year the stock is down 64 per cent and has a market value of €31.6 million

The discovery makes PetroNeft’s enterprise value of under $0.50 a barrel “look excellent value, especially when $12 million of pipeline are available to the company,” Job Langbroek, analyst at Davy Stockbrokers, said in a research note. (more…)

Iran is being hurt by the financial crisis because of falling oil prices and a world downturn that will damage non-oil exports, an official said on Sunday, even though Iran’s economy was relatively isolated.
Iranian officials are voicing more concern about the impact of the international financial turmoil after initially brushing off the impact on Iran, which has an economy that has become increasingly isolated because of U.S. and U.N. sanctions.
Many Western banks have scaled back or cut dealings with Iran because of sanctions imposed over Iran’s disputed nuclear work. But the world’s fourth-largest oil producer has watched crude prices tumble and now expects to see other exports hurt.
“Even though the Iranian economy is to some extent less tied in to the world economy, the first impact (of the crisis) on the Iranian economy is a drop in the oil price,” Kamal Seyyed Ali, head of Iran’s export guarantee fund, said.
International crude prices have tumbled from $147 a barrel in July to around $65 a barrel on Friday. Some economists say Iran needs $70-$75 a barrel, or more, to balance its books. (more…)