World Mining Exploration News

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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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…)

The most prominent militant group in oil-rich southern Nigeria on Sunday said it had declared an “oil war” and threatened all international industry vessels that approach the region.

The Movement for the Emancipation of the Niger Delta (MEND) said in an email to the media it has code-named its operation Hurricane Barbarossa.

“About 0100 Hrs, today … Hurricane Barbarossa commenced with heavily armed fighters in hundreds of war boats filing out from different MEND bases across the Niger Delta in solidarity to carry out destructive and deadly attacks on the oil industry in Rivers state,” the group said.

The “war” was in response to what it says were unprovoked aerial and marine attacks by the army Saturday on one of its positions. (more…)

So how do oil prices fall but gasoline prices rise in many parts of the country?

One explanation offered: with 15 refineries that consume nearly 4 million barrels a day shut down, there is less demand for oil. Less demand means that prices drop.

That, combined with the belief that oil platforms in the Gulf of Mexico were probably spared Hurricane Ike’s wrath (though the judgment is a bit premature since oil companies are just starting to evaluate oil platforms for any damage), leads oil traders looking to future months (October, November) to expect that the oil industry will come through this storm with less damage than expected.
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State oil and gas company Pertamina plans to increase its crude oil imports from Lybia to 1 million barrels a month or 33,000 barrels a day, its processing director said.

Pertamina will soon sign a long-term contract with Lybia for the supply of crude oil of Sharir type, Rukmi Hadihartini said on Tuesday.

“The contract will be a follow-up to a G-to-G agreement,” she said.

Pertamina will also look into the possibility of importing crude oil of 10,000-50,000 barrels a day or 300,000-1,500,000 barrels a month from Algeria, she said.

The plan to import crude oil from Algeria is a follow-up to the Memorandum of Understanding (MoU) between the two countries signed on July 30 when Algierian Oil Minister Chakib Khelil who is also OPEC president visited Indonesia, she said. (more…)

OIL prices rocketed to record highs above 147 per barrel on Friday as traders seized on the weak US currency and tensions over Iran and Nigeria at the end of a volatile trading week.

London’s Brent North Sea oil for August delivery jumped as high as 147.50 to beat the previous record of 146.69, set on July 3.

New York’s main oil contract, light sweet crude for August, also topped 147 for the first time to reach a historic 147.21.

Oil prices swept back into record territory after the European single currency leapt as high as 1.59 – not far off the historic peak of 1.60 that was hit on April 22.

The weak dollar boosted demand for dollar-priced oil, which becomes cheaper for buyers using stronger currencies, analysts said. (more…)

Ethanol is on the ropes because of the food versus fuel debate, but now a new heavyweight just stepped into the ring and this one has got some really big guns.

OPEC president Chakib Khelil has a new culprit for the rising cost of oil–ethanol. Mr. Khelil says about 40% of the recent rise in oil prices can be chalked up to ethanol, which accounts for about 1% of the world’s transportation fuel. The other 60%, apparently, is due to a weak dollar and “geopolitical worries.” The problem: OPEC’s boss doesn’t lay out the logic explaining why ethanol blended into gasoline is to blame for high oil prices.

Why ethanol falls afoul of big oil producers and oil companies is easier to explain. Oil companies don’t want to be forced to shell out for a whole new infrastructure for ethanol, from pipelines to special gas pumps. And ethanol blends in gasoline do make gas supplies go further–not good news for producers at a time when high prices are already starting to dent demand for gasoline, in the U.S. at least. (more…)

U.S. stocks jumped on Wednesday after strong results at Wells Fargo fueled a powerful rally in the battered banking sector and an unexpected leap in U.S. crude supplies led oil prices to fall sharply.

Equity markets in Europe also ended higher as a weaker euro underpinned automotive stocks and Wells Fargo (WFC.N: Quote, Profile, Research) lifted banks that also have been slammed by the global credit crunch.

Spot gold prices tumbled about 2 percent as crude oil slid for a second day, and the dollar extended gains after Federal Reserve Chairman Ben Bernanke said that under certain conditions currency intervention may be warranted.

Minutes from the Fed’s June meeting showed policy-makers believed the next interest rate move could be an increase, which would help strengthen the dollar. (more…)