Oil prices have been slumping since Friday when Saudi Arabia indicated a willingness to pump more oil into global markets.
The sharp price decline was triggered on Friday by Saudi Arabia, the biggest oil exporter in the world and de facto leader of oil cartel OPEC. Saudi energy minister Khalid Al-Falih said during a CNN-hosted panel in St. Petersburg, Russia, that he was in intensive discussions with Russia and other OPEC nations to pump more oil to ease global supply concerns.
OPEC oil producers and Russia are due to meet in Vienna on June 22 to discuss easing self-imposed supply caps, which have been in place since 2017.
The euro bounced back from a 6-1/2-month low after the Italian president rejected a eurosceptic as a key economy minister.
But his move was seen as triggering a possible constitutional crisis and opening the prospect of fresh elections, keeping the single currency fragile.
Oil prices extended their decline from last week on growing expectations that major oil producers may ease their 17-month-old production cuts.
It was only two years ago that the price of the benchmark U.S. crude oil sold at an average price of a bit above $40 per barrel. Not as much fun for consumers as the $14 average price in 1998, but a lot better than the almost $100 price average crude fetched in 2008.
Until very recently the received wisdom was that any time the price exceeded something like $50 per barrel, U.S. producers would ramp up production from the ample supplies of shale oil they had tapped using fracking technology, and drive prices back down. Last week the oil market proved once again that it is no more predictable than the stock market: it hit more than $71 per barrel. And is headed higher. (The price of Brent crude, the European benchmark, is about $10 per barrel higher.)
Natural gas demand in Europe increased by five percent last year, the third yearly increase in a row, reaching 548 bcm. The strongest growth was in Germany, France, the UK, Italy and the Netherlands.
Source: In Europe, Gas Is King
Sunoco Logistics Partners announced today that its Mariner East 1 pipeline is now carrying both ethane and propane from Washington County shale fields to the Marcus Hook Industrial Complex in Delaware County.
“Mariner East 1 is an important milestone for the natural gas and manufacturing industry in Pennsylvania,” said Sunoco Logistics CEO Michael Hennigan.