10-09-2016, 09:52 AM
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The articles shed light that the spiking record high levels at the U.S. Refineries exceeding 17 million barrels per day (b/d) ever since 1990 as per the data published in 1990. These high records also suggest both higher utilization rates and refineries capacity. The declining prices of crude oil and strong demand seem like factors that have led to the increase in the high refinery investment and refinery runs both in The United States and globally. The demand for petroleum products have been seen going up compared to 2014 in markets in Europe and India also. These refinery runs are seen beyond the Gulf regions. EIA gauges that refinery runs will normal 16.7 million b/d from April through September and afterward decrease somewhat in the final quarter to 16.2 million b/d before falling further to 15.8 million b/d in the first quarter of 2016. Taking after the winter time of lower interest and refinery upkeep, EIA's STEO expects U.S. refinery runs will reach new highs next summer, averaging 16.9 million b/d in second from last quarter of 2016.This article also suggests how the storage capacities of crude oil are being met in a systematic method leading to the increase in the refinery capacities.
Michael Ford (2015); “U.S. Crude oil productions growth help reduce gulf coast imports”
This article talks about how the increasing production has linked with the decreasing imports. The availability of the light, tight crude oil has put an end to the demand of light crude oil in the Gulf Coast imports. All mid-range grade raw petroleum imports are from Middle Eastern nations. Bay Coast imports of medium unrefined petroleum from Saudi Arabia diminished by 52% from the first quarter of 2014 to the first quarter of 2015, from 0.9 million b/d to 0.4 million b/d. Additionally, Gulf Coast imports of medium raw petroleum from Kuwait diminished by 46% over this period, from 0.4 million b/d to 0.2 million b/d. My observation seems to conclude to over extraction in the price war for increasing sale of the commodity. The increase in more domestic refineries has consistently decreased imports leading to the present oil over supply.
Mono Rezaie (2013); “Factors affecting non-oil exports”
This research papers highlights understanding the amount of influence the factors on non-oil exports can help the export growth. Exports managers must be aware of environmental knowledge of the export market and export process and help the managers to control and overcome potential barriers in export markets and export processes. Also get a positive perception of the export market environment progressively. In our country, managers do not get the export knowledge through export promotion programs, so they are not obligated to devote more resources to export. Companies with improved export knowledge can adopt and use suitable marketing strategies more effectively. It can be concluded that the export obligation is positively related to an increase in exports, but it is not related to the export performance. These results imply that the company's strong commitment to export leads to finding a suitable export strategy. Companies decide about continuing or expanding exports through the introduction of new products, increasing export sales and entering new foreign markets. Companies that are committed, devote more resources to apply effective strategies in order to obtain the advantage of international opportunities, avoid threats, overcoming internal and external obstacles and a better performance. Devoting more resources suggests the higher levels of satisfaction. Increase in commitment should result increasing in the exports performance. It also seems that the favorable external market condition has a positive effect on non-oil products export strategy. This means that those managers who have a positive perception of export market environment, have a desire to research and organize receiving the environmental information to create effective strategies for exports. It can be concluded that managers of export firms, who have a good understanding of the export market environment have more tendency to the implementation of effective and facilitating exports strategies. Also using the export promotion programs either directly or indirectly does not affect the management perception of export market environment, export knowledge and export commitment and suggests that the government and policy makers should do promotional and encouraging activities more seriously.
Bailey, Ronald(Mar 2015); “How low can oil price go?”
The attempt of the research is to study “How Low Can Oil Prices Go?” Increase in the domestic production of the oil from 5 million barrels per day in 2008 to 9 million barrels per day in november 2014 due to fracking boom in the US, Benefit of more knowledge and Modern technology and additional production from Libya, Iraq,Iran, Russia, Nigeria, Venezuela, South Sudan, and Mexico might amount to an extra 10 to 15 million barrels per day.
Another factor they considered when attempting to project future prices is that demand for oil appears to have peaked in the US and Europe. The recent increase in the price of oil price encouraged people to buy more efficient vehicles and to lower the consumption of the oil price.
Tadit Kundu(2015); “The slippery slope of the oil price war”
The article published by Tadit Kundu states how fall in international oil prices has been among the major shifts in the global economy over the past year. It was $100 per barrel in 2014 and now it's currently trading at $50 per barrel. This is due to shale oil produced by US a new innovation has affected OPEC. It is a matter of fact that who will win this battle. Will Saudi Arabia be able to drive out shale oil production and preserve its role (and that of Opec) as swing producer and price-maker? Or will shale oil effectively destroy Opec’s market power, and make the US the new swing producer of the oil market?
Timothy lane (January 2015); “Drilling down- Understanding oil prices and economic impact”
The article published by the Deputy Governor of the Bank of Canada Timothy Lane speaks about how the oil price drop benefits the consumers and producers. The recent drop in the oil price leads to unconventional oil supply and slower growth. The higher cost oil still need to satisfy growing global demand.
Ho, Trang. Investor's Business Daily (14 May 2013); ETFs to Play the Coming Shale Oil "Supply Shock"
This article about US shale Oil holds incredible enthusiasm for influencing the interest for crude oil as it is a solid contender and substitute to the product. North American shale oil supply blast have significant impacts for worldwide vitality markets. the generation attack will have sway on the oil market throughout the following five years as much as swelling Chinese request did in the course of recent years. North American oil supply is anticipated to develop by 3.9 million barrels for every day from 2012 to 2018, representing more than half of the (non-OPEC) increment. The North American shale oil blast affects the economy and vitality market as well as related commercial ventures occupied with worldwide transportation, stockpiling and refining foundation.
The Economist (Jun 21, 2014); Burning at both ends; Oil and Iraq
This articles explains the events of the islamists war in Iran which had a geopolitical Affect in the prices of crude oil at that time period this gave a positive overview on the relationship of the commodities price movement in regard to political issues in its exporting countries. The article also stated fall in prices from 2015 as the Iran’s ban will be lifted. EIA estimated Iraq's production will jump from 2.5m barrels a day (b/d) now(being 2014) to 4.4m in 2015 and nearly 6m by 2020. As a result to its increase as dated in the open of 2015 January’s future contract Crude oil was trading at $40-$35 in the commodity exchange.
Robert Sweet (2009); “What we’re thinking? The stock market can cook even when the oil is hot”
This article gives insight on how the relationship between oil and the stock prices is non-existent or weak. It talks on the possibility of oil price hike and how this is good for the business and the energy market. Oil prices tend to rise when the demand goes high; and demand for oil goes high when the businesses and markets do well. When the oil price goes up , it tells us the many factors that cause this in the market. The article also criticises the investors decisions made on the prices going high or low, but forgets to understand that is how the investor behaves and works in the stock market and with the fluctuation in prices.