Of course, oil means energy, which means that
higher oil costs will translate into higher prices for just about everything, not just at the fuel pump.
Not exact matches
A rally in
oil and other commodity prices have raised fears about
higher raw material
costs.
Continental posted net income of $ 233.9 million, or 63 cents per share, compared with $ 469,000, or less than a penny per share, in the year - ago quarter, when
oil prices plummeted - and the company's production
costs were
higher.
Yet with global growth declining,
oil inventory at record levels, and momentum on the side of increasingly
cost - competitive renewable energy technologies, there remains a
high possibility the energy sector will face another existential crisis in the near future.
«The falling pound is driving up the price of imports and rising
oil prices are being reflected in
higher fuel
costs,» he added.
April 30 - Whiting Petroleum Corp reported first - quarter profit on Monday compared with a year - ago loss as the U.S.
oil producer benefited from
higher oil prices and lower
costs.
April 30 (Reuters)- Whiting Petroleum Corp reported first - quarter profit on Monday compared with a year - ago loss as the U.S.
oil producer benefited from
higher oil prices and lower
costs.
The combination of
higher oil prices and ultra-low borrowing
costs would have caused the economy to overheat, driving annual inflation to 4 %, well outside the central bank's comfort zone of 1 % to 3 %.
Other analysts, like economist Nouriel Roubini, argued that cheap
oil would last just a year or 18 months before producers like Saudi Arabia had successfully flushed out
higher -
cost competitors like shale producers here in the U.S.
Critics of the deal had expected Britain to try to renegotiate the price, which they say was set too
high before
oil prices fell, dragging energy
costs lower.
Suncor Energy Inc., the world's second - largest
oil - sands producer, said first - quarter profit fell 23 percent on lower output,
higher costs and absence of a gain from insurance settlements a year earlier.
Western Australia's only onshore
oil producer has suspended production after being hit by the low
oil price and the
high cost of trucking its output to Wyndham rather than the much closer port at Broome.
The spill also highlighted awareness of the risks associated with
oil and gas production — sure, oilsands might have appeared relatively better as a result, but in absolute terms, they were easily portrayed as yet another example of the
high costs and
high risks associated with
oil extraction.
The U.S. Environmental Protection Agency (EPA) has already issued an unusually
high 25 hardship waivers to small refineries in recent months, according to an agency source, driving blending credit prices down and helping the
oil industry reduce compliance
costs.
After months of
higher input
costs for manufacturers, the simultaneous spike in food and
oil prices is a double whammy that is now starting to hit consumers.
Analysts interpreted this move as an attempt to squeeze
higher -
cost producers, including U.S. shale
oil, out of the market.
The main topic was commodity inflation around
higher metal prices (aluminum and steel) and
higher oil prices, which translated into
higher packaging
costs for many companies, but it also included wage concerns.
3M was seeing
higher - than - anticipated
costs for transportation and raw materials derived from crude
oil.
Oil and gas sales rose 16 per cent to 110.8 billion yuan, more than offsetting
higher operating
costs.
Crude - by - rail shipments are expected to ramp up in the second half of this year and into the first half of next year to «very material volumes of
oil,» Pourbaix said, adding price discounts will improve but will likely remain
higher than usual because rail
costs more than pipeline transport.
All the while, the industry thrived financially under a combination of
high oil prices, low natural gas prices (a major input
cost), recession - induced relief from
cost inflation and a reduced
cost of capital as majors and foreign national
oil companies gobbled up wobbly juniors.
Given the
high cost of shale
oil production, it's questionable much marginal new U.S. production will be able to displace established Canadian oilsands supply while also replacing production declines in California, Alaska and the Gulf of Mexico.
The discount on western Canadian
oil is more than enough to compensate for the
higher cost of unconventional transport.
Russell told CNBC that the depreciation of the Malaysian currency has more than offset the benefits that cheaper
oil have on the price of fertilizers, resulting in
higher input
costs for the tea grower.
These risks include, in no particular order, the following: the trends toward more
high - definition, on - demand and anytime, anywhere video will not continue to develop at its current pace or will expire; the possibility that our products will not generate sales that are commensurate with our expectations or that our
cost of revenue or operating expenses may exceed our expectations; the mix of products and services sold in various geographies and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; customer concentration and consolidation; the impact of general economic conditions on our sales and operations; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; losses of one or more key customers; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our CableOS ™ and VOS ™ product solutions; dependence on market acceptance of various types of broadband services, on the adoption of new broadband technologies and on broadband industry trends; inventory management; the lack of timely availability of parts or raw materials necessary to produce our products; the impact of increases in the prices of raw materials and
oil; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the effect on our business of natural disasters.
The extraordinary
cost reductions achieved by North American
oil and gas companies have likely reached their limit, and any boost in profitability for much of the U.S. shale and Canadian
oil sands industries will have to come from
higher oil prices, according to a new report from Moody's Investors Service.
For the past two years, OPEC's pump - at - will policies have flooded the market with cheap supply, causing economic pain for producers with
higher cash
costs, including those involved in fracking, the Canadian
oil sands and deepwater drilling.
And right now doesn't seem to be the time to try to raise capital to extract some of the
highest cost oil in the world.
Last November, the International Monetary Fund (IMF) commended the government of Mali's deficit reduction, praising GDP growth of more than 5 % arising from strong harvests and government spending, even as the
cost of
oil imports moved
higher.
Relying on
high cost oil means
oil prices must remain
high to keep everything on track.
A Pembina Institute study from 2009 estimated the
costs to reclaim what was then 686 square miles of
oil sands developments and 170 square miles of tailings ponds would run as
high as $ 15 billion.
With OPEC maintaining the status quo, North America's
high cost oil producers can either choose to cut output or face even lower prices.
Long - term interest rates are currently low due to low global inflation expectations and moderate growth potential in Canada due to lower
oil prices, a heavily indebted household sector and a weakened manufacturing base due to relatively
high unit labour
costs.
The failure of
high cost North American producers to cut production in an oversupplied world
oil market is setting the stage for another leg down in
oil prices.
«
Oil's price collapse is closing down
high -
cost production from Eagle Ford in Texas to Russia and the North Sea,» the IEA said in its monthly report.
Looking back at the
cost gap figure above, the potential revenue generated by EOR is only about $ 50 - 60 / ton, and that is in the best plays under the assumption of
high oil prices.
In the case of an
oil spill cleanup, the
costs are likely to be directly incurred by an insurance company, but the premiums paid for that insurance come at the expense of the value of the
oil transportation service — the
higher the expected clean - up
costs from
oil spills, the
higher insurance premiums will be, and this will mean
higher pipeline tolls, which in turn implies lower profits, taxes, and royalties on the products shipped.
With petrol prices last week climbing over 140p for a litre of unleaded fuel for the first time ever (according to Experian Catalist) and the
cost of diesel lingering around record
highs, sentiment towards the
oil companies has unsurprisingly started to fall again.
The
costs to develop the
oil sands, a type of unconventional petroleum deposit, are much
higher that developing conventional
oil deposits.
While Basic Energy Service reemerged from bankruptcy at the end of last year with a more sustainable
cost structure and improved balance sheet, it needs
higher oil prices to thrive, because those prices will drive customer demand for its services.
High labor
costs and the falling price of crude
oil have contributed to the industry's dark days, but environmental activists can also take a bow.
Despite the
high cost of the
oil price crash, most residents of Fort McMurray, along with Canada's politicians, think that
oil prices will rebound and things will turn around sooner or later.
The fallout from the failure of a
high - profile international meeting over Iran's nuclear ambitions could be most felt in the
cost of
oil.
There is some evidence that
higher oil prices have begun to contribute to
higher production
costs in some industries.
And the reason that the
cost of storing
oil is now so
high is that there is a much - greater - than - normal amount of
oil already in storage.
The reason that every man and his dog was not eager to do this trade is that the
cost of storing
oil is now so
high that even a contango that represents a potential 40 % annualised return on a physical - futures arbitrage is not very profitable.
The strategy is designed to drive out
higher -
cost producers of heavy
oil and shale, whose rapid development is squeezing Middle East crude out of the huge U.S. market and threatens to eat into its share of other lucrative growth markets.
But with its big debt load and increasing input
costs (read:
higher oil prices), that's easier said than done.
This $ 5 difference does not imply that «the market» expects the price of
oil to be $ 5 / barrel
higher in December - 2016 than it is today; it implies that the
cost of storing
oil for the next 18 months plus the interest income that would be foregone (or the interest that would have to be paid) equates to about $ 5 / barrel.
As expected, OPEC announced after its last meeting that it would keep
oil production levels the same in its bid to force
higher -
cost producers (re: American frackers) to trim their own operations.