Colver Technologies: The ongoing supply glut continues to frustrate the market’s attempt to stage a sustainable rally.
According to Colver Technologies, the ongoing supply glut in crude oil continues to frustrate any attempts by the market to stage a meaningful rally and with WTI briefly breaching the $40-a-barrel level to the downside recently, consensus across much of the industry is that oil could be headed towards $30 a barrel.
The overhang from the glut has cut prices by more than 10% this month shows no sign of abating as OPEC, the group of oil producing countries responsible for 40% of the world’s supply, persists with its strategy of near-full capacity production in order to keep prices low and exert pressure on rival producers, particularly high-cost shale operators in the United States.
“The factors that drove prices from $114 to under $50 are still in play,” said Gus Stuyvesant, Chief Operating Officer at Colver Technologies, citing the US strong dollar and progressively efficient US shale operations in addition to the overhang of physical oil. “It’s taken longer than they would have hoped but OPEC, we think, will win out. It’s just going to take longer,” he added.
US WTI (West Texas Intermediate) for December delivery dipped to as low as $39.89 during a midweek trading session, its lowest print since August 27.
“If we’re going to see any meaning, sustainable bounce in crude prices, it’s going to come from dollar weakness. Obviously, right now, the greenback seems unassailable but we don’t think the current strength will persist much into next year,” said Stuyvesant alluding to previously-aired concerns over whether the Federal Reserve can raise interest rates much beyond the 25 basis points it is hinting at in December.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
contact@colvertech.com
http://www.colvertech.com
862422599383