Never miss a story

Get subscribed to our newsletter

The wild ride in September has now been replaced by a slow trend lower. Pixabay

Crude oil prices lost ground in the Q3 declining by more than 7%. The wild ride in September has now been replaced by a slow trend lower. US crude oil inventories continue to climb due to a rising trend in US production. This comes despite a knee jerk spike in prices during September, following an attack on the main Saudi Arabian crude oil production infrastructure. It’s unlikely that oil prices will be able to gain traction when economic growth is contracting.

The Saudi’s Were Attacked

On September 14, Saudi Arabia was attacked. Rocket strikes hit their oil infrastructure, pushing prices up more than 14% in one day. It was the largest one day increase in oil prices in decades. Saudi Arabia announced that more than 5% of the worlds crude oil production had been sidelined. By Tuesday, September 17, the kingdom announced they would have all their production up by November. By the end of the Q3, it now appears that all the oil production that was taken offline is now back up and running. The initial reports suggesting it could take months for production to return to normal, were inaccurate which put downward pressure on prices.

Crude Oil prices continued to fall on the first day of the Q4 as Saudi Arabia agreed to a partial ceasefire in Yemen. Houthi rebels said that the attacks on the Saudi’s would stop if the Kingdom stopped targeting its positions with air strikes.

Crude oil prices lost ground in the Q3 declining by more than 7%. Pixabay

Inventories Continue to Rise

US commercial crude oil inventories increased, more than expected according to a report from the Department of Energy. Inventories have been rising due to production in the US climbing to 12.5 million barrels a day. Stockpiles rose by 3.1 million barrels from the previous week, according to the EIA. At 422.6 million barrels, US crude oil inventories are at the five-year average for this time of year.

Gasoline inventories edged lower and are now 3% above the five-year average for this time of year. Distillate fuel inventories decreased by 2.4 million barrels last week declining more than expected but remain 8% above the 5-year average according to the Energy Information Administration. Total commercial petroleum inventories decreased last week by 0.9 million barrels last week.

US Demand is Rising

Also Read- Hackers Linked to Iranian Government Targeting US Presidential Campaign, Claims Microsoft

Despite a decline in total global economic output, demand for oil products in the United States remains on the rise. According to the US Department of Energy, Total product demand over the last month averaged 20.9 million barrels per day, up by 2.1% year over year. Over the past month gasoline demand averaged 9.3 million barrels per day, down by 0.1% from the same period last year. Distillate fuel demand averaged 3.9 million barrels per day over the past month down by 0.6% from the same period last year. Jet fuel demand was down 4.2% year over year.

The outlook for demand continues to slide. While the US is growing at approximately 2% year over year, it appears that Europe and Asia are contracting. There is a good chance that German growth will contract in the Q3, putting Europe’s largest economy into recession. It’s unlikely that oil prices will be able to gain traction when economic growth is contracting.



Bangladesh over the years show that the state has failed in its duty to protect minorities

By- Salil Gewali

If humanity is hurt, God is hurt.

Religion without compassion might give way to hatred. Compassion with a "self-interest" motive is completely irreligious. But of late, some of the religions have departed from those basic human values. Love and compassion are for only those who follow their "specific" faith. Very sadly, the religions are up as trading commodities in the world of proselytization. Better preachers attract more followers. Of course, no issue if they are not vying for their religious "supremacy". But the ground reality is utterly different. The claim for exclusive supremacy has become the first commandment --- a real bone of contention among the existing religions. In the name of religion, we have polluted our minds. we have corrupted our souls. We have also gone so much astray that God must have now shut his gateway to heaven!

Keep Reading Show less

The Aruba villa has great interiors, an outdoor facility, amazing bedrooms, clean bathrooms and huge living space.

By- Your Service

Taking out time for family has become very difficult as people are pretty busy in daily life and find very little time to spend with their loved ones. Planning a family vacation is an excellent way through which the whole family can step away from their daily life and have fun. You can find many destinations for a family vacation, but there is no place that can beat Aruba.

Keep Reading Show less
Photo by Flickr

Milky Way galaxy as seen from Chitkul Valley

NASA's Chandra X-ray Observatory has for the first time spotted signs of a planet transiting a star outside of the Milky Way galaxy, opening up a new avenue to search for exoplanets at greater distances than ever before.

The possible exoplanet -- or planets outside of our Solar System -- candidate is located in the spiral galaxy Messier 51 (M51), also called the Whirlpool Galaxy because of its distinctive profile, NASA said in a statement.

Astronomers have, so far, found all other known exoplanets and exoplanet candidates in the Milky Way galaxy, almost all of them less than about 3,000 light-years from Earth.

An exoplanet in M51 would be about 28 million light-years away, meaning it would be thousands of times farther away than those in the Milky Way, NASA said.

"We are trying to open up a whole new arena for finding other worlds by searching for planet candidates at X-ray wavelengths, a strategy that makes it possible to discover them in other galaxies," said Rosanne Di Stefano of the Center for Astrophysics at Harvard and Smithsonian (CfA) in Cambridge, Massachusetts, who led the study.

The findings are published in the journal Nature Astronomy.

The exoplanet candidate was spotted in a binary system called M51-ULS-1, located in M51. This binary system contains a black hole or neutron star orbiting a companion star with a mass about 20 times that of the Sun. The X-ray transit they found using Chandra data lasted about three hours, during which the X-ray emission decreased to zero.

Based on this and other information, the team estimates the exoplanet candidate in M51-ULS-1 would be roughly the size of Saturn and orbit the neutron star or black hole at about twice the distance of Saturn from the Sun.

The team looked for X-ray transits in three galaxies beyond the Milky Way galaxy, using both Chandra and the European Space Agency's XMM-Newton. Their search covered 55 systems in M51, 64 systems in Messier 101 (the "Pinwheel" galaxy), and 119 systems in Messier 104 (the "Sombrero" galaxy).

However, more data would be needed to verify the interpretation as an extragalactic exoplanet. One challenge is that the planet candidate's large orbit means it would not cross in front of its binary partner again for about 70 years, thwarting any attempts for a confirming observation for decades, NASA said.

Named in honor of the late Indian-American Nobel laureate, Subrahmanyan Chandrasekhar, the Chandra X-ray Observatory is the world's most powerful X-ray telescope. It has eight times greater resolution and is able to detect sources more than 20-times fainter than any previous X-ray telescope.

Known to the world as Chandra (which means "moon" or "luminous" in Sanskrit), Chandrasekhar was widely regarded as one of the foremost astrophysicists of the twentieth century. (IANS/JB)

Keep reading... Show less