China may launch a global crude oil futures contract as early as October to compete with the existing London Brent and the US WTI benchmarks as it pushes ahead with reforms to open up its oil markets.
Professor Paul de Leeuw, director of Robert Gordon University’s Oil and Gas Institute said the North Sea industry will endure a period of short term pain before it could emerge leaner, fitter and better able to compete as the oil price recovers in years to come.
Crude at $40 a barrel is unsustainable and prices will have to rise as supply drops out of the market, according to Norway’s oil minister.
Oil’s rebound from a six-year low has faltered on signs the global surplus will be prolonged as Iran bids to restore output after its nuclear accord.
Crude oil in New York climbed from a three-month low in New York as the dollar slipped for the first time in five days.
Greece’s debt talks and ongoing Chinese market unrest led the price of oil to slip by almost 6% yesterday, although Brent Crude steadied at $56.98 a barrel today.
Crude oil fell about 2% today, the first decline after three days of gains, as worries over the Greek fiscal crisis, weaker oil products prices and pre-weekend profit-taking undercut the market.