Despite the sanctions, Russian oil revenues are soaring
The energy pieces on the global chessboard are altering geopolitical realities, with serious consequences. China is boosting the volume of crude oil it purchases in order to increase its strategic reserves, Reuters’ Clyde Russell reported on Friday. China, the world’s largest crude importer, is buying more oil at a point when the demand-supply balance is…
A climate catastrophe seems in the making. And mitigating the impact of the Ukraine crisis won’t be easy
The Paris-based International Energy Agency is widely viewed with respect, its analyses providing a better understanding of the direction of energy markets and the issues impacting the industry. IEA is the energy watchdog of the Organization for Economic Co-operation and Development (OECD), founded by the likes of Henry Kissinger in the immediate aftermath of the…
And OPEC is in no mood to open taps to fill in any gaps created by the absence of Russian crude
The oil markets are likely to face another round of supply disruptions. Most indicators point to a bullish trend in the near future. After recently announcing the release of over 180 million barrels of crude oil from its strategic reserves (SPR) over the next six months to cool down the markets, the United States government…
Putin's war on Ukraine has changed everything
Energy security is back on the global agenda. Not long ago, energy security was almost taken for granted by all. With the emergence of new energy frontiers over the last decade and a half – including shale oil and gas and the growing emphasis on renewables in the Americas – it was felt that energy…
Full European Union ban on Russian oil could have unintended economic consequences for the West
The war in Ukraine is transforming global geopolitics and crude oil dynamics. On the geopolitical front, the United States has relentlessly rallied its allies against Russia. The Russian energy sector has still not been directly impacted by the sanctions. But the repercussions are apparent, even as the world is finding it hard to replace Russian…
How much Russian crude will be locked out and for how long?
The global oil markets are far from stable. Having entered a turbulent phase, the see-saw continues. After almost touching the US$130-a-barrel mark in early March, crude oil prices have registered a dramatic reversal, hovering around US$100 a barrel. Early last week, crude prices were on a slippery slope. With some underlining issues, markets were heading…
The relief we’re seeing from market manipulation could fade soon
Bearish sentiments continue to overshadow the crude oil markets. Despite a small spike at the tail end, prices registered a back-to-back retreat last week. Several factors are in play. The announcement of the release of 180 million barrels of crude from the United States Strategic Petroleum Reserves (SPR) over the next six months played a…
Oil headed for its biggest weekly loss in more than 10 years
Global crude oil markets are cooling. The United States’ announcement that it would release one million barrels per day (bpd) of crude from strategic reserves for six months and an expected similar announcement from other countries have helped cool the markets. The announcement followed growing questions about the real supply disruptions from Russia, reports that…
It won’t be easy because Canada lacks the infrastructure to ship oil or gas to Europe directly
With serious endeavours to reduce dependence on Russian energy supplies underway, global energy markets are faced with a real challenge: where will the oil come from to fill the emerging supply shortfall? As part of their efforts to punish Russia for its Ukraine misadventure, Western countries are trying to cut off their dependence on Russian…
Saudi Arabia is in active talks with China to price some of its oil in yuan
The United States owes a significant part of its eminence as the sole superpower to the dominance of its dollar in the global economy. This dominance is aided by the fact that the dollar is the currency of the global oil trade. Every country in the world needs U.S. dollars to buy oil. Even without…
Pushing Russia out of the global energy equation virtually impossible at this stage
The crude oil market has passed through a highly volatile week. The impact seemed to ripple all around the globe. Early last week, oil prices began approaching their highest level since 2008, generating anxiety and concern all around. Prices surged and the markets tightened further as the United States and its allies, including the United…
The world needs Russian oil. So buyers shying away from Russian crude are scrambling
Froth is enveloping global energy dynamics. Nothing is clear. Confusion prevails. Gasoline prices have already topped $2 a litre in British Columbia and other provinces, Ontario included, aren’t far behind. It’s virtually impossible to keep track of all the factors impacting energy prices. The key issue is the volume of crude oil that’s off the…
Why isn't the West reacting more strongly to Russian aggression? Energy supplies
Ukraine is under fire and United States President Joe Biden and his NATO colleagues are talking tough on the Russian invasion of the country. But their hands seem tied. Russian President Vladimir Putin, the ex-KGB man, is already emerging as the winner of the first round of the battle for Kyiv. Ukrainian President Volodymyr Zelenskyy…
Geopolitics has been behind the surging markets
Oil and politics go hand in hand. They’re virtually inseparable. Recent events once again highlight the energy world’s dynamics. Fundamental factors have played a significant role in getting crude oil prices to the current levels. Yet, none can deny that, to a great extent, geopolitics has been behind the surging markets. Recent events underline this.…
Cancelling Keystone XL and Energy East were political blunders
The United States is divided on issues stretching from racial discrimination to the environment and energy. With global crude oil supplies under pressure and prices about to touch the three-digit mark per barrel, an interesting debate has begun: Has the Biden administration, with its commitment to climate change issues, undermined the health of that country’s…