Fed up with the Saudi's "artificially jacking up the prices"
An oil war is brewing between the world’s largest crude exporter, Saudi Arabia, and the world’s third-largest crude consumer, India. India has long pleaded with Saudi Arabia to keep oil prices lower to help sustain economic growth in the developing and emerging economies of Asia. In rather hushed tones, for diplomatic reasons, India has protested…
With the continuing OPEC+ oil output cuts, markets were going into an overdrive mode. Prices at U.S. gas stations rose sharply
Surprising the markets and going against expectations, the Organization of Petroleum Exporting Countries and its allies in the extended OPEC+ changed course at their ministerial meeting last week. At the virtual meeting, OPEC+ opted to increase its output by 350,000 barrels per day (bpd) in May another 350,000 bpd in June, and roughly an additional…
Crude oil markets continue to show signs of weakness – even without the Houthi attacks on Saudi Arabia and the Suez Canal closure
Pressure is mounting on the Organization of Petroleum Exporting Countries and their allies in the extended OPEC+ to roll over their crude oil output cuts when they meet on April 1. Markets continue to show signs of weakness – even without the Houthi attacks on Saudi Arabia and the Suez Canal closure. But the Suez…
The recent spike in oil markets was engineered – fundamentals didn’t drive it. There were issues about the tight leash on output
The oil market recovery is faltering. Uncertainty over the speed of an economic recovery and whether there will be a full rebound in global oil demand is holding back the markets. Stalled COVID-19 vaccination efforts in parts of the world and a strong dollar are also keeping the markets from rising much further. The recent…
Although the OPEC+ decision resulted in immediate oil price gains, the warning shots on the horizon couldn’t be altogether ignored
Saudi Arabia is leading the pack on crude oil production management. Russia seems to be following. Despite murmurs in the oil market of a possible rift between the two countries on the issue of output, the Organization of Petroleum Exporting Countries (OPEC) and their allies in the OPEC+, at their virtual meeting last Thursday, went…
Sheikh Ahmed Zaki Yamani personified OPEC
The grand old wise man of the energy world has slipped into history. With the passing away of Sheikh Ahmed Zaki Yamani, the charismatic Saudi oil minister from 1962 to 1986, an era has come to an end. With his calm and cool demeanour, intellectual depth, sharp mind and the capacity to stand up to…
But how long will the bull run last?
With the Brent crude oil price touching $65 last week, markets have entered the hot zone. Inclement weather, the resultant rising demand for heating, a dip in United States output and the unilateral Saudi output cut all helped to tighten the markets, contributing to the bull run. Parts of the U.S. have been in a…
Some observers see prices moving even higher as refiners increase processing rates to meet rising product demand
Oil extended its longest winning streak in two years last week. Crude oil prices climbed more than nine per cent, as the Organization of Petroleum Exporting Countries and its allies in OPEC+ curbed supplies, depleting global oil inventories. A United States government report also indicated that U.S. domestic oil stockpiles have fallen by 6.6 million…
Crude oil markets firmed up in the last week to levels not seen in almost a year. Does that indicate a real change in direction or is it just a passing phase? In sharp contrast to its January meeting, the virtual ministerial meeting of the Organization of Petroleum Exporting Countries and its allies in OPEC+…
An expected new nuclear deal, a pipeline project and an easing of sanctions all contribute to increased production and exports
Crude oil markets are focused on the Iran nuclear deal. A new United States administration under President Joe Biden has pledged to revert to the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal. The world awaits the next moves, which will set the contours of future Iranian oil output. With…
But opposition to resource development means Canada is being left out in the cold
Extreme cold weather and mismatched supply and demand have pushed spot prices for liquefied natural gas (LNG) in Asia through the roof. Bloomberg reports that LNG spot prices went from “almost to zero” in April 2020 to above US$30 per one million British thermal unit (MMBtu), rising “18-fold in less than nine months.” Prices in…
Global demand remains a major concern
Uncertainty is ruling the energy world. “Crude producers continue to grapple with huge uncertainty about where this goes from here,” Tim Gould, the International Energy Agency (IEA) head of energy supply outlooks and investment, told the press last week. The Organization of Petroleum Exporting Countries (OPEC) agrees. “Uncertainties remain high going forward with the main…
Until recently, the nation has insisted it wouldn’t unilaterally cut output until others agreed to contribute. All that has changed
Saudi Arabia is back in its role as the swing crude oil producer of the world. Until recently, the nation has insisted it wouldn’t unilaterally cut output until others, including Russia, agreed to contribute. But all this changed – almost overnight. On Jan. 4, while the ministers from Organization of Petroleum Exporting Countries and its…
Even if the vaccines remain effective against the new COVID-19 mutants, a true crude oil market rebound is still a long shot
Strong headwinds continue to disrupt crude oil markets in the new year. In 2020, COVID-19 triggered demand destruction, with some insisting that global oil demand may have already peaked. Lifestyles changed – apparently forever. Working from home became the new norm, commuting to the workplace became extinct and flying became less prevalent. All these factors…
United States President Donald Trump leaves office in three weeks. Anything could happen before then. Stakeholders are taking positions around the strategically-important Strait of Hormuz, the only sea passage for crude oil shipped from the Persian Gulf to the open ocean. In 2018, some 21 million barrels per day (bpd), or almost 20 per cent…