Putin's War has lifted the Gulf states out of an almost decade-long economic slump
I am in Abu Dhabi and the glitter is visible – all around. With the oil-based economies of the Gulf’s current high budgetary surpluses, the glitter will only shine brighter. New projects worth hundreds of billions of dollars are being showcased throughout the region, from Saudi Arabia to Qatar and from Abu Dhabi to Kuwait.…
Limiting gas imports from Russia has thrust the country into its biggest energy crisis since the Second World War
Germany is stuck between a rock and a hard place. On the one hand is its decision to limit crude and gas imports from Russia. On the other, its industrial might is under threat. Berlin’s political decision to limit gas imports from Russia has thrust the country into its biggest energy crisis since the Second…
Producer and consumer nations targeting a price of around $90 a barrel
Oil markets are being pushed and pulled – from both ends. As conflicting factors weigh on the markets, the future crude scenario remains hazy and muddy. The Organization of Petroleum Exporting Countries and their allies, including Russia in the extended OPEC+, appear determined not to let the crude market prices go considerably below their target…
G7 agrees on devising a system that would only allow the sale of Russian oil at below-market prices
Well, they did it. During their virtual meeting last Friday, finance ministers from the G7 agreed on devising a system that would only allow the sale of Russian oil at below-market prices. “The price cap is specifically designed to reduce Russian revenues and Russia’s ability to fund its war of aggression whilst limiting the impact…
U.S. President Joe Biden desperately needs lower prices at American gas stations, especially in a mid-term election year
Speculation is growing about a deal between the United States and Iran reviving the stalled nuclear agreement, letting additional Iranian crude oil enter the markets. But efforts to sabotage the agreement are apparent. The return of Iranian crude is important to the United States for various reasons. U.S. President Joe Biden needs lower prices at…
Weaker-than-expected demand growth means the oil market is likely to remain in surplus into early next year, say analysts
Oil markets were under considerable pressure last week. Both Brent and U.S. West Texas Intermediate (WTI) crude oil prices fell, with Brent futures settling at US$96.72 and WTI ending at US$90.77 per barrel. Both benchmarks fell about 1.5 per cent on the week, as future contract values dropped to their lowest level in seven months…
Two contrasting scenarios are emerging
Crude pundits are divided – literally on geopolitical lines, depicting the fault lines within the industry. Two contrasting scenarios are emerging. On one end is the demand gloom, while on the other is the possibility of a rise in global crude consumption. The Organization of Petroleum Exporting Countries (OPEC) is saying a fall in global…
The prospects of a global economic slowdown are beginning to hit oil demand
The much-awaited ministerial meeting of the Organization of Petroleum Exporting Countries and its allies, including Russia, in the expanded OPEC+, opted to increase its September output by just 100,000 barrels per day (bpd). Despite the urgings of U.S. President Joe Biden to open Saudi Arabia’s crude oil taps during his visit there, the announced output…
Saudi Arabia isn’t ready to ditch Russia
After a brief lull and a price drop, crude oil markets are heating up again, surging by more than US$2 a barrel last week. The Aug. 3 expanded OPEC+ ministerial meeting, which includes Russia, is just around the corner. And signals from producing countries aren’t helping to stabilize the markets. In addition, the threat of…
An intense tug of war is being waged on the global crude horizon
Stakeholders continue to make interesting moves across the global energy chess board. Six days after U.S. President Joe Biden flew out of Saudi Arabia – without any public commitment from Riyadh to increase crude output significantly – Russian President Vladimir Putin and Saudi Crown Prince Mohammad bin Salman spoke by phone, underlining the importance of…