Think the oil industry is dying? Think again

Lack of investment in the industry could lead to an energy crisis

Think the oil industry is dying? Think againLed by kingpin Saudi Arabia, oil-producing nations are gaining confidence and delivering a message: the oil era is far from over. Last week, Saudi Petroleum Minister Prince Abdulaziz bin Salman warned that global oil production could drop by a massive 30 million barrels per day (bpd) by 2030. That’s around 30 per cent of the…

Consuming nations are gaining the upper hand in oil markets

Major oil-consuming nations seem to have gained some leverage in a market full of uncertainties

Consuming nations are gaining the upper hand in oil marketsAs 2021 winds down, oil markets face uncertainties. Omicron has begun to change crude demand perceptions. Economies – especially in Europe – are beginning to stutter, and Canada is also under pressure, with increasing restrictions in place. All this will impact crude oil consumption in the months to come. There’s no unanimity among experts on…

Oil investment decline is leading to an energy crisis

The current European/Asian energy crisis is a preview of what we can all expect in the years ahead

Oil investment decline is leading to an energy crisisIndustry and environmentalists are on a clash course. The 23rd World Petroleum Congress in Houston last week was enough to highlight the emerging trends, complexities and challenges faced by the oil and gas industry. The message from the industry was clear – a global oil scarcity is on the horizon. Underinvestment since oil prices began…

Crude oil markets cool, thanks in large part to Omicron’s rise

In this cat and mouse game, OPEC+ had little option but to veer off the collision course

Crude oil markets cool, thanks in large part to Omicron’s riseDespite bearish crude oil market signals over the last 10 days, thanks to the Omicron COVID-19 variant and the associated possibility of demand destruction, the Organization of Petroleum Exporting Countries and its allies in the extended OPEC+ opted to veer off a collision course with consumers. They avoided a knee-jerk reaction and decided instead to…

Oil markets dampen with new COVID strain, release of reserves

The dip came as a new COVID-19 strain sparked fears of renewed lockdowns and demand destruction

Oil markets dampen with new COVID strain, release of reservesWorld crude oil markets crashed on Friday by more than 10 per cent. For the first time since late September, West Texas Intermediate, the U.S. crude, tumbled below $70 a barrel, while the global benchmark, Brent, slumped to less than $75 a barrel. This crash wasn’t anticipated. The relief didn’t just come from the co-ordinated…

U.S. tries to force a drop in world oil prices

U.S. "commitment" to tackle climate change crumbles in the face of climate poverty

U.S. tries to force a drop in world oil pricesWith the possibility of co-ordinated moves by major crude-oil consuming nations, the markets took a hit last week. On Friday, oil prices were down four to six per cent. Strong demand growth and a tight leash on global supplies have driven the oil markets in recent months. New COVID-19 lockdowns in parts of the world…

Biden must act now to rein in rising oil prices

Most likely course of action is a release of oil from emergency reserves

Biden must act now to rein in rising oil pricesU.S. President Joe Biden must act – and act quickly – to rein in the crude oil markets. Pressure is coming from all sides, including from his Democratic Party. Last week, 11 Democratic senators, including several known for their concerns on climate change, urged Biden in a letter to act quickly. “As the United States…

Pressure mounts on OPEC+ from all sides

It is defying oil-consuming nations to increase output, for now

Pressure mounts on OPEC+ from all sidesA tug of war has erupted on the world oil market. Despite growing pressure from major crude-oil consuming nations, the Organization of Petroleum Exporting Countries and its allies in the expanded OPEC+ announced they would stick to their original plan by increasing output by only 400,000 barrels per day (bpd). OPEC+ members seemed to be…

Energy market cool-down sought on multiple fronts

Is Biden getting ready to cave in to Iran to help rein in oil prices?

Energy market cool-down sought on multiple frontsDiplomatic pressure is mounting as the Organization of Petroleum Exporting Countries and allies in OPEC+ prepare to decide their next crude oil output move. Global leaders are assembling in Glasgow for the COP26 climate summit this week with considerable unease over increasing gasoline prices. The leaders seem intent on discussing ways to rein in the…

Oil market turmoil may well benefit consumers

The push and pull of conflicting factions may be providing some relief to consumers

Oil market turmoil may well benefit consumersLast week ended on a calmer note for crude oil markets and major oil-producing countries. Crude oil prices fell slightly as the week ended, finally hovering a little below the recent highs. Forecasts of a warm U.S. winter put some brakes on the price rally that carried the crude markets beyond $86 a barrel early…