Is the crude oil market rally just a mirage?

Is the crude oil market rally just a mirage?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+…

Iran returns to the oil market in a big way

An expected new nuclear deal, a pipeline project and an easing of sanctions all contribute to increased production and exports

Iran returns to the oil market in a big wayCrude 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…

Below-normal temperatures lead to soaring spot LNG prices

But opposition to resource development means Canada is being left out in the cold

Below-normal temperatures lead to soaring spot LNG pricesExtreme 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…

Crude oil market remains in flux

Global demand remains a major concern

Crude oil market remains in fluxUncertainty 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…

Saudis sacrifice to broker oil production cuts

Until recently, the nation has insisted it wouldn’t unilaterally cut output until others agreed to contribute. All that has changed

Saudis sacrifice to broker oil production cutsSaudi 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…

Oil markets still face uncertain future

Even if the vaccines remain effective against the new COVID-19 mutants, a true crude oil market rebound is still a long shot

Oil markets still face uncertain futureStrong 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…

Tensions rise in Persian Gulf over oil shipments

Tensions rise in Persian Gulf over oil shipmentsUnited 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…

A legitimate demand for oil industry investment?

A legitimate demand for oil industry investment?Opposing interest groups are endeavouring to sway crude oil market sentiments. The global oil industry needs some $12.6 trillion in investments through 2045 to meet the demand, Organization of Petroleum Exporting Countries (OPEC) secretary general Mohammed Barkindo said at a videoconference. This declaration came despite the fact that earlier the month in its Monthly Oil…

The crude oil market is approaching its peak

And the rush to monetize crude oil assets is on

The crude oil market is approaching its peakThe halcyon days of crude oil are over. The reality of the transition is dawning on stakeholders. From the Organization of Petroleum Exporting Countries (OPEC) and Russia, to the major oil companies, all are beginning to recognize, appreciate and react to this changing global energy kaleidoscope. Russia was denying the reality. No more. “The peak…

OPEC+ fault lines growing deeper

OPEC+ fault lines growing deeperIt was a political decision, a compromise between the differing oil producers. Last Thursday, after extended deliberations, debate and heated arguments, the Organization of Petroleum Exporting Countries (OPEC) and its allies in the extended OPEC+ finally opted to increase their crude oil output by 500,000 barrels per day (bpd) from January 2021. And every month…
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