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…
The disastrous consequences of the green movement
People are beginning to understand that “the road to hell is paved with green intentions.” The green movement’s crusade to replace the 84 per cent of energy currently supplied by fossil fuels with windmills, solar panels and biofuels has led to much talk about energy supply and prices. But there’s also a profound human impact.…
Biden wanted more crude, Mohammed bin Salman needed recognition. The visit served both purposes
What did United States President Joe Biden gain from a trip that took him to Saudi Arabia, the state he once promised to make into the pariah he said it deserved to be? What did Biden get from meeting with Saudi Crown Prince Mohammed bin Salman, whom he has avoided until now? In response to…
The driver of this bearish sentiment is an overly hawkish response by the Federal Reserve
Last week, the crude oil markets saw one of the most significant single-day price declines in history. Have the bulls retreated – perhaps for good? Tuesday’s oil price collapse could go down as one of the most memorable moments of the oil market’s tumultuous year, said Josh Owens in his piece for Oilprice.com. Although oil…
Analysts warn that prices could reach $380/barrel if existing penalties prompt Russia to make cuts
The crude oil world is in deep flux. Ongoing attempts by the G7 to put a price cap on Russian crude exports – almost an admission of its failure to curb the flow of petro-dollars to Moscow – also meant it needed to do more. But moving ahead with the proposal could result in global…
Increasing spending does not contradict efforts to reduce emissions, says IEF
World energy markets are facing a “red alert,” and there’s more trouble ahead without enough investment going into oil and gas to meet demand, according to a new report by the International Energy Forum (IEF). “At a time when the global energy crisis calls for more supply, underinvestment in hydrocarbons will be the main reason…
Bullish pressure on crude oil markets doesn’t seem to be easing
Crude oil prices fell last week, notching their second weekly decline in the face of concern that rising interest rates could push the global economy into recession. Yet the future of crude oil still seems bullish to many. Spare capacity, or lack of it, is just one of the reasons. The global surplus of crude…
The expansion, now expected in late 2023, will help meet continued world oil use, benefiting Canadians
The case for the Trans Mountain Pipeline expansion remains strong as oil demand is on its way to a new record high, according to industry analysts. Following nearly two years of world consumption exceeding supply, global oil demand is expected to reach a first-ever 101.6 million barrels per day in 2023, according to the International Energy Agency…
And stop undermining our role as a trusted resource supplier
In early June, the economics team at the Royal Bank of Canada (RBC) published a revised forecast for Canada and the 10 provinces. The good news is that notwithstanding slowing global growth, soaring inflation and escalating geopolitical tensions, Canada seems reasonably well positioned to navigate its way through the rest of 2022 and into next…
And we can blame political meddling
The crude oil world has inched into a crisis mode. The world faces a “much bigger” energy crisis than the one in the 1970s. Fatih Birol, the executive director of the International Energy Agency (IEA), told the German daily Der Spiegel in an interview last Tuesday. The IEA, the Organization for Economic Co-operation and Development…
Canada can be the solution as the world looks for reliable energy while maintaining GHG targets
Canada and its partners in the G7 are calling on OPEC for solutions to the growing energy security crisis they say is a “grave concern” for households – particularly low-income households – around the world. The G7 is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. It’s asking Organization…
And the U.S. is getting ready to cave in
With crude oil fortunes on an upswing, Saudi Arabia – the world’s largest crude producer – is playing its cards very well. The crude oil markets have been transformed, with prices starting in 2022 at US$75.69 and now trading at around US$115 a barrel. That’s a gain of just over 50 per cent so far…
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…