OPEC believes that oil demand is at last on a firm path to recovery. Its celebrations may yet prove premature
Recovering demand pushed prices above $70 a barrel for the first time since 2019 | Finance & economics
might soon make progress proved unfounded. The delay means extra Iranian oil is not about to suddenly flood the market. But if a deal is somehow struck this summer, analysts reckon that Iranian exports could rise by 1m bpd or more by the end of the year.
Furthermore, though tight inventories and high demand push up prices in the near term, those very same prices will tempt America’s shale-oil producers, currently restraining investment, to splash out. Saudi Arabia might also find it harder to keep OPEC disciplined, observes David Fyfe of
Petroleum Argus, an industry journal. Members tend to adhere to agreed cuts when demand is collapsing, but rising prices encourage cheating.A bigger worry, says Paul Sheldon of S&P Global Platts, an analytics firm, is “an unexpected demand setback” in 2022. America and China are back to their gas-guzzling ways thanks to the spread of vaccines; Europe is not far behind. But energy demand in India and Latin America, where the pandemic still rages, remains fragile. Mr Fyfe points out that long-haul transportation is another source of weakness. headtopics.com
The gravest threat to the cartel comes from technological change. There are widely divergent views on how quickly demand for the black stuff will give way to greener fuels, even among oil majors. But purveyors of petroleum will almost certainly find a carbon-constrained world tough going. Edward Morse of Citigroup, a bank, makes a subtler point about innovation. Oil may surge to $80 a barrel in the short term, but that is hardly the start of a “new secular bull run”: as the global cost of finding and developing oil has fallen by over half in the past five years to $10-15 per barrel, he reckons fair value for crude is $40-55. The “clumsy cartel”, as Morris Adelman, an energy economist, once dubbed OPEC, is in for a rocky ride.Read more: The Economist »
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For the TIME BEING... CHANGE IS INEVITABLE... TIK...TIK...TIK... TIME WAITS FOR NO ONE NOT EVEN BIG OIL OR BIG TECH... CHANGE IS GOOD.
Oil extends gains on OPEC+ supply discipline, demand prospectsOil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China, the world's two biggest oil consumers. thanks
Oil jumps to two-year high as OPEC and allies reconfirm gradual production increaseOil jumps to two-year high as OPEC and allies reconfirm gradual production increase.
Oil demand will reach pre-pandemic levels in mid-2022, analyst saysAsian countries have put new Covid-19 restrictions in place, which could delay a rebound in global oil demand, Energy Aspects analyst Amrita Sen told CNBC.
In Venezuela, Covid-19 Data Is a State Secret, but Citizens See Many DeathsThe once oil-rich country of Venezuela lacks vaccines and performs few tests as Covid-19 rages, with some people choosing to die at home to avoid hospitals that don’t have electricity or oxygen This once-rich country went the socialist route - now look at them... How about this then? This is another example of how socialism can be extremely harmful for the people.
WSJ News Exclusive | OPEC, Russia-Led Producers Agree to Pump More OilA group of oil producers led by Saudi Arabia and Russia agreed to continue unwinding steep cuts they made at the start of the pandemic, as economic recoveries around the world boost demand for crude. thanks
Here’s What to Expect From Princess Diana’s Statue UnveilingHere's everything you need to know about Princess Diana's statue unveiling at Kensington Palace, which was commissioned by Prince William and Prince Harry. Is William going to apologize for calling his mum Paranoid and also for working closely with the same group that drove her to her death to abuse his own brother? Their differences are that Harry said his mother was unquestionably truthful while William said she was paranoid and her words should be disregarded and never heard again. Harry will honour his mother as he’s always done. William will find a way to diminish her for his Father. Why the hell is Women’s Health passing around gossip? Are you a gossip magazine now? How is this gossip helping women’s health today?