The dip came as a new COVID-19 strain sparked fears of renewed lockdowns and demand destruction
World 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. "commitment" to tackle climate change crumbles in the face of climate poverty
With 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…
Most likely course of action is a release of oil from emergency reserves
U.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…
It is defying oil-consuming nations to increase output, for now
A 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…
Is Biden getting ready to cave in to Iran to help rein in oil prices?
Diplomatic 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…
The push and pull of conflicting factions may be providing some relief to consumers
Last 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…
Movement to reduce global emissions toward net-zero is still too slow
With the United Nations climate summit in Glasgow scheduled to open on Oct. 31, global powerhouses are coming up with their annual energy outlooks earlier than the customary November. With climate issues coming to the forefront at the COP26 summit, most of these reports and analyses are meant to help world leaders make decisions. But…
Decision to open the taps and let the markets surge comes just before UN Climate Change Conference
Rapid moves with long-term ramifications are being made on the global energy chessboard. Early last week, the Organization of Petroleum Exporting Countries and its allies in OPEC+ opted to stick to their original plan and gradually open the crude oil taps. After their Oct. 4 ministerial meeting, OPEC+ said it had “reconfirmed the production adjustment…
A global energy crunch could help propel prices above US$100 a barrel
All eyes are focused on the Organization of Petroleum Exporting Countries and its allies in OPEC+ as they meet today. With crude oil prices touching US$80 a barrel and prospects of hitting US$100 this winter looming large, markets are on edge. The market trajectory is virtually impossible to delineate. A global energy crunch could help…
The bull run is on
Is Brent crude oil heading toward US$80 a barrel? If the market signals and the pundits are to be trusted, the bull run is on. Oil prices headed to a third straight week of gains on Friday. Brent futures rose 84 cents, or 1.1 per cent, to settle at US$78.09 a barrel, while U.S. West…