Crude Oil Futures

  Saudi Arabia, whose economy relies heavily on exporting hydrocarbons, is currently facing double-headed challenge: on one hand, it has to boost revenue from selling crude oil that accounts for 70% of the former, despite the sale of the latter being on decline; on the other hand, it still has to fund the highly ambitious projects, an integral part of the Kingdom's 2030  vision. Since the twin approaches are the two sides of the same coin, Saudi Arabia has been forced to walk the tightrope, while staring into an abyss of fast-evolving challenges that lie underneath, some of which could be critical unless handled strategically.  The decision by the OPEC+, OPEC plus Russia, not to reverse the production cuts, despite promising to do so in June this year, is a case in point; it was Saudi Arabia, the de facto leader of the organization, that was instrumental in making the decision, while overruling the obvious concerns of some members as if it was completely amicable. It goes without s

  The loss of crude oil prices shows no sign of abating for the second successive month, defying two major factors that in theory should reverse the trend; they are the volatility in the Middle East around Israel and the suspension of oil exports from two key Libyan ports, coupled with slow production, across the country due to a dispute between two rival political groups. As of 15:00 GMT on Wednesday, the prices of WTI and Brent were at $69.57 and $72.96 respectively. The price of LNG, liquified natural gas, however, was at $2.20, perhaps in light of the onset of the fall in the northern hemisphere. The latest manufacturing data from China, the world's second largest economy, meanwhile, partially accounts for the decline in oil prices; China's key indicator that reflects the manufacturing strength, manufacturing purchasing managers index, PMI,  fell again in August to 49.1, when the expected value was 49.5 for the same period. According to China's National Bureau of Statis

  Amidst the volatility in the Middle East and the evolving concerns over the health of the global economy as a whole, the ministers of the OPEC+, OPEC countries plus Russia, are facing the same old dilemma before their next meeting - restoring the production cuts as promised in October or maintaining the status-quo. The key members of the OPEC+ are no strangers to walking a tightrope, when it comes to the crude oil production - or cuts. The changing ground realities, however, are leaving the organization between the rock and the hard place, indeed. In theory, a significant cut in oil production naturally leads to an increase in the price of the commodity, perfectly in line with the very basic law of economics - the lower the supply, the greater the demand or vice versa - that by extension, leads to a hike in oil prices in proportion to the drop in supply. In the past few months, however, the pattern has been just impulsive rather than a reliable show of consistency. In short, the prod

  With the impact of the Middle Eastern volatility on crude oil prices having diminished, aside from minor spikes during occasional military flare-ups, long-term demand concerns now seem to be the primary driver of oil markets. Although the atmosphere in the Middle East is far from settled, the ground realities paint more of a picture of psychological confrontation than that of physical on the battlefield; both Israel and Iran along with its allies, are weighing the options, while the world watches who is going to blink first. As far as crude oil markets are concerned, meanwhile, two significant developments emerged this week: for instance, the Indian media reports that India bought $2.8 billion worth of crude oil from Russian in July alone; it is a far cry from India's position with regard to the Russian oil imports before February, 2022, when the war broke out between Russia and Ukraine; it was just less than 1% of India's total oil imports. India, the world's second larg

  www.oilfutures.co.uk Crude oil prices started falling on Monday as the markets opened for business, despite the extreme volatility in the Middle East that bordered on a major military conflict.  At present, Iran - and its allies - and Israel are on the brink of a major confrontation, unless a face-saving move is made collectively; while reading between the lines it's clear that neither Iran nor Israel wants a protracted war with the corresponding archenemy; the stakes cannot be higher for the theocracy in the former, although both nations are democracies.  The speculation was rife on Sunday about an  imminent  attack on Monday; Anthony Blinken, the Secretary of State of the US, said that he would expect some form of retaliation from Iran in the coming hours, without specifying the details; it was the US that said just after the Assassination of the political head of Hamas that Iran would carry out an attack in 24-72 hours. By Sunday evening, the US said an attack by Iran and its

  As the prevailing tensions in the Middle East gradually ease, the short-lived spike in oil prices appears to be dying  down, leaving the oil markets back at the mercy of the usual factors.  With the two successive assassinations of key figures,  a few hours apart,  in the conflict in the Middle East, Israel dramatically raised the military stakes on Tuesday. Anticipating a concerted, perhaps multi-pronged counter-attack, the Jewish state braced itself for the worst-case scenario, despite the the 'iron-clad' backing from its main ally, the US.  Judging by the diminishing tempo by Friday, however, it looks like the diplomatic channels that have gone into overdrive may have succeeded in keeping the warring factions apart, before getting into a catastrophic war - at least, for now. Analysts, meanwhile,  are surprised at the fact that even in the midst of a looming major conflict, the spike in the oil price was pretty modest; that means the existing worries in the markets still ha

  The price of crude oil is back on decline, having been on the rise for about three weeks. As of 13:00 GMT on Tuesday, the prices of WTI and Brent were at $77.94 and $81.97 respectively.  Although some analysts were quick to predict a surge in oil prices due to the attacks carried out by Israel on Saturday, on Hodeidah port in Yemen, targetting oil facilities, it did not materialise. On the contrary, the prices of oil went down, recording that of WTI, below $80. The fossil fuel markets, at present, are in need of a sustainable catalyst. The combination of hyping-up the conflicts in the Middle East and the exaggerated impact of them on the energy markets, certainly is not one of them; its perceived significance appeared to have run its course, judging by the current fluctuations of the oil prices; it slowly borders on irrelevance.  On political front, meanwhile, when President Trump received a hero's welcome at the recently-concluded RNC, Republican National Convention, having surv

The slow growth rate of China's GDP, around 5% according to the latest forecasts,  coupled with the falling gas prices, is clearly inhibiting the potential rise of global oil prices.  China, the world's top oil importer and second largest consumer after the US, enjoyed four decades of robust growth that used to be close to 10% - the envy of the developed world. The latest data from China's Bureau of Statistics, the world's second largest economy is heading towards its own new 'normal' - a relatively modest growth around 5%. Although China still manages to keep its economy growing despite many headwinds, the concerns on many fronts eclipse the growth picture: its frosty relationships with the West, uneasy diplomatic relations with the neighbours, especially around the South China Sea and of course, its troubled neighbourly relationship with India, the world's third largest consumer of oil, to name but a few. The latest concern over China's growth comes in

  Iranians elected a new president on Friday in a run-off election, who has pledged to take the country out of international isolation while promising women more rights that include relaxing the strict dress code - the compulsory hijab-wearing in public. Dr Masoud Pezeshkian, the president elect, aged 69, is a former heart surgeon, who had been a minister of health before, in a reformist government from 2001 to 2005. In the first round of the presidential election that was held on June 28 due to the unexpected death of the former president, Ibrahim Raisi, in a helicopter crash, Dr Pezeshkian marginally won the race while beating Saeed Jalili, his nearest rival and a conservative hardliner, who promised to uphold the status quo.  During the heated political debates in the runup to the election, Dr Pezeshkian criticised Iran's confrontational dealings with the West that resulted in hyperinflation and an economy in ruins; he accused the previous hard-line-regimes of leaving Iran in a

  The price of crude oil slightly increased as the weekend approached, something that has been attributed to the rising tension in the Middle East between Israel and Hezbollah, the Shite military group in Lebanon. As of 18:00 GMT, the prices of WTI and Brent were at $81.58 and $86.46 respectively. The price of LNG, liquified natural gas, meanwhile, was at $2,60. The US crude stocks, against all odds, rose again during the last week, deviating from the draw that was reported a week ago. It raises the prospect of feeble demand that has been the case for months; this is rather unexpected in the US, the world's top consuming nation of the fossil fuels, despite the onset of the summer driving season. The fact that the price of oil slightly went up despite the rising US crude stocks has been attributed to the rising tension between Israel and Hezbollah; the northern border between Israel and Lebanon has been a hotbed for hostilities involving both sides since Israel launched a full-scale