📬 Contact Me

Name

Email *

Message *

Popular Posts

OPEC+: Easing production cuts in October and non-compliance challenges of the members

Image
  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
Read more

Oil Prices: two-months' fall continues with no sign of abating!

Image
  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
Read more

Vision 2030 of Saudi Arabia: will falling oil prices derail big plans?

Image
  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
Read more

Latest Energy News from EIA