Pressure mounts on OPEC+ from all sides

It is defying oil-consuming nations to increase output, for now

Pressure mounts on OPEC+ from all sidesA 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…

Dampening Asian demand cools crude oil prices

New restrictions to fight the Delta variant will slow demand growth in the second half of 2021

Dampening Asian demand cools crude oil pricesInteresting moves are being made on the global energy chessboard. In an unexpected move, Saudi Arabia announced it would slash its official selling prices (OSPs) for oil exports to Asia in October. The price cut was more than expected. Saudi Aramco, the state-controlled oil giant, said in a statement on Sept. 5 that the official…

Oil markets feel pinch from renewed COVID-19 outbreaks

All eyes are focused on Saudi Arabia. Will it continue to single-handedly maintain stability in the markets?

Oil markets feel pinch from renewed COVID-19 outbreaksUncertainty has overtaken the crude oil markets again for several reasons. Since March, crude oil markets have mostly been ascending. But prices declined last week by a greater margin than any time in the last four-plus months. And the resurgence of COVID-19 in many parts of the world is clouding the near-term future of oil.…

OPEC dispute sends oil market reeling

U.A.E. prepares for a post-oil world, endeavouring to make the best of the oil it has before demand shrinks for good

OPEC dispute sends oil market reelingCrude oil markets have left a confused picture and observers can’t decipher where prices will stabilize. In the immediate aftermath of the Organization of Petroleum Exporting Countries (OPEC) fiasco last week, oil prices were on a slippery slope. OPEC+ ministers halted crude oil output talks on July 5 after the United Arab Emirates rejected a…

Saudi Arabia losing its clout within OPEC+ and the Middle East

As OPEC+ talks to increase crude oil production stall, the Saudis seem to have lost a key ally in the United Arab Emirates

Saudi Arabia losing its clout within OPEC+ and the Middle EastAdrenalin never stops flowing in the oil business. Dull moments are rare. The emerging scenario among the Organization of Petroleum Exporting Countries and their allies in the expanded OPEC+ is no different. The group was on the verge of finalizing a deal on Thursday to increase its crude output by two million barrels per day…

OPEC+, IEA clash over future of fossil fuels

IEA wants all investments in new developments to stop. Others warn that could lead to $200 a barrel oil

OPEC+, IEA clash over future of fossil fuelsThe Organization of Petroleum Exporting Countries and their allies in OPEC+ are on a collision course with energy watchdog International Energy Agency (IEA) on at least two counts. Last month, the Paris-based IEA delivered the starkest warning yet on fossil fuels, saying the exploitation and development of new oil and gas fields must stop this…

Iran pulling geopolitical strings to get its oil to market

Iran orchestrated Houthis attacks on Saudi Arabia to coerce the Saudis to market its oil

Iran pulling geopolitical strings to get its oil to marketAs the result of developments in the Middle East, oil is back as a bargaining chip on the geopolitical chessboard. Once Donald Trump lost the election for a second term as American president, it became increasingly evident that the new administration led by Joe Biden would attempt to revive the 2015 nuclear deal with Iran.…

India confronts Saudi Arabia over crude oil prices

Fed up with the Saudi's "artificially jacking up the prices"

India confronts Saudi Arabia over crude oil pricesAn oil war is brewing between the world’s largest crude exporter, Saudi Arabia, and the world’s third-largest crude consumer, India. India has long pleaded with Saudi Arabia to keep oil prices lower to help sustain economic growth in the developing and emerging economies of Asia. In rather hushed tones, for diplomatic reasons, India has protested…

OPEC+ opens oil production taps after U.S pressure

With the continuing OPEC+ oil output cuts, markets were going into an overdrive mode. Prices at U.S. gas stations rose sharply

OPEC+ opens oil production taps after U.S pressureSurprising the markets and going against expectations, the Organization of Petroleum Exporting Countries and its allies in the extended OPEC+ changed course at their ministerial meeting last week. At the virtual meeting, OPEC+ opted to increase its output by 350,000 barrels per day (bpd) in May another 350,000 bpd in June, and roughly an additional…

OPEC+ expected to continue to dampen oil output

Crude oil markets continue to show signs of weakness – even without the Houthi attacks on Saudi Arabia and the Suez Canal closure

OPEC+ expected to continue to dampen oil outputPressure is mounting on the Organization of Petroleum Exporting Countries and their allies in the extended OPEC+ to roll over their crude oil output cuts when they meet on April 1. Markets continue to show signs of weakness – even without the Houthi attacks on Saudi Arabia and the Suez Canal closure. But the Suez…

Saudis determined to keep crude oil market on a tight leash

Although the OPEC+ decision resulted in immediate oil price gains, the warning shots on the horizon couldn’t be altogether ignored

Saudis determined to keep crude oil market on a tight leashSaudi Arabia is leading the pack on crude oil production management. Russia seems to be following. Despite murmurs in the oil market of a possible rift between the two countries on the issue of output, the Organization of Petroleum Exporting Countries (OPEC) and their allies in the OPEC+, at their virtual meeting last Thursday, went…

Mourning the passing of an oil industry giant

Sheikh Ahmed Zaki Yamani personified OPEC

Mourning the passing of an oil industry giantThe grand old wise man of the energy world has slipped into history. With the passing away of Sheikh Ahmed Zaki Yamani, the charismatic Saudi oil minister from 1962 to 1986, an era has come to an end. With his calm and cool demeanour, intellectual depth, sharp mind and the capacity to stand up to…

Saudis sacrifice to broker oil production cuts

Until recently, the nation has insisted it wouldn’t unilaterally cut output until others agreed to contribute. All that has changed

Saudis sacrifice to broker oil production cutsSaudi Arabia is back in its role as the swing crude oil producer of the world. Until recently, the nation has insisted it wouldn’t unilaterally cut output until others, including Russia, agreed to contribute. But all this changed – almost overnight. On Jan. 4, while the ministers from Organization of Petroleum Exporting Countries and its…

Dark days ahead for oil-rich Gulf economies

Dark days ahead for oil-rich Gulf economiesOil-dependent economies are in a real quandary. Sliding markets, lowering demand and strong output capacities are set to hit the single-product, oil-rich economies of the Middle East, the International Monetary Fund (IMF) said in a recent report. These oil-rich Persian Gulf states are now expected to see a six per cent real gross domestic product…

China the big winner in world oil price calamity

The Chinese have stockpiled huge reserves of low-priced oil, giving them significant geopolitical leverage over Russia and Saudi Arabia

China the big winner in world oil price calamityWith the major stakeholders – Saudi Arabia, Russia and the United States – emerging badly bruised from the last round of the crude oil price war, a new world order is set to emerge. The cost of the battle has been immense to all three. In April, as the battle erupted, the value of Saudi…

Oil-rich Saudis squeezed by Trump

Current oil production cuts can’t continue for long or the Saudis, and others, won’t balance their budgets

Oil-rich Saudis squeezed by TrumpThe U.S. is putting extreme pressure on the major oil producers, Saudi Arabia in particular, to cut output, firm up crude markets and ensure the continuity of the U.S. shale revolution. But on the other hand, the administration of United States President Donald Trump doesn’t want oil prices to go much higher. In an election…

Oil market finally showing signs of life again

President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off

Oil market finally showing signs of life againSaudi Arabia, Russia and their allies have opted to roll over crude oil output cuts for another month – until the end of July. Markets have somewhat firmed up. Oil prices have inched up. And President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off. The U.S. president…

Politics helped drive latest Saudi oil production cut

The need to generate cash, along with political pressure, compelled the Saudis to make some bitter decisions

Politics helped drive latest Saudi oil production cutSaudi Arabia has capitulated. A few moves here and there, in Washington and elsewhere, made the trick work. Saudi Arabia made a surprise announcement last week that it would cut its crude oil output by a further one million barrels per day (bpd) from planned June levels, “voluntarily.” This takes the total Saudi production cuts…

Crude oil cuts finally made, but to what end?

As world demand declines thanks to the COVID-19 pandemic, oil countries struggle to control prices with production cuts

Crude oil cuts finally made, but to what end?Too little, too late? On Thursday, the Organization of Petroleum Exporting Countries (OPEC) and the Russia led non-OPEC oil producers, commonly termed OPEC+, took an unprecedented step to agree to cut the global crude oil output by 10 million barrels a day (bpd). The next day, after a five-hour-long virtual meeting, G20 energy leaders endorsed…

Who will blink first in crude oil crisis?

For four years, the U.S. has firmly rejected joining the producers’ club to curb output. It can’t remain aloof any longer

Who will blink first in crude oil crisis?Energy diplomats are on overdrive, seeking to bring an end to the senseless global crude oil war. Russia and Saudi Arabia have flooded the market, driving down oil prices. A G20 virtual meeting of energy leaders is being urged, with International Energy Agency executive director Fatih Birol reportedly propelling the idea. Former U.S. Energy Information…

Oil glut, COVID-19 crisis punishing world crude prices

With demand and supply shock acting simultaneously, crude markets are imploding. And this is just the tip of the iceberg

Oil glut, COVID-19 crisis punishing world crude pricesThe global oil war is on and no one seems to be blinking. Saudi Arabia is set to increase its crude oil exports in May by about 600,000 barrels per day (bpd), bringing its total petroleum exports to 10.6 million bpd, an official at the Saudi Arabian Energy Ministry told the Saudi Press Agency. Russia…

Bring unity to the fragmented oil market

It’s time for a Russia-Saudi-Arabia-Texas crude oil axis. But it will require the Trump administration to make some concessions

Bring unity to the fragmented oil marketIs a Russia-Saudi-Arabia-Texas crude oil axis possible? Based on the media hype, it seems not just possible – it seems probable. Demand destruction in the oil market was already in place. The coronavirus pandemonium only accelerated it. And the oil price war between Russia and Saudi Arabia only helps to worsen things. The oil industry…

The crude story behind the Russia/Saudi oil war

Coupled with the coronavirus, the oil battle is hurting economies all over the world, including Canada and particularly Alberta

The crude story behind the Russia/Saudi oil warThe world is in a mess and so are the crude oil dynamics. Coronavirus pandemonium is reshaping the global crude oil fundamentals and demand destruction continues. The transportation sector, responsible for almost 70 per cent of the total global crude oil consumption, is in the doldrums. Staying indoors is the new mantra and road transport…

The right of women to choose their own futures

Saudi Arabia’s anti-women laws require a swift dose of economic freedom, and they’re not alone

The right of women to choose their own futuresThe Canada-Saudi Arabia diplomatic dispute appears to have calmed – for now – but the issue at the heart of the dispute remains. The dispute peaked in August after Foreign Affairs Minister Chrystia Freeland tweeted her support for women’s rights activist Samar Badawi. That prompted Saudi Arabia to pull its students from Canadian colleges and universities…

The Saudi-Canada spat and the New World Order of Oil

What's been billed as a clash over human rights is really all about oil and the Saudis keeping Canada in its place

The Saudi-Canada spat and the New World Order of OilCall it the clash of the oil titans. And it all started with a tweet. In one corner we have Saudi Arabia, the undisputed oil heavyweight of the world. It produces 11 million barrels per day (bpd) and is the planet’s largest oil exporter by far. In the other corner to challenge the champ, we…