• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 14 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 29 mins America's pandemic dead deserve accountability after Birx disclosure
  • 12 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 hour Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 3 days Fukushima
  • 2 hours CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 3 days Biden about to face first real test. Russia building up military on Ukraine border.
  • 4 days Joe Biden's Presidency
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
Editorial Dept

Editorial Dept

More Info

Beyond OPEC: Oil Markets Have Serious Demand Issues

The key theme driving oil prices through the beginning of this week was cooperation. On the OPEC+ front, we’ve had cooperation between MBS and Putin resulting in a 9-month production cut into March of 2020. On the trade front, we’ve had cooperation between Trump and Xi which prevented further tariffs from kicking in, saw both sides give key trade concessions and set the table for a return to real negotiations. Both events gave crude oil a positive push and moved Brent over $66 for the first time since May. Unfortunately, we think traders might be wise to apply some skepticism to both fronts. While geopolitical dealings may look rosy at the moment, cooperation within OPEC+ and between US/China is still climbing an uphill slope. The skepticism should be compounded by stark reminders mid-week that the global economy may be slowing and sent Brent back below $63.

On the OPEC+ side, markets had already priced in an extension of existing supply cuts into 2020. The tricky part in judging the Russia/Saudi relationship will be that diverging oil budgetary needs could undermine the ability of the two nations to cooperate over a long period. For the near term, this concern has been put to bed by this week’s OPEC+ deal which OPEC Secretary-General Mohammad Barkindo referred to as a marriage which would last into eternity. The signatories of the new deal even exchanged poems and gave each other pins to commemorate their accord. Russia/Saudi oil market cooperation…




Oilprice - The No. 1 Source for Oil & Energy News