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- Just as sky-high oil prices can trigger recessions, low oil prices can aid recoveries. A massive fall in the oil price is like a global tax cut on businesses big and small. If airlines can survive, and the travelling public return, then they could lock in low prices for their biggest single outlay - fuel.
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What affects oil prices and how do fluctuations impact the wider economy? We discuss rising inflation, post-pandemic economic recovery and the energy transition.
- Maciej Kolaczkowski
Passionate about role of technology in the energy...
- Oil and Gas
The stories shaping the Global, Regional and Industry...
- Maciej Kolaczkowski
- Russian Supply Remains Robust
- The Deep OPEC+ Cuts Are Not That Deep
- Demand Fears Are Trumping Supply Concerns
- But Prices Could Still Rebound
Europe’s ban on crude oil imports from Russia, the world’s biggest oil exporter, is a genuine sanction, aiming to force Moscow to reroute supplies and halt the ugly optics of allies of war-torn Ukraine funnelling petrodollars to President Vladimir Putin. But the G7’s price cap plan aims to take the edge off. When the EU announced it would impose sa...
In October, when Saudi Arabia, Russia and other Opec+ allies announced a cut of 2mn barrels a day to production quotas — equivalent on paper to about 2 per cent of global supply — the reaction from the west was swift. Riyadh was siding with Russiain a global energy war, the White House suggested. The International Energy Agency accused the group of...
After months of fretting over supply disruptions, traders are now focused on fears of global recession, as the fallout from Russia’s invasion of Ukraine and energy war on the EU spreads and central banks race to ratchet up interest rates to tame runaway inflation. Wall Street banks have issued wary economic outlooks for 2023. “When I talk to client...
Oil market bears think all this points to a cyclical unwinding of oil prices that lasts. But bulls are puzzled. They contend that years of supply under-investment will eventually catch up with the market if demand keeps rising, even modestly. Sluggish production growth in the US shale oil patch is another risk. Any decline in Russian supply may onl...
Apr 22, 2020 · Just as sky-high oil prices can trigger recessions, low oil prices can aid recoveries. A massive fall in the oil price is like a global tax cut on businesses big and small. If airlines can...
The prolonged drop comes as analysts worry about increased production around the globe and shrug off the Organization of the Petroleum Exporting Countries’ promises to limit supply.
- The Dollar Strengthens. In 2015, the dollar was at a 12-year high against the euro. That put pressure on market prices because commodity prices are usually quoted in dollars, and they will fall when the U.S. dollar is strong.
- OPEC Retains Production Levels. OPEC, the cartel of oil producers that sets production levels, was unwilling to prop up the oil markets by cutting its production levels.
- Global Inventory Grows. The prices of crude futures declined in late September 2015 when it became clear that oil stockpiles were growing amid increased production.
- The Economy Weakens. While the supply of oil became increasingly abundant in 2015, global demand for oil was decreasing. The economies of Europe and developing countries were weakening.
Mar 7, 2022 · Crude oil prices react to many variables, including supply and demand prospects and the perceived risk of market disruptions. Economic growth can drive up the demand for crude oil, while...
Jun 4, 2024 · Oil prices fell more than $1 a barrel on Tuesday on scepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.
