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…

Trump picking a fight with Iran won’t save oil prices

He needs to do something to boost his electoral fortunes, with the presidential election looming in November

Trump picking a fight with Iran won’t save oil pricesIs American President Donald Trump beating war drums in the Middle East to prop up the ailing crude oil industry? After having failed to turn around the oil markets by engineering an unprecedented output cut deal between Saudi Arabia and Russia, Trump seems to be looking desperately at other options. The crude oil industry is…

Oil production cut numbers don’t add up

As the cost of pumping crude exceeds the selling price in most cases, production in many oil-producing countries is already taking a hit

Oil production cut numbers don’t add upThe math is fuzzy. When the agreement to cut crude oil output by 9.7 million barrels per day (bpd) was announced, U.S President Donald Trump, who played a dominant role in getting the agreement, went further. “Having been involved in the negotiations, to put it mildly, the number that OPEC-plus is looking to cut is…

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…