Crude oil markets remain unsettled

Declining Chinese demand, a rising rig count in the United States and a devastating resurgence of COVID-19 in Asia all play a role

Crude oil markets remain unsettledIt has been a fluctuating week for the oil markets. In the immediate aftermath of the agreement within the Organization of Petroleum Exporting Countries and their allies in OPEC+, crude prices fell by a devastating seven per cent on July 19. However, with signs of demand holding despite the spread of the Delta COVID-19 variant,…

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.…

Bleak clouds over the crude oil horizon are dissipating

But much still depends on United States-Iran nuclear talks and how OPEC+ members will react to any deal

Bleak clouds over the crude oil horizon are dissipatingCrude oil markets are hot. Prices are up and the US$75 line has been breached. Chatter about oil touching US$100 is getting loud and clear. Global oil consumption is getting closer to the pre-pandemic levels. The bleak clouds hanging over the crude oil horizon are beginning to dissipate. Industry eyes are again on the Organization…

Pepsi tax a sour deal for Newfoundland and Labrador taxpayers

Government maintains its sugar tax is all about keeping you healthy

Pepsi tax a sour deal for Newfoundland and Labrador taxpayersWhat’s all about sweets, sours your wallet and leaves a bitter taste? It’s Premier Andrew Furey’s proposal for a new Pepsi tax. This tax will increase the price of soft drinks by 20 cents a litre. By this time next year, you’ll be paying 15 per cent more for a two-litre bottle of Pepsi at…

Rising demand and prices suggest an oil market resurgence

US$100 oil is a distinct possibility

Rising demand and prices suggest an oil market resurgenceThe world needs more oil. The Organization of Petroleum Exporting Countries (OPEC), Russia and American shale oil producers all need to up their output to keep the rising prices of the “super cycle,” as Saudi Energy Minister Prince Abdulaziz bin Salman called it, under control. Media reports say Prince Abdulaziz bin Salman told the Robin…

Short-term gains on the crude oil market as climate change looms

The IEA concedes rising oil demand at odds with its call to end new oil, gas and coal funding

Short-term gains on the crude oil market as climate change loomsThe International Energy Agency (IEA) is torn between two conflicting ends. On one hand, it’s grappling with climate change issues; on the other, it sees rising oil prices. For now, the two ends seem to be running parallel but not converging. Oil demand is rising fast, as are prices, reaching multi-year highs on Friday. Brent…

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…

Why Canada’s heavy oil is an integral part of U.S. production

Anyone who thinks the U.S. can do without Canadian oil, especially heavy oil, is misinformed. Canadian oil is critical to the Americans

Why Canada’s heavy oil is an integral part of U.S. productionBy Mark Milke and Lennie Kaplan Canadian Energy Centre The United States banned exports of crude oil in the mid-1970s, as the result of an oil embargo directed at the U.S. by Middle Eastern countries. The embargo began as a result of American support for Israel during the 1973 Yom Kippur War. In response, some…

Sugar-coating a sugar tax won’t make it any more palatable

If Newfoundland and Labrador pursues a sugar tax, it’s certainly not to get its people to lead healthier lives. It’s about paying bills

Sugar-coating a sugar tax won’t make it any more palatableIn its recent budget, the Newfoundland and Labrador government announced it will introduce a tax of 20 cents per litre on sugary drinks, starting on April 1, 2022. This a first in Canada. So far we know very little about how the tax would work, which products would be affected and how revenues from the…

Oil market shows signs of improvement but for how long?

Alternative energy and calls for the world to overcome its reliance on fossil fuels gaining currency

Oil market shows signs of improvement but for how long?The short-term prognosis for crude oil looks exciting. But that may be a mirage. The approaching summer driving season in the Northern Hemisphere and the lifting of COVID-19 restrictions have stimulated demand. The Organization of Petroleum Exporting Countries (OPEC) and its allies in the expanded OPEC+ appear confident that with the accelerating vaccination programs and…

Oil and gas sector soars over aerospace, auto industries

Higher wages and better productivity contribute to an industry that’s a dominant part of Canada’s economy and its GDP

Oil and gas sector soars over aerospace, auto industriesBy Mark Milke and Lennie Kaplan Canadian Energy Centre It’s hard for anyone but mathematicians and economists to conceptualize numbers in the billions. To get around that problem, and as a prelude to comparing major Canadian industries, let’s start with a smaller number and a question: How would you like to make $2,740 every week?…

America may not like it but pipelines are crucial

Are we prepared for the economic consequences of shutting them down?

America may not like it but pipelines are crucialBy Mark Milke and Lennie Kaplan Canadian Energy Centre There’s nothing like real life as a corrective to Disney-like musings, where fantasies are concocted absent any connection to reality. The newest example comes from a recent ransomware attack directed against Georgia-based Colonial Pipeline. The American pipeline company, which ships 100 million gallons of refined fuel…

Iran’s likely return to crude oil marketplace causes ripples

Biden seems to have slackened America's tight grip on Iranian crude exports reigniting a market share battle within OPEC

Iran’s likely return to crude oil marketplace causes ripplesIran and the United States are closing in on reviving the 2015 Joint Comprehensive Plan of Action (JCPOA), commonly termed as the Iran nuclear deal. U.S. President Joe Biden is keen to strike a deal before the June presidential elections in Iran, which hardliners are projected by many to win. All this has significant bearing…

Democracies can’t abandon oil and gas production

We have to beware tyrannies and autocracies that use oil and natural gas as weapons

Democracies can’t abandon oil and gas productionBy Mark Milke and Lennie Kaplan Canadian Energy Centre History shows tyrannies and autocracies use oil and natural gas as weapons when interacting with democracies. This is obvious during wars – tanks and jets don’t run on vegetable oil – as well as peacetime. For example, in 2009, Russia cut natural gas supplies to Ukraine in…

Atlantic Canada won’t prosper until it kicks the equalization habit

Taxpayers from so-called have provinces can no longer afford to subsidize the Atlantic provinces

Atlantic Canada won’t prosper until it kicks the equalization habitFor many years, there has been debate about equalization and other transfer programs and their impact on Atlantic Canada and other regions. Much of this discussion has been technical and difficult to follow. The debate has also been misleading because it focused on equalization even though equalization is only about a quarter of the net…
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