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Showing posts from November 22, 2020

The Great Oil Crash 2020: CFTC report is out, but no 'aha' moment of discovery

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  The pandemic is not over yet, but its potential to turn things that we usually take for granted, upside down, continues unabated, as it did during its early stages. The fall of WTI crude price below zero for the first time in history is a case in point. It happened on April 20 and the entire global financial system got a seismic shock in the aftermath, despite a reasonable recovery that followed next day. “Was it a sort of foul play?” echoed the corridors of power across the world. The urgency to find answers prompted CFTC, Commodity Futures Trading Commission, to launch an investigation into it. The commission has finally come up with what they call an interim report. There is, however, no indication of a follow-up that usually happens after preliminary or interim report. The report has classified the factors that the commission think contributed the unprecedented slump that pushed WTI crude price into the negative territory for the first time ever, under two categories – fu

Oil price recovery on permanent mend

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  Oil price recovery continues despite insignificant negative dips since last week, defying the gloomy outlook forecast by some analysts. The trend is important, especially, when the powerful Green movement calls shots on every front of the energy sector. As I instinctively noted many times before, the fossil fuels are here to stay for a long time. It has been reported that in Canada, even in 2050, more than 50% of the energy requirements are going to come from fossil fuels. The supply side of the oil equation is going to get stronger as the political upheavals in the Middle East seem to be heading towards a stable phase. The ties between Israel and powerful Arab nations, something that was unthinkable a few years ago, are going to improve irreversibly with more surprises in the offing political stability will undoubtedly favour a steady oil market. In addition, under new US administration, Iran may enter the market back again as well. The steady supply of oil with improved

Crude Oil: latest news