Crude Oil Futures

  According to the statistics published by those who analyse the statistics of the National Grid, for the first time, the electricity generated by wind power amounted to more than 50% of the total needed in the United Kingdom on Boxing Day last year. The rapidly-growing renewable energy sector went past the milestone, thanks to Storm Bella that brought in sustained winds with gusts up to 100 miles per hour, while hitting most part of the British Isles. Although it is encouraging to note the achievement, the fact that it’s the random wind speed, which determined the above goal, raises a concern about our long term dependence on renewables without something to fall back on, - on a ‘rainy day’, of course. For instance, in September last year, according to a report, electricity system operator was forced to increase the use of gas-powered power plants by 20% in order to compensate for a slump in electricity generation by renewables. The low wind speed was a major factor for the dec

Exactly as some analysts anticipated, the EIA, the US Energy Information Administration, released its much-awaited data yesterday while confirming that US oil inventories were down again for the week ending December 25. The drop was much more than what was expected - 6.06 million barrels. The value was significantly larger than the number predicted by the API, the American Petroleum Institute, just a day earlier on December 29; the predicted drop was 4.8 million barrels. There is more encouraging news on the crude oil front: the exports grew by 3.6 million barrels a day, especially to Asia, buckling the previous trend that used to be associated with the pandemic. More interactive charts that matter in when it comes to determining the oil price are here: Oil price charts

  Oil price is on the rise and the EIA, the US Energy Information Administration, has not released its latest US oil inventory report yet – a reliable factor that influences the current crude oil price. The confidence of investors, however, indicates the inventories may have been down during the Christmas week too. The American Petroleum Institute, API, meanwhile, predicted a draw in crude oil inventories of 4.785 million barrels for the week ending December 25; the prediction of the same by analysts, however, was 43% of that figure for the same period. Although yet another vaccine was approved by the health authorities in the United Kingdom, the national mood could easily be eclipsed by the surging infections and the struggles faced by the NHS, the National Health Service, to cope with the patients. That means there is a strong possibility of elevating the current tier, to a notch above, seriously restricting the movement of the public – and traffic too. A development of tha

  We are, in more than one way, living in the greatest crisis since the Second World War. Yet, our lives go on, at a relatively slow pace, of course, with no danger of a hunger, a famine or chaos breaking out on a global scale or at national level. That’s the difference. In addition, unlike in the Second World War, our infrastructure remains intact and in some parts of the world, it is even improving on many fronts. In a further sign of overcoming the negative impact of the Coronavirus, innovation is on the rise at an exponential rate, especially in technological sector – across the world. The steady growth of crude oil markets reflects the combined positive impact of these developments on the sector, defying doomsday predictions about the markets. We live in an era with the buzzword being ‘going electric’, when it comes to transportation, without giving a proportional attention to the source of it. At the extreme end of the energy conversion chain, however, fossil fuels stil

  Oil price recovery continued on Monday when markets opened for business after a very quiet Christmas. Despite the absence of usual Boxing Day sales and corresponding gloom in the retail sector, oil price rally continues defying some analysts and the forecasts on the same wavelength. The markets may have got a boost from President Trump’s approval of the Coronavirus air package that had been a bone of contention between the two major political camps in the US. In addition, the news that the European countries are about to embark on an ambitious vaccination drive, may have boosted the sentiment in the oil market too. A new variant of the Coronavirus, meanwhile, has emerged in South Korea, leaving the scientists in the medical field in yet another lurch while adding more stumbling blocks in their path to find a solution. South Korea is a country that managed the first two waves well, becoming the envy of the world for the sheer efficiency and planning; it’s a country with stri

  Russia says it will support the move by the OPEC+ - OPEC + Russia – to increase the production of oil by 500,000 barrels per day, most probably to cash in on the steady increase in demand. The group plans to increase the production from February, after a crucial summit scheduled in January. Alexander Novak, the deputy Russian prime minister, said that his government would support the move as the current oil price range, $40 - $50, is conducive for oil industry to recover from months of mounting losses. Mr Novak sees the current price range of crude oil is optimum for the growth of the oil industry. The industry, as a whole, can breathe a sigh of relief from the fact that the emergence of new variants of the Coronavirus did not send the crude oil price on a downward spiral, as it did in April. Russia supported an earlier move by the OPEC+ to cut down on the production during the early stages of the pandemic in proportion to the decline in demand, despite not seeing eye to ey