Crude Oil Futures

  Although China made it clear recently that China was committed to meets its global obligations, when it comes to curtailing the greenhouse gases, the reality on the ground has forced some regional powers within the country to dealing with the acute power shortages, especially in the northeast regions. The regional governments in question, most probably with the approval of the central government, have turned to Russia, Kazakhstan and Indonesia in order to fill the gap caused by the ban of commodity imports from Australia. In addition, China is encouraging the local coal miners to increase the production too in the coming months in order to avoid a repeat of what certain region experienced in the harsh winter months. China appears to be serious about the energy transition from fossil fuels to renewables in the long run; it has extended its ambition of turning its back on the former at a pragmatic pace to its investments overseas too, which, in turn has caused some countries in t

  In a tangible gesture of goodwill, Saudi Arabia has reduced the price of oil for Asia, Europe and the US, as the energy shortages have evolved into a major crisis. The OPEC+ meeting that lasted just over 20 minutes on Monday did not result in an increase in oil production, despite the direct pressure from the US. In the aftermath of the OPEC+ decision, however, the US did not react angrily either. That means Saudi Arabia, the world’s top crude oil exporter, may have told the US that it would do everything in its power to ease the burden of rising fuel prices on masses, both for the developing and developed world. The development also shows that even if oil producers want to increase the production, they have been handicapped by a combination of factors, ranging from years of underinvestment to manpower issues; when oil price hit rock-bottom values a few years ago, even before the pandemic, the producers tried just to stay afloat by cutting down on research and of course, manpow

  Amidst the growing concerns about the short-term availability of fossil fuels that the world is so eager to ditch unceremoniously in few years, the focus of attention of the crude oil markets is on the OPEC+ meeting scheduled to be held today. Apart from those who are infectiously fond of the renewables, the rest partly blames the crisis on crude oil producers and when they say it, OPEC+ is usually on their radar. Blaming it on OPEC+ alone, however, like accusing the picturesque celestial giant, the Saturn, of polygamy, just because it has many rings. The current crisis does not just stem from lack of production; it’s the accumulation of a multitude of factors which were not taken seriously by the decision makers in time: the distribution issues, heavy local taxes and petty regional politics to name, but a few. In this context, the OPEC has become the convenient scapegoat when there is a herd in a metaphorical meadow that determines the price fluctuations of the vital commodi