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Showing posts from March 6, 2022

Oil Price Rises again, after the sharp fall on Wednesday

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The price of crude oil that fell almost by 11% on Wednesday appears to be gaining momentum again in the upward direction. As of 14:45 GMT, the price of WTI and Brent were $109.68 and $112.89 respectively. The price of crude oil that went past $130 on Wednesday, fell sharply in the evening, partly, in hope that the OPEC+, led by the UAE and Saudi Arabia, would step in to stabilize the market.  The precipitous fall that stemmed from the false dawn has been attributed to a statement by the Ambassador of the UAE to the US: "We favour production increases and will be encouraging the OPEC+ to consider higher production levels," said he in it that took the crude the oil markets by surprise. Up until then, the position of the analysts in the oil and gas realm was that the OPEC+ was not going to do the US bidding - or that of President Biden, for that matter - in order to tackle the energy prices that go through the roof at the moment. There were even press reports that both the Crown

Reviving the Iranian Nuclear Deal: is Russian factor, the latest acid test?

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Having seen eye to eye on many global issues, ranging from the war in Syria to the early stages in the Ukraine-Russia military conflict, especially when it came to the role of the NATO, the relations between the two OPEC+ members may suffer if Russia drags its feet over it, citing its own interests. In a highly unusual move, some Iranian state-backed media has taken a swipe at what it called, 'foreign interference' against reaching an agreement in reviving the JCPOA, 2015 Iranian nuclear deal. Iran, however, has not commented on the press report in public, still maintaining its good relations with Russia on diplomatic front. Iran has been showing an intense interest in reviving the nuclear deal, perhaps being excited by the obvious - the rapidly rising crude oil prices; there has not been a better period for the oil producers, almost in a decade, to make a fortune at current crude oil prices. Iran clearly does not want to miss out on it. Having failed to bring down the pric

Steep rise in Oil Price: will it go exponential?

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  The price of crude oil almost briefly touched $130.00 over the fears of a long drawn out conflict between Ukraine and Russia. Although the Russian oil has not come under the punishing Western sanctions yet, the speculation is rife that it will be the next. As of 11:45 GMT, the price of WTI and Brent stood at $122.55 and $124.80 respectively; crude oil prices have already reached 14-year-old high. The price of LNG, Liquified Natural Gas, has also spiked in proportion to the cautious sentiments that sweep across the markets. An extreme move of that kind, however, does not come without a cost for the Western economies; it goes without saying the impact of rising oil prices in every sector in the global economy, ranging from the developing countries to the developed countries. Since the OPEC+ has not responded enthusiastically to the anticipated shortage of crude oil in the international markets in terms of an action plan, we can just imagine how bad things would be in the event