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Showing posts from March 27, 2022

OPEC+ Meeting: no silver bullet to ease the supply crisis

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OPEC+ meeting on Thursday, 31 March 2022 The meeting of the OPEC+ ministers that is scheduled to   be at 13:30 Vienna time, according to the analysts who understand the pulse of the participants, is not going to produce any short-term miracles to bring the prices of crude oil down. On the contrary, they may emphasize the need of long term investments in the sector, lack of which is often blamed on the ambitious Net Zero targets. The OPEC+ is in no hurry to fill the potential vacuum left by the absence of Russian supply in the crude oil markets either. Russia, after all, is still a member of the cartel - a highly influential member that has been instrumental in coming up with the current strategy of putting the group's interests first. Although the group had made a decision to increase the production by 430,000 bpd, the statistics show that some member states could not deliver the required quota due to 'technical difficulties' that often come - or conveniently placed - under

Oil Price: a perfect storm is brewing in the energy sector!

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  As the conflict in Ukraine has just passed the month-one mark on the precarious timeline, as far as the supplies of oil and gas are concerned, the West is scrambling for finding substitutes for the Russian oil and gas, but with very little success. Having exhausted every feasible move in placing the major producers under pressure by diplomatic means - and charm offensives - the major global economies appear to have come full circle; the media reports that they are about to agreeing upon the scale of releasing the next phase of strategic petroleum reserves, SPRs. They have resorted to it before, of course, a few times, but to no avail. The prices remain stubbornly high, triggering off a tsunami of cost of living crises across the globe, exacerbated by gaps in supply chains, tight supply and shifting political loyalties ; economists warn that unless the global energy crisis is addressed as soon as practicable, there will be a global recession.  Past statistics support their gloomy fore