Showing posts from July 3, 2022

High Oil Price: the perfect boomerang to haunt producers too!

  High oil price - perfect boomerang We, both analysts and mere mortals, who passionately follow the oil and gas markets, have been saying for months that the current crude oil and gas prices are way too high to be sustained.  Having come under pressure on many fronts, the OPEC+ agreed to increase the production by 648,000 bpd for July and August, leaving a huge question mark over the collective production quota for September - and beyond.  It looks like they exercised extreme caution before making the next move while taking into account the ground realities.  Of course, setting targets is one thing; achieving the very targets, judging by the data from some members of the OPEC+ in the recent past, is easier said than done, though. Analysts think that the OPEC+ does not underestimate the impact on the global economy due to high fuel prices - finally; the latter may have feared a fall in demand as a result, if major economies end up in the feared cyclic recession.  They have realized tha

Oil Price: no potential watershed moment from Biden visit to the Middle East!`

  The prices of crude oil dipped slightly on Tuesday with the two major benchmarks remaining relatively static. At 14:20 GMT, the prices of WTI and Brent were at $109.10 and $110.23 respectively; the price of LNG, liquified natural gas, however, continues to fall despite the political friction against the flow of Russian gas through a web of European pipelines and recorded a fall of 5.3% in the markets at the same time of the day. The rising fuel prices, meanwhile, trigger off protests from the public, venting their fury at the politicians across the world; the protests by the truck drivers in the United Kingdom blocking motorways is a case in point; some even threatened to extend it, covering London, the capital. The public anger is rampant in the US and rest of developed nations too over the same issue, although the degree of frustration varies from the continent to continent.  The cost of living crisis is mushrooming in the oil-rich countries in the Middle East too. The UAE, for ins

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