Showing posts from July 17, 2022

Falling oil price: yet another false dawn in the absence of supply boost

The price of crude oil has fallen in the markets on Thursday that cannot be fully attributed to the modest US inventory build announced by the API, American Petroleum Institute, on Tuesday. Nor is the downward trend  going to be sustainable, given the high price of LNG, liquified natural gas, in the markets; the concerns in the markets in this sector imply serious supply woes in the commodity, which can easily spill over to the domain of the other commodities by its inextricable association.  As of 10:00 GMT, the price of WTI and Brent were $96.63 and $103.89 respectively. The price of LNG was at $7.74, recording a slight fall despite the reported news about Russian gas supplies being resumed through Nord Stream-1 pipeline. The fall of more than $3 in the early trading does not spell disaster for the markets; they have seen it before - perhaps, a week earlier too.  Nor does it show the light at the end of the tunnel, given the uncertainties over the obvious supply constrains, which are

Oil price below $100 a barrel: is it just wishful thinking?

Chinese Economy Growth - Q2 The fall of crude oil prices, which rattled the markets last week, did not continue  on Monday. As of 11:00 GMT, WTI and Brent were trading at $102.15 and $105.62 respectively. The price of LNG, liquified natural gas, meanwhile, is significantly up, crossing the $7.50 mark, clearly reflecting the widespread concerns in Europe about Russian supply of the commodity. With LNG at current level, all major European economies are going to suffer and in this context, the specter of recession is still looming large over the Eurozone; the state of the German economy - the biggest in Europe and the fourth largest in the world - is of particular concern at present, as the political leadership contemplates about rationing gas in order to deal with growing demand. The fear of recession may have definitely played a role in the significant US inventory build during the last two weeks.  There were concerns over the state of the Chinese economy, the world's second largest

Latest Energy News from EIA