Showing posts from October 16, 2022

Is there an ideal oil price that safeguards interests of consumers and producers?

  As the oil price did not go up the way the OPEC+ expected, apart from temporarily being on the crosshairs of the US, analysts believe only a strategy of maintaining a price, ranging from $70 - $80  barrel, could  be the pragmatic approach.  A move of that kind, they believe, safeguard the interests of both the consumers and producers without causing irreparable damages to the producers and the global economy as a whole. Although the decision by the OPEC+ to reduce the production by over a million barrels a day, in theory, is supposed to push the price up for obvious reasons, the inflationary pressure on the consumers appeared to have effectively neutralized the effect. As of 14:30 GMT, the price of WTI, Brent and LNG, liquified natural gas, were at $85.32, $93.25 and $5.08 respectively. It is clear that the price of natural gas has come down significantly that in turn plays role in determining the current oil price. A few months ago, the price of crude oil went up in proportion to th

Will the US go for nuclear option over the OPEC+ production cuts?

  With the US midterm election just 3 weeks away, the Biden administration is clearly taking the scenario of fuel price hikes seriously - in the wake of the decision made by the OPEC+ to cut down on the production in order to boost the prices. Although the decision appears to be collective on the surface, the US government lost no momentum in singling out its most important ally in the Middle East, Saudi Arabia, being behind the move; the political rhetoric against the Kingdom in Washington that borders on threat and transcends the political divide, clearly shows the sensitivity of the issue; it is not just on political grounds, but on clear economic grounds too. The talks of reviving the NOPEC bill is one option that the Biden administration appears to be contemplating on; if it becomes law, having overcome a few hurdles, it could potentially blacklist the member nations of the OPEC+ on the grounds of price manipulation, in addition to other charges. In addition, the Biden admini

Latest Energy News from EIA