Worsening trade tensions between the United States and China have cast a dark cloud over crude prices. Add a heavy shower of refinery closures for maintenance works and it’s easy to see why oil markets are facing a perfect storm. Demand side fears have fueled the slide in crude oil prices. ICE Brent futures lost around US$16 per barrel, or 21 percent, of their value in early June from a 2019 high of $75.60 seen on April 25. Experts agree that a glum outlook for the global economy is to blame. “Financial markets continue to price in an increased probability of ‘recession’ in the next year,” Chris Midgley, Global Head of Analytics at S&P Global Platts said recently. Bickering over trade between China and the US — the world’s largest economies and consumers of crude — are causing forecasters problems. Platts Analytics has revised its oil consumption growth forecast lower. In Asia, which accounts for around 60 percent of global demand … [Read more...] about Demand side fears fuel oil price storm
Why saudi arabia has oil
REUTERS: Explosions that damaged two tankers south of the Strait of Hormuz on Thursday (Jun 13) come a month after four vessels were targeted in "sabotage attacks" off the coast of the United Arab Emirates.Below are details about the Strait:WHAT IS THE STRAIT OF HORMUZ?- The strait lies between Oman and Iran- It links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond- It is 21 miles (33km) wide at its narrowest point, with the shipping lane just two miles (three km) wide in either direction- The UAE and Saudi Arabia have sought to find other routes to bypass the Strait, including building more oil pipelinesWHY DOES IT MATTER?- Almost a fifth of the world's oil passes through the Strait - some 17.2 million barrels per day (bpd) versus consumption of about 100 million bpd in 2017, data from analytics firm Vortexa showed- OPEC members Saudi Arabia, Iran, the UAE, Kuwait and Iraq export most of their crude via the Strait- Qatar, the world's biggest … [Read more...] about Strait of Hormuz: The world’s most important oil artery
TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe is due to visit Iran next week in an apparent mediation mission to ease tension between Iran and the United States. The following are some of the reasons for Mr Abe's June 12-14 trip, and what it might accomplish. WHY IS ABE GOING TO IRAN? Japan is in a unique position as a US ally because it has long maintained close ties with Iran, making Mr Abe an ideal mediator. US-Iran ties have frayed since President Donald Trump pulled out of an Iran nuclear deal in which it agreed to curb its nuclear programme in return for the lifting of sanctions. The United States has also hinted at military confrontation, sending extra forces to the region to counter what it describes as Iranian threats. During a visit to Japan last month, Mr Trump welcomed Mr Abe's help in dealing with Iran, highlighting the "very good relationship" between Tokyo and Teheran. "I do believe that Iran would like to talk," Mr Trump said at the time. "And if they'd like to … [Read more...] about Why is Japan’s Abe going to Iran? What can he accomplish?
HOUSTON: Brent oil futures settled slightly higher on Thursday, rebounding from a drop after U.S. President Donald Trump revived investor hopes that the United States might not raise tariffs on Chinese imports, a step that could hit economic growth and crimp oil demand. Brent settled 2 cents higher at $70.39 a barrel, rebounding from a session low of $69.40 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled down 42 cents at $61.70 per barrel. Prices bounced off session lows after Trump said he received a “beautiful letter” from Chinese President Xi Jinping. Trump quoted the letter as saying: “Let’s work together let’s see if we can get something done.” The letter fed investor hopes Washington and Beijing might clinch a trade deal, said Bob Yawger, director of energy futures at Mizuho in New York. The trade row has dragged economic growth in Asia and a breakdown in Sino-American negotiations could call global crude demand forecasts … [Read more...] about Oil rebounds as Trump says letter revives China trade hopes
By Kieran Leavitt Star Edmonton Brennan Doherty Star Calgary Mon., April 29, 2019 CALGARY—Kevin Gagnon didn’t just vote for the United Conservatives in the Alberta election, he also cast his ballot to protest a pervasive attitude he sees in federal government leaders. It goes something like this: “I don’t care about those rich, spoiled, entitled Albertans.” Gagnon, who lives in Grande Prairie, is one of many angry people who ticked a box next to one of 63 UCP MLAs who will cement a majority government when they are sworn in on Tuesday. As operations manager of AVA Energy Inc., a trucking company working in the oilsands, Gagnon has watched his life and finances deteriorate significantly since business started drying up in 2015. He feels ignored by the federal Liberal government, which UCP Leader Jason Kenney spent a lot of time deriding in his successful campaign to become premier of Alberta. “I had a home … [Read more...] about Anger helped propel Jason Kenney to power. Now UCP voters expect him to act fast