In a recent post we looked at the state of the crude oil market, how demand has been weak as a result of refinery maintenance closures in Europe and lower domestic consumption in China. Even though China is buying more crude, it has increased exports of refined oil products depressing prices in the Asian market and hurting regional refinery utilization rates.
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The solution would be for crude oil producers to limit output, but with OPEC only controlling a third of world supply and no appetite among any of its member nations to reduce revenue streams, it seems voluntary reductions of any significance are unlikely.
Don’t you just love stories of intrigue? Well, sure, when they are just stories – but if there is the possibility that they are a fair reflection of real events and that there is the possibility the consequences could affect us all, they become less curiosity and more a source of alarm. So portends an […]
A combination of factors has come together to depress not just the price of oil, but a wide swath of commodity prices this year. According to the FT, the benchmark Reuters-Jefferies CRB index, a basket of commodities from wheat to copper, fell to a 20-month low of 281.13 points. The index is down 10 percent for […]
Never, it would seem, has the oil market been in such a state of disarray. Brent crude, the global benchmark, hit US$117 per barrel this week for the first time since August. The spot price has been rising on concerns over where the showdown with Iran is leading. European consumers have begun to cut back […]