Mid-Week Review – January 15, 2020
The Oil and Gas Situation: In the Midst of a Major Global Boom
Forty years ago, the conventional wisdom about oil was that we were running out of it and needed to find ways to conserve. Twenty years ago, it was faddish for people in the oil business to talk about the then-assumed fact that “all the elephants have been found,” with the word “elephant” referring to massive reserves of crude oil and/or natural gas. As things have turned out, there were and are still elephants out there around the world, and the oil and gas industry keeps finding them. Click here to read more from Forbes.
What the Trade War Ceasefire Means for Oil
The signing of the Phase 1 deal will certainly put at least a temporary floor in the increasingly fractious relationship between the U.S. and China and buying some time is what both sides want. From Trump’s perspective, de-escalating the trade war with China, at least to the extent that it is no longer perceived to be meaningfully damaging U.S. economic growth is good for his popularity ratings ahead of this year’s Presidential Election. Click here to read more from Oilprice.com.
Oil Snaps Five Day Losing Streak as Street Eyes US-China Trade Deal
Oil prices climbed on Tuesday after five days of declines as the United States and China prepared to sign a preliminary trade deal and as Middle East tensions eased. The outlook for oil demand was supported by the expected signing of a Phase 1 U.S.-China trade agreement on Wednesday, marking a major step in ending a dispute that has cut global growth and dented demand for oil. Click here to read more from CNBC.
Has OPEC Found Its Oil Price Sweet Spot?
Most OPEC members seem to be quite happy with where oil prices are now, according to the energy minister of one of the smaller members of the cartel. “We all probably would like higher [oil prices] because we have more revenue, but we are conscious this is not good for the economy,” Equatorial Guinea’s Gabriel Obiang Lima told media, as quoted by S&P Global Platts. “It depends on who you ask, but I think the consensus is that that $60-70/b is OK for producers and for consumers,” he said. Click here to read more from Oilprice.com.
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