Showing results for "variant"

Defying the odds, global oil demand recovery underway

  • Global markets continue to wrestle with uncertainties surrounding the latest coronavirus variant and, more specifically, whether the mutation poses a new material threat to economic recovery. We cannot help but be reminded of the nearly identical drama that surrounded the discovery of the delta...
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Forget what you believe and believe what you see

  • The past week was “data rich” regarding the state of the global oil balance, partly owing to the release of various figures from the International Energy Agency (IEA). What we found remarkable was the effort expended by the IEA to fashion a bearish message in the face of statistics that clearl...
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Green initiatives and anti-carbon sentiment will exacerbate bullish oil market fundamentals

  • Energy equities basically trade as a proxy for the commodity. It is a well-documented relationship, evidenced in the large US and Canadian financial markets, and in Europe and Asia as well. Intuitively, the relationship makes sense since changes in oil prices directly impact profitability and c...
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Is the bull market for oil coming to an end?

  • The short answer to the above question is “no.” In point of fact, an assessment of the underlying supply and demand fundamentals suggests that we are in a multiyear up-cycle for the oil market. At the center of this analysis stand two critical data considerations with the first being the stick...
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Is the bull market for oil coming to an end?

  • The short answer to the above question is “no.” In point of fact, an assessment of the underlying supply and demand fundamentals suggests that we are in a multiyear up-cycle for the oil market. At the center of this analysis stand two critical data considerations with the first being the stick...
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Largest ever inventory draw a testament to Saudi Arabia and OPEC+’s success

  • Our preliminary estimate for 2021 global petroleum inventories shows they were drawn down by close to 400 million barrels during the year. It marks the largest storage draw ever, eclipsing the previous record by a remarkable 60 percent. As a matter of disclosure, this figure does not include th...
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Oil market concerns shifting away from pandemic

  • For the better part of two years, oil market volatility had at its center concerns linked to the coronavirus pandemic and, more specifically, negative impacts on global oil demand growth from isolating and containment measures. And 2020 saw the largest ever retrenchment in oil usage that ecli...
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Plunge in oil prices is a transitory phase

  • In 2011, crude oil prices fell by $39 a barrel because of a prevalent market fear that Spain was going to default on its sovereign debt. Such an event was generating angst that this would result in a replay of the 2008/2009 global credit crisis. The default never materialized, but that is not...
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The financial demand for oil is not the same as its actual demand

  • Concerns about the COVID-19 pandemic have reared up . . . again. The oil price sell-off at the start of last week was a reaction to news about another period of lockdowns in Shanghai for COVID-19 testing and containment of the population in China’s biggest city. The specific oil market concern ...
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Was the oil market panic last week justified?

  • Ahead of Thursday’s OPEC+ conference, it is evident that delegates are assessing data sets about global oil demand and the state of the world’s economic recovery. At the center of these analyses are potential implications of the latest COVID-19 variant and the US-orchestrated emergency oil inve...
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