Stay on top of the latest developments in oil markets, geopolitical risk, and alternative fuel vehicles with the SAFE policy team's Chart of the Week.
The oil market could be sorely tested in the second half of the year and into 2019, unless demand slows, OPEC outages are less than expected, or non-OPEC producers such as the United States, Canada, and Brazil produce higher than forecast.
OPEC fudges the details. Oil prices rose on Friday in reaction to OPEC's decision to increase output during the second half of the year. Analysts argue that the cartel's actions will not be sufficient to meet the markets' needs.
Market watchers are not sure Iran’s participation in an OPEC agreement is necessary. The Saudis are determined to increase supply, with or without Iran’s agreement.
Global oil markets are in danger of seeing a large supply deficit in the second half of 2018, increasing the need for more OPEC supply.
Given the group’s discord, it’s unclear if OPEC+ will sufficiently handle the current complex market situation, which is experiencing a number of fast-moving events, such as lost supply in Venezuela, Libya, and other producer nations.
The goal of the United States is to gradually restrict Iranian crude exports over time. The toughest sanctions on Iran’s oil trade, energy sector, and Central Bank will be re-imposed on November 5.
Global oil markets are contending with a number of uncertainties as U.S. gasoline prices are already 44 cents per gallon higher than year-ago levels.
The lifting of sanctions in 2016 kicked off a nasty political debate inside the country about revised contract terms and who exactly should benefit from Iran’s oil sector revival.
Countries that rank low in cyber readiness account for more than 44 million barrels per day, approximately 45 percent of the world’s daily oil production.