Sharp growth in the downstream sector could simply shift the gigantic surplus of crude to the refined products market, undermining profit margins in all regions.
If there is an extension of the OPEC cut in May, then a re-start date for the Neutral Zone would likely be pushed to Q4 2017 or into 2018 as a result of a lack of short-term benefits for Kuwait and Saudi Arabia.
Historically high oil output obscures the fact that OPEC is also experiencing some of its worst-ever unplanned outages. Combined, the volumes lost to violent conflict, political disputes and other setbacks add up to almost 3 mbd.
Oil revenues and terror funding have a long history. The Fuse speaks with Thomas Sanderson, Director of the Transnational Threats Project at CSIS, on how oil revenues make their way to terrorist groups, and which countries are responsible.
McKiernan discusses how oil creates a burden for the U.S. military, the importance of oil revenues in supporting Saddam Hussein's regime, and how oil remains critical for rebuilding Iraqi society.
The events surrounding operations Desert Shield and Desert Storm fit into a much larger, and longer narrative of the story of oil—and our utmost reliance on it.