for Oil Prices
Looser monetary policy would help commodity markets, but the Fed’s softening line also highlights the growing fear of an economic slowdown.
The members of the OPEC+ coalition have different economic incentives. Most member countries are producing as much as they can and have little scope for higher output, so they are on board with an extension of production cuts.
Crude oil could be much more expensive if not for the U.S.-China trade war—but the danger is that the trade war tips the global economy into a deeper downturn.
The oil price increase sparked by the recent attacks on Saudi oil tankers is concerning for the United States, because oil is the lifeblood of the American economy.
Between Iran, Libya and Venezuela, the seeds of a major disruption to the oil market have already been sown. A significant outage in one could push the market into deficit.
Reinstituting subsidies could prevent the demand destruction that would otherwise occur from a rise in prices.
Bank of America Merrill Lynch cited the IMO regulations as one of three major factors—along with Iran sanctions and pipeline bottlenecks facing U.S. shale—that could contribute to an oil price spike “akin to the one observed in 2008.”
The U.S. electric vehicle market will reach a major milestone this month as automakers reach 1,000,000 EV sales.
While the overwhelming response to SAFE's report has been positive, our group seeks to clarify criticisms that are not factually based.
Rapidly declining oil exports from Iran, combined with ongoing losses from Venezuela, could put Saudi Arabia’s spare capacity to the test.