I don’t know if oil people read these otherwise, but I’ll put some information here for the busier ones to pass the time.
https://finance.yahoo.com/news/oil-extends-gains-investors-betting-224520271.html
Oil dipped as traders grappled with the demand implications of a Covid-19 resurgence in several regions and slowing economic growth in China.
“As the Covid-19 variant continues to hit Asia hard, which is really the key swing demand center, that’s a big, big negative for the complex,” said John Kilduff, a partner at Again Capital LLC.
So, what I wrote earlier about tankers in relation to the course speculation, indeed, the corona situation has not gone entirely as in the best-case scenarios for the summer. In the US, there’s also quite a bit of ideological anti-vaccination sentiment in certain areas, even though vaccines are readily available.
Here’s some info from the article for the week:
The OPEC+ alliance abandoned meetings last week after a dispute between members over production cuts, and one week later, no deal is in sight.
“That’s certainly a big uncertainty that the market is facing,” said Fitzmaurice. “We’ve seen volatility increase as a result.”
The International Energy Agency will provide investors with a snapshot of the market on Tuesday with the release of its monthly report, while OPEC will release its own monthly report on Thursday.
So, IEA will release some report tomorrow and OPEC on Thursday.
https://finance.yahoo.com/news/oil-prices-loom-over-biden-060000562.html
This is interesting even for political nerds. What could be a more suitable subject for a dispute between Democrats and Republicans than good old oil? Indeed, Biden and the Democrats are walking a tightrope in implementing strict climate policies from their election platforms while selling it to the public, who are struggling in the aftermath of corona and horrified by rising prices at local stations. Environmental organizations demanded a complete ban on new drilling permits, but Biden’s new proposal is likely something along the lines of “limited and with higher royalties for potential clean-ups.” According to the news, the White House draft is indeed ready and set for release.
But the efforts would still fall short of the permanent leasing ban that dozens of environmental groups have said is necessary to address the climate crisis, according to two of the people familiar with the administration’s approach.
“We’re out of time for tinkering around the edges to address the problem of a climate crisis,” said Randi Spivak, public lands program director for the Center for Biological Diversity. “The science is so clear that there is no room in the carbon budget for any new investment in new fields, so the idea that we will give taxpayers their fair share is just anathema to the climate emergency we face.”
An Interior spokeswoman declined to comment on the matter. But Haaland was direct with lawmakers last month on the topic: “I don’t think there is a plan right now for a permanent ban.”
Some coastal areas (and “sensitive areas,” whatever that means - near national parks?), may be completely restricted, and a working group will be established to study environmental impacts. Leasing is currently on hold, and oil lobbyists are probably all in Washington. The Gulf of Mexico is a separate issue. The younger generation may not remember, but Biden was indeed Obama’s vice president when BP’s Deepwater Horizon(?) had a massive accident during Obama’s first term. Although the man is old, I’m quite sure the matter has not been forgotten.
The tightrope walk underscores how the Biden administration faces political risks in any moves to quash leasing on federal territory in New Mexico, the Gulf of Mexico and other regions that collectively supply roughly a quarter of the nation’s crude production – especially as oil and gasoline prices rise.
Indeed, a barrel of crude has risen from a crisp $50 to a crisp $70 during Biden’s term. To this must be added the expiring stimulus packages, so the public may be somewhat annoyed by the rising price of gasoline. The Biden administration has tried to put some pressure on OPEC, but you can only imagine what happens when voters leave their homes after quarantines and the price of gas is what it is. Republicans don’t need much of another hobby horse. The article also features the argumentation of a few Republican senators about the predicament into which the Democrats’ and Biden’s “ideology” is driving the nation.
Athan Manuel, director of the Sierra Club’s Lands Protection Program, however, is optimistic about the public:
“Traditionally gas prices have been the big X factor,” but the public seems to care about it less in comparison to the consequences of climate change they are experiencing now, Manuel said. “If they do make decisions under that frame of climate, we think they’re going to get to a drilling ban – maybe not in this report but eventually.”
. My own attitude towards the matter is a bit difficult. On the one hand, oil prices boost my portfolio quite nicely, but it’s not very pleasant when the Middle East is what it is, and on the other hand, inflation is also putting pressure. Well, it is what it is, it’s nice to follow this plot when I don’t really feel like fretting about my portfolio’s performance in the summer, but politics is always interesting.
