Rystad Energy: Oil Rises on Omicron’s Mild Symptoms, Saudi Aramco’s January Pricing
Traders are brushing off the initial panic over the Omicron variant today, correcting prices upwards as the symptoms of the new strain of Covid-19 seem to be milder than what the market reaction last week initially indicated. The oil market seems to now be convinced that higher price levels are warranted …
Rystad Energy: Oil Prices Rebound in Anticipation of OPEC+ December Meeting
With sights set firmly on tomorrow’s OPEC+ meeting, oil markets are rising today on the expectation that the alliance of oil producers will either stay the course on their conservative supply increases or dig their heels in further in response to the threat posed by the Omicron variant. Decisions made by the …
Rystad Energy: Oil Slips on Covid Vaccine Efficacy Concerns
The looming shadow of the Omicron Covid-19 variant is growing darker over global oil markets today following concerning news regarding vaccine effectiveness from the CEO of Moderna. When the first Covid-19 vaccines were announced to the public, the shots pushed oil prices up, doubling in less than a year, which shows …
Rystad Energy: Oil Recovers as Market Corrects Friday’s Panic Selloff
The emergence of another Covid-19 variant is definitely threatening the level that oil demand has managed to recover to, but Friday’s selloff was erred for the extreme even for a Black Friday sale. Omicron caused a market panic that elicited memories of the April 2020 prince plunge, but now that …
Rystad Energy: Oil Prices Trimmed on OPEC Bearish Language
Oil prices are a little trimmed today as a result of bearish language by OPEC’s research arm on implied stock builds already materializing as early as December 2021 due to the SPR releases. Further downward pressure is added by the EU announcement that there will likely be an introduction of …
Rystad Energy: Gas Market Trends Differ Across Geographies, LNG Charter Demand Strong Despite Eye-watering Shipping Rates
In Europe, TTF prices are once again trending higher, reflecting the discomfort around winter supply availability, with a volatility booster from the US announcement of sanctions against a ship involved in the construction of the Nord Stream 2 pipeline in the Baltic Sea linking Russia and Germany. The market remains …
Rystad Energy: A Deep Dive into the Coordinated SPR Release and its Effect on Oil Balances and Prices
A new and unchartered type of price war is brewing in the oil market. The world’s biggest consumers of oil have pledged an unprecedented and relatively sizeable release of strategic reserves onto the market to quell high oil prices amid pandemic recovery. The orchestrated release of what we estimate will …
Rystad Energy: Additional Note on the Coordinated SPR Release
Today’s events are unprecedented at scale when looking at the recent history of the oil market. It is the first time that these countries, including China, conduct a coordinated release. The last time we saw a similar coordinated plan was during the Libya civil war in 2011, when IEA countries …
Rystad Energy: Oil Dips on Coordinated SPR Release
Today marks an official emergence of an ‘anti-OPEC+’, a group of top oil-consuming countries that are taking the supply-side dynamics into their own hands in the unconventional and unprecedented release of strategic petroleum reserves to create artificial looseness in the oil market and deliver a negative blow to oil prices. …
Shale Getting Stingy? Reinvestment Rates in the US Hit Historic Lows in Q3 Shaping Record Free Cash Flow
Reinvestment rates among US shale oil producers hit an all-time low in the third quarter of 2021, resulting in a record free cash flow for the quarter, and are projected to fall even lower by year-end according to a Rystad Energy analysis. The analysis focused on a peer group of …