A lengthier recession awaits if we don't take drastic measures to save the economy in a Covid-19 world, writes Mbhazima Shilowa.
High level clouds. Warm.
Setting the price for oil was a test of producers' ability to coordinate with each other in the face of global disaster. And they failed.
Bullishness on a trade deal between the US and China, and supply cuts resulting from US sanctions on Iran and Venezuela have sent prices higher.
As we head into 2019, oil prices are poised to be pulled and tugged by conflicting fundamental drivers, with various uncertain market conditions clouding the medium- to longer-term outlook.
As if the fallout over the killing of columnist Jamal Khashoggi wasn’t enough, oil’s decline has helped make Saudi bonds the worst performers among Gulf peers in the second half of this year. But all this panic has created buying opportunities.
Oil prices fell on Monday after OPEC and other supply-cutting countries led by Russia agreed to gradually ease oil supply cuts that have been in place for nearly two years.
The oil price will rise, the market will tighten and companies and countries will recover economic losses – if the oil market cuts the glut.
Cartels only work when their members stick together - but precious little unity is likely to be on show among Opec producers at a key meeting in Algiers on Wednesday.
Nigeria has called on Opec members to find a consensus on a freeze on oil production after talks among producers collapsed in Qatar.
Kuwaiti Oil Minister Ali al-Omair says that current oil prices are "fair" despite strong geopolitical factors impacting the region.
The Opec oil cartel has increased its forecast for oil demand growth in 2013 on expectations of better-than-expected improvement in developed country economies.
The cost of coronavirus to global oil markets came into sharp focus Thursday as the International Energy Agency forecast a dip in global oil demand.
Stock market wobbles have grabbed all the attention, but oil has had a stunning rally into the new year, helped by signs the trade war is thawing and OPEC.
Emerging-market stocks retreated as the arrest of Huawei’s chief financial officer and mixed messages from the Trump administration rekindled concern over a US-China trade war.
"We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember," Trump tweeted on Thursday.
In efforts to tackle a global oil glut, OPEC and other supply-cutting countries have since 2016 been coordinating output levels to prop up prices.
OPEC officials met Saturday with Russia and other oil producers to try to persuade them to lower production under a pact to stem a global glut and lift prices.
Oil prices have edged higher but the market remained weak as Opec's key producers cast doubt on the possibility of cutting output.
Opec is set to stick by its oil output ceiling as supply tensions linked to global crises help to keep crude prices high, benefiting producers.
Bijan Zanganeh is ready to prepare Opec for what Tehran hopes will mark its return as the cartel's second biggest producer.
The Organization of Petroleum Exporting Countries is set to decide on the cartel's oil output against a backdrop of slowing crude demand and unrest in Libya.
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