How the Coronavirus crisis will have long-lasting effects on the oil industry and shift the climate change debate. On the open plains of Wyoming, in the shadow of the Rocky Mountains, something strange has been happening. Last month, coronavirus itself had barely touched this sparsely populated American state. But the impact of Covid-19 could already be seen. As thousands of aircraft were grounded and billions of citizens ordered to stay home, global demand for oil, the key lubricant of world commerce, had crashed so far and so fast that producers in Wyoming were willing to pay someone 19 cents a barrel to take it off their hands. It was worse than worthless, it had become a burden. A thousand miles northwest, in Alberta, Canada, home to perhaps the world’s single largest deposit of hydrocarbons, a similar story was playing out.
Independent 8th April 2020 read more »
Oil prices edged up to more than $32 a barrel yesterday amid hopes that large oil producers will thrash out a deal today to cut supplies in response to a collapse in demand. The Opec cartel, effectively led by Saudi Arabia, and its former allies including Russia — together known as Opec+ — are to hold a virtual meeting to try to tackle the global glut of crude and to bolster prices. A previous meeting in early March ended in acrimony and with Saudi Arabia launching a price war. A further meeting of energy ministers from G20 nations is scheduled for tomorrow that could lead to other oil-producing nations joining efforts to rebalance the market. However, analysts said that there were still obstacles to a deal, including questions over the respective cuts to be made by Saudi Arabia and Russia, as well as their desire for the United States, which ranks just ahead of them as the world’s biggest producer, also to make cuts.
Times 9th April 2020 read more »