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Oil traders also worried about geopolitical risks in the Middle East. Pakistan conducted strikes inside Iran, targeting Baluchi separatist militants, the country's foreign ministry said, two days after Iranian strikes inside Pakistani territory.
Reuters) - Oil prices settled higher on Thursday after the International Energy Agency (IEA) joined producer group OPEC in forecasting strong growth in global oil demand and as cold winter weather disrupted U.S. crude output while the government reported a big weekly draw in crude inventories.
Oil prices settle higher global demand forecasts, US crude stock draw
As wind and solar expand, we expect resulting lower power costs to help green hydrogen produced in Colombia become economically competitive with current forms of hydrogen production and some fossil fuel sources by the 2030s.
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Oil and gas exploration has been at the heart of Colombia’s national energy strategy and that of its National Oil Company, Ecopetrol. But as the world decarbonises and Colombia focuses on its own net zero target, the winds of change are blowing. How can the country now become a regional leader in a sustainable approach to energy?
Colombia Could Lead Latin America Through The Energy Transition
Reuters) -Oil prices settled slightly higher after a choppy trading session on Wednesday as investors worried about global trade disruption and tensions in the Middle East following attacks on ships by Yemen's Iran-aligned Houthi forces in the Red Sea.
The bullish move came as oil posted the largest weekly gain in months, fueled by Houthi militant attacks in the Red Sea that threaten months of disruptions. Still, the longer-term outlook for crude remains challenged, with the US poised for record output next year while demand gains are expected to slow.
Most Read from Bloomberg Businessweek
Hedge funds turned more bullish on oil for the first time in almost three months as heightened war risks to global energy shipments help prices rebound
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
OPEC's confidence is reinforced by the global economy's performance, which has exceeded expectations in the first three quarters of 2023. The potential for accommodating monetary policies and improved geopolitical conditions further enhances this optimistic outlook. Key drivers for demand include robust global GDP growth, improved economic conditions in China, and growth in the OECD Americas.
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Colombia Could Lead Latin America Through The Energy Transition
I've seen a lot of discussion around surpluses next year, and we could talk about OPEC, but in the end, the biggest litmus test that we have to see when the market tightens is when OPEC, led by Saudi, adds volume to the market," Malek said
That's because there is a huge hidden demand from emerging markets.
That demand will outpace supply, creating tightness in the market in the coming years.
Oil prices edged higher Tuesday, helped by raised tensions in the Middle East, but gains are limited given concerns that the output cuts announced last week by a group of top producers will not be enough to keep the market tight amid concerns over weakening global demand.
Oil prices rise as Middle East risks persist; OPEC cuts disappoint
Oil prices steady as demand concerns offset threatened supply cuts
Ballistic missiles fired by Yemen's Houthi rebels struck three commercial ships Sunday in the Red Sea, while a U.S. warship shot down three drones in self-defense during the hourslong assault, the U.S. military said. The Iranian-backed Houthis claimed two of the attacks.
The strikes marked an escalation in a series of maritime attacks in the Mideast linked to the Israel-Hamas war, as multiple vessels found themselves in the crosshairs of a single Houthi assault for the first time in the conflict. The U.S. vowed to “consider all appropriate responses” in the wake of the attack, specifically calling out Iran, after tensions have been high for years now over Tehran's rapidly advancing nuclear program.
“These attacks represent a direct threat to international commerce and maritime security,” the U.S. military's Central Command said in a statement. “They have jeopardized the lives of international crews representing multiple countries around the world.”
3 commercial ships hit by missiles in Houthi attack in Red Sea, US warship downs 3 drones
Overnight, Iran-backed Houthi rebels attacked three commercial vessels in the Red Sea, according to Politico. The U.S. cautioned that it was considering “all appropriate responses.”
That being said, oil prices are volatile and can temporarily increase on mere fears of disruption, as experienced at the onset of the Russia-Ukraine war in 2022," strategists added.
Others forecasters on Wall Street are bullish on oil for the long term, given critical undersupply in the industry. Goldman Sachs' former commodities chief previously warned of a "commodities supercycle," a decade-long period where undersupply could keep commodities prices elevated
Those supply cuts could be worsened if conflict escalates in the Middle East, Goldman added. Iran, for instance, could become more involved in the Israel-Hamas war. And if the nation decides to block a key shipping passage for crude, that could end up affecting around 20% of the world's oil supply, strategists estimated.
The US also could impose tighter sanctions on Iran and other major oil producers, potentially worsening the supply glut.
The bank recently predicted that oil could trade within the range of $70-$100 in 2024, citing supply disruptions risks that lie ahead next year. The upper end of that range could imply as much as a 19% increase in oil prices, given that Brent crude traded around $84 a barrel on Thursday.
"OPEC production policy and discipline are likely to be key factors supporting the price path in 2024," strategists said in a note on Wednesday.
Goldman Sachs predicted oil would trade between $70 and $100 a barrel next year.
The high end of their forecast is due to a handful of supply disruption risks lurking the Middle East.
"OPEC production policy and discipline are likely to be key factors supporting the price path in 2024."
Oil prices could shoot up to $100 a barrel amid a barrage of supply disruption risks in 2024, Goldman Sachs says
good find gator..i have always thought hydogen is the next bridge fuel
Oil prices gain near 2% on expectations of deeper OPEC+ cuts
Market watchers such as JPMorgan Chase & Co. have flagged the possibility that OPEC+ may cut deeper, and some — such as Commerzbank AG and hedge fund manager Pierre Andurand — have warned that prices may buckle further if they don’t. Brent futures traded near $80 a barrel on Monday.
Saudi Arabia Seeks OPEC+ Oil Quota Cuts While Some Members Resist
Bloomberg) -- The US will enforce oil sanctions against Iran amid the renewed conflict in the Middle East, a White House Energy adviser said Wednesday.
Biden Adviser Says Sanctions Will Bring Down Iran Oil Exports
While oil demand is healthy, according to the International Energy Agency, the market will not be as tight as expected this quarter. Increased crude output from the US and Brazil are offsetting strong consumption from China, the agency said in a report Tuesday. At the same time, OPEC’s de facto leader Saudi Arabia is keeping its output at the lowest level in years, despite the cartel’s own bullish forecasts, and Russia’s waterborne crude flows have eased, too.
Investors are now waiting for the Energy Information Administration’s weekly report on Wednesday, which will include two weeks of supply-and-demand data.
saw that gator .good find
Oil Ekes Out Fourth Daily Gain as Market Struggles for Direction
BENGALURU (Reuters) -Oil prices rose by more than 1% on Monday after OPEC's monthly market report eased market concerns about waning demand in the United States and China.
Brent crude futures were up $1.25, or 1.5%, at $82.68 a barrel by 1158 a.m. ET (1658 GMT), while U.S. West Texas Intermediate (WTI) crude futures were up $1.24, or 1.6%, at $78.41.
In a monthly report on Monday, OPEC said that oil market fundamentals remained strong and blamed speculators for a drop in prices. OPEC made a slight increase to its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.
"The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next," Craig Erlam, senior market analyst at OANDA, said in a note.
Oil gains more than 1% as OPEC report dampens demand concerns
NEW YORK (Reuters) -Oil prices gained about 2% on Friday as Iraq voiced support for OPEC+'s oil cuts ahead of a meeting in two weeks and as some speculators covered massive short positions ahead of weekend uncertainty.
Still, prices settled with weekly losses of 4%, their third straight weekly decline.
"This was the perfect technical storm. We came into this week with an almost record short position and now we're seeing some short covering going into the weekend," said Phil Flynn, an analyst at Price Futures Group.
Oil prices settle up as Iraq backs more output cuts from OPEC+