US oil crashes below $0 for the first time in history

[KingKhanWC]

Exactly. And a lot of people don’t know that they use a lot of bombs in such mining operations. Anything to do with battery is actually very bad. Yes we have batteries in small quantities in phones and computers. But damn, the size of batteries that goes in cars is insane. Human cost and environment cost is massive. People don’t understand this. Those in energy business definitely do.

Do you think there is another way of producing energy to fuel cars without a battery? Why hasn't solar power tech advanced? Do you feel because oil is so simple now and so much used, other ideas have taken a back seat?

 

[ahmedzee]

Do you think there is another way of producing energy to fuel cars without a battery? Why hasn't solar power tech advanced? Do you feel because oil is so simple now and so much used, other ideas have taken a back seat?

Unfortunately the next best option after oil has to be LNG. It is still fossil fuel but emits a lot less CO2, but more water Vapour. Right now we don’t have the technology that can match the efficiency and cost of oil and gas. World is moving ahead, no point in going with low efficiency failed technology such as solar, wind and biomass. Wind has 8% efficiency which is insane!

Right now the best measure is to go carbon neutral while producing oil. Companies are working on CO2 capture technologies. Majority oil companies will be carbon neutral by 2030. Moreover there is another technology which China has started to use to absorb CO2 from air and produce cleaner CO2 free air. I remember india was planning this too. This will counter any smog and CO2 in air during peak hours from traffic.

Unfortunately right now I only see this solution. Bigger cause for all this is not oil, gas, steel or any industry. It is extreme human population.

 

[ElRaja]

We need charging while driving technology, such as charging terminals on the actual roads, self re-charging is again weak and largely untested tech.

Roads, or motorways at least, need to integrate tech similar to maglev whereby the means of constant speed propulsion is provided by the road rather than the vehicle, with small on board motors and batteries only required to change direction and accelerate which would make long distance travel far more efficient.

unfortunately no one will be willing to make the investment to those kind of roads anytime soon, however it solves the range issue very simply.

eventually if you can externalise the entire propulsion process you can make extremely simple, cheap and reliable cars, with a far lower proportional expense going on maintaining the road networks rather than individually complex cars.

 

[MenInG]

Saudi Arabia will need to take “painful” measures and look for deep spending cuts as the kingdom faces a double crisis caused by the coronavirus pandemic and the meltdown in global oil markets, its finance minister said on Saturday.

“The kingdom hasn’t witnessed a crisis of this severity over the past decades,” Mohammed Al-Jadaan said in an interview with Saudi television station Al-Arabiya. “It’s very important that we take very tough and strong measures, and they might be painful, but they’re necessary.”

Already under a strict curfew to contain the spread of the coronavirus pandemic, the world’s largest oil exporter is bracing for a second impact from the oil price rout and production cuts negotiated by OPEC and its allies. The price of Brent crude crashed by more than 50% in March, contributing to a record $27 billion monthly drop in the Saudi central bank’s net foreign assets.

State oil revenue has decreased by more than half, and non-oil revenue will decrease as well, he said.

Crude has recovered slightly but is trading around $26 a barrel -- compared to over $60 a barrel when Saudi officials announced their 2020 budget in December.

Saudi Poised for Next Oil Pricing Move With Traders Confused

Al-Jadaan’s comments were a sharp change in tone from more reassuring remarks he gave about a week ago, when he told reporters that the kingdom had been through similar crises before, “maybe even worse,” and would pass through this one as it had others.

In contrast, on Saturday, Al-Jadaan said that government spending would need to be “cut deeply.” He said that the list of budget items that will be affected is “very long,” and added that some programs under “Vision 2030” -- Prince Mohammed bin Salman’s economic diversification plan -- will also face spending cuts as their implementation is delayed by measures taken to slow the spread of the virus.

“As long as we do not touch the basic needs of the people, all options are open,” Al-Jadaan said.

Asked about potential risk for local banks from a plan to increase government borrowing, Al-Jadaan said that liquidity in the banking sector was very high and that the kingdom would continue to issue debt locally and internationally.

The government needs to protect public finances to be able to support the economy -- which depends heavily on state spending -- in the coming years, Al-Jadaan added.

“We have to plan for the worst case scenario and take matters seriously,” he said. “I do not think the world or the kingdom will go back to the way things were before coronavirus.”

Saudi Arabia’s outlook was cut to negative from stable by Moody’s Investors Service on Friday, keeping the sovereign at A1, its fifth-highest grade. Moody’s last downgraded Saudi Arabia in 2016, and has its assessment above those of Fitch Ratings and S&P Global Ratings.

https://www.bloomberg.com/news/arti...ooking-at-painful-measures-deep-spending-cuts

 

[PetroDollars]

We are closer than that to electric cars - right now there are 200 miles range jobs available, some very nice ones. We could switch to all-electric trains and buses immediately.

Planes and ships are more problematic. I can see the age of sail returning with the sails and superstructure coated in PV panels and diesel engines only for tight manoeuvres in port.

200 miles are achievable on most e-cars, i have been on a tesla all over europe and does 250 miles quite easily. plus the chargers are now all over europe, uk has been abit slow to adapt to it. but the tesla super chargers are extremely fast and will give a full charge in 45 mins.

i reckon by 2025 most european countries will be off oil in terms of cars, france has already announced it will be banning fuel cars and those countries where they survive will be taxed heavily. Plus with the subsidies and grants on e-cars it will only accelerate its take over.

other vehicles like planes and ships will be replaced later once better tech is developed.

As for those concerned about the environmental aspects, then its nonsense spread by oil companies to save a dying industry, those believing it have no clue what impact cars on the roads are having to lives and even buildings around, there are some issues in mining lithium like rivers being polluted but nothing like some people make it out to be which is minor compared to the oil industry.

However with more investments in R&D we will see better battery tech with lithium being replaced with aluminium and other materials in the near future.

 

[PetroDollars]

Do you think there is another way of producing energy to fuel cars without a battery? Why hasn't solar power tech advanced? Do you feel because oil is so simple now and so much used, other ideas have taken a back seat?

Germany is already utilising wind and solar, but you still need a battery to store it.

Other ideas took a back seat when oil companies made sure they didnt compete, but now they are developing but are still in early stages, so with time solar will get better as will battery tech.

 

[MenInG]

Indian refiners are taking advantage of cheap oil to bulk up its supplies even as every corner of the nation's onshore storage tanks fill to the brim, according to Oil Minister Dharmendra Pradhan.

State-run and private processors are now holding seven million tons -- equivalent to more than 50 million barrels -- on-board tankers out at sea, the minister said in a Facebook post. The refiners are doing so amid a collapse in crude prices that saw the world's top benchmark lose more than 60% of its value this year and U.S. West Texas Intermediate plunge below zero.

India's use of floating storage comes as all its onshore options run out. The country's 25 million tons of crude and fuel storage at refineries, pipelines and inland depots are at capacity, partly due to lower demand, said Pradhan. Even the nation's strategic reserve tanks are full, he added.

Oil has slumped due to collapsing consumption from the coronavirus outbreak and a short-lived price war between Saudi Arabia and Russia that forced other producers to slash prices. The decline in demand has led to a swelling global glut that's quickly found its way to onshore tanks, leaving everyone from traders to refiners seeking alternatives such as floating storage.

"It is uncommon to see state-owned refiners in India put crude in floating storage, but they seem to have run out of storage options due to the sharp cutback in crude runs like never seen before," said Senthil Kumaran, an oil markets consultant at Facts Global Energy.

Bharat Petroleum Corp. has six vessels sitting "off the coast" and some of those are very large crude carriers, according to R. Ramachandran, refineries director at the state-owned processor. Consumption is expected to improve this month as factories and construction restart, freight movement increases and summer crops are sowed in north India, he said.

Demand slump

The country's oil-product demand in April declined about 70% from a year earlier, Pradhan said. Last month, Bloomberg reported that Indian oil tanks were 95% full as refiners hastily dumped fuel into the spot market and slashed processing rates across the country.

India is the world's third biggest oil consumer and imports more than 80% of its crude, which is typically the biggest expense on its trade bill. While Prime Minister Narendra Modi has extended India's lockdown until May 17, some industries and agriculture as well as goods transport have been allowed to restart.

Despite the resumption of some activities, restrictions will continue to weigh heavily on oil demand over the next quarter, said FGE's Kumaran. Refiners will be cautious while planning for July and August crude volumes and may consider cutting back on term supplies, he added.

https://www.aljazeera.com/ajimpact/...orage-hits-full-capacity-200505071240063.html

 

[MenInG]

The decline in oil prices and the value of investment assets since the start of the coronavirus outbreak will adversely affect the "financial solvency" of Kuwait, Sheikh Sabah al-Ahmad al-Jaber Al-Sabah has said.

"Kuwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, specifically the decline in oil prices and the value of investments and assets, which will have a negative impact on the financial solvency of the state," the emir was cited by the state news agency KUNA as saying on Saturday.

It was not clear if the comment meant that Kuwait could delay the payment of government dues, or whether it was a general statement about the deterioration of the state's finance as a result of the economic impact of the health crisis.

Moody's Investors Service has placed Kuwait's Aa2 long-term issuer rating on review for a downgrade, citing the significant decline in government revenue from the collapse in oil prices, and uncertainty that it will be able to access sufficient sources of financing at a time of increased need.

 

[King-Misbah]

Indian refiners are taking advantage of cheap oil to bulk up its supplies even as every corner of the nation's onshore storage tanks fill to the brim, according to Oil Minister Dharmendra Pradhan.

State-run and private processors are now holding seven million tons -- equivalent to more than 50 million barrels -- on-board tankers out at sea, the minister said in a Facebook post. The refiners are doing so amid a collapse in crude prices that saw the world's top benchmark lose more than 60% of its value this year and U.S. West Texas Intermediate plunge below zero.

India's use of floating storage comes as all its onshore options run out. The country's 25 million tons of crude and fuel storage at refineries, pipelines and inland depots are at capacity, partly due to lower demand, said Pradhan. Even the nation's strategic reserve tanks are full, he added.

Oil has slumped due to collapsing consumption from the coronavirus outbreak and a short-lived price war between Saudi Arabia and Russia that forced other producers to slash prices. The decline in demand has led to a swelling global glut that's quickly found its way to onshore tanks, leaving everyone from traders to refiners seeking alternatives such as floating storage.

"It is uncommon to see state-owned refiners in India put crude in floating storage, but they seem to have run out of storage options due to the sharp cutback in crude runs like never seen before," said Senthil Kumaran, an oil markets consultant at Facts Global Energy.

Bharat Petroleum Corp. has six vessels sitting "off the coast" and some of those are very large crude carriers, according to R. Ramachandran, refineries director at the state-owned processor. Consumption is expected to improve this month as factories and construction restart, freight movement increases and summer crops are sowed in north India, he said.

Demand slump

The country's oil-product demand in April declined about 70% from a year earlier, Pradhan said. Last month, Bloomberg reported that Indian oil tanks were 95% full as refiners hastily dumped fuel into the spot market and slashed processing rates across the country.

India is the world's third biggest oil consumer and imports more than 80% of its crude, which is typically the biggest expense on its trade bill. While Prime Minister Narendra Modi has extended India's lockdown until May 17, some industries and agriculture as well as goods transport have been allowed to restart.

Despite the resumption of some activities, restrictions will continue to weigh heavily on oil demand over the next quarter, said FGE's Kumaran. Refiners will be cautious while planning for July and August crude volumes and may consider cutting back on term supplies, he added.

https://www.aljazeera.com/ajimpact/...orage-hits-full-capacity-200505071240063.html

So Modi can bulk buy oil but not look after Indias poor. These poor people have been left stranded. Some are walking hundred of miles back home, they have no/little food and many are living in bad conditions. It seems like BJP only cares about the rich and is ready to sacrifice the poor. I am not taking a dig at India but making a comment as a human. Money is not more important then poor peoples lives.

 

[The Viper]

Oil prices fall 1% as glut weighs

Oil prices opened about 1% lower on Sunday as a persistent glut continued to weigh on prices and the coronavirus pandemic eroded global oil demand even as some governments began to ease lockdowns.

Brent crude LCOc1 was down 34 cents, or 1.1%, at $30.63 a barrel by 7:01 p.m. (2301 GMT), while U.S. oil CLc1 fell 35 cents, or 1.4%, to $24.39 a barrel.

Global oil demand has plummeted by about 30% as the coronavirus pandemic curtailed movement across the world.

Avianca Holdings AVT_p.CN Latin America’s No. 2 airline, filed for bankruptcy on Sunday. If it fails to come out of bankruptcy, Avianca would be one of the first major carriers worldwide to go under as a result of the pandemic, which has resulted in a 90% decline in global air travel and slammed jet fuel demand.

“Oil companies are dealing with a plethora of challenges due to the sudden decline in demand,” Haseeb Ahmed, oil and gas analyst at GlobalData, said in a note.

“North America is battling a severe shortage of storage capacity ... it may be only a matter of time, before the country (United States) runs out of storage space.”

Both benchmarks have notched gains over the past two weeks, however, as countries have eased lockdowns and fuel demand has rebounded modestly. Oil production worldwide is also declining to reduce a swelling supply glut.

In a televised address, British Prime Minister Boris Johnson announced on Sunday a limited easing of restrictions, including letting people exercise outside more often and encouraging some people to return to work.

Spain registered its lowest daily number of coronavirus deaths on Sunday since mid-March and half of its population prepared for an easing of one of Europe’s strictest lockdowns, although not yet the residents of cities such as Madrid and Barcelona.

https://www.reuters.com/article/us-global-oil/oil-prices-fall-1-as-glut-weighs-idUSKBN22M0SG?il=0

 

[MenInG]

Saudi oil profits plunge 25%

Saudi Arabia’s state owned oil company, Saudi Aramco, has posted a 25% dip in profits following the collapse of global oil markets triggered by the coronavirus pandemic, writes Jillian Ambrose, the Guardian’s energy correspondent.

The world’s most profitable company reported net profits of 62.48bn riyals ($16.64bn) for the first quarter of the year, down sharply from 83.29bn riyals a year earlier, after a two-thirds drop in the global price of oil.

Global oil prices fell to 21-year lows last month before the world’s largest oil producing countries, led by Saudi Arabia, struck a deal to limit global oil production from May to help drain the glut of crude in the global market.

The most ambitious oil supply deal ever brokered by the Opec oil cartel could see 9.7m barrels of oil a day held back from the global market, which is awash with oil following the collapse in demand for crude and transport fuels during pandemic.

 

[MenInG]

Oil rose above $30 a barrel for the first time in two months as producers in the U.S. and elsewhere continued to cut output.

Futures in New York climbed about 5.6%, rallying ahead of an expiration period that a month earlier saw prices turn negative for the first time. The number of drilling rigs in the U.S. fell for a ninth week to levels not seen in more than a decade, while stockpiles at a key storage hub in Cushing, Oklahoma, shrank for the first time since late February. Saudi Aramco didn’t give extra volumes of oil to three Asian customers who asked for it, according to refiners.

OPEC+ kicked off cuts to remove 10% of global production at the beginning of the month. Together with a tentative recovery in demand and collapsing U.S. output, that’s made a repeat of last month’s plunge below zero extremely unlikely before the expiration of the West Texas Intermediate June contract on Tuesday. Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said in a Bloomberg Television interview that the outlook for the oil market in the second half of 2020 was more positive as the global economy recovers.

“Momentum is currently with the bulls,” said PVM Oil Associates analyst Stephen Brennock. “However, while supply dynamics are supportive, the demand outlook is still clouded by downside risks.”

https://www.bloomberg.com/news/arti...uts-rebalance-market?srnd=premium-middle-east
Crude’s rally brings with it extra headaches for refiners. Complex margins in Asia were unprofitable at the end of last week, according to Oil Analytics data, a reminder that any sharp rally in crude will need to be met with a pick-up in end-user consumption too.

OPEC+ oil shipments have seen a “stunning reversal” in May, according to market intelligence company Kpler. Exports have fallen by 6.4 million barrels a day so far this month, it said.

There’s a risk OPEC+ compliance with production cuts could be tested as oil prices recover and economies start to open up in the second half of the year, said analysts at ANZ and Mizuho Research Institute.
He survived a bombing that left him badly wounded, shrugged off accusations of arms smuggling, and defended Iran’s oil interests through war and sanctions. Hossein Kazempour Ardebili, who died on Saturday, was one of the ultimate OPEC negotiators.


https://www.bloomberg.com/news/arti...uts-rebalance-market?srnd=premium-middle-east

 

[MenInG]

High net worth individuals in the Middle East have become the most risk averse among wealthy investors in emerging markets after being hit by the oil price crash, an executive at Barclays Private Bank told Reuters news agency.

The bank's rich clients across emerging markets are shifting towards perceived safer investments, such as dollar assets, equity-paying dividends or selective fixed income, but risk aversion is not as intense as during the global financial crisis, said Salman Haider, Barclays Private Bank's head of global growth markets.

"In the Middle East the risk appetite levels have fallen a lot," he said in an interview. "There's a lot more focus on local liquidity, a lot more focus on preserving liquidity."

While global stocks have regained some of the ground lost after a rout in March sparked by fears about the economic cost of the coronavirus pandemic, oil prices remain at depressed levels despite a pickup this month.

Haider said risk sentiment was also down in Russia, another oil-rich economy, while appetite was subdued in India. Clients were a bit bolder in other parts of Asia, he said.

The private bank's clients typically have more than £20 million ($24.7m) in assets available to invest.

"A lot of focus has been on making sure their businesses are able to sustain liquidity needs, working capital and so forth," said London-based Haider.

There was a broad consensus by clients to shift portfolio flows to sectors such as healthcare and technology, and away from areas more exposed to the pandemic, such as travel and entertainment, he said.

For the larger family offices and mega-wealthy there was an appetite for investment in distressed assets, ranging from bank loans to healthcare and technology assets, in the US and Europe, Haider said.

"We have had interest come in to look at specific direct investment opportunities. These could be direct investment in companies across healthcare and technology where can provide direct access as equity participation," he said, adding there was also renewed interest in real estate.

https://www.aljazeera.com/ajimpact/...east-wealthy-risk-averse-200529160152614.html

 

[MenInG]

Iran has said it will continue fuel shipments to Venezuela if Caracas requests more supplies, despite criticism from the United States of trade between the two nations, both under US sanctions.

"Iran practices its free trade rights with Venezuela, and we are ready to send more ships if Caracas demands more supplies from Iran," foreign ministry spokesman Abbas Mousavi told a weekly news conference broadcast live on state television on Monday.

The first of five Iranian oil tankers arrived in Venezuela last week to help ease fuel shortages, encountering no immediate signs of US military interference. Venezuelan authorities described "threats" from the United States over the shipments.

Seeking to deter further shipments of Iranian fuel to Venezuela, Washington is monitoring the original supply. It has warned governments, seaports, shippers and insurers that they could face measures if they aid the Iranian tankers.

The US recently beefed up its naval presence in the Caribbean for what it said was an expanded anti-drug operation.

Defying US threats, Iran sent a flotilla of five tankers of fuel to the South American oil-producing nation, which is suffering from a severe gasoline shortage.

According to Refinitiv Eikon on Sunday, two Iranian tankers that delivered fuel to Venezuela as part of the flotilla began to sail back, as the government in Caracas prepares petrol stations to raise the prices for the gasoline.

The tanker flotilla reportedly carried about 1.53 million barrels of gasoline and alkylate to Venezuela.

Tensions have spiked between longtime foes Iran and the US since 2018, when President Donald Trump exited Iran's 2015 nuclear deal with six major world powers and reimposed sanctions on the country that have battered its economy.

The fuel from Iran comes at a time when the gasoline shortage in Venezuela, chronic for years in some parts of the country, worsened during the coronavirus pandemic.

Venezuela has the largest oil reserves in the world, but its production is in freefall, a collapse that experts attribute to failed policies, lack of investment, and corruption.

The two nations have held a close relationship since late Venezuelan president Hugo Chavez took power in 1999.

https://www.aljazeera.com/news/2020/06/iran-ready-ship-fuel-venezuela-threats-200601082627973.html

 

[MenInG]

OPEC, allies agree to extend deep output cuts through July

OPEC members, led by Saudi Arabia, and other key oil producers agreed Saturday to extend historic output cuts through July, as oil prices tentatively recover and coronavirus lockdowns ease.

The 13-member cartel and its allies, notably Russia, decided to extend by a month deep May and June cuts agreed in April to boost prices, the Organization of the Petroleum Exporting Countries said in a statement.

But Mexico, which had already made clear ahead of the talks that it "could not adjust... production further", announced that it would not be complying.

 

[MenInG]

Bye, bye bonus oil production cuts.

Crude prices fell back on Monday after Saudi Arabia said an extension of output cuts by OPEC+ nations would not include additional voluntary cuts by the kingdom and its Gulf allies the United Arab Emirates (UAE) and Kuwait.

The Organization of Petroleum Exporting Countries (OPEC) and its allies led by Russia - a grouping known as OPEC+ - agreed on Saturday to extend through a deal struck in April to cut output by 9.7 million barrels per day (bpd) in May and June. Those curbs will now continue through July.

Oil prices moved higher on the news. But the gains were short-lived.

On Monday, Saudi energy minister Prince Abdulaziz bin Salman told a news conference the kingdom, Kuwait and the UAE would not continue with their current voluntary cuts of an extra 1.18 million bpd - one million bpd of which was being shouldered by Riyadh.

Global benchmark Brent crude was trading down $1.18 or 2.79 percent at $41.12 a barrel at about 16:30 GMT while US benchmark West Texas Intermediate crude was down $1.28 or 3.24 percent at $38.27.

"The extra curtailments from the three are not insignificant, 1.18 million bpd is quite an amount, so a decline in prices is justified," wrote Rystad Energy's Bjornar Tonhaugen in a note to clients.

"It would be too good to be true to have a total of nearly 11 million bpd in voluntary cuts extended for a month at times when we see supply deficits. Keeping those bonus cuts would just not be justified for the three Gulf producers," he added.

Low crude prices have prompted Chinese buyers to boost imports. Purchases by the world's largest crude importer hit a record high of 11.3 million bpd in May.

But consultancy JBC Energy warned that higher prices could discourage buying and undercut a fragile recovery in crude demand.

"We cannot shake the feeling that, price-wise, this market has gotten a bit ahead of itself and will need a good confluence of bullish surprises to continue in order to maintain current pricing levels," JBC said in a note.

https://www.aljazeera.com/ajimpact/...ye-bye-bonus-output-cuts-200608144322016.html

 

[JaDed]

If they don't cut it will go back to 28-35$ , similar to what is happening to natural gas. I couldn't make money on ETFs dealing with both but atleast got to read a lot. :/(useless)

 

[Cricket Warrior]

Sept 5 (Reuters) - Oil prices rose a dollar a barrel on Tuesday to their highest since November, after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year, worrying investors about potential shortages during peak winter demand.

Brent crude futures rose by $1.04, or 1.2%, to settle at $90.04 a barrel, closing above the $90 mark for the first time since November 16, 2022. U.S. West Texas Intermediate crude (WTI) futures gained $1.14, or 1.3%, to settle at $86.69 a barrel, also a 10-month high.

 

[Asad T]

Oil climbs 3% as steep US crude stocks draw adds to supply concerns

HOUSTON, Sept 27 (Reuters) - Oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies.

Brent crude futures closed up $2.59, or 2.8%, at $96.55. It breached $97 a barrel during the session.

U.S. West Texas Intermediate crude futures (WTI) climbed $3.29, or 3.6%, to $93.68. The session high was over $94.

U.S. crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, government data showed, far exceeding the 320,000-barrel drop analysts expected in a Reuters poll.

Reuters

 

[Asad T]

Oh how I miss the days of negative oil prices

 

[Cricket Warrior]

Oil price eases as Iran downplays attack

Oil and gold prices have eased after Iranian authorities appeared to downplay reports of an attack from Israel.

Brent crude, the international benchmark, fell after jumping briefly to over $90 a barrel after reports emerged of an attack.

Gold briefly came close to a record high before settling below $2,400 an ounce.

There are concerns a worsening conflict in the Middle East could disrupt oil supplies.

Investors have been closely watching Israel’s reaction to Iran's direct drone and missile attack last weekend.

Oil prices had jumped by as much as 3.5% initially. But Brent then fell back to roughly $87 a barrel after Iranian state media claimed that there was "no damage" in Isfahan province where there had been reports of explosions.

Sharp and sustained rises in oil prices risk fuelling inflation. Countries are heavily reliant on the commodity, which is used to produce fuels such as petrol and diesel.

Fuel and energy prices have been a major driver behind the higher cost of living worldwide in the past couple of years.

Randeep Somel, fund manager at M&G Investment Management, told the BBC's Today programme: "The concern for markets would mainly be the inflationary one, that this would actually add to inflation."

While the pace of inflation has been slowing, in the UK it is still above the Bank of England's 2% target and some economists have forecast that a cut to interest rates may not happen until summer or later on in the year.

"In the UK, the inflation rates is still around 3.2% - still someway off the target – and it is becoming a bit of a concern for policy makers," said Mr Somel.

"It is good to see that this hasn’t escalated any further and that hopefully the disruption to markets is short-lived.”

The price of Brent is far below the heights reached after Russia invaded Ukraine in February 2022 when a number of major economies imposed sanctions on the oil-producing nation.

Oil hit $125 a barrel in the weeks that followed, leading to a sustained period of higher household energy bills.

The gold price often rises at times of uncertainty as it is seen as a safe investment.

Oil and gold prices ease as Iran downplays attack

Oil prices eased after Iran said a missile strike from Israel did little damage.

www.bbc.com

 

[FearlessRoar]

Kuwait announces 'giant' oil discovery​

Kuwait Petroleum Corporation (KPC) said on Sunday it had made a "giant" oil discovery in the Al-Nokhatha field east of the Kuwaiti island of Failaka, with oil reserves estimated at 3.2 billion barrels.

KPC's CEO Sheikh Nawaf Saud Nasir Al-Sabah said in a video posted by the company on X that the new discovery's reserves were equivalent to the country's entire production in three years.

https://www.reuters.com/markets/commodities/kuwait-announces-giant-oil-discovery-2024-07-14/