T
he oil markets have just received a long awaited yet unexpected jolt. “No one is yawning now”, as an article in New York Times puts it. The prices plunged 8pc in two days as the report from EIA department showed an inventory build-up of 8.2 million barrels rendering the total inventory at 528 million barrels, the highest in history. Before we move on there are few things to consider making sense of what is happening in the oil markets of-late. How did we get here?

Published in Market Insights

L
ibya is planning to double its crude oil production next year. Although it has been an OPEC member since 1962, as well as the African country with the largest (and best quality) oil reserves, for obvious geopolitical reasons it has not been involved in the recent agreement between OPEC and non-OPEC countries, which favours the Russian Federation, reconnects Russia to Saudi Arabia, thus avoiding too close a link between Russia and Iran, and make Russia play a primary broker’s role in the Middle East.

Published in Middle East

O
PEC, which is the cartel of the 14 major oil producers, has recently adopted a policy that is bound to change all future political, strategic and economic equilibria.

Published in Economy

O
f-late the monotonous oscillation of oil prices is making it difficult for writers and analysts to get any sense out of this whimsical trend. After the Vienna Oil deal in November 2016 and after the 21st January meeting between oil producers the oil prices have been moving up and down in the $50-$60 band.

Published in Market Insights

T
he agreement between the Libyan factions signed in Morocco on December 17, 2015 has not been implemented yet. It implied an enlightened "process of national reconciliation" - obviously bottom-up - that no one wanted to put in place while bullets were whizzing and the self-styled "Caliphate" of Abu Bakr al Baghdadi established itself in the Sirte region.

Published in Middle East

E
IA recently reported that this year (2017) will see a highly volatile oil price. From 30th November to hitherto oil prices have seen a considerable upward trend. The prices have fluctuated at times due to the build-up in inventory and increase in the rig count, and at times when the wave of uncertainty swept across the markets---as it did in case of Libya and Iraq. Kuwait, Saudi Arabia and others have reported to be cutting their production as per the agreement.

Published in Market Insights

A
new year—new issues, new aims and ambitions. In the first snippet of Market Insights let us see what are the most pressing issues in the political economy in this year. Let us start with the European shock—Brexit. Theresa May has said to invoke the article 50 in March. Pound Sterling is expected go down in the coming months as the uncertainty looms over the economic performance of the UK under the new trade relations the medium and method of which will be formed in the coming months.

Published in Market Insights

T
he stage is set. The world waits. There are murmurs and whispers. There are speculations and surmises. On 30th November OPEC and Non OPEC countries engage in a rendezvous in an effort to secure a deal. The whole world looks up to it. But a thwart seems to hang over.

Published in Energy
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