We just learned how easy it is to upend the oil market — and we’re going to pay for it

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 80%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Geopolitical risk is back — and it’s expensive

LAUNCESTON — The attacks on Saudi Arabia’s oil facilities have done more than knock out some 5 per cent of global crude supplies, they have provided a myriad of lessons for all involved.

In recent months the oil market has largely discounted geopolitical risk in the Middle East and chosen to focus on the mounting worries that the U.S.-China trade dispute is tipping the global economy toward recession. Yes, the Saudis can export from storage, the United States and other countries can tap into their strategic reserves, and they can probably meet global requirements this way for several months.

Iran PushbackAnother lesson is for Trump and his administration, and that is if you ramp up conflict and tensions with a country such as Iran, you must be prepared for the inevitable counter-punch. The sanctions on Iranian crude oil may not have taken its exports to zero as Trump wanted, but it certainly has cut them substantially, taking them from around 2.3 million bpd to a figure likely under 1 million bpd.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Arab version of a carbon tax.

Do you have such a policy?

Canada imports very little oil from Saudi Arabia.

Canada loses more money. Dependable, regulated, environmentally conscious production. The Libs would rather buy from SA, Nigeria, et al, and stifle domestic industry, jobs and tax revenue.

and to think of the opposition to Energy East----

Build the fn pipelines and we never have to worry about this garbage again. Scheer4PM TrudeauMustGo

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines