BUSINESS MAVERICK ANALYSIS: Oil in murky waters as geopolitical tensions mount

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 84%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

BUSINESS MAVERICK ANALYSIS: Oil in murky waters as geopolitical tensions mount By Sharon Wood

The Strait of Hormuz is proving to be the crude oil price’s crucible for now as the UK, US and Iran look set to become locked in a precarious face-off after Iran went on the offensive in the strait last week. Iran’s Islamic Revolutionary Guard Corps seized aThis saw the price of crude oil regain some of its earlier losses last week. Before the seizure, Brent crude oil had slipped more than 6% to about $55 from $60 earlier in the week.

the black gold’s supply and demand dynamics spread far wider than this, with the crude oil price caught in the cross-currents of macro-economic events in 2019. So-called Opec+, which includes non-members Russia, Kazakhstan, and Mexico, agreed to extend production cuts for another nine months earlier in July, and Opec and non-Opec allies also significantly signed a “Charter of Cooperation”, which formalises the need for non-Opec members to approve production decisions going forward.

The IEA is also expecting demand to slow, citing a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, and weak gasoline and diesel demand in the US. Although there are still concerns about a global economic slowdown, it is somewhat of a shifting target. Key data released last week showed the US economy is in a better state than anticipated. Retail sales rose 0.4% in June, ahead of an expected 0.1% increase, signalling that consumers are in a better state than anticipated.

 

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

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Oil Extends Gains as Iran’s Seizure of Tanker Keeps Tension HighOil extended gains as tensions in the Persian Gulf remained elevated after Iran seized a British tanker, and Libyan production fell after an unidentified group reportedly shut the country’s largest field.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: From Tesla to Twitter; the mixed-bag results season so farThe upbeat picture painted by July's blowout bank earnings heralded a promising earnings season. Too bad other industries didn’t get the memo.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Hydrogen fuel-cell cars could spell boom or bust for SA platinum industryEffervescent multi-entrepreneur Elon Musk famously described hydrogen-powered fuel-cell cars as ‘mind-bogglingly stupid’. The 200,000-plus people employed in SA’s platinum mines better hope he is wrong, because if he is right, the platinum industry is destined to go the same way as SA’s gold industry.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Monday, July 22: Five Things You Need to Know to Start Your DayHong Kong protests descend into violence again, the U.K. steps in to lower Iran oil tensions, and Japan’s Prime Minister Shinzo Abe falls short of a supermajority despite election win. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: India Closely Monitoring 50 Shadow Banks for Signs of ContagionIndia’s central bank is seeing “signs of fragility” in some of the 50 mortgage lenders and other shadow banks it is monitoring to prevent the spread of a crisis that followed the collapse of a non-bank lender last year.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Community wants ConCourt to declare R5bn Lonmin deal illegalSix North West mining communities have launched an application at the Constitutional Court to appeal against a Competition Appeal Court judgment that paved the way for the more than R5-billion merger between Sibanye and Lonmin to be approved. They want both companies to restart merger talks, this time involving Rustenburg mining communities.
Source: dailymaverick - 🏆 3. / 84 Read more »