Major oil producers have an opportunity to ease market volatility
Global oil supply rose in January, but not enough to balance growing demand. Chronic underperformance by the OPEC+ group of oil producing countries in meeting their output targets, coupled with geopolitical tensions, has pushed oil prices to their highest levels in more than seven years in recent weeks.
The February edition of our monthly Oil Market Report notes that if the persistent gap between OPEC+ countries’ output and their target levels continues, market tensions will rise, increasing the likelihood of more volatility and upward pressure on prices. But these risks, which have broad economic implications, could be reduced if producers in the Middle East with spare capacity were to compensate for those running out.
More broadly, it is clear the world is not investing enough to meet its future energy needs. Clean energy and energy efficiency investments need to increase dramatically to reduce the use of oil. In the absence of that, oil demand will continue to rise.
Information Source: Read More–>
Oil and gas, press , | Energy, Climate, Renewable, Wind, Biomass, Sustainability, Oil Price, LPG, Solar, Electric,
