Category: Highlights

I tell people that to understand OPEC, you have to put yourself in their position. Their objective is to maximize the value of the oil they have in the ground. That objective is directly contrary to the desires of most U.S. politicians and consumers — which is access to cheap gasoline. Oil prices have been rising since the pandemic-related production disruption in 2020. That price rise accelerated when Russia invaded Ukraine. In an effort to combat rising prices, earlier this year President Biden began the largest drawdown of the Strategic Petroleum…

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The imposition of a price cap on oil from Russia – being finalised last week by senior officials from the G7 governments in Washington – is an even trickier matter in current oil market and geopolitical circumstances than it usually is. The unofficial oil price range of US$40-75 per barrel of Brent (pb) in place for the vast majority of former U.S. President Donald Trump’s tenure in office was managed through a combination of threats (of the withdrawal of the U.S. military from Saudi Arabia, and the passing of ‘NOPEC’…

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The fiscal year FY22 witnessed spiking oil and energy prices, which lifted the revenues and earnings of the E&P sector. Mari Petroleum Company Limited (PSX: MARI) also announced its higher revenues coming from higher oil and gas prices in FY22. In 1QFY23 as well, MARI’s revenues were seen climbing by 53 percent year-on-year on account of higher gas wellhead prices that surged by 67 percent year-on-year. Revised well-head gas prices incorporated the recent strength in crude oil prices which provided the stimulus to the topline. The improvement in MARI’s production…

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Moscow has pointed the finger at London for the explosions that put the Nord Stream 1 and 2 pipelines out of commission. London has denied any involvement, Reuters reported this weekend. “According to available information, representatives of this unit of the British Navy took part in the planning, provision and implementation of a terrorist attack in the Baltic Sea on September 26 this year – blowing up the Nord Stream 1 and Nord Stream 2 gas pipelines,” the Russian defense ministry said. “To detract from their disastrous handling of the…

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Two Big Oil majors have said they expect oil production in the Permian to rise by less than they had initially planned this year, suggesting industry problems are indeed serious enough to hold back production growth in the most prolific shale play in the United States. In their third-quarter reports, Chevron and Exxon both revised down their planned output from the Permian, although moderately. Chevron said its Permian output had hit a record high in the quarter that just ended, at 700,000 bpd. Exxon also posted record production in the…

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