BP says that global oil demand today has already exceeded 100 million barrels per day (bpd), officially putting to bed that incorrect prediction that global oil demand had peaked.
The combination of a slow comeback in Gulf oil production and an energy policy by the Biden administration that discourages oil and gas production is creating a situation that’s very bullish for petroleum and natural gas markets.
In their most recent report, the EIA stated that U.S. commercial crude oil inventories fell by 6.4 million barrels, putting inventories about 7% below the 5-year average for this time of year.
On Friday, the government said the economy created 235,000 new jobs last month, just 1/3 of Wall Street’s forecast and the smallest gain since January.
Reports are stating that BP evacuated 4 oil production platforms and shut down U.S. Gulf of Mexico production. The storm will also slow down petroleum and natural gas exports and imports.
Last week, we heard a lot of “doom and gloom” talk about the rise of Covid-19 cases, but now we seem to be flipping back towards optimism about economic growth and continued stimulus.
Oil prices are pulling back a bit this Monday morning on questions about an appropriate response to the alleged drone attack on an Israeli ship by Iran and the appropriate response to the delta variant of the covid 19 virus.
Just 1 year after the prophesied Covid-19 "oil glut," oil supplies are falling at the fastest pace they have since the pre-pandemic days. Now there are concerns that there won’t be enough oil around to meet growing demand.
The judge pointed out that millions, possibly even billions of dollars are at stake, not to mention local funding for jobs and workers in the states that sued. It also dried up the funds for the restoration of the Louisiana coastline.
It doesn’t help that there’s not a lot of new news. There were concerns about a drop in Chinese imports and also news about the resumption of the Iranian nuclear talks, but it still looks like a longshot when it comes to lifting sanctions.
