Oil’s spectacular COVID crash set the world up for US$100 crude
BNN Bloomberg
The two-year COVID crisis put many markets on a wild ride—just look at U.S. treasuries—but few have had a crazier time than crude oil: from total collapse in 2020 to the brink of US$100 a barrel today.
The two-year COVID crisis put many markets on a wild ride—just look at U.S. treasuries—but few have had a crazier time than crude oil: from total collapse in 2020 to the brink of US$100 a barrel today.
It’s not only the price swings that have shocked motorists, investors, CEOs and OPEC+ ministers alike. An entire industry has gone from being written off as a wounded dinosaur and shunned by investors to getting pressure from the U.S. President to step up and save the economic recovery.
“Eighteen months ago, we were in a global apocalypse for the energy sector, and now you’re talking about out-sized returns,” said Travis Stice, chief executive officer of shale driller Diamondback Energy Inc. “We should all pause and recognize the tectonic shift.”
The market’s about-face has huge implications for the global economy—not just the immediate boost to inflation and the empowerment of petrostates like Russia and Saudi Arabia—but also long-term consequences for the transition to cleaner energy. A world that’s supposed to be learning to live without fossils fuels has witnessed the spectacle of White House officials calling on OPEC+ to boost oil production while attending the COP26 climate conference in Glasgow.
The story of how we got to this point, and where we might go from here, starts in the first wave of the pandemic in 2020. That’s when decisions in response to the initial shock of the crisis laid the groundwork for such a sharp reversal. The industry, already under increasing pressure to engage in the fight against climate change, cut back investments and started preparing for a world where consumption patterns had changed forever. It didn’t quite work out like that.
Two years ago, oil was trading near a respectable US$60 a barrel, but the industry wasn’t exactly in rude health. Shell was struggling to boost its returns and OPEC+ was cutting production yet again, but it had mostly healed the wounds of the previous slump.
Every year, billions of dollars in tax credits and benefits go unclaimed in Canada. Here are five commonly missed tax
A key question hangs over the Federal Reserve’s two-day meeting that ends Wednesday: Will central bank policymakers still reduce short-term interest rates this year, now that the Iran war has sent oil prices higher and gas prices spiking? Or will they have to stand pat for months to see how the conflict plays out?
Wall Street followed global markets higher Wednesday and the price of U.S. crude fell eased despite a new barrage of attacks by Iran on its Gulf neighbors.
Jay Allen is a fan of U.S. President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.
Shares advanced Wednesday in Europe and Asia as oil prices fell back slightly despite a barrage of attacks by Iran on its Gulf neighbours.
Every year, billions of dollars in tax credits and benefits go unclaimed in Canada. Here are five commonly missed tax
Oil prices resumed their rise on Tuesday because of the war with Iran, but U.S. stocks held steadier this time around.
Oil prices above $100 add pressure on inflation and growth, complicating rate decisions for central banks.
Closing arguments are set to kick off Tuesday in a trial pitting Elon Musk against Twitter shareholders who say the world’s richest man engaged in a pattern of deceptive behavior that misled investors as he attempted to back out of his US$44-billion deal to buy the social media platform in 2022.
Markets in Canada and the U.S. were up in late-morning trading on Tuesday despite the ongoing war in Iran.
St. Patrick’s Day will test restaurant bar sales as Canadians drink less, with declining consumption and shifting habits weighing on industry revenues.
New York Stock Exchange-parent Intercontinental Exchange said on Tuesday it has launched a product to bring greater transparency to the private credit market, an asset class beleaguered by heightened investor concerns.
Oil tankers are crossing the Strait of Hormuz and Iran’s actions to choke traffic through the shipping route have not hurt the U.S. economy, White House economic adviser Kevin Hassett told CNBC on Tuesday, reiterating the Trump administration’s position that the war should be over in weeks, not months.