Thu, March 28, 2024

Oil Has Dropped by More than 40% Since Its Peak

Oil Rises On Tight Supply Moves

One of the few assets previously generating a positive return is now stuck alongside stocks and bonds in negative territory. Crude oil futures have fallen from over $130 in March to around $74. The front-month contract is down 2% year to date, which is better than the 10% decline in the S&P U.S. government bond index and the 16% decline in the S&P 500.

Kevin Muir of The Macro Tourist, ever the contrarian, wonders if there’s an opportunity here. According to the former institutional equity trader, the fundamentals haven’t changed all that much. However, the central theme of his oil thesis revolves around China. Crude futures contracts 36 months out look like a “paused bull market that is simply correcting.”

Increasing oil and gas revenues helped Qatar post a 30 billion riyal budget surplus in the third quarter of 2022. In the same period in 2021, the surplus was 900 million riyals. According to government figures, spending in the third quarter of 2022 totaled 51.8 billion riyals.

Total revenues in Q3 were 81.8 billion riyals, with oil and gas accounting for more than 93% or 76.3 billion riyals. The Gulf Arab nation currently hosting the WorldCup is one of the biggest exporters of gas worldwide and has benefited greatly from the increase in the price of both gas and oil.

When compared to the same period in 2021, oil and gas revenue increased 67% in the first half of 2022.

The budget surplus was 47.3 billion riyals in the year’s first half, up from 4 billion riyals the previous year.

energy, Wibest – Natural Gas Production: Gas pipelines and storage containers.

Europe Moves Closer to Limiting Natural Gas Prices

The European Union is close to reaching an agreement on a natural gas price cap, with Brussels already planning for the coming winter as the global energy crisis shows no signs of abating.

On Tuesday, EU energy ministers met in Brussels, Belgium, to discuss the details of a natural gas price cap. The issue has divided the EU’s 27 member states, with some advocating for a lower cap of fewer than 200 euros ($211) per megawatt hour. In contrast, others are skeptical of the measure and want stronger assurances that it will not cause unnecessary market volatility.

According to officials, the cap could be between 180 and 220 euros per megawatt hour. This comes after the European Commission, the EU’s executive arm, proposed a level of 275 euros per megawatt hour, heavily criticized by many countries as being too weak and unlikely to be triggered.

In 2023, there will be more competition for the commodity, according to the IEA. They predict lower LNG market supplies but higher demand, particularly from China, which has started to ease Covid-19 restrictions and will need more gas in 2023 as its economy stabilizes.

The EU reached agreements with the United States, Qatar, and others to reduce its reliance on Russian hydrocarbons. However, experts believe the EU must start from scratch to prepare for next winter.

YOU MAY ALSO LIKE

Domino Pizza

Quick Look: Domino’s stock surges by 8.32% over the past week, hitting

Coffee

Quick Look: The coffee market consolidates amid regulations, environmental worries, and supply

MacBook Pro New Features and Impressions. GoFetch

Quick Look: Apple’s M-series chips have a GoFetch vulnerability, found by researchers,

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in