OPEC on Thursday cut its forecast for growth in world oil demand in 2022 for a second straight month, citing the impact of Russia’s invasion of Ukraine, rising inflation and the resurgence of the Omicron coronavirus variant in China.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that world demand will increase by 3.36 million barrels per day (bpd) in 2022 from its forecast by 310,000 barrels of war.

OPEC Cuts 2022 World Oil Demand Forecast Again on Ukraine War | Devamı>>>

OPEC on Tuesday cut its forecast for growth in world oil demand in 2022 citing the impact of Russia’s invasion of Ukraine, rising inflation as crude prices soar and the resurgence of the Omicron coronavirus variant in China.

In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said world demand would rise by 3.67 million barrels per day (bpd) in 2022, down 480,000 bpd from its previous forecast.

OPEC Cuts 2022 World Oil Demand Forecast Due to Ukraine War | Devamı>>>

Russia and Saudi Arabia both rely on oil sales to fund a majority of their budgets. In the last five plus years, China has become the biggest customer for both countries. In fact, China is the world’s largest importer of oil, though it could cut imports if it stopped adding to inventory (storage). China has stored so much oil over that half a decade, that it could practically halt all oil imports and get by just fine for a while.

How Russian and Saudi Oil Ties to China | Devamı>>>

On May 12, the Energy Information Administration (EIA) released its latest Short Term Energy Outlook (STEO). This report reflects the first deep dive into how the energy demand collapse brought on by the COVID-19 pandemic is impacting energy market projections.

This month’s report includes a special caveat that is indicative of our present unusual circumstances:

“Although all market outlooks are subject to many risks, the May edition of EIA’s Short-Term Energy Outlook remains subject to heightened levels of uncertainty because the effects on energy markets of mitigation efforts related to the 2019 novel coronavirus disease (COVID-19) are still evolving.”

Here are some of the key summarized highlights from the EIA report, followed by my commentary on these projections.

Short Term Energy Outlook Shows Impact Of COVID-19 | Devamı>>>

Saudi Arabia abruptly altered its oil production strategy in early March and began to flood the market with cheap oil. Financial markets worldwide hemorrhaged value at the prospect of a protracted and painful price war, and American oil firms immediately cut back spending and dividend payments as the price for their primary product halved.  As of this morning, WTI Crude (a pricing benchmark tied to U.S. supply) was barely north of $20/bbl, prices not seen since 2002.

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Oil prices on Friday posted their biggest week of losses since the 2008 global financial crisis, rocked by the coronavirus outbreak and efforts by top exporter Saudi Arabia and its allies to flood the market with record levels of supply.

The rare combination of severe shocks to both supply and demand has caused the crude market to collapse as producers around the world steel themselves for an unexpected glut of oil in coming weeks.

Oil Prices Crude Posts Biggest Weekly Losses Since 2008 | Devamı>>>

Oil prices are down nearly 50% for the year after OPEC+ talks collapsed and Saudi Arabia announced slashed prices in an apparent price war with Russia.

Oil prices fell through the floor in early trading Monday, tanking as much as 30% after Saudi Arabia slashed its crude prices for buyers. The kingdom is reportedly preparing to open the taps in an apparent retaliation for Russia’s unwillingness to cut its own output.

Oil Nose-Dives as Saudi Arabia and Russia Set Off ‘Scorched Earth’ Price War | Devamı>>>

Oil prices fell through the floor in early trading Monday, tanking as much as 30% after Saudi Arabia slashed its crude prices for buyers. The kingdom is reportedly preparing to open the taps in an apparent retaliation for Russia’s unwillingness to cut its own output.

“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” John Kilduff, founding partner of Again Capital, told CNBC.

Oil Nosedives as Saudi Arabia and Russia Set Off ‘Scorched Earth’ Price War | Devamı>>>

Oil prices slumped for a sixth day in a row on Friday to their lowest in more than a year, causing futures to drop by the most in a week since 2016, as the spread of coronavirus stoked fears that a slowing global economy would hit energy demand.

The coronavirus spread further, with cases reported for the first time in six countries across three continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to “very high.”

The most active Brent future for May LCOc2 delivery fell $2.06, or 4.0%, to settle at $49.67 a barrel, its lowest since July 2017.

Oil Prices Sink to Lowest in Over a Year Biggest Weekly Drop Since 2016 | Devamı>>>

When a financial crisis begins to unfold, it’s hard to assess the impact until well after the fact. The dot-com crash that started in 2000 and the subprime mortgage crisis that started in 2007 played out over several years. The S&P 500 recorded three consecutive double-digit losses from 2000 through 2002. Then after a weak 2007, the index dropped nearly 40% in 2008.

During these events, you just didn’t know on a day-to-day basis how bad things would turn out.

Coronavirus is Poised to Disrupt Solar and Battery Storage Sectors | Devamı>>>

Oil plunged Thursday, with U.S. crude dropping almost 3 percent as the market grappled with oversupply fears as increased U.S. sanctions on Iran had more gradual impact than expected and U.S. crude oil inventories rose sharply.

U.S. crude settled down $1.79 or 2.8 percent at $61.81 a barrel, heading for its biggest weekly fall since February.

Brent crude futures fell $1.43 a barrel, or 2 percent to $70.75.

Market sentiment became more bearish as shifting U.S.

Oil Drops Nearly 3 Percent on Oversupply Worries | Devamı>>>

Current news about the market is as follows: The historic date of the tender for Renewable Energy Resource Areas (YEKA) was delayed. Tender before March 7, 2019 at 12:00 as stated expiration date of the decision on 18 April 2019 in the last days of Bursa Agriculture and Rural Development Support Agency (ARDSI) entrepreneurs who take advantage of the grant, the exchange rate “has produced sunglasses electricity, Turkey ‘ energy imports bill increased by 1.4% to $ 3.9 billion compared to the same month of the previous year in December of last year.

Statistical Analysis of Electricity Market – (31.01.2019) | Devamı>>>