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Related Articles
China creates two-tier oil dynamic
There is a bifurcation in the global oil market as China’s stockpiling contrasts with reduced inventories elsewhere
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A brutally honest picture about the potential role of oil and gas in 2050 should prompt policymakers to not only reflect but also change course to meet vital energy needs
OPEC+’s extra barrels mostly made of paper
Robust demand and a limited supply of additional physical barrels from key OPEC+ producers has kept the oil market in a healthy price range
Gas pricing finds a new norm
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Oil demand ramps up air miles
Jet fuel will play crucial role in oil consumption growth even with efficiency gains and environmental curbs, with geopolitical risks highlighting importance of plentiful stocks
Letter from the Middle East: Iran-Israel war risks dire straits
A blockade of the Strait of Hormuz would have reverberations that would sound around the world
IEA and OPEC energy assumptions on fragile ground
Geopolitical uncertainty casts a pall over expectations around demand, supply, investment and spare capacity
The oil risk premium fable
Israel’s attack on Iran caught oil firms with low inventories due to their efforts to protect themselves from falling prices, creating a perfect storm
Saudi Arabia and Russia pull OPEC+ in different directions
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The political fallout from high fuel prices is not as significant as it used to be
Markets
Philip K. Verleger
16 April 2024
Follow @PetroleumEcon
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Higher oil prices will not trouble Fed

Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy

Speculative pressure boosted oil prices in the first quarter of 2024 and will likely do so in the second and third quarters as well. Some analysts assert that the rising prices will cause trouble for the US Federal Reserve. They will not. Today, oil has become relatively unimportant in the US economy. The real pain from high prices will be felt by European countries and the emerging market nations, where higher oil prices wreak economic havoc. Ironically, though, the oil-exporting countries may be the real losers from the speculation-driven price increases in the longer term. Several traders and forecasters see supply and demand balanc

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