Letter on OPEC: OPEC’s ‘elastic’ supply problem
A high-price market management strategy will continue to prove difficult until demand makes a strong recovery
The world finally showed signs of recovery from the Covid-19 crisis in 2023. People started driving and flying to faraway business and holiday destinations. The expected ‘hard landing’ of the global economy has, most likely, been avoided. Stock valuations are higher than ever, and the US Federal Reserve may start cutting rates as early as March. For the first time, demand for oil exceeded the pre-pandemic record of 101m b/d in 2019. The IEA estimated that the world consumed 0.1m b/d more last year, with expectation of further growth of 1.4m b/d this year and another 1.3m b/d in 2025. So, with all the good news out there, why is OPEC still struggling to support oil prices? The first reason is

Also in this section
14 April 2025
US consumers are not likely to see gasoline prices fall to Trump’s ‘beautiful number’, at least if the president also wants to encourage more drilling
11 April 2025
The Gulf state’s offer to supply electricity-starved Syria is an opportunity to support a key ally, but Doha’s ambitions to build broader pipeline networks to Turkey and Europe face challenges
11 April 2025
As the global economy grows, demand for materials is expected to increase. The way materials are made could incorporate new technologies in the future to ensure economic growth is more sustainable
10 April 2025
Technology, policy and narrative are the three biggest factors that could change the course of our 2050 outlook