Related Articles
Forward article link
Share PDF with colleagues

A rebalancing of the petrodollar is starting

As the latest multi-year rally in oil prices ends, a massive rebalancing of petrodollar is about to begin

Any price bounce in 2015 - spurred, say, by the kind of deep cuts in production that Opec introduced in 2008 - would leave Petroleum Economist’s annual petrodollar graphic looking as uneven as it has for the past few years.  For now, it still shows the huge money transfer, from consumer to producer countries, which has characterised the past three years, when oil prices have averaged $111 a barrel.  Even when the data next year catches up with the oil-price slump in the second half of 2014, the shape of the graphic will look similar. Despite the 40% plunge since June, Brent’s average price for the year up to the end of November was about $101/b.Triple-digit oil has been painful for cons

Also in this section
Peak demand and oil's long-term trap
19 January 2018
Fixating on the timing of a peak in oil demand is misplaced. Rather, the peak's significance is in shifting the paradigm, from perceived scarcity to perceived abundance. And it poses a problem for low-cost producers
The end is nigh for oil
12 January 2018
Fossil fuel merchants including oil companies are living on borrowed time, argues a new book
US energy: what to watch in 2018
3 January 2018
Oil production, trade, renewables and technology top our list of major questions facing America's energy industry heading into the new year