Related Articles
Forward article link
Share PDF with colleagues

Despite production outages the oil price should fall

As the threat of US military action recedes and seasonal demand eases, the oil price should drop

The global economy is gathering some steam, led by positive data in the US, UK, China and even the eurozone. So the last thing it needs is a Syria-induced spike in the oil price to derail the recovery. That is what oil markets were gearing up for in late August, as the US tried to muster support domestically and internationally for an attack on Bashar Al-Assad's regime in Syria after chemical weapons killed hundreds of civilians in a suburb of Damascus. Syria is not a major oil producer. Before the conflict, output was only around 350,000 barrels a day (b/d); it is now thought to about 60,000 b/d. But a punitive attack by the US was fraught with dangers for the oil market. It would prompt

Also in this section
A Rhum deal: US sanctions threaten North Sea project
24 May 2018
Uncertainty over US sanctions is causing jitters among oil and gas project developers
Iraq: let the bargaining begin
22 May 2018
As Iraq settles in for the sizzling summer heat, the political temperature looks set to stay high well into autumn and possibly winter as well
Gazprom finds it hard to break with Ukraine
18 May 2018
An international court ruling over gas supply contracts has done little to resolve differences between Gazprom and Naftogaz