Related Articles
Forward article link
Share PDF with colleagues

Why geopolitics still matter to oil

Trump might not bring more war to the Middle East, but as fundamentals tighten the market is ready to trade such risks

Even before the civil war, Syria's oil output was hardly decisive for global markets. Six years on, it is truly a rounding error in terms of world supply balances: production has dropped from more than 400,000 barrels a day to less than 30,000 b/d. Exports have ceased. No, the war in Syria is not, as internet conspiracy theorists think, about pipelines through the country. So why did oil prices rise sharply after the US fired 59 Tomahawk missiles at an airbase in Syria on 7 April? After two and a half years of shrugging its shoulders at conflict in Libya, northern Iraq and Yemen, the reaction to the Syria bombing suggests that the oil market is awaking again to geopolitics. It's a long way

Also in this section
US and Russia duel over production dominance
22 June 2018
Fuelled by shale gains, US output has risen rapidly, now outstripping Russia’s production; but Moscow won’t accept the shift lying down
Barents comes into focus for Norway
22 June 2018
There's a lot more gas and oil to be found in the Norwegian Arctic, if the explorers can be persuaded to look for it
Egypt wears the East Med LNG crown
20 June 2018
With production rising fast and other East Med countries looking for markets, Egypt is hoping that its LNG plants will soon come into their own