
What a Workforce that uses Cloud can look like
The way technological solutions are operated in the cloud is different. It is more about developing and implementing business rules than it is about technological …
September 30, 2021: -On Tuesday, the current energy market picture looks good for oil bulls.
International benchmark Brent crude passed the long-anticipated threshold of $80 for each barrel, though it’s since slipped back down to trade at $78.47 by Wednesday at 10:30 a.m. in London. West Texas Intermediate traded at $74.73 per barrel for the same time.
With winter ahead and a gas crunch in Europe, the demand picture appears promising. But demand destruction can be right around the corner as prices climb higher, some experts warn.
“Oil prices have disconnected from the marginal cost of supply. Instead, they are traveling to the level where demand destruction kicks in, which is estimated at ~$80/bbl.” That’s what Morgan Stanley wrote in June, and the bank wrote, “This remains our thesis.”
It added that “the price at which demand destruction kicks in can be fiendishly difficult to estimate. We left our price forecast unchanged for now but recognized that, on current trends, upside to our bull case scenario to $85/bbl exists.”
Morgan Stanley foresees the global oil supply getting tighter, citing an average of 3 million barrels of crude per day of inventory draws in the previous month, compared to 1.9 million barrels per day marked in the preceding year.
“These draws are high and suggest the market is more undersupplied than generally perceived,” the bank analysts Martijn Rats and Amy Sergeant said.
Furthermore, flights and transport have picked up, with Flightradar data on commercial flights “closing the gap to pre-covid levels,” they said.
Still, not all the signs are bullish.
On Tuesday, the World Bank said that the Delta variant is slowing economic growth in East Asia and the Pacific, and growth forecasts have been downgraded for most countries. And China is going through a potential decrease with its Evergrande crisis and a surging power shortage that’s hitting factories, homes, and supply chains.
“China’s economic troubles are casting a darker shadow on the demand side of the oil coin and hence the price outlook,” warned Stephen Brennock, a senior analyst at London-based PVM Oil Associates.
More energy prices will fuel even higher inflation, which poses a huge threat to demand.
“Rising oil prices have been one of the biggest drivers of inflation,” Brennock wrote on Tuesday. “And a worsening inflationary situation will act as a drag on the fragile economic recovery and oil consumption. This gets us neatly onto the issue of demand destruction,” he added.
The way technological solutions are operated in the cloud is different. It is more about developing and implementing business rules than it is about technological …
What advantages do social media platforms offer to businesses? Think about the fact that there are already more than 4.2 billion active social media users …
A new year is around the corner, and it is high time we bid goodbye not only to old habits but also to old trends which become outdated and …
Organisations are stepping up their efforts to promote their workforce’s welfare and mental health. Employers frequently see an employee’s …
Now is the moment to properly recognise freelancers. Freelance employment is frequently perceived as not a “real” occupation, although it is …
The hybrid work arrangements that employees claim to want—and that businesses are increasingly providing—are proving to be …
October 02, 2023:Meta has unveiled the Quest 3, the successor to the best-selling VR headset of all time, on Wednesday. Priced at $499, it comes with a $200 increase compared …
September 27, 2023: Professional Pickleball is seeing a unexplored home on the Tennis Channel, as the PPA Tour and Tennis Channel said …
September 27, 2023: According to the U.S. Census Bureau, Sales of constructed home change systems decreased nearly 9% in …
September 26, 2023: Oplinger is 56 years old, who has also joined the board of directors. He takes over from Roy Harvey, who will now operate …
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you