The saudi bet - ENPG

The saudi bet


The crude oil Brent price has been falling from one psychological low to another: since June´s $115/barrel it decreased to $100/barrel on September 10, $90/barrel on October 9 and $85/barrel less than a week later. It hit another low of $75.05/barrel for Brent crude after an OPEC meeting on 27 November resulted in no production cuts, despite expectations of the contrary from countries such as Russia and Venezuela.

The explanation for the decrease is fairly simple: there is a clear imbalance between supply and demand, in favor of the former. Several factors are responsible.
Global demand for oil went down on account of the global economic slowdown, with many producers in places like China, Japan, Brazil, India and Europe closing down operations in the past years. Long-term energy efficiency measures in the consuming countries add to this trend. On the other hand, production of oil shot up both in North America and in some Middle Eastern and African countries such as Iraq, Nigeria or Libya…


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2 weeks ago

Energy Policy Group

We are pleased to announce the first EPG fellow, Laura Camarut.

She is a Communications Officer at the Africa Division of Total where she is engaged in content creation, editorial communications, monitoring of political issues and event management. For the next six months, in her role as EPG Fellow, Laura will cover topics related to the energy transition in Eastern Europe, sustainability in the oil and gas sector and the geopolitics of climate change.

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