The move was almost entirely priced in by the global market. And if anything else, prices actually rose a bit to clawback the ground lost in the wake of the Trump Tariffs kerfuffle in April.
Overall, the crude price - using Brent as a benchmark - is still down by double digits on last year.
Of course, there are different opinions out there in the market, but respectfully the Oilholic sees little reason to be overtly bullish on oil prices as things stand.
Here's yours truly's Forbes post on OPEC's move and its wider implications with another hike - most likely - coming in for August from the producers' group.
All things considered, with the hedges of US shale players not rolling off for another six months in many cases (and as high as 18 months in the case of some), this blogger expects the market in 2025 to be in surplus.
This then does beg the age-old question (again) - what about investment in oil and gas in the current market and macroeconomic climate? We're in retreat from the Covid-years of frowning upon oil and gas investments to somewhat of a panic on the need for it to ensure security of supply in the energy transition era.
According to the IEF, around $740 billion a year is needed in investments to the end of the current decade assuming a global demand figure north of 100 million bpd. But in 2024, we didn't even cap $600 billion worth of oil and gas investments. So is the industry investing enough? It's what yours truly asked in his latest Energy Connects column (available here).
Well that's all for the moment folks! More musings to follow soon. Keep reading, keep it here, keep it 'crude'!
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