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The market is fast reaching a place where the pricing pain of the crisis could rise even further.
Physical traders are reporting spot premiums of around $20 per barrel on the prevailing futures prices, while investment banks are predicting fuel shortages and demand destruction at some point in May if a resolution isn't reached soon.
In the midst of all of this, the UAE announced on Tuesday that it was quitting OPEC, sending ripples through the market.
The decision doesn't come as much of a surprise to the Oilholic given the country's very open desire to pump more oil, monetise it effectively and diversify its economy.
Nonetheless, the shock factor for the market was definitely there when the news broke. Should the Middle East crisis ease, the UAE's move will help lower oil prices next year. Here are some thoughts on this development via a Forbes op-ed.
Earlier this month, yours truly also held two very interesting interviews with Mahdi Aladel, CEO of Aramco Ventures and Vincent Servello, President of AspenTech. Click on the respective hyperlinks to have a read should you wish to.
And finally, here are your truly's thoughts via Energy Connects on the appointment of BP new CEO Meg O'Neill, and the possible corporate course she may chart for the energy major.
That's all for now folks! More musings to follow soon. Keep reading, keep it here, keep it 'crude'!
