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Leaving aside the clear evidence of shrinking supplies as Asian demand outstrips production, yesterday’s decision by the Saudi and Russian energy ministers to control their output into 2018 led to oil prices rising to their highest level for some time. Saudi Arabia and Russia are the largest of the 24 nations that have agreed to control output to stabilise prices at a viable level for profitability. You’ll have seen here that this has triggered a massive outflow of North Sea oil to Asia in recent months turning around the dip in 2016. Oil is now trading at over £48 dollars per barrel with likely increases beyond that as the shortages begin to bite. See:
Scottish oil in new and much increased demand from Asia ‘like never before!’
Scottish oil prices certain to rise as global reserves are drained
Other evidence of the recovery, in Energy Voice, is a 30% increase in working rigs globally. It’s going to be very interesting when and if we hear Treasury updates on North Sea oil tax revenues for 2017
Talking-up Scotland 