In Oil and Gas People yesterday:
‘Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week. The Organization of the Petroleum Exporting Countries and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories. Brent crude, the international benchmark, was up 32 cents at $68.10 a barrel at 1311 GMT and earlier touched $68.29, its highest since May 2015. U.S. crude rose 37 cents to $62.10 and also reached its highest since May 2015.’
This news comes after several weeks of prices well above $60pb. Brent crude prices rose to $66.87 per barrel, in early January 2018, from $27.67 in early 2016, due in major part to Saudi-led output cuts and growing demand from Asia. See this graph illustrating the trend:
Production costs have also fallen to £12 per barrel creating enormous profit margins for the major producers. I don’t know if the Scottish media or the Treasury have noticed yet. See:
Prices are expected to rise even higher. Reported in Energy Voice at the end of 2017, anonymous Saudi sources, presumably from Aramco, predicted that crude oil would rise to $75 per barrel. This is not that shocking a claim given the Aramco chief predicted massive shortages and prices rising to $100 per barrel, only months ago. See:
This is one more reason why we need to push for Indyref sooner rather than later and make sure this kind of information is everywhere on social media. Are the National and the Sunday Herald reporting this kind of thing. I’m not sure they are.