Brent crude has traded between $60 and $70 per barrel through May despite the Iran war’s ongoing Hormuz disruption, with the UAE’s exit from OPEC and weak global demand growth suppressing the price that Saudi Arabia’s $80 budget breakeven requires.
Tag: energy
Posted inEconomy
Two shocks are reshaping the global energy economy at once
The UAE’s departure from OPEC on May 1 and the Iran war’s disruption of Hormuz shipping have arrived simultaneously, creating a price environment where geopolitical supply threats are pushing one direction and Gulf overproduction capacity is pushing another.
Posted inGeopolitics
The Strait of Hormuz becomes the war’s most dangerous front
Three months into US-Israel military operations against Iran, the narrow passage through which roughly 20 percent of the world’s traded oil travels has become a pressure point that neither side can afford to close — but neither has shown it can keep fully open.
Posted inWorld
The UAE quits OPEC after 59 years and sets course for five million barrels
Abu Dhabi’s exit from the oil cartel on May 1 removes OPEC’s third-largest producer and a member since 1967, freeing the UAE to exploit a capacity gap that has cost it roughly 1.35 million barrels of daily production under quota constraints.