PETROANALYSIS || ARTICLE

Conventionalization is brought back for discussion

Published on

August 7, 2019

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Article by

Petroanalysis Team

Mazhar Al-Shereidah. In his Tweet account he expressed his astonishment that oil prices have dipped again on August 7th in spite of a number of events…

Geopolitical unrest seems to have lost, at least temporarily, its power to rescue falling oil prices. Excessive inventories together with trade wars weigh more than what the driving season used to be on the demand side…

Having denounced SALT, while both Russia and China warn about the US deployment of middle distance ballistic missiles in Europe and Asia-Pacific, doesn’t seem to be a concern for a market that appears to have become insensitive!

Turkey has announced a major military operation in Syria and coordination with the US had been reported; ISIS is back in Iraq and Syria; related movements try to undermine internal peace in Egypt; Sudan still in search of stability…

Navigation through the straits of Hormuz and Bab al-Mandab is experiencing extreme threats and provocations; Russia plans naval maneuvers with Iran; Kashmir comes back to the front pages as India and Pakistan fail to agree on a solution…yet the oil market is undisturbed.

Perhaps it all goes back to a questionable moment, around 2005 when those whose economies depend on stable oil prices favored artificially high prices that led to the conventionalization of tar sands and shale, so North America became energy independent!

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