When companies are paying higher import taxes, they have less money to spend on energy-hungry projects.
The last count showed 422 active U.S. oil rigs in operation. That’s comparable to when the pandemic depressed demand for crude.
Oil demand is still expected to grow in the coming year, but more slowly, and especially in China.
Even if the prediction’s right, Big Oil will be with us much longer.
Domestic oil production is running around a million barrels a day ahead of predictions.
The expectation was that OPEC countries would continue cutting back supply. Some think the delay may mean there’s disagreement about that.
Since the end of September, Brent Crude has been sliding — down to the $84-a-barrel range, more than a 10% decline in just over a week. This is also playing out at the pump, with gas down about eight cents a gallon in the last week.
The International Energy Agency expects demand to grow, but more slowly than this year. OPEC expects it to stay about the same.
The Saudis invited the Russians to the table and rolled out the red carpet. But the Russians haven’t always done what the Saudis want.
The economies of China, the U.S. and Europe will all be affected by the cartel’s move to boost energy prices.
