Energy transition and peak demand forecasts have increased worries of oil investors on the prospects of peak production sooner than expected followed by wide price increases.
- Major climate talks are scheduled to start at the end of this month in Scotland to deal with global warming under the 2015 Paris Agreement, with fossil fuel in policy-makers’ focus.
- As it stands now, mobility curbs that scraped out both spending on upstream oil projects and oil end-use might be set to be fully rein in the growth of both supply and demand.
- In a note this week, the research department of Morgan Stanley stated current trends on global oil supply are likely to reach a peak even earlier than demand.
- Oil consumption should reach its peak. But, this is such a well-telegraphed outlook that it has led to its counter-response already, low investment.
The imbalance between demand for oil and other polluting fossil fuels climbing back to normal and output having plunged has led to an energy crunch in Europe and Asia.
CL1! Up +1.11%, USOIL up +0.63%
Source: Reuters