Shortage5 Jul 2022 23:45
A look at today’s stock market is enough to understand the main concern for oil markets right now, recession. Whilst most assessments expected recession to kick in later this year, its first signs are already emerging with European economies potentially entering a recession in Q3. Seeing Brent futures losing a hefty 10% today and dropping close to $102 per barrel, one would perhaps fail to notice that supply remains very much an issue – Libya’s almost complete degradation into an all-out internecine conflict and Norway’s offshore production seeing the first massive strike campaign of recent years have narrowed potential supply sources even further. Moreover, Saudi Aramco’s August OSPs also point towards little if any remaining spare capacity. Yet all of this is not enough to break the cycle of fear.