Oil prices are falling on rumors of a split in OPEC. Oil prices were relatively stable last week as worries about inflation and rising inventories battled optimism about China’s economic recovery. Then rumors began circulating that the UAE was considering leaving OPEC, and oil prices plummeted, according to OilPrices.
China’s economic recovery has been a major bullish factor for oil prices this week, after the country’s PMI rose to 52.6 in February, the highest since April 2012 and a sign of industrial activity picking up. Chinese bulls have supported oil markets to the extent that their sentiment has been overshadowed by fears of inflation in the European Union and rising inventories in the US. Then, on Friday morning, The Wall Street Journal reported that the UAE was discussing leaving OPEC and increasing production, which led to a drop in oil prices.
The US Department of Energy is aiming to start buying oil to partially replenish strategic stocks depleted in 2022-23, with senior officials indicating it could buy 40-60 million barrels over the next year, depending on market conditions. Saudi Aramco is considering investments in liquefied natural gas abroad. Saudi Aramco, Saudi Arabia’s national oil company, is reportedly considering a major investment in LNG facilities outside the kingdom as it seeks to secure a supply deal after its deal with Sempra fell through in 2019.
Energy-related CO2 emissions will reach record highs in 2022. The International Energy Agency said energy-related CO2 emissions rose to a record high of 36.8 million tonnes last year, up 0.9% from 2021, driven by increased coal and oil production, with their year-on-year growth was 1.6% and 2.5%, respectively.
