{"id":63624,"date":"2022-09-28T06:09:28","date_gmt":"2022-09-28T11:09:28","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63624"},"modified":"2022-09-28T06:09:28","modified_gmt":"2022-09-28T11:09:28","slug":"an-oil-supply-shock-may-be-imminent","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63624","title":{"rendered":"An Oil Supply Shock May Be Imminent"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/An-Oil-Supply-Shock-May-Be-Imminent.html\">An Oil Supply Shock May Be Imminent<\/a><\/h3>\n<div id=\"key_points\" class=\"wysiwyg clear\">\n<ul>\n<li>Oil demand has remained resilient in the face of a multitude of challenges.<\/li>\n<li>OPEC+ has fallen behind more than 3.5 million bpd on its output goals.<\/li>\n<li>The DoE has no immediate plans to start refilling the SPR.<\/li>\n<li>The risk of a supply shock grows as China&#8217;s economy re-opens while Russian oil is being forced off the market.<\/li>\n<\/ul>\n<\/div>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2022-09-23_pfvzmg8kxe.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2022-09-23_pfvzmg8kxe.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2022-09-23_pfvzmg8kxe.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>When the chief executive of Aramco said earlier this week that years of underinvestment had damaged the balance between supply and demand in the oil market, it should have been a wake-up call to those in decision-making positions.\u00a0Instead, the secretary-general of the UN<a href=\"https:\/\/www.cnbc.com\/2022\/09\/20\/uns-guterres-says-polluters-must-pay-calls-for-tax-on-fossil-fuels.html\" target=\"_blank\" rel=\"noopener\">\u00a0bashed<\/a>\u00a0the oil industry once again for \u201cfeasting\u201d on record-high profits and urged governments to make them pay for this.<\/p>\n<p>Meanwhile, OPEC\u2019s production shortfall last month<a href=\"https:\/\/www.reuters.com\/business\/energy\/opec-supply-shortfall-now-stands-35-global-oil-demand-2022-09-20\/\" target=\"_blank\" rel=\"noopener\">\u00a0reached<\/a>\u00a03.58 million bpd\u2014a figure equal to some 3.5 percent of global demand\u2014and the United States<a href=\"https:\/\/oilprice.com\/Latest-Energy-News\/World-News\/10-Million-Barrels-Of-SPR-Crude-Going-Up-For-Sale-For-November-Delivery.html\">\u00a0continued<\/a>\u00a0to sell oil from its strategic petroleum reserve.<\/p>\n<p>These seemingly unrelated news reports do have something very important in common. Both clearly suggest a supply shortfall on a global level is imminent. Throw in the news that Russia\u2019s oil exports could fall by some 2.4 million bpd after the EU embargo enters into effect in December, and an oil shortage becomes more or less unavoidable.<\/p>\n<p>Oil demand has remained resilient in the face of a multitude of challenges, and even prices of over $100 per barrel failed to curb it in any significant way earlier this year. Now, prices are somewhat tempered, but the embargo is still about two months away. Once this kicks in, prices are bound to jump because alternative supply is limited. And the U.S. will need to start refilling its SPR at some point because it is getting depleted.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>An Oil Supply Shock May Be Imminent Oil demand has remained resilient in the face of a multitude of challenges. OPEC+ has fallen behind more than 3.5 million bpd on its output goals. The DoE has no immediate plans to start refilling the SPR. The risk of a supply shock grows as China&#8217;s economy re-opens [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,5],"tags":[11583,130,13719,589,2437,5332,600,25704,694,822,826,827],"class_list":["post-63624","post","type-post","status-publish","format-standard","hentry","category-energy-2","category-geopolitics","tag-aramco","tag-china","tag-irina-slav","tag-oil-demand","tag-oil-supply-shock","tag-oilprice-com","tag-opec","tag-opec-2","tag-russia","tag-un","tag-united-nations","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63624"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63624\/revisions"}],"predecessor-version":[{"id":63625,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63624\/revisions\/63625"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}