FT News Briefing Will oil prices keep falling?
Aug 15, 2022
Saudi Arabia is boosting Pakistan's economy with a renewed $3 billion deposit, while Aramco celebrates record profits thanks to high energy prices. The discussion shifts to the complexities of stock buybacks, revealing they may not be significantly affected by upcoming tax changes. Meanwhile, Mexico's president is calling on beer makers in drought-stricken regions to reduce production, sparking debate on environmental responsibility. Tune in for fascinating insights into these economic dynamics!
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Falling Oil Prices
- Oil prices have fallen due to recession fears, continued Russian oil production, and releases from strategic reserves.
- These factors have combined to increase supply and decrease demand, driving prices down.
Oil Majors and Price Volatility
- While oil majors like ExxonMobil, Shell, and BP benefited from high prices, they are price takers, not makers.
- Their earnings will directly reflect oil price fluctuations in the coming months.
Future of Oil Markets
- Future oil markets depend on U.S. recession and Chinese demand.
- A U.S. recession would decrease demand, while increased Chinese consumption post-COVID would increase it.