Iran’s President Ebrahim Raisi and several other high-ranking officials have tragically died in a helicopter crash in the country’s northwest. The incident, which occurred just hours after takeoff, has sent shockwaves throughout Iran and the international community. The news has also raised concerns about the potential implications for regional stability and global markets.
India’s strategic procurement of Russian crude and lower international oil prices have resulted in significant savings of over $25 billion in foreign exchange reserves during the financial year 2023-24. This saving is despite importing similar quantities of crude oil as in the previous year, according to government data.
The total number of active drilling rigs for oil and gas in the United States fell this week, with the total rig count dropping by 6 to 613. This is a significant decrease from the 755 rigs operating this time last year. The number of oil rigs declined by 5 this week, while the number of gas rigs fell by 1. Despite the drop in rig count, U.S. crude oil production remained unchanged for the seventh consecutive week. However, oil prices were trading up on Friday, with both benchmarks gaining around $0.50 per barrel.
Oil prices stabilized on Thursday, balancing signs of weakening fuel consumption in the US with escalating conflict risks in the Middle East. Both Brent crude futures and US West Texas Intermediate crude futures witnessed marginal gains. Data from the US Energy Information Administration (EIA) indicated a smaller-than-estimated decline in gasoline stockpiles and an unexpected increase in distillate inventories, suggestive of decelerating demand. This slowdown coincides with indications of subdued business activity in the US in April and expectations of delayed interest rate cuts by the Federal Reserve, dampening economic optimism.
Oil prices dropped slightly in Asian trade on Thursday, influenced by a waning risk premium due to easing tensions in the Middle East and mixed U.S. inventory data. Brent oil futures for June delivery declined by 0.2% to $87.88 per barrel, while West Texas Intermediate (WTI) crude futures for June delivery fell 0.2% to $82.66 per barrel.
Oil prices declined in early trading on Thursday due to worries about a possible slowdown in the U.S. economy amid delayed interest rate cuts, outweighing concerns about potential conflict expansion in the Middle East. Brent crude futures fell 9 cents, or 0.1%, to $86.95 per barrel, while U.S. West Texas Intermediate crude futures dropped 7 cents, or 0.1%, to $82.74 per barrel.
Oil prices have remained steady despite a significant crude inventory build in the U.S. in mid-April. The market has shrugged off this news, as it has been countered by a draw in U.S. crude stockpiles for the week ending April 19th. Additionally, traders have become less concerned about a potential supply disruption in the Middle East, which had previously been a cause for concern.
In a recent note, Goldman Sachs has increased its Brent crude oil price forecasts for the second half of 2024 and 2025. The bank anticipates that the elevated geopolitical risk premium currently affecting oil prices will moderate in the coming months.
Oil prices experienced a moderate decline on April 24th due to easing concerns over conflicts in the Middle East and a slowdown in economic activity in major oil-consuming nations. However, a reduction in US crude oil inventories prevented a more significant drop.
Electric vehicle (EV) sales have slowed down in recent months, leading some to question the future of the industry. However, there are several reasons to believe that demand for EVs will pick up again soon. One reason is that the recent slowdown is partly due to cyclical factors, such as the post-pandemic spending spree and rising interest rates. Another reason is that the cost of EVs is coming down, making them more affordable for consumers. In addition, the number of charging stations is increasing, making it easier to own and operate an EV. Governments can also do more to speed up the EV revolution by allowing Chinese carmakers into their markets. Overall, the future of EVs looks bright, despite the current slowdown.
