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The Price of Oil: How Demand is Becoming a Major Factor

Consumption

In an efficient market, the forces of demand and supply control prices. This has always been the case for nearly every market you could think of. But not for the oil and gas market. In oil and gas, investors always looked at supply to gauge the likely direction of oil prices in the coming days, weeks, and months. This is because demand has always been there.

Globally, the oil industry never seemed to meet the demand for energy. And with other energy sources trailing the oil and gas industry for several decades in terms of market share, oil has continued to thrive through thick-and-thin.

In fact, every major oil price plunge can be liked to a global financial recession, which basically affects the purchasing power of countries and their residents. So, it’s never really been a case of people not needing or wanting to buy oil and gas products.

Is oil losing its ex-factor?

That has been changing over the last few years with renewable energy sources gaining traction while oil deposits gradually get depleted. Even some of the world’s oil-rich nations like the Kingdom of Saudi Arabia have started to diversify their wealth by investing in alternative industries.

Notably, the country’s biggest oil producer Saudi Oil Company recently went public via an IPO at the Tadawul Stock exchange. Saudi Arabia plans to invest some of the money in Silicon Valley startups. This is part of a wider project that the country is undertaking to minimize its reliance on oil. This comes amid fears that demand for oil will start to diminish during the current decade.

The global consumption of fossil fuels is seen slowing significantly in the coming years as more people and governments become more cautious on climate change. While western Europe has been leading the line in the adoption of renewable energy, the US and the rest of the world is catching up pretty quick.

Some of America’s largest tech companies including Apple Inc., Google and Microsoft are already investing in clean energy by buying renewable energy certificates (RECs) from producers. Some analysts say this is just an attempt by the companies to present themselves before the public as clean energy-friendly. But in essence, it does a lot in driving the campaign to adopt green energy sources for power supply.

How do you invest in the oil and gas market now?

There is still some time left to go before we can confidently say that the world can operate independently of fossil fuels. In fact, it could be several decades before renewable energy overtakes non-renewable energy in terms of global usage. This means that there is still a window to invest in the oil and gas market.

But if that is too risky for you, then there is always the option to invest short-term, which can be done through trading. And while trading poses its own risks, technological advances have enabled experts to create intuitive trading applications that help them to pick the right moves. This can also be used for passive investing by those who prefer minimum interaction with the market.

Conclusion

In summary, the oil and gas market is going through a period when more people are becoming environmentally conscious. The black gold as it is famously monikered appears to be losing its shine, and with it is safe-haven status.

Today, when global markets are on a meltdown, oil prices tend to follow. A case in point is the recent collapse of global stocks due to the coronavirus outbreak. Oil prices have since plummeted.

And while stocks recovered on Tuesday following China’s announcement of a stimulus package to contain the economic exposure to uncertainty caused by the virus, oil prices remain rooted to the bottom. The WTI crude oil closed on Tuesday below $50.00  per barrel, the lowest level in over a year.

energy central



37 Comments on "The Price of Oil: How Demand is Becoming a Major Factor"

  1. dave thompson on Wed, 5th Feb 2020 4:50 am 

    Oil demand rhetoric is just another way of not facing the reality of the world we humans have made. All oil that is pumped, produced,refined and delivered to the market is eventually sold and burned. No mater how much it costs. Industrial civilization exists because of oil coal and natural gas. When the FF goes away, so goes humanity………………away.

  2. Antius on Wed, 5th Feb 2020 7:17 am 

    Meet Leon Brittan, the Lithuanian Jew appointed by Margret Thatcher to force neo-liberalism onto the European Community. He adopted a false name to hide his real loyalties. May he burn in hell.

    https://en.wikipedia.org/wiki/Leon_Brittan

    Cloggie was right about it being good that Britain was leaving the EU. If one cannot cure the disease, one should isolate the terminally infected. Britain is not run by the British, or in British interests. Brexit will at least prevent these people from ruining European interests as well.

  3. Abraham van Helsing on Wed, 5th Feb 2020 7:54 am 

    I break my own announcement yesterday, too much is happening.

    Thanks Antius. Thanks to people like you (and David Irving) we don’t need to completely despair with the English. We’ll find an arrangement for England “after the break”.

    Massive breakthrough in Germany:

    AfD teams up with CDU and FDP to defeat the left and hoist a liberal in the saddle as PM of the state of Thuringa. Put this in the English browser translator to read the reactions of German officialdom:

    https://www.spiegel.de/politik/deutschland/sensation-in-thueringen-fdp-mann-kemmerich-zum-ministerpraesidenten-gewaehlt-a-744a8d7b-243c-4f36-b4db-ca1e188d65d8

    The US is creeping closer to CW2:

    https://www.youtube.com/watch?v=Ty92wz0K-CM

    Pelosi tearing the SOTU after she was snubbed a handshake by Trump. As Kunstler accurately predicts, unless there is a financial collapse later this year, Trump is almost guaranteed to win:

    https://kunstler.com/clusterfuck-nation/forecast-2020-whirling-and-swirlin/

    Still no results from Iowa, but it looks as if Pete-the-poof Buttigieg could have won.

    Should be a piece of fruitcake for Donnie in November. I don’t think the US is ready for a “first husband”.

  4. Abraham van Helsing on Wed, 5th Feb 2020 8:10 am 

    I think that the Dems are in panic-mode about the Butt. They realize they have no credible candidates. Even Kunstler thinks that his coreligionist oligarch Bloomboig will not do well with the darkies, the core clientele these days for the Dems.

    Perhaps they can persuade Meghan Markle and trophy husband Windsor-Harry to step up the plate now, rather then in 2024.

    Pelosi-Maher, 2 weeks ago:

    https://www.youtube.com/watch?v=GPyA5EwLmE8

    9:08 Maher again hinting at CW2
    10:00 Pelosi: the US can absorb 1 term Trump, but not 2. I agree.

    Despite all the laments about being disappointed with Trump by the likes of Richard Spencer and Ann Coulter, I don’t share that despair. 2 terms should be sufficient to desiccate the deep state for good and prepare European America for the split, that can be left to Meghan and Harry to deal with.

  5. Davy on Wed, 5th Feb 2020 8:22 am 

    The cloggo couldn’t stand it! LMFAO. I missed you cloggo. I enjoy debating you at least you have a brain. juanPee, makato, MOBster and annoymouse are brain dead. Please tell us the meaning of your new handle, Abraham van Helsing (Professor Abraham Van Helsing, a fictional character from the 1897 gothic horror novel Dracula)? Was he white supremacist or the founder PBM’er?

  6. Davy on Wed, 5th Feb 2020 8:28 am 

    “Did China’s Tencent Accidentally Leak The True Terrifying Coronavirus Statistics”
    https://tinyurl.com/vwnbk2n zero hedge

    “Ten days ago, shortly after China first started reporting the cases and deaths associated with the coronavirus epidemic, a UK researcher predicted that over 250,000 Chinese would be infected with the virus by February 4. And while according to official Chinese data, the number of infections has indeed soared in the past two weeks, at just under 25,000 (and roughly 500 deaths), it is a far cry from this dismal prediction, about ten times below that predicted by the epidemiologists…As the Taiwan Times reports in a report first spotted by user @TheHKGroup, over the weekend, Tencent “seems to have inadvertently released what is potentially the actual number of infections and deaths, which were astronomically higher than official figures”, and were far closer to the catastrophic epidemic projections made by Jonathan Read. According to the report, late on Saturday evening, Tencent, on its webpage titled “Epidemic Situation Tracker”, showed confirmed cases of novel coronavirus (2019nCoV) in China as standing at 154,023, 10 times the official figure at the time. It listed the number of suspected cases as 79,808, four times the official figure. And while the number of cured cases was only 269, well below the official number that day of 300, most ominously, the death toll listed was 24,589, vastly higher than the 300 officially listed that day…We leave it up to readers, but keep this in mind: on Jan 29, Zeng Guang, the chief scientist of epidemiology at China’s CDC, made a rare candid admission about why Chinese officials cannot tell people the truth in an interview with the state-run tabloid Global Times: “The officials need to think about the political angle and social stability in order to keep their positions.” And then, on Monday, none other than China Xi’s called on all officials to quickly work together to contain the Coronavirus at a rare meeting of top leaders, saying the outcome would “directly impact social stability in the country.”

  7. Abraham van Helsing on Wed, 5th Feb 2020 8:44 am 

    My favorite American Richard Spencer (the competition isn’t stiff) discusses Brexit and the EU with an Englishman and an Irishman:

    https://www.youtube.com/watch?v=GauCipSF3HI

    As always Spencer has exactly the same opinions as I have. He and the Irishman are pro-EU. Spencer could very well be the upcoming Lech Walesa of the US-Heartland.

    “MOBster and annoymouse are brain dead. Please tell us the meaning of your new handle, Abraham van Helsing (Professor Abraham Van Helsing, a fictional character from the 1897 gothic horror novel Dracula)? Was he white supremacist or the founder PBM’er?”

    https://en.wikipedia.org/wiki/Abraham_Van_Helsing

    Professor Abraham Van Helsing, a fictional character from the 1897 gothic horror novel Dracula, is an aged polymath Dutch doctor with a wide range of interests and accomplishments, partly attested by the string of letters that follows his name: “MD, D.Ph., D.Litt., etc.”, indicating a wealth of experience, education and expertise. The character is best known throughout many adaptations of the story as a vampire hunter and the archenemy of Count Dracula.

    Mobster can elaborate about who I mean with blood-sucking vampires.

  8. cloggie on Wed, 5th Feb 2020 8:59 am 

    World supremacist muzzies bag 361 days away feb1 2021
    World grater nedertardland 65 days away

    Congrats uk on brexit. Sell muzzies to me 50 cent per unamputated $1 amputated

    I’ll turn easy profits

  9. cloggie on Wed, 5th Feb 2020 9:01 am 

    I’ll pay less for muzzies “baroness” warsi
    10 cent unamputated 40 cent amputated
    Becos I dislike the stupid comical peerage designation

  10. Davy on Wed, 5th Feb 2020 9:03 am 

    I missed you cloggtard. I enjoy debating you at least you have a brain. juanPee, makato, and annoymouse are brain dead.

    Translation: I keep getting my dumbass handed to me at every turn by those three, so It will be good to deflect attention away from that with more of our stupid Hitler ‘debates’ and your equally stupid WW2 stuff that no one here ever cared about.

    BTW, you are still still stupid cloggo no matter what you call yourself. But you are MY kind of stupid. A stupid I can relate to as intlectualy, we are on the same level. JuanP is an illegal stupid wetback who wakes up drunk and hung-over on Miami beach every morning, so I dont like him. You and me, are smarter than all the fucknuts here, so it will be good to clean up your DISGUSTING stink 30 times a day.

  11. Abraham van Helsing on Wed, 5th Feb 2020 9:08 am 

    Horror for the German Left=German Press:

    It happened

    A prime minister of AfD mercy: the FDP has started breaking the taboo, but the CDU has made it possible. This day will change German politics.”

    https://www.zeit.de/politik/deutschland/2020-02/thomas-kemmerich-thueringen-wahl-ministerpraesident-fdp-afd

    Populist breakthrough in Germany, the European heartland. If the AfD abandons Dexit and embraces the energy transition, a CDU-AfD government becomes a serious reality.

    Currently busy pointing out to my buddies at the German #1 populist forum that they should mimic the Austrian FPO and like them drop Dexit and embrace the energy transition in order to score 25% in stead of 12%. If they achieve that we’ll get real change in Europe.

    The goal is: abolishing multicult as the official state ideology. Embrace Europe and energy transition and open up to Russia and let them in the Common European Home.

    https://en.wikipedia.org/wiki/Common_European_Home

    With 640 million and nuclear armed to the teeth we can replace America on the very day of the “End of the American Era”, to borrow a phrase of the CFR jew Kupchan:

    https://www.amazon.com/End-American-Era-Geopolitics-Twenty-first-ebook/dp/B000XUDGTY/ref=sr_1_1

    Just in time to contain China.

  12. Fact checker on Wed, 5th Feb 2020 9:43 am 

    Poor juanPee continues to struggle with low IQ mindless socks and ID theft. The above Davy comment is obviously the dumbass lunatic juanPee

  13. Abraham van Helsing on Wed, 5th Feb 2020 10:00 am 

    Lefties are bad losers. Comparable to Pelosi, this leftie from Thuringa throws the flowers at the feet of the FDP-guy who just got elected PM of Thuringa, rather than the expected frontman of the Left, Bodo Ramelow:

    https://www.youtube.com/watch?v=tJ7JMCwy25M

    Priceless!

  14. cloggie on Wed, 5th Feb 2020 10:31 am 

    I doubt like whitey supertard trump
    He lied. We need to bring back two navy commanders who are experts in muzzie burial at sea as muzzies but it’s not a muzzie

    Head spun

  15. FuelShortageComing on Wed, 5th Feb 2020 10:57 am 

    A lot of things happening right now are a blessing for Whites people and Whites people survival. Whites people are a minority in the world with South Korean and Japanese. It is just normal that they contribute the most in regard to population reduction with the nigger and sand nigger.

    I so welcome the pandemic in China and locust plaque in Africa. Maybe the intelligent designers had enough of this bullshit and started population reduction with a virus that is more mortal to the Chinese people then Whites.

    Collapse of the US is also a good news, it means the end of Jews grip on USA and Western nations. It also means the ends of money as a way to manage society and maybe some one will then look at a energy economy similar to what King Hubbert proposed with his technocratic society.

    Well the good news is that populations reductions seems to have began with the Chinese and Africans.

    It

  16. FuelShortageComing on Wed, 5th Feb 2020 11:03 am 

    I mean to say

    A lot of things happening right now are a blessing for Whites people and Whites people survival. Whites people are a minority in the world with South Korean and Japanese. It is just normal Nigger, Chinese and sand nigger contribute the most in regard to population reduction since they make the majority of people on earth.

  17. Fact Checker on Wed, 5th Feb 2020 11:16 am 

    juanPee is an mentally ill idiot.

    These are the luntic’s:
    FuelShortageComing said I mean to say A lot of things happening right now…

    FuelShortageComing said A lot of things happening right now are a blessing…

    GregT said My position on whitey supertard trump Disapprove…

    cloggie said I doubt like whitey supertard trump He lied. We n…

  18. Duncan Idaho on Wed, 5th Feb 2020 12:24 pm 

    1914 — Austria: Adolf Hitler is rejected by Austria as unfit for military service.

    The Fat Boy and him have several things in common.

  19. Duncan Idaho on Wed, 5th Feb 2020 12:28 pm 

    1958 — US: A B-47 bomber collides with another jet &, as a result, drops a hydrogen bomb into the ocean off Savannah, Georgia. The bomb is never found.

  20. Duncan Idaho on Wed, 5th Feb 2020 12:31 pm 

    A psychotic is someone who just found out what’s going on.

    — William S. Burroughs

  21. Davyskum Checker on Wed, 5th Feb 2020 12:40 pm 

    davyskum is a mentally ill idiot.

    Everytime.

    All of the time.

    Morning, Noon, and Night.

  22. Coggie sock puppetry = Abraham van Helsing on Wed, 5th Feb 2020 3:00 pm 

    Coggie sock puppetry = Abraham van Helsing

  23. Fact Checker on Wed, 5th Feb 2020 3:32 pm 

    Coggie sock puppetry = Abraham van Helsing said Coggie sock puppetry = Abraham van Helsing = juanPee mental case in overdrive

  24. JuanP on Wed, 5th Feb 2020 3:34 pm 

    TRUMP 2020!

    Update (04:30 p.m. ET): President Trump has been acquitted by the Senate on both articles of impeachment, ensuring that he will not be removed from office after he was impeached by House Democrats.

    * * *

    *SENATE HAS VOTES TO ACQUIT TRUMP ON OBSTRUCTION; VOTE ONGOING

    *TRUMP ACQUITTED ON ABUSE-OF-POWER CHARGE, 48: ‘Guilty’, 52: ‘NOT GUILTY’

    *SENATE HAS VOTES TO ACQUIT TRUMP ON ABUSE-OF-POWER CHARGE

  25. supremacist muzzies bag day feb12021 on Wed, 5th Feb 2020 4:05 pm 

    congrats whitey supertard trump, you are free to go. you grabbed the p* and you did many things but you din’t paint houses

    yes you lied about the strength of your navy which is incapable of burying muzzies as muzzies at sea but it’s not a muzie

    head spun

    those egregious conduct do not merit conviction and removal from office

    may (((supremetard)) keep you well

  26. Apneaman on Wed, 5th Feb 2020 4:41 pm 

    congrats whitey supertard trump
    yoire free and go grab the p* no more

    you got nato to spend extra 400 billion on kill techs, compare to russia total 61 and china 168

    what is this “brillant flashes?” hello supertard madcat????????

    world supremacist muzzies bag day feb12021

  27. JuanP is stupid on Wed, 5th Feb 2020 4:54 pm 

    JuanPee, check in down the street at Douglas Gardens. Get help Cunt Face

    this is from stupid:
    Apneaman said congrats whitey supertard trump yoire free and go…

    supremacist muzzies bag day feb12021 said congrats whitey supertard trump, you are free to g…

  28. JuanP on Wed, 5th Feb 2020 5:02 pm 

    Earth Is About To Enter A 30-Year “Mini Ice Age” As The Sun Hibernates, Scientist Warns
    A scientist has warned that Earth could be facing a mini ice age due to the Sun radiating less energy and heat toward our planet. According to the expert, this would mean that the planet would be plunged into a period of extreme winter and chilly cold storms during the next 30 years. According to NASA, the Sun will reach its lowest activity in over two centuries in 2020. As a result of it going into a natural period of hibernation, Earth could see temperatures drop, resulting in food shortages on a global scale. The temperature could also drop by as much as one degree Celsius over a period of roughly 12 months—an incremental yet significant change in climate conditions that could have unpredictable results. Valentina Zharkova, a professor at Northumbria University’s department of mathematics, physics, and electrical engineering, told the Sun that the period will be an expanded version of the solar minimums that naturally occur every 11 years. However, rather than lasting only a few years, the “Grand Solar Minimum” could last for up to 33 years. The professor, who has published multiple scientific papers on the subject, said: “The Sun is approaching a hibernation period. Less sunspots will be formed on the solar surface and thus less energy and radiation will be emitted towards the planets and the Earth. The reduction in temperature will results in cold weathers on Earth, wet and cold summers, cold and wet winters. We will possibly get big frosts as is happening now in Canada where they see [temperatures] of -50 C (-122 F). But this is only the start of GSM, there is more to come in the next 33 years.” The last Grand Solar Minimum known to have occurred was the Maunder Minimum, which lasted from 1645 to 1715. During that frigid 70-year period, temperatures plummeted across the globe and famous waterways in Europe including the Thames and Amsterdam canal completely froze over. “We can only hope that the mini ice age will not be as severe as it was during the Maunder Minimum. This would dramatically affect food harvests in middle latitudes, because the vegetables and fruits will not have enough time for harvesting. So it could lead to a food deficit for people and animals, as we seen in the past couple of years when the snow in Spain and Greece in April and May demolished [their] veggie fields, and the UK had a deficit of broccoli, and other fruits and veggies.” However, other experts believe that the cold period that occurred during the Maunder Minimum was also triggered by other factors including the gigantic plumes of ash spewed out in a series of volcanic eruptions. Likewise, experts believe that climate change will ensure that the world remains in the grip of fast-heating planetary conditions regardless of any Grand Solar Minimums. Professor Matthew Owens, a solar scientist at Reading University, told the Sun: “The small reduction in the Sun’s energy associated with a solar minimum is vastly offset by effects caused by human activity, such as CO2 in the atmosphere… Thus there will probably be no detectable effect on global climate.”

  29. makati1 on Wed, 5th Feb 2020 5:37 pm 

    Worldwide flu deaths-

    Coronavirus dead to date: 564 (~3 months) Last updated: February 5, 2020, 23:10 GMT

    Normal flu deaths: “Worldwide, these annual epidemics are estimated to result in about 3 to 5 million cases of severe illness, and about 290,000 to 650,000 respiratory deaths.”

    https://www.worldometers.info/coronavirus/coronavirus-cases/
    https://www.who.int/news-room/fact-sheets/detail/influenza-(seasonal)

    Only time will tell if coronavirus is worse than the normal flu.

  30. JuanP on Wed, 5th Feb 2020 5:44 pm 

    Mak, you are drinking the Kool Aid. The real numbers are so much higher but that is typical of you because you believe what you want to believe

  31. cloggie on Wed, 5th Feb 2020 7:03 pm 

    supertard madcat try 100x death

  32. REAL Davy on Wed, 5th Feb 2020 7:39 pm 

    davyskum on Wed, 5th Feb 2020 5:44 pm

  33. JuanP on Thu, 6th Feb 2020 8:17 pm 

    Human population growth continues unabated; we are adding more than 80 millions to our numbers every year. Global energy demand continues growing. Global fossil fuel demand continues growing, too. People who think that “St. Greta” and the “Woke” crowd are going to change these trends are engaging in mental masturbation.

  34. Davy on Thu, 6th Feb 2020 9:13 pm 

    Welcome back juanpee. Hope you don’t mind if I keep ID Frauding yer handle when yer away. Us stupid hillbillys got nothing better to do for half the year hear in the zarks.

    Old freind.

  35. JuanP is a lunatic on Fri, 7th Feb 2020 4:22 am 

    “Human population growth continues unabated; we are adding more than 80 millions to our numbers every year. Global energy demand continues growing. Global fossil fuel demand continues growing, too. People who think that “St. Greta” and the “Woke” crowd are going to change these trends are engaging in mental masturbation.”

    I wonder what is going on in your head stupid? You make a half way descent comment then you turn mentally ill and trash this board with stupid socks and ID theft. If it was occasional it would be OK but your dumbass does it daily and obsessively.

  36. JuanP is a lunatic on Fri, 7th Feb 2020 4:24 am 

    The lunatic should be banned:

    this is juanPee
    ANSL REAPER said everyone please respect supertard

    REAL Green said Davys a looser. Always was, and always will be….

    Cloggie said Davy exposed.

    Davy said The sad reality of what is happening is I have wea…

    REAL Green Davy said Ask me why I’m a REAL Green HYPOCRITE….. I like to…

    the good news network of muzzies love said hello supertards world supremacist muzzies bag day…

    ANSL REAPER said whitey supertard trump roasted muzzie in yemen and…

    Davy said Yoo spelt America rong agin makato. LMOA at the du…

    Davy said Welcome back juanpee. Hope you don’t mind if I kee…

  37. Antius on Fri, 7th Feb 2020 7:43 am 

    An interesting study carried out for the Geological Survey of Finland. It concludes that a plateau in global oil production was the direct cause of the 2008 economic crisis. Further shortfalls, resulting from the slowdown and bankruptcy of the US shale sector, could be the tipping point for the next crisis. This will be 3 times larger than the 2008 Great Recession.

    http://tupa.gtk.fi/raportti/arkisto/70_2019.pdf

    ‘Starting in January 2005, all commodity prices that the World Bank track to monitor the industrial ecosystem (base metals, precious metals, oil, gas and coal) blew out in an unprecedented bubble. The second worst economic correction in history, The Global Financial Crisis (GFC) in 2008, was not enough to resolve the underlying fundamental issues. After the GFC, the volatility in commodity price continued. This report makes the case that the GFC was created as the entire industrial ecosystem was put under unprecedented stress, where the weakest link broke. That weakest link was in the financial markets. The strain that created this unprecedented stress, was triggered by the global oil production plateauing. This made the oil market in elastic in form. This is postulated to have happened because the Saudi Arabian oil production was unable to increase production in January 2005, in spite a significant increase of operating rig count. If further analysis supports this hypothesis, then the GFC was created by a chain reaction that had its origins in the oil market.’

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