*Oil Slides 5% to Lowest Levels Since June*
Oil futures settled 5% lower yesterday with Brent dropping to $39.53 which was the lowest level since June, and WTI at 8% lower after Saudi Arabia announced price cuts to its October selling prices. The Aramco price cuts made WTI unattractive to Asian buyers said analyst Phil Verlegler at PK Verleger LLC. However, oil has recovered from the historic April lows thanks to OPEC+ with another meeting due on 17th September.
*Iraq Forges US Energy Ties, but Election May Shape Oil Strategy*
The Iraqi prime minister had concluded his visit to the US with a view of shoring up ties with the US over energy deals, yet Trump’s continuing hostility towards Iran is causing internal fragility for Iraq as they rely heavily on Iranian gas and electricity reports S&P. The race for the White House will undoubtedly change this stance as a Biden win would see a more reconciliatory approach to Tehran.
*Global Oil Demand to Return to Pre-Crisis Levels in Three Years*
Experts predict that pre-pandemic demand will return, but in three years’ time according to Bank of America studies in oilprice.com. Road fuel has been a key driver of oil demand recovery but the dent to the aviation industry has held total demand low as it struggles to take off again due to increased lockdown measures and lack of a viable vaccine to combat the virus.
*Saudi Arabia Advances Nuclear Power Agenda*
Saudi have won the support of the International Atomic Energy Agency to adopt a nuclear energy program. The country have been actively seeking partners in its generation capacity, having identified the US, but the States are cautious and have made it clear that they would only assist if it agrees to prevent the weaponization of the nuclear power generated according to reports from Reuters. The Region has traditionally relied on fossil fuels for power generation, which marks an interesting shift to a generation of a quarter of the region’s energy needs through nuclear.