Markets

UK energy major bp warned that the slow global transition from fossil fuels to clean energy is increasing the risk of a

Price pressure came early in the week after Hurricane Beryl largely spared upstream production capacity and concerns arose about the storm taking a bite out of demand in the areas that it impacted.

bp's latest Energy Outlook predicts a significant shift in the global energy landscape, forecasting that global oil demand will reach its peak in 2025 at approximately 102MM b/d.

Energy Secretary Ed Miliband has enacted an immediate ban on new North Sea oil drilling licenses, a move that overrides departmental officials and could lead to legal confrontations with oil companies.

OPEC remains steadfast in its projections for robust global oil demand growth through 2024 and 2025, citing resilient economic conditions and a rebound in summer air travel.

Oil industry executives, surveyed by the Dallas Fed, foresee varying future prices for West Texas Intermediate (WTI).

Hurricane Beryl made landfall in Texas, causing significant power outages in Houston and shipping delays, but it had a limited impact on oil production and refining assets, according to Claudio Galimberti from Rystad Energy.

While US shale oil production has seen significant growth over the past decade, it has also encountered periods of slump.

Even though supply-side concerns related to Hurricane Beryl dissipated early in the week and the risk premium associated with geopolitical tensions in the Middle East faded somewhat later in the week amid ceasefire negotiations, futures prices for benchmark crudes hit fresh multi-week highs.

The future of oil demand is a complex picture with contrasting predictions.