1. OPEC+ Underproduction Sparks $100 per Barrel Hype
- With crude oil prices breaking the $90 per barrel threshold this week, an increasing number of voices have been forecasting a soon-to-happen surge to $100 per barrel, for the first time since 2014.
- Several OPEC officials surveyed by Reuters claimed that the coming two months might see increased volatility as supply disruptions, such as Libya’s recent month-long force majeure, should remain on the table.
- By November 2021 OPEC+ production was already 650,000 b/d below the intended target, with further discrepancies coming up as West African countries and Russia seem to have hit a production ceiling.
- If OPEC+ continues with its monthly increase over the course of this year, its available spare capacity would drop to a mere 1 million b/d by June 2022, a level that Saudi Arabia has previously avoided for fear of maintaining sustainable production rates at its legacy fields.
2. Clean Tech Stocks Having a Nightmare Start to 2022
- Clean energy stocks have been going through a stormy period, with two indexes that track the sector – WinderHill Clean Energy and S&P Global Clean Energy - falling by 14% and 8%, respectively, since the start of 2022.
- Renewable stocks have been impacted by anticipation of higher US interest rates, speculation about lower solar subsidies in California, and President Biden’s ‘Build Back Better’ program running…