Latest news with #OrganisationofPetroleumExporting
The Citizen
23-06-2025
- Business
- The Citizen
Iran strike: Another fuel crisis looming?
Sharp curbs on exports reminiscent of 1973 may follow. Participants shout slogans during an anti-war demonstration in Boston, Massachusetts, on 22 June 2025, protesting US strikes on Iranian nuclear sites. Picture: Joseph Prezioso / AFP Will the history of just over 50 years ago repeat itself in the form of another Middle East oil boycott or shortage, following the US intervention in the war between Israel and Iran? That's the question consumers – and especially motorists – as well as experts are pondering in the wake of the weekend air strikes by American bombers of Iran's nuclear facilities. In 1973, the Arab-Israeli war saw the Arab-dominated Organisation of Petroleum Exporting Countries putting in place sharp curbs on exports. This not only forced a massive rise in fuel prices, but saw many countries in the West hit by sudden fuel shortages. Drastic steps taken in SA during fuel shortage In South Africa, the government took drastic steps, including lowering the national speed limit from 120km/h to 80km/h and banning fuel sales after hours and over weekends. The trauma of that fuel shortage led directly to the then National Party government establishing a Strategic Fuel Reserve for the country. ALSO READ: Did the US strikes succeed, and how will Iran respond? Economist Dawie Roodt said SA can expect some more clarity on what exactly to expect in the days to come. 'We will have to wait and see,' he said, adding it might affect petrol prices and inflation rate and weaken the rand. 'This could be quite a thing for South Africa. It just depends on how long it goes on and how serious it is,' he said. Senior political lecturer at North-West University Dr Benjamin Rapanyane said conflicts like this one have a way of disrupting international peace and the flow of trade. 'The worst-case scenario would be the disruptions of shipments in the Strait of Hormuz. This may have a devastating impact on Africa in general and South Africa in particular,' he said. ALSO READ: US joins Israel-Iran conflict with overnight bombing campaign Political analyst Piet Croucamp said it could mean nothing or something. 'Nothing in the sense of let's stay out of it, which is hardly possible given the court case SA has against Israel,' he said. 'There's a universal condemnation of Israel for what they have been doing in Gaza and also the attack on Iran, which is against the United Nations resolutions.' Croucamp said it might be hard for SA to stay out of it. 'So many people around the world are concerned about the consequences of what is being done to Iran, but we are also concerned about Gaza,' he said. 'We dare not shut up. We have to say something. Not from a moral high ground because we cannot afford that, too, but it doesn't mean that we don't get to say something.' ALSO READ: What Israel–Iran conflict means for South African economy Political analyst Roland Henwood said there were no immediate implications. 'Indirectly, it will depend on how the situation develops. Politically, the reaction from SA, Brics and other international organisations and governments will be important to follow,' he said. 'If SA reacts very strongly against America and in favour of Iran, it may have negative political consequences. Other outcomes will include the effects of increased oil prices.' Henwood said this may have short-term or long-term implications for the country. 'So far, the reactions from the rest of the world have been rather muted. We will have to see how this situation develops,' he added.
South China Morning Post
15-04-2025
- Business
- South China Morning Post
Trump making fossil fuels great again has global implications
The era of hydrocarbons is accelerating under the second Trump administration, posing a direct threat to global climate goals and putting years of clean energy progress at risk. On his first day in office, US President Donald Trump declared a national energy emergency and signed an executive order establishing the National Energy Dominance Council. Headed by Interior Secretary Doug Burgum, its mandate revolves around fast-tracking oil, gas and coal development. Advertisement This aggressive stance was reinforced by a series of executive orders focused on reviving the coal industry , which Trump described as 'beautiful' and 'clean'. Surrounded by coal miners at the White House, he pledged to accelerate leases for coal mining on federal land and eliminate permitting delays that have long hindered coal expansion. The administration has not limited its efforts to the federal level. It has also taken aim at state-driven climate initiatives, seeking to override local authority and weaken environmental protections. Moves to block California's cap-and-trade policies, halt enforcement of penalties against fossil fuel firms in New York and Vermont and shut down climate lawsuits targeting oil companies all reflect a broader strategy to consolidate fossil fuel influence across every level of government. The recent approval of liquid natural gas exports from Commonwealth LNG in Louisiana marks the first authorisation since president Joe Biden's moratorium five years ago. These initiatives signal a shift in US strategy towards treating energy infrastructure not merely as economic development but as instruments of geopolitical influence. Trump's declaration that US oil reserves are 'liquid gold' highlights his administration's commitment to fossil fuel dominance. By positioning the US as a global energy powerhouse, Trump aims to challenge the Organisation of Petroleum Exporting Countries' influence and assert US control over fast-growing energy markets in Asia. Storage tanks are seen at the North Jeddah bulk plant, an Aramco oil facility, in Jeddah, Saudi Arabia, on March 21, 2021. Photo: AP In further moves to increase US energy influence, the Trump administration has imposed new sanctions targeting Iran's oil industry and a surprise 25 per cent tariff on countries importing Venezuelan crude oil and gas . This has disrupted supply chains across Asia and pushed up oil prices amid increased geopolitical risk. Trump has spared Russia from being part of the 'reciprocal' tariffs, but the trade war he has sparked could bring about falling oil prices which in turn would destabilise the Russian economy.
Shafaq News
04-04-2025
- Business
- Shafaq News
Oil set for worst week in months over Trump's new tariffs
Shafaq News/ Oil prices fell further in early Asian trade on Friday, and were on track for the worst week in months over U.S. President Donald Trump's new tariffs, stoking concerns over a global trade war that could weigh on oil demand. Brent futures fell 31 cents, or 0.4%, to $69.83 a barrel by 0157 GMT. U.S. West Texas Intermediate crude futures were down 32 cents, or 0.5%, to $66.63. Brent was on course for its biggest weekly loss in percentage terms since the week ended October 14, and WTI since the week ended January 21. Adding to the bearish sentiment was a decision by the Organisation of Petroleum Exporting Countries and their allies (OPEC+) to advance their plan for oil output increases, with the organisation now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned. "This brings forward the expected surplus that we see in the oil market this year. More OPEC+ supply should translate to more medium sour crude oil and a wider Brent-Dubai spread," analysts at ING said on Friday. "This spread has seen an unusual discount for much of the year." Both benchmarks started plunging lower since Trump's news conference on Wednesday afternoon, which he called "Liberation Day" as he announced a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners. Imports of oil, gas and refined products were exempted from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.
Zawya
04-04-2025
- Business
- Zawya
Oil set for worst week in months over Trump's new tariffs
Oil prices fell further in early Asian trade on Friday, and were on track for the worst week in months over U.S. President Donald Trump's new tariffs, stoking concerns over a global trade war that could weigh on oil demand. Brent futures fell 31 cents, or 0.4%, to $69.83 a barrel by 0157 GMT. U.S. West Texas Intermediate crude futures were down 32 cents, or 0.5%, to $66.63. Brent was on course for its biggest weekly loss in percentage terms since the week ended October 14, and WTI since the week ended January 21. Adding to the bearish sentiment was a decision by the Organisation of Petroleum Exporting Countries and their allies (OPEC+) to advance their plan for oil output increases, with the organisation now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned. "This brings forward the expected surplus that we see in the oil market this year. More OPEC+ supply should translate to more medium sour crude oil and a wider Brent-Dubai spread," analysts at ING said on Friday. "This spread has seen an unusual discount for much of the year." Both benchmarks started plunging lower since Trump's news conference on Wednesday afternoon, which he called "Liberation Day" as he announced a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners. Imports of oil, gas and refined products were exempted from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.
Reuters
04-04-2025
- Business
- Reuters
Oil set for worst week in months over Trump's new tariffs
April 4 (Reuters) - Oil prices fell further in early Asian trade on Friday, and were on track for the worst week in months over U.S. President Donald Trump's new tariffs, stoking concerns over a global trade war that could weigh on oil demand. Brent futures fell 31 cents, or 0.4%, to $69.83 a barrel by 0157 GMT. U.S. West Texas Intermediate crude futures were down 32 cents, or 0.5%, to $66.63. Brent was on course for its biggest weekly loss in percentage terms since the week ended October 14, and WTI since the week ended January 21. Adding to the bearish sentiment was a decision by the Organisation of Petroleum Exporting Countries and their allies (OPEC+) to advance their plan for oil output increases, with the organisation now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned. "This brings forward the expected surplus that we see in the oil market this year. More OPEC+ supply should translate to more medium sour crude oil and a wider Brent-Dubai spread," analysts at ING said on Friday. "This spread has seen an unusual discount for much of the year." Both benchmarks started plunging lower since Trump's news conference on Wednesday afternoon, which he called "Liberation Day" as he announced a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners. Imports of oil, gas and refined products were exempted from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.
