Photo: Robert Sullivan Agence France-Presse
Fossil energy displays a resilience insolent in the aftermath of a COP24 little convincing.
In the aftermath of COP24, the oil production remains at record levels and global demand remains strong for coal. There is no change, fossil energy displays a resistance to change.
Oil prices continued their tumble in the futures markets Tuesday. The WTI reference quality in the United States, closed at 46,60 per barrel, falling $ 3.28 US $or 6.6 % on the session. Monday, it fell below US $50 for the first time since October of 2017. In London, Brent crude dropped 3,35 US$, or 5.6 %, to close the session at 56,26 US$, also its lowest price since October of 2017.
In ten weeks, the fall of the reference price of the black gold has reached over 40 % in New York, 35 % in London, the offer will not be disturbed. On Tuesday, market participants holding back that oil production was at record levels in Russia and the United States at the same time that energy demand could falter under the blow of an economic slowdown always more noticeable on radar. “The stabilization of the oil market is already part of the ancient history and the effect of the reduction of the production announced by OPEC has completely evaporated,” noted analysts at Commerzbank.
Against the current of the COP24
In the United States, the u.s. agency for energy information, filed a report in which it anticipates a rise in production of shale oil of 134,000 barrels per day in the United States between December and January, in addition to extractions already records in the country.
In addition to the comments of the international energy Agency (IEA), which last week said that reserves of commercial crude of the countries of the Organisation for economic cooperation and development had increased in October for the fourth consecutive month.
The trend of the market proves to be resistant to change
— Extract from the report of the international energy Agency
Fossil energy displays a resilience insolent in the aftermath of a COP24 little convincing. As the IEA issued Tuesday a report concluding that global demand for coal will continue its march upward over the next five years. The growth of the consumption of this fuel in India and other Asian countries will exceed the expected decline in Europe, the United States and China, said the international agency founded by the OECD. Last year, after two years of decline, it was bullish (+1 %), and the production of electricity from coal was increased by about 3 %. The new early rise would be 0.2 %, on average, per year by 2023, the consumption from 5,355 million tonnes of coal equivalent in 2017 to 5,418 million in 2023.
“Despite the attention paid by the media to the investment decline and disaffection vis-à-vis coal, the trend of the market proves to be resistant to change “, one can read in the report of the IEA, which reminds us that coal remains the second largest source of primary energy in the world, after oil, and the most important source of electricity.
Consumption is expected to decline 0.5% per year in China because of measures to combat air pollution led by Beijing. The application will go in the opposite path in India and elsewhere in Asia.
With Agence France-Presse