The Next Major Wildcard For Oil

oil wildcard jet fuel oopssomething
Gulf
  • Date: 07/19/2021
  • Source: Yahoo News
  • Sector: Oil & Gas
  • Country: Gulf

The Next Major Wildcard For Oil

Editor OilPrice.comJuly 18, 2021, 12:00 PM·4 min readIn this article: Oil prices have been reeling ever since OPEC+ talks collapsed due to major disagreements by its members. Major cracks appeared in the ministerial meeting with the United Arab Emirates continuing to block an agreement because it wants to increase its oil production before demand falls as per WSJ. The market fears that the UAE might "want out of OPEC so it can pump 4M bbl/day and make hay while the sun shines," Phil Flynn, market analyst at Price Futures Group, has told MarketWatch. But, somehow, the oil price outlook keeps getting worse.Fresh travel restrictions in Asia have just dashed hopes for a recovery in jet fuel demand this year and worsened the outlook for the entire refining sector due to a resurgence in COVID-19 infections.Asia's worsening pandemic due to the Delta Covid-19 variant is expected to keep flights grounded and poses a serious challenge to refiners despite more encouraging trends in Europe and the United States.Weak Jet fuel margins"The persistent weakness in jet fuel cracks would definitely weigh on overall refining margins in Asia. There is a part of the jet