The theme for this quarter is resilience. A 6% supply outage in September was unable to push Brent prices above US$70/bbl. Demand concerns, driven by slowing world economic growth and the need to decarbonize, quickly retook the stage despite output from Venezuela and Iran being hindered by political turmoil and international sanctions.
Technology enhancements are a significant contributor to the market’s sanguine attitude towards supply disruption. Operators are able to produce greater volumes, quicker, and at a lower cost. That trend can only continue.
LNG markets continue to mature as traders play an increasing role in directing cargoes and setting prices. The pipeline for LNG projects remains healthy as market participants aim to establish a position in a market that is seen as the best opportunity for growth in oil and gas.