The headlines reacting to OPEC’s April Oil Market Report generally read “OPEC concerned about global oil demand” and as such, oil prices traded down slightly on April 13, despite an overall positive market.
Well, I’m concerned about global oil demand also, so I thought I better read their report. Clearly, the commodity never performs well in the face of stagnant or shrinking economic activity – no commodity does – in fact, nothing does. Except maybe alcohol sales. In any case, I am concerned with exactly how worried OPEC was about global oil demand and by extension, global GDP growth. Guess what? It turns out that despite the green lobby’s insistence, world economic activity is strongly reliant on hydrocarbon consumption and vice versa. Continue reading