Oil prices have fallen for the second consecutive week, with the January ICE Brent futures contract set to expire just below $77 per barrel. However, a major bullish catalyst may be looming in early February if the US slaps punitive 25% sanctions on Canada and Mexico.
A new report by the International Energy Agency’s former head of analysis has identified 23 false assumptions in the organization’s peak-demand scenarios, highlighting potential concerns about the agency’s climate change focus. Meanwhile, global investment in low-carbon energy reached a record $2.1 trillion for the first time, but growth slowed to 11% year-over-year.
Coffee prices continued to hit record highs due to drought-hit supplies from Brazil and low inventories from top roasters such as Nestle. In contrast, the UK has blocked two major oil and gas projects, citing Scope 3 emissions. Japan is also considering support for the Alaska LNG project to appease US President Donald Trump.
Despite ongoing efforts to increase wind energy, Shell reported a $1 billion write-down on its sole remaining offshore wind energy venture. Iraq claims to have cut natural gas flaring by 70% after partnering with TotalEnergies and Baker Hughes. The US Transportation Secretary has directed regulators to rescind President Biden’s landmark fuel economy standards, hiking CAFE requirements for light-duty vehicles.
Kazakhstan remains committed to the OPEC+ balancing act, while Chevron announced plans to build natural gas-fuelled power plants next to data centers in the US Southeast, Midwest, and East. Norway’s government has collapsed over clean energy directives, and the Calcasieu Pass LNG facility is set to start operations in March.
Source: https://oilprice.com/Energy/Energy-General/Why-Oil-Prices-Could-Spike-in-February.html