Crude oil rose toward $50 a barrel on Wednesday for the first time in seven months, driven by expectations that shrinking supply will help erode any overhang of unwanted crude, particularly after industry data showed a sharp fall in U.S. inventories.
Crude oil reversed early losses to turn positive on Tuesday, as investors awaited crude oil inventory data from the United States that was expected to show a shrinking supply overhang.Brent futures had gained 26 cents to $48.34 a barrel by 1242 GMT, after closing down 37 cents in the previous session.
Crude oil prices are struggling on short-term fundamentals, but we continue to get a disturbing outlook for our long-term energy future. Weakness enveloped oil, driving it down for the fourth day in a row on reports of oil disruptions getting back online, yet a report from Rystad Energy says that global oil discoveries fell to the lowest level in 63 years as oil companies slashed spending on oil exploration by the most in history.
Reverberations from the oil price crash continue as more bankruptcies and increased geo-political tensions are causing a seismic shift in the long term outlook for energy production. With mounting pressure on oil-producing countries leading to civil unrest and more bankruptcies of highly leveraged oil companies, the bottom of the commodity cycle is well underway. The dominoes are falling and prices are rising.
Today, more than 1,000 residents and 70 partner organizations from around the Midwest region protested at BP Whiting Refinery, demanding that hazardous fossil fuels stay in the ground and that the Midwest Region accelerate a just transition to 100% renewable energy.