Commodities: Canadian and Venezuelan oil sectors
Oil is an important commodity as it plays a significant role in the global economy. Regional tensions, as well as the trade war between the U.S. and China, influenced the oil prices. There are other issues as well such as global economic problems. All of these factors affected oil prices.
The latest example is the drone attacks on the Saudi Arabian oil infrastructure. According to the information, 25 drones and missiles attacked the oil processing plant and an oilfield in Saudi Arabia. The aftermath of this incident sent shockwaves around the world. As a result, the oil prices increased by more than 19% after the attacks. This once more showed that oil remains as a key element of the global economy.
Oil prices increased on Thursday. The price of Brent crude futures rose by $1.44 to $65.04 a barrel. The price of West Texas Intermediate (WTI) increased by 89 cents to $59 a barrel. The attacks of the second-biggest oil-producing country increased the fears about the oil supplies.
The geopolitical situation in the Middle East is quite difficult; it is hard to say when the conflict will be over. Military confrontation even clashes between the militaries can disrupt the oil industry. It is worth mentioning that the Strait of Hormuz is a strategic place. Iranian military can disrupt the oil supplies. Several incidents already took place in the region between the Iranian military and tankers.
Oil industries around the world
In this situation, it is a good idea to look for alternative markets. One of the best solutions is to become less dependent on Middle Eastern suppliers. There are several ways to achieve that goal and of them is the Canadian oil industry.
The Premier of Canadian Province visited the U.S. to promote the local energy sector. Jason Kenney is the Premier of Alberta. He arrived in the U.S. on September 16 to discuss the cooperation with U.S. companies. At the moment, he is still in the country. Investing in Alberta’s oil industry makes perfect sense. It has a lot of benefits to offer to investors.
The significant advantage is the vast oil resources and massive domestic production. Canada is the neighbor of U.S. which makes it a perfect partner for importing oil. The premier of Alberta talked about the importance of Canadian oil for the global markets.
One of the biggest advantages is that when dealing with Canadian oil companies, there are no geopolitical risks. It means that companies do not have to worry about regional tensions as in the case of the Middle East.
Another country which has the resources to export oil around the world is Venezuela. However, unlike Canada, this South American country first has to deal with the political and economic crisis. U.S. sanctions had a huge impact on the local oil industry. State-owned PDVSA is struggling to find the customers for the Venezuelan oil. Nevertheless, Venezuela can become one of the leaders of the global market if its government is ready to change its plans.
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