Biodiesel, biofuels: Is there any hope for the oil boom?
NEW YORK (AP) For some time, the prospect of a major oil boom in the U.S. has dominated global headlines.
It was the biggest story of the year on Wall Street and among oil industry leaders in the run-up to a key OPEC meeting.
The global economy was in a tailspin, with a drop in oil prices and a global recession threatening to destroy the global financial system.
President Donald Trump had declared a war on the global economy, and oil stocks were trading at record lows.
The oil price rally that began with President Barack Obama’s first term was set to last through the end of his second term.
And the industry was set for another boom.
Biodiscovers are the latest to make predictions of a surge in oil consumption and an explosion of new U.N. carbon dioxide emissions.
Oil prices were higher, and OPEC said it would keep its oil output at around $100 per barrel to try to prevent global warming from reaching dangerous levels.
But as the oil price plunged, global stocks of biofuel and carbon-intensive products started to tumble.
It’s unclear whether the downturn was a response to Trump’s actions, the global economic crisis, or both.
The U.K. energy minister warned Thursday that oil prices could be back to $100 next year.
A number of economists, including Paul Volcker, chairman of the Federal Reserve, warned last month that the drop in crude prices would cause global financial instability.
The outlook for the global oil market has been a bit clearer since then.
Brent crude, which has been trading around $70 per barrel since the summer, was up about 5 cents at $70.10 on Thursday.
It has fallen about 10 cents in the past two days, and the benchmark U.L.P. futures price for the benchmark Brent oil fell more than 5 cents.
The price for Brent oil has fallen more than 12 percent in the last three weeks, according to data from Bloomberg New Energy Finance.
“The outlook for oil is pretty positive for the future,” said Paul Dixson, an analyst at JPMorgan Chase & Co. “But it’s also pretty scary.”
The rise in the price of oil has hurt the U