00:00We have that oil. The world is very well supplied with oil right now.
00:05The United States is a net oil exporter. We're a net natural gas exporter.
00:09We are suffering high prices, not in natural gas, but in oil, because it's a globally connected market.
00:15We're communicating with our allies abroad. The oil is there.
00:19You're seeing a little bit of fear premium in the marketplace, but the world is not short of oil today
00:24or natural gas.
00:25We have no oil shortage. And when I look at the demand, which is the other driver of the price,
00:32demand is about 800,000 bars per day.
00:36And there is a huge surplus in the market.
00:39So I want to say once again, all of us to understand, there is no shortage of oil globally.
00:48The issue is the dislocation. And this is the reason we have this price increase.
00:58U.S. Energy Secretary Chris Wright and IEA Executive Director Fatih Birol stressing there's no global oil shortage and markets
01:07remain well supplied.
01:08Let's take a look at where we are faring on both WTI and Brent.
01:11You are still seeing them hitting almost the 108 handle.
01:16And this is a double digit climb from what we already saw last week, those generational moves on both contracts.
01:23And this is coming against the backdrop of the Iranian war raging on.
01:29You're hearing from the UAE and Kuwait and how they are cutting oil output.
01:34And this is despite the clues that we're getting from the Trump administration, them talking about how this is a
01:43short term pain in terms of energy price spikes.
01:46Bloomberg News Oil Editor, our reporter, Nicholas Wah joins us now.
01:50Nicholas, talk to us about how you are seeing market shaping up now.
01:55It's been an absolutely pivotal week and there's more to come this Monday morning.
01:59How high can things go from here?
02:02Well, I'm afraid to say, Avril, that the sky is the limit at this point.
02:06What's very clear is that we've already seen multiple unprecedented things happen.
02:11Like last week, WTI surged the record 36%.
02:13Today, we've already seen oil break the psychologically significant barrier of 110, not just 100.
02:19People are talking about 100 earlier this weekend.
02:22And I think what's clear is that so long as the disruption doesn't resolve,
02:25don't forget 20% of oil flows globally come out of hormones, right?
02:30So that's a big amount.
02:31So long as that's clearly remaining stuck in the Gulf, people across Asia, the refiners, they're all starving for oil.
02:38And I think that's becoming, as that rhetoric becomes clearer, prices will just keep heading upwards.
02:44Yeah, talk to us about that nuance though, because stuck in the Gulf, stuck in the straits,
02:49infrastructure getting hit as well.
02:51And then you're seeing the tankers that are supposed to be helping to load off these oil products.
02:57They're just stuck as well.
02:58So how much is that combined effect actually playing out in markets?
03:02So I think part of why this is such a big problem is precisely because Asia is a net buyer
03:09of oil.
03:09That's both in terms of crude and in terms of fuels like diesel and gasoline that keep the global economy
03:14going, right?
03:15And the Arab Gulf is a major producer of both of these things.
03:19Like I'm not just talking about crude here.
03:21There are these state-of-the-art like advanced refineries set up in the Arab Gulf that are meant to
03:25supply Asia and meant to supply Europe, right?
03:27They just send barrels where the prices are going higher right now because these swing supplies aren't available.
03:33Like the overall supply available in the Asia basin, that's been crimped by a fair bit.
03:37And I think that's a big part of why the market is on edge.
03:40Like any other shocks to hit, like that's going to send prices even higher.
03:45Right now, everything's already so delicate.
03:48Any little move, any little shift in balances is going to have an outsized impact.
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