The threat of tariffs, the war of words, and the sheer fickleness in policy—these are some of the characteristics of the global economic order in general and commodity markets in particular. Canada’s oil exports to the U.S. are significant for the country, and imposing sanctions will not only hurt Canada but also consumers in the U.S. As such, this update explores the impact on wider oil markets while also providing our readers with insights into the OFS industry and macroeconomic trends.
1. MMV: What is the relationship between FSC and U.S. oil production? – PREMIUM
The threat of imposition of tariffs on oil imports from key trading partners like Canada, Mexico, and China is reshaping the dynamics of crude flows and refining economics in North America. While such a development has been put on hold, these tariffs, which range from 10% to 25%, particularly target heavy and sour crude, a critical feedstock for U.S. refiners can significantly impact U.S. energy security and have reverberations across the global oil markets. Read the article to learn the impact of such a development in detail.
2. MST: Growth, inflation, and policy shifts – PREMIUM
Markets aren’t just reacting to numbers—they’re reacting to narratives, and right now, the story is anything but straightforward. The Eurozone is juggling rate cuts with stubborn structural issues, the U.S. is walking a tightrope between solid job growth and fresh inflation threats, and China’s rebound feels strong on the surface but fragile underneath. This week’s Market Sentiment Tracker breaks down the noise, cuts through the headlines, and gets to the heart of what’s really driving the global economy. Buckle up—because beneath the data, there’s a bigger story unfolding.
3. PRIMARY VISION INSIGHTS – ENTERPRISE
The crude markets cooled off a bit after a strong spike above $80 Brent, but as we highlighted in our previous write up- we expected the price to fall back in the $73-$78 range. We still believe that $75 will be the longer running average throughout Q1’25. Heading into 2025, Mark Rossano, our senior analyst, expect to see a bit more weakness on the demand side, which has played out so far. Read this mandatory essay on the state of global oil markets and the wider macro-economic situation in key economic regions.
4. BAKER HUGHES’ PERSPECTIVE: Q4 TAKEAWAYS – PREMIUM
In Q4, RES faced the typical seasonal slowdown, including operators’ budget exhaustion, holiday downtime, and adverse weather. Despite the general weakness in its other service lines, RES demonstrated relatively robust results in pumping as performance improved compared to Q3. However, lower demand for legacy diesel equipment resulted in pricing undercuts. Click the article to learn more.
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