2018 Midyear Global Outlook
What’s in store for the second half of 2018? Get the Ivy Investments team’s views in our Global Midyear Outlook.
In a trade that illustrates how the rise of the American shale industry is upending global energy markets, the United Arab Emirates (U.A.E.) bought oil directly from the U.S. in December, reports Bloomberg.
The cargo of American condensate, a type of very light crude oil, that arrived in the Persian Gulf last month – in a tanker that sailed from Houston – is preferred to regional grades because its superior quality is more suitable for the U.A.E.’s processing plants.
The end of a ban on U.S. exports in 2015, coupled with the explosive growth of shale production, has changed the flow of petroleum around the world. Shipments from U.S. ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million as of November, traveling as far as China and the U.K.
Although it exports more than two million barrels a day, the U.A.E. typically imports extra-light condensate to process in a unit known as a splitter. Until last year, the U.A.E. relied on Qatar for its condensate supply. But the two countries are embroiled in a political dispute, and the U.A.E. decided in June to ban all petroleum shipments from Qatar. (Source: Bloomberg)
Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.