The energy sector is in a constant state of transition. Changes in policy, technology, markets, and consumer behavior continue to shift the global energy mix. Our Oil Strategy Series includes our recent commentary, insights and opinion from RBC experts within the Energy sector.
Four-Part Feature
In this four-part Oil Strategy Series, Michael Tran, Managing Director of Global Energy Strategy at RBC Capital Markets explores phantom liquidity and the implications for the next cycle.
The Oil Price Outlook: Calculated Optimism
The market will cycle between periods of equilibrium and deficit in the coming years, as opposed to the recent perpetual cycle of oversupply.
Structural Issues and the Global Investment Cycle
What are the four distinct cycles the forward curve has encountered over the past several decades?
The Dilemma Between Tangible Decisions and Inaccurate Pricing
‘Phantom liquidity’ at the dated portion of the forward pricing curve is misleading markets by skewing term pricing, and, ultimately, impacting the investment decisions of global oil projects and therefore the next cycle.
What Lies Ahead: What Does the Next Oil Cycle Look Like?
Since the downturn, state-owned oil companies have gained a larger role. Electric vehicle growth, the rise of renewable energy and the resulting fight for capital all make the nature of the next oil cycle uncertain.