Good news for oil prices; Shell quits over climate disagreement

Banks Lift Oil Price Forecasts for 2019
Christopher Alessi, The Wall Street Journal, April 2, 2019

Banks raised their forecasts for the price of Brent crude, the global oil benchmark, in 2019, as the market continues to be supported by production cuts led by the Organization of the Petroleum Exporting Countries, as well as geopolitical risks to supply. Brent crude is expected to average just over $68 a barrel this year, according to a poll of 12 investment banks conducted by The Wall Street Journal in March, compared with a forecast of $67 a barrel in February. The banks predicted prices will continue to rise through April-June this year, before falling back toward the end of 2019 

Shell to quit U.S. refining lobby over climate disagreement
Ron Bousso, Reuters, April 2, 2019

Royal Dutch Shell on Tuesday became the first major oil and gas company to announce plans to leave a leading U.S. refining lobby due to disagreement on climate policies. In its first review of its association with 19 key industry groups, the company said it had found “material misalignment” over climate policy with the American Fuel & Petrochemical Manufacturers (AFPM) and would quit the body in 2020. The review is part of Shell’s drive to increase transparency and show investors it is in line with the 2015 Paris climate agreement’s goals to limit global warming by reducing carbon emissions to a net zero by the end of the century.

Related:

              Overnight Energy: Pompeo says Paris accord ‘didn’t change a thing’

Secretary of State Mike Pompeo said the Paris climate agreement that more than 170 countries have committed to has failed to “change a thing” on global emissions. “Go look at the countries that are still in the Paris agreement and see what their CO2 emissions were. It’s one thing to sign a document; it’s another thing to actually change your behavior,” Pompeo told reporters Monday.

Our Take: Actions speak louder than words. Signing an agreement doesn’t do anything to reduce emissions. The US leads the world in emissions reductions and hasn’t signed the Paris Agreement.