#IGCommodityChat: the murky future of oil

Join us on Thursday 29 November at 1pm (UK time) for the second #IGCommodityChat, when we’ll sit down with two commodities experts and give you a chance to ask them questions as part of a live Q&A. Get involved on Twitter or Facebook using #IGCommodityChat.

Oil pipes
Source: Bloomberg

The demand for oil has increased over the last few decades due to the rise of emerging economies and the requirements of the transport industry. However, in recent years, concerns have been raised about how sustainable oil supply and demand actually are. In fact, the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, mainly Russia, have restricted oil production in order to provide support for oil prices.

The most significant force influencing oil demand is the rise of renewable energy. As investment in alternative energy grows, the future of the oil industry is starting to look like one of decline. Oil and gas companies might be forced to rethink their long-term strategies in order to secure a role for themselves in the new energy economy. Although it will likely be a number of decades before the oil market sees the full consequences of these changes, OPEC has lowered its predictions for world oil demand for the rest of 2018 and 2019.

With so much uncertainty surrounding the future of the oil market, we’ll be taking a look at how the industry changes might influence the price of oil. You can watch the live stream at 1pm (UK time) on Thursday 29 November via the trading platform, or our YouTube, Facebook and Twitter pages.

About the experts

Malcolm Graham-Wood has over 30 years of experience in the oil and gas sector. He has worked for a variety of leading companies within the industry, as well as starting his own consultancy firm. More recently, Malcolm has taken on an advisory role, working with companies such as HSBC, and writing the acclaimed malcysblog.com.

Spencer Welch is the director of oil markets, downstream and energy at IHS Markit. He leads the crude oil valuation and marketability studies for Europe, the Middle East and Africa regions. Spencer previously worked for BP for 13 years, giving him a wealth of experience in refinery process engineering and production planning.

What will we talk about?

The discussion will cover a wide range of topics that relate to oil, including:

  • How the agreement between OPEC and non-OPEC countries will influence supply
  • The impact of political sanctions on oil producing countries
  • How the emergence of alternative energy sources has impacted the oil market
  • How the flotation of the Saudi Arabian Oil Company (Aramco) will affect the oil market

There will also be a live Q&A during the session, so you can put forward any topics you’d like Malcolm and Spencer to discuss, or any questions you want answered. Post your questions to the #IGCommodityChat Community page, or use #IGCommodityChat on Twitter or Facebook to get involved.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.