Ksenia

Photo by Alex Kotliarskyi on Unsplash Frictional unemployment, structural unemployment, and cyclical unemployment are three different types of unemployment that occur in the economy. Whether the economy is good or bad, there are always people transitioning between jobs. While these workers can be skilled and have no trouble getting a new job, the size of the labour […]

Photo by Chris LeBoutillier on Unsplash Unburnable carbon is to the notion that the volume of fossil fuels remaining in the ground, specifically that of crude, exceeds humanity’s “budget”, or the carbon emission cap we need to implement to limit temperature rise by 2°C. This forecast turns a significant (majority) portion of world oil reserves into stranded

WTI prices over time (FRED). Speculative bubbles are common to any number of asset classes. The oil market is no exception, with numerous boom-and-bust cycles and periods of speculation dotting the past century. These bubbles significantly impact national and global economic performance and impact the lives of consumers given the integral role of oil as a

Photo by Ben Wicks on Unsplash Much of OPEC behavior is fundamentally driven by the strategies price targeting and market sharing or any mix thereof. OPEC’s capacity utilization critically affects its ability to take new supply online or offline, and thus their ability to respond to changing market dynamics like new players entering the market or a

U.S. Industrial Production (FRED). Economic rent is excess income earned from a resource over the amount that is required to maintain the production and use of the resource. Economic rent is thus very relevant in oil markets and specifically details the extra income—positive spread—earned from oil extraction and sales over operational costs and investments. Private