Tag Archive for: oilandgas

Crude oil prices were set for a third weekly rise due to concerns over supply after Trump threatened tariffs on Venezuelan crude and increased sanctions on Iran.

Oil prices set to extend winning streak on US sanction action

Crude oil prices were on course for their third weekly rise as concern grew about supply after President Trump threatened 25% tariffs on any country buying Venezuelan crude while stepping up sanctions on Iranian entities.

At the time of writing, Brent crude was trading at $73.91 per barrel while West Texas Intermediate was changing hands for $69.80 per barrel, both set to end the week about $1 per barrel higher than they started it.

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Source: Oil Price

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Discover the importance of title research in securing mineral rights and preventing legal issues, disputes, and financial losses in the oil, gas, and mining industries.

The Role of Title Research in Securing Mineral Rights

DISCLAIMER: We are not financial advisors. The content on this website is for educational purposes only and merely cites our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!

Securing mineral rights is a crucial aspect of the oil, gas, and mining industries. These rights allow individuals or companies to explore and extract valuable resources from beneath the earth’s surface. However, obtaining mineral rights isn’t as simple as acquiring a piece of land. Proper title research is an essential part of the process that ensures the validity and security of these rights. Without thorough title research, buyers or lessees may unknowingly acquire disputed or flawed mineral rights, leading to legal challenges, financial losses, and missed opportunities.

In this article, we will explore the importance of title research in securing mineral rights. We will dive into the process, the benefits, and the consequences of not conducting proper title research. By the end, readers will have a comprehensive understanding of why title research is vital for securing and maintaining mineral rights.

Understanding Mineral Rights

Before diving into the role of title research, it’s essential to first understand what mineral rights are and why they are valuable. Mineral rights refer to the legal rights to explore, extract, and sell the minerals found beneath a particular piece of land. These rights can be bought, sold, or leased independently of the land itself, which is known as the surface rights.

There are two main categories of mineral rights: ownership and leasehold rights. Ownership rights refer to the outright ownership of the minerals, while leasehold rights refer to the temporary rights granted to an individual or company to extract minerals for a set period.

The value of mineral rights often depends on the potential for extracting valuable resources like oil, gas, coal, precious metals, and other minerals. However, these rights are often complicated by legal issues, including prior ownership transfers, competing claims, and various local regulations.

What Is Title Research?

Title research, also known as title examination or title search, is the process of investigating and verifying the legal ownership of mineral rights. This process involves reviewing public records, deeds, legal documents, and other relevant sources to determine who owns the mineral rights to a specific piece of land. Title researchers examine historical transactions, court rulings, and any liens or encumbrances on the property to ensure that the mineral rights are clear, valid, and transferable.

The primary goal of title research is to ensure that the person or entity seeking to acquire the mineral rights has the legal authority to do so and that no disputes or legal issues will arise during the transaction. Title research also helps identify any conditions, limitations, or stipulations that might affect the value or usability of the mineral rights.

The Title Research Process

The title research process can be complex and time-consuming, but it is necessary to ensure the legal validity of mineral rights. Below are the steps involved in conducting thorough title research for mineral rights:

  • Gathering Property Information The first step in the title research process is to gather information about the property in question. This includes the legal description of the property, which is typically found in public records or land deeds. The legal description should include boundaries, landmarks, and other identifying features that define the property.
  • Searching Public Records Public records are the foundation of title research. These records include land deeds, lease agreements, court rulings, and tax records that detail the transfer of mineral rights over time. Researchers often begin by searching the local county clerk’s office, the Bureau of Land Management, or other governmental bodies for relevant information.
  • Examining Deeds and Contracts Deeds and contracts are essential documents in the title research process. They provide information on the original owners of the mineral rights, as well as any subsequent transfers, sales, or leases. This step also involves examining any mineral rights agreements that might include clauses about royalties, obligations, or restrictions on the use of the rights.
  • Investigating Liens and Encumbrances Liens and encumbrances are legal claims against the property that could affect the ownership or use of the mineral rights. This includes mortgages, unpaid taxes, judgments, or any other financial obligations tied to the property. Title researchers examine these to ensure there are no outstanding issues that could prevent a transfer of ownership.
  • Verifying Ownership One of the most critical aspects of title research is verifying the current ownership of the mineral rights. Researchers track the chain of ownership from the original grant of the mineral rights through subsequent transfers to the present holder. This involves reviewing various public records and legal documents to establish a clear and unbroken chain of ownership.
  • Identifying Potential Issues or Disputes As researchers investigate the history of the mineral rights, they may uncover potential issues or disputes, such as conflicting ownership claims or challenges to the validity of past transactions. These issues must be resolved before any transaction can proceed. Resolving disputes may require legal action, such as litigation or negotiation.

The Importance of Title Research in Securing Mineral Rights

Title research is essential for a number of reasons, and its importance cannot be overstated. Below are some of the primary reasons why conducting proper title research is crucial for securing mineral rights:

  • Preventing Ownership Disputes One of the primary functions of title research is to prevent ownership disputes. Without a thorough investigation into the history of the mineral rights, a buyer or lessee could unknowingly acquire rights that are disputed by another party. These disputes can lead to costly legal battles, delays, and even the loss of rights.
    Title research helps identify any competing claims, allowing the buyer to resolve any issues before moving forward with the acquisition. This reduces the risk of legal conflicts down the road and ensures that the transaction is secure.
  • Ensuring Legal Validity Mineral rights must be legally valid and transferable for a sale or lease to be executed properly. Title research ensures that the mineral rights being acquired are not encumbered by any legal issues, such as unpaid taxes, liens, or restrictions. This protects the interests of both the buyer and the seller and ensures that the transaction can proceed smoothly.
  • Facilitating Smooth Transactions Title research helps streamline the buying or leasing process by providing a clear and unambiguous record of ownership. With this information, the parties involved in the transaction can move forward with confidence, knowing that the mineral rights are properly documented and transferable.
  • Preventing Financial Losses Purchasing or leasing mineral rights without conducting proper title research can result in significant financial losses. If the mineral rights are encumbered by liens or if they are not properly owned by the seller, the buyer could end up losing their investment. Title research helps mitigate these risks by identifying any potential issues ahead of time.
  • Verifying Land Access Rights Title research also ensures that the buyer or lessee has access to the land required for mineral extraction. This includes verifying that the surface rights and mineral rights are properly separated and that the necessary easements or access agreements are in place. Without this verification, the buyer may encounter obstacles when trying to access the land for exploration or development.

Common Challenges in Title Research

Although title research is essential for securing mineral rights, it is not without its challenges. Some of the common difficulties faced during the title research process include:

  • Incomplete or Inaccurate Records In some cases, public records may be incomplete, inaccurate, or poorly maintained. This can make it difficult for researchers to trace the ownership history or identify potential issues. Inaccurate records can lead to delays in the research process and may require additional effort to resolve.
  • Conflicting Claims Conflicting ownership claims can arise when multiple parties believe they hold rights to the same mineral resources. This can be particularly challenging in cases where land has been passed down through generations or where ownership has changed hands multiple times. Resolving these conflicts often requires legal intervention.
  • Unclear Deeds or Contracts In some instances, deeds or contracts may be vague, outdated, or poorly worded, making it difficult to determine the true extent of the mineral rights being transferred. This can create confusion and lead to disputes over the terms of the agreement.
  • Changes in Land Ownership Changes in land ownership, such as the subdivision of land or changes in legal descriptions, can complicate the title research process. Researchers must carefully track these changes to ensure that all relevant parties are included in the transaction.

The Role of Legal Experts in Title Research

Given the complexity of title research, it is often advisable to enlist the help of legal professionals or title companies specializing in mineral rights. These experts have the knowledge and experience to navigate the legal landscape, identify potential issues, and ensure that the title research process is conducted thoroughly and accurately. Legal experts can also help resolve disputes, negotiate contracts, and provide guidance on the proper steps to secure mineral rights.

 

Title research plays an indispensable role in securing mineral rights. It ensures that ownership is properly verified, preventing disputes, legal complications, and financial losses. By carefully examining public records, deeds, and contracts, title researchers help establish a clear and unbroken chain of ownership that allows for smooth transactions and minimizes risks.

For anyone involved in acquiring, selling, or leasing mineral rights, conducting thorough title research is essential. While the process can be complex and time-consuming, the benefits of securing mineral rights that are free of legal issues far outweigh the potential risks. Working with legal professionals and experts in the field can further enhance the accuracy and efficiency of title research, helping ensure that mineral rights are acquired and managed responsibly.

 

Oil prices climbed this week as OPEC+ committed to controlling supply while Trump continued his efforts to choke Iran's oil industry.

Upside ahead for oil prices as supply comes into focus

Oil prices climbed this week as OPEC+ committed to controlling supply while Trump continued his efforts to choke Iran’s oil industry.

Buoyed by Trump’s continued pressure on Iran and OPEC+’s renewed efforts to send prices higher ahead of its April meeting by committing to additional overcompensation plans, ICE Brent is creeping back closer to the $75 per barrel mark, posting its second weekly gain. The oil markets have become desensitized to US Federal Reserve meetings and with the awkward implementation of the 30-day ban on energy strikes between Russia and Ukraine, there might be further upside ahead for crude.

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Source: Oil Price

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Discover the importance of Pugh Clauses in oil and gas lease agreements, and how they protect landowners and energy companies while promoting efficient land use.

Understanding Pugh Clauses in Oil and Gas Lease Agreements

DISCLAIMER: We are not financial advisors. The content on this website focusing on understanding Pugh Clauses is for educational purposes only. We merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!

In the oil and gas industry, lease agreements are essential legal instruments that outline the rights, responsibilities, and obligations of both landowners and energy companies. Among the various clauses commonly included in these agreements, the Pugh Clause is one that stands out as an important provision for lessors (landowners) and lessees (energy companies) alike. The clause plays a pivotal role in determining the scope and terms of a lease, especially regarding how landowners use the land and how they manage leasehold interests.

 

This article will delve into the nature of Pugh Clauses, exploring what they are, how they function within oil and gas lease agreements, and their significance to both lessors and lessees. By the end of this discussion, readers will have a comprehensive understanding of Pugh Clauses and their impact on leasehold rights and obligations in the oil and gas sector.

What Is a Pugh Clause?

A Pugh Clause is a provision that oil and gas companies commonly insert into lease agreements, allowing them to release or terminate certain portions of a lease if they do not actively develop or produce resources from those areas. Essentially, it provides a mechanism for lessors to regain control over unused or unproductive land while they maintain a lease over areas that the company is actively developing or producing.

The main goal of a Pugh Clause is to protect the landowner’s interests by ensuring that energy companies do not hold large tracts of land unnecessarily or for prolonged periods without making efforts to explore or produce resources.

Without this clause, an energy company could potentially hold vast expanses of land indefinitely, even if it uses only a small portion for exploration or production purposes.

The Role of Pugh Clauses in Oil and Gas Leases

Oil and gas lease agreements are typically structured to give the lessee the right to explore and extract resources from a specific parcel of land. The lease may be valid for a set period, often with a primary term, and may include provisions for renewal or extension. However, as exploration and production activities proceed, it is common for energy companies to focus their efforts on specific areas where resources are most abundant, leaving other areas dormant.

In the absence of a Pugh Clause, if an energy company decides to stop production or exploration on certain parts of the land, it could retain control over these areas without any obligation to develop them. This situation could lead to inefficiency and stagnation, as the lessor may not be able to lease those unproductive portions of land to other potential developers.

A Pugh Clause addresses this issue by allowing the lessor to “free up” non-producing or non-explored areas of the lease, thereby making them available for new lease agreements or other uses. Essentially, it divides the lease into different sections, ensuring that only the active portions of the leasehold remain in effect while releasing the less productive parts.

Types of Pugh Clauses and Their Variations

There are two main types of Pugh Clauses commonly found in oil and gas lease agreements:

  • Shut-In Clause A shut-in clause allows the lessee to suspend production for a certain period without the lease being automatically terminated.While companies typically use this provision when production temporarily ceases (due to factors like low commodity prices or equipment failure), they can also use it in the context of Pugh Clauses. If operators suspend production and the lessee fails to re-establish production within a defined timeframe, the shut-in clause will effectively allow them to terminate or reduce the lease’s scope.
  • Pugh Clause with a Depth Limitation This version of the Pugh Clause is more specific in that it allows the lessor to regain rights to certain depths or formations of the property. In such cases, the lease might specify that if the lessee does not develop or explore specific formations or depths within a defined period, the lease on those areas will be terminated or released.

HowUnderstanding Pugh Clauses Benefit Landowners (Lessors)

For landowners, Pugh Clauses serve several important functions. Below are some of the key benefits:

  • Prevention of Land Hoarding One of the primary benefits of a Pugh Clause is that it prevents the energy company from holding onto land indefinitely without any obligation to develop or produce from it. Without a Pugh Clause, an energy company could keep a large tract of land under lease, even if only a small portion is productive. This land could sit unused for many years, depriving the landowner of potential income from leasing that land to other companies.
  • Ensuring Fair Compensation Landowners want to be fairly compensated for the use of their land. If a lessee controls large portions of land without actively producing, the landowner may not receive adequate compensation. By using a Pugh Clause, the landowner ensures that only actively producing areas remain under lease, allowing them to re-lease non-producing sections for additional revenue.
  • Flexibility in Lease Management Pugh Clauses offer flexibility to landowners by allowing them to regain control over parts of their property. This can be especially valuable if the landowner wishes to pursue other business opportunities or leases with different energy companies. It also provides the option of leasing to companies that may have a greater interest in exploring or developing underused portions of the land.
  • Promoting Efficient Land Use With a Pugh Clause, landowners are better able to encourage more efficient land use. Since the clause encourages lessees to either develop or release land that is not being used, it helps ensure that only the portions of the land that are productive remain leased. This can help maintain the overall value of the land and promote sustainable resource development practices.

How Understanding Pugh Clauses Benefit Energy Companies (Lessees)

While landowners often see Pugh Clauses as primarily beneficial, energy companies can also gain some advantages from them. The key benefits for lessees include:

  • Protection Against Overwhelming Land Requirements Energy companies typically lease large tracts of land to ensure they have access to the resources necessary for exploration and production. However, it is often the case that only specific portions of the leased land are productive or contain viable resources. A Pugh Clause provides energy companies with the flexibility to focus on the areas that are likely to produce resources while shedding areas that are less promising.
  • Avoiding Unnecessary Lease Termination Without a Pugh Clause, an energy company may risk having an entire lease terminated if they stop production in one area of the land. This could result in losing access to more productive portions of the land. The Pugh Clause allows the lessee to continue operations in productive areas while giving them the option of releasing non-productive portions.
  • Focus on Productive Areas The ability to release non-productive portions of a lease gives energy companies the opportunity to concentrate their efforts and investments on areas that are more likely to yield positive results. When resources are limited, companies need to prioritize their exploration and development activities, which is especially important. 

Challenges of Pugh Clauses in Oil and Gas Leases

While Pugh Clauses provide significant benefits, they also present challenges, both for landowners and energy companies. These challenges include:

  • Disputes Over Land Usage Disputes may arise over the interpretation of what constitutes “active” development or production. For example, energy companies may argue that they are making reasonable efforts to develop land, while landowners may insist that the company is not meeting its obligations under the Pugh Clause. Such disputes can lead to legal battles or delays in lease renewal or termination.
  • Complexity in Lease Negotiations Including a Pugh Clause in a lease agreement can add complexity to negotiations. Both parties must clearly define what constitutes production or development and agree on timelines for active work.Landowners and energy companies may need to work with legal professionals to ensure that they properly draft the Pugh Clause to reflect their intentions.
  • Uncertainty for Landowners Although the Pugh Clause allows landowners to regain control over portions of their land, it also introduces uncertainty. If the energy company releases parts of the land due to the clause, the landowner may end up with a smaller leasehold area or fewer lucrative opportunities.Furthermore, they may face difficulties in finding new tenants or companies interested in leasing those portions.

In Conclusion

Understanding Pugh Clauses are a critical component of oil and gas lease agreements that provide benefits to both landowners and energy companies. They offer landowners a way to ensure that they can return unused or unproductive land for other uses, promoting more efficient land management and fair compensation. For energy companies, Pugh Clauses provide flexibility and the ability to focus on productive areas while avoiding unnecessary lease termination.

However, Pugh Clauses also bring challenges, including potential disputes and added complexity in lease negotiations. As with any provision in an oil and gas lease agreement, it is essential that both parties understand the terms and conditions of the Pugh Clause to ensure that the lease agreement meets their needs and expectations.

In the dynamic and complex world of oil and gas exploration, Pugh Clauses help create balance and offer a way to address the needs of both lessors and lessees. They contribute to the long-term sustainability and success of oil and gas ventures by ensuring that they develop resources responsibly and efficiently.

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US Secretary Doug Burgum thanked the oil and gas industry for driving innovation, boosting production, and enabling new extraction areas.

Interior Secretary welcomes more oil and gas extraction to secure energy dominance

US Secretary of the Interior, Doug Burgum, on Wednesday set out to sound a different note from the previous US administration while speaking to an audience of oil and gas professionals in Houston, US, starting with two words that he figured they had not heard from President Joe Biden’s team: “Thank you.”

He thanked the much-maligned US oil and gas industry for coming up with new technologies that have driven higher the nation’s energy production and exports, and for working out how to produce in areas where no one had thought it would be possible.

On Wednesday, Doug Burgum, the US Secretary of the Interior, sought to convey a distinct message compared to the previous administration during his address to oil and gas industry professionals in Houston. He opened his remarks with a phrase he believed they had not often heard from President Joe Biden’s administration: “Thank you.”

Burgum expressed appreciation for the often-criticized US oil and gas sector, acknowledging its role in pioneering new technologies that have significantly boosted the nation’s energy production and exports. He also commended the industry’s ingenuity in developing methods to extract resources in previously unfeasible locations.

Prior to his role in the Trump administration, Burgum served as the governor of North Dakota, a state rich in oil reserves.

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Source: upstream

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IEA's Fatih Birol at CERAWeek stressed the need for upstream investments in existing oil and gas fields to ensure global energy security.

IEA: The world needs upstream oil and gas investment

The world needs upstream investments in existing oil and gas fields to support global energy security, Fatih Birol, the executive director of the International Energy Agency (IEA), said at the CERAWeek by S&P Global conference in Houston.

The IEA famously said in 2021 that no investments in new oil and gas fields are needed if the world has a chance to reach net-zero emissions by 2050.

The Paris-based agency has repeatedly said since 2021 that the world not need any new long lead-time conventional oil and gas projects or coal mines approved after 2023 as the surge in clean energy deployment could lead to peak fossil fuel demand this decade.

This decade, the IEA, created in response to the Arab oil embargo in the 1970s, has shifted its focus to advocating for and promoting clean energy investments and transition and has often expressed the opinion that achieving net zero wouldn’t be possible with investments in new oil and gas production.

These opinions, alongside forecasts that peak oil demand will happen this decade, have drawn harsh criticism from OPEC, which has repeatedly slammed the IEA for “dangerous” forecasts that would hurt consumers and “only lead to energy volatility on a potentially unprecedented scale.”

At CERAWeek, the IEA’s Birol said “I want to make it clear … there would be a need for investment, especially to address the decline in the existing fields.”

“There is a need for oil and gas upstream investments, full stop,” Birol added.

Of the $400 billion annual investment in oil and gas, $360 billion goes into offsetting the decline in existing fields, according to the IEA official.

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Source: Oil Price

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Evolution Petroleum Corporation is acquiring non-operated oil & gas assets in NM, TX, LA for $9M, subject to customary closing adjustments.

Evolution to acquire oil, gas assets in 3 states for $9M

Evolution Petroleum Corporation said it is acquiring non-operated oil and natural gas assets in New Mexico. Also in Texas, and Louisiana for a total purchase price of $9 million, subject to customary closing adjustments. Evolution to acquire oil? Read more.

The acquisition is expected to close by the end of Evolution’s third quarter of fiscal 2025. This is with an effective date of February 1, 2025, the company said in a news release.

Evolution said the acquisition expands its asset portfolio with approximately 440 barrels of oil equivalent per day (boepd) of net production. It consists of a balanced commodity mix of 60 percent oil and 40 percent natural gas. It has the the acquired assets primarily being low-decline.

The portfolio consists of approximately 254 gross producing wells across all regions, and the assets will be managed by a top-tier private operator, “ensuring operational efficiency and the ability to maximize value,” Evolution said.

The Acquisition

<p>The company said it intends to finance the acquisition through a combination of cash on hand and borrowings under its existing credit facility.<p>Evolution President and CEO Kelly Loyd said, “This acquisition marks our seventh such transaction in the last 6 years and is another step forward in strengthening our production base – aligns with our disciplined growth strategy by adding high-quality, low-decline production at an attractive valuation, estimated at ~2.8x NTM2 Adjusted EBITDA which doesn’t include any incremental cash flows for upside opportunities. These assets complement our existing portfolio and enhance our ability to generate stable free cash flow, which supports our long-standing commitment to returning capital to shareholders. We see additional upside through reactivations of existing waterfloods and through operational efficiencies, which will further enhance long-term value”.

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Source: Rigzone

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New Mexico's oil revenue could fund a permanent dividend, empowering residents, boosting the economy, and ensuring lasting prosperity.

Share, Baby, Share: How a permanent oil and gas fund dividend could empower New Mexicans

In his recent visit to the Land of Enchantment, Energy Secretary Chris Wright underscored New Mexico’s national significance in energy production. This is highlighting its vital role in meeting growing U.S. energy demands through oil. Moreover through solar, and emerging nuclear and geothermal industries. Simultaneously, the state is enjoying more than $800 million in new tax revenue from oil and natural gas extracted from the Permian Basin in the southeast corner of the state. The oil and gas tax revenue has grown over 50 percent in the last year. It is worth $2.1 billion. It represents over 20 percent of the state’s annual budget. Learn more about the permanent oil and gas fund.

This government-controlled wealth has prompted an urgent and consequential question: How do we transform today’s abundance into lasting prosperity? The Southwest Public Policy Institute believes the answer lies in empowering New Mexicans. It is directly by establishing a permanent fund dividend (NMPFD). Modeled after Alaska’s successful program, this proposal offers a path toward economic freedom, poverty alleviation, and long-term stability.

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Source: National Review

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BP slashed planned investment in renewable energy and said Wednesday that it would increase annual oil and gas spending to $10 billion.

BP cuts investment in clean energy and boosts oil and gas in major strategy shift

BP cuts investment announced on Wednesday that it would cut planned investment in renewable energy and increase its annual oil and gas spending to $10 billion. The company is implementing a major strategy shift aimed at boosting earnings and shareholder returns.

The oil giant cut planned annual investment in energy transition businesses by more than $5 billion. This is compared with its previous forecast, to between $1.5 billion and $2 billion per year.

“We will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset BP, with an unwavering focus on growing long-term shareholder value,” CEO Murray Auchincloss said.

Under Auchincloss’ predecessor, Bernard Looney, BP (BP) pledged in 2020 to cut oil and gas output by 40% while rapidly growing renewables by 2030. BP lowered the reduction target to 25% in 2023.

BP now aims to grow oil and gas production.

Across the energy sector, major companies that shifted their position in response to the need to lower carbon emissions and curb climate change have returned their focus to oil and gas, where returns have become easier to obtain as fossil fuel prices have rebounded from Covid-19 pandemic lows.

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Source: CNN

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Oil futures rose Thursday after Trump revoked a license allowing Chevron to produce oil in Venezuela, issued by the Biden administration.

Oil prices settle higher after Trump moves to end Venezuela crude deal

Oil prices settle higher on Thursday, finding support a day after President Donald Trump said he was revoking a license issued by the Biden. The administration that had allowed Chevron Corp. to produce oil in Venezuela.

Prices remained lower week to date. However, with U.S. tariffs on Canada and Mexico are expected to come into effect next week. Potentially hurting the outlook for the economy and for energy demand.

Trump’s reversal of the license allowing Chevron to operate in Venezuela could halt the company’s ability to export Venezuelan crude. It will be tightening global oil supplies, said George Pavel, general manager at trading platform Naga.com Middle East, in emailed commentary. WTI and Brent settled Wednesday at their lowest marks since Dec. 10, with recent pressure tied to worries that proposed tariffs by the Trump administration will undercut global growth. Prices for both WTI and Brent crude remained lower for the week and month to date.

Expectations for the future have taken a “meaningful dive,” reinforcing a growing concern that policy uncertainty, particularly related to tariffs and the Federal Reserve, is “bleeding into both consumer and business sentiment,” said Stephen Innes, managing partner at SPI Asset Management. “That’s a slow-burning macro headwind that could snowball into real economic weakness down the line.”

Latest U.S Data Why Oil prices settle higher

U.S. data this week showed an index of consumer confidence dropped 7 points in February to an eight-month low of 98.3.

“Tariffs and their broader impact on North American markets are at the forefront,”. Innes told MarketWatch. “Trump’s looming tariff threats against Canada and Mexico in March. It will be followed by planned broad duties in April, are turning up the heat on global trade tensions.”

At the same time, lower bond yields amid escalating trade tensions suggest markets are “bracing for a slowdown, not a surge in inflation,” Innes said.

Then there’s the “geopolitical wild card,” with the U.S. potentially gaining a significant stake in Ukraine’s mineral rights, he said. “There’s every reason to believe Washington will want to monetize those assets. That means pushing the Ukraine-Russia peace plan forward and ultimately pulling back on Russian sanctions, bringing more [oil] barrels back to market.”

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Source: Market Watch

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