Energy

The oil market's dueling pressures

An illustration of an oil tank that has been tipped over and oil is spilling out of it. A yellow background.
Illustration: Sarah Grillo/Axios

Two pieces of news this morning distill the competing forces acting on oil markets these days.

The big picture: Geopolitical risks in the vital oil producing and transit region can cause short-lived price spikes, but at the same time, a drumbeat of bearish economic news is preventing a sustained price rise.

The IMF wants massive carbon taxes to fight climate change

IMF managing director Kristalina Georgieva
IMF managing director Kristalina Georgieva. Photo: Mark Wilson/Getty Images

The International Monetary Fund is calling on major greenhouse gas-emitting countries to implement carbon taxes that reach $75-per-ton by 2030 to bolster today's "inadequate" responses to climate change.

Why it matters: Their new report says the window for keeping temperature rise to manageable levels is "closing rapidly" and that "limiting global warming to 2°C or less requires policy measures on an ambitious scale."