popular articles

Opec+ stays the course despite Saudi oil adjustments

Opep+ maintains its strategy of production cuts until the end of 2024, with the support of Saudi Arabia and Russia. JMMC recommends stability in the oil industry despite economic challenges.

Please share:

Opep+ stays the course. A panel of the Organization of the Petroleum Exporting Countries and their allies (Opec+) recommended on Friday that the current production cutback strategy be maintained until the end of 2024, the day after Saudi Arabia announced it was extending its cuts.

Oil market: OPEC+ maintains additional cuts by Saudi Arabia and Russia

The alliance, which on Friday held a technical meeting of the Joint Ministerial Monitoring Committee (JMMC) by videoconference,

expressed its “appreciation for Saudi Arabia’s additional voluntary reduction of one million barrels per day and its extension for the month of September”, according to a statement.

In addition to the voluntary reduction begun in July, Deputy Prime Minister Alexander Novak announced a further cut in Russian exports of 300,000 barrels a day in September. Last month, Moscow had already announced a reduction of 500,000 barrels per day in August.

The alliance assured “its full recognition and support for the Kingdom’s efforts” and “thanked” Russia for its voluntary reduction.

Crude oil prices have returned to positive territory since the Russian and Saudi announcements, buoyed by the tightness of the market. Both world oil benchmarks are currently trading close to their highest levels in over three months.

Stability in the oil industry: JMMC confident in OPEC’s commitment

 

For Commerzbank analyst Carsten Fritsch, however, Saudi Arabia is likely to “gradually abandon the voluntary reduction over the coming months and return to the agreed production level of 10 million barrels per day”, as the production cut “results in a considerable shortfall for the country’s budget and hampers economic growth”.

The JMMC also reiterated “the commitment of its member countries” to the agreement reached in June 2023 setting the global oil production level at 40.46 million barrels per day. JMMC members will meet again on October 4 to review progress ahead of a meeting of officials from the oil-exporting countries (OPEC) led by Riyadh, and their ten partners led by Moscow, scheduled for November 26 in Vienna, the cartel’s headquarters.

The JMMC has no power to decide whether to raise or lower quotas, but discusses market conditions and makes recommendations that serve as a basis for the measures taken by the ministers.

Register free of charge for uninterrupted access.

Publicite

Recently published in

ExxonMobil tops upstream explorer ranking according to Wood Mackenzie

ExxonMobil has been named the most admired upstream exploration company in Wood Mackenzie’s latest annual survey, recognised for its performance in Guyana and its ability to open new resource frontiers.
Petronas' workforce reduction reignites questions about internal trade-offs, as the group maintains its commitments in Asia while leaving uncertainty over its operations in Africa.
Petronas' workforce reduction reignites questions about internal trade-offs, as the group maintains its commitments in Asia while leaving uncertainty over its operations in Africa.
The Kremlin condemns the European proposal to lower the price cap on Russian oil to $45 per barrel, asserting that this measure could disrupt global energy markets, as the G7 prepares for decisive discussions on the issue.
The Kremlin condemns the European proposal to lower the price cap on Russian oil to $45 per barrel, asserting that this measure could disrupt global energy markets, as the G7 prepares for decisive discussions on the issue.
Libya's oil production reached a twelve-year high of 1.23 million barrels per day, even as persistent political tensions and violent clashes in Tripoli raise concerns about the sector's future stability.
Libya's oil production reached a twelve-year high of 1.23 million barrels per day, even as persistent political tensions and violent clashes in Tripoli raise concerns about the sector's future stability.

Two powerful financial algorithms now dictate global oil prices

According to a study published by The Oxford Institute for Energy Studies, two competing financial algorithms, Risk-Parity and Crisis Alpha, significantly influence oil markets, weakening the traditional correlation with the sector's physical fundamentals.
Norwegian producer DNO ASA completed an oversubscribed $400mn hybrid bond private placement to support the integration of Sval Energi Group AS.
Norwegian producer DNO ASA completed an oversubscribed $400mn hybrid bond private placement to support the integration of Sval Energi Group AS.
The Brazilian oil group secured approval from Abidjan to begin negotiations for exploring nine deepwater blocks as part of its business partnerships strategy in Africa.
The Brazilian oil group secured approval from Abidjan to begin negotiations for exploring nine deepwater blocks as part of its business partnerships strategy in Africa.
Shell suspends a unit at its Pennsylvania petrochemical complex following a fire on June 4, with ongoing environmental checks and an internal investigation to determine when the facility can resume operations.
Shell suspends a unit at its Pennsylvania petrochemical complex following a fire on June 4, with ongoing environmental checks and an internal investigation to determine when the facility can resume operations.

Azerbaijan restarts oil exploration with ExxonMobil, BP and MOL

Baku signs multiple deals with major industry players to boost exploration as oil reserves decline and ACG production slows.
French group Vallourec announces the integration of Thermotite do Brasil, enhancing its industrial capabilities in Brazil for offshore pipeline coating services.
French group Vallourec announces the integration of Thermotite do Brasil, enhancing its industrial capabilities in Brazil for offshore pipeline coating services.
Commercial crude reserves in the United States declined more than expected, following increased refinery activity according to EIA data published on June 4.
Commercial crude reserves in the United States declined more than expected, following increased refinery activity according to EIA data published on June 4.
TotalEnergies has signed an agreement with Shell to increase its stake in Brazil’s offshore Lapa field to 48%, while divesting its interest in Gato do Mato.
TotalEnergies has signed an agreement with Shell to increase its stake in Brazil’s offshore Lapa field to 48%, while divesting its interest in Gato do Mato.

SBM Offshore sells its stake in FPSO Aseng to GEPetrol

SBM Offshore has signed a divestment agreement with GEPetrol to fully withdraw from the FPSO Aseng project in Equatorial Guinea, with an operational transition phase of up to one year.
Meren Energy has launched a partial divestment process for its EG-18 and EG-31 assets to attract new partners and reduce its exposure in Equatorial Guinea.
Meren Energy has launched a partial divestment process for its EG-18 and EG-31 assets to attract new partners and reduce its exposure in Equatorial Guinea.
The oil services joint venture extends its contract with Brunei Shell Petroleum for maintenance and upgrade operations on offshore installations in the South China Sea.
The oil services joint venture extends its contract with Brunei Shell Petroleum for maintenance and upgrade operations on offshore installations in the South China Sea.
Renaissance Africa Energy confirmed to the Nigerian government the operational takeover of Shell Petroleum Development Company’s onshore assets, stating it had surpassed the 200,000 barrels per day production mark.
Renaissance Africa Energy confirmed to the Nigerian government the operational takeover of Shell Petroleum Development Company’s onshore assets, stating it had surpassed the 200,000 barrels per day production mark.

Woodside initiates 65 millions USD arbitration procedure against Senegal

Australian company Woodside Energy has filed a complaint with ICSID against Senegal, challenging a CFA40bn tax reassessment related to the offshore Sangomar oil project.
Nigeria introduces a tax credit capped at 20% for oil operators meeting cost reduction targets, with a focus on gas and offshore projects.
Nigeria introduces a tax credit capped at 20% for oil operators meeting cost reduction targets, with a focus on gas and offshore projects.
Following the withdrawal of two British companies, Morocco launches a MAD2.5mn ($270,000) expert mission to boost the appeal of its offshore oil and gas sector.
Following the withdrawal of two British companies, Morocco launches a MAD2.5mn ($270,000) expert mission to boost the appeal of its offshore oil and gas sector.
International Petroleum Corporation repurchased 89,200 common shares between 26 and 30 May under its buyback programme compliant with Canadian and European regulations.
International Petroleum Corporation repurchased 89,200 common shares between 26 and 30 May under its buyback programme compliant with Canadian and European regulations.

Sweden enforces tighter controls on Russian ships in the Baltic Sea

The Swedish government will implement new disclosure rules for foreign vessels, specifically targeting tankers linked to Russia’s hard-to-trace oil fleet.
Brazilian group Petrobras formalises its return to Angola with two memorandums of understanding signed with Sonangol and the national oil regulator, targeting offshore exploration without immediate financial commitment.
Brazilian group Petrobras formalises its return to Angola with two memorandums of understanding signed with Sonangol and the national oil regulator, targeting offshore exploration without immediate financial commitment.
The Abuja Court of Appeal rejected Malabu Oil & Gas’s lawsuit against Agip, Eni’s subsidiary, by upholding the statute of limitations on the OPL 245 oil block case.
The Abuja Court of Appeal rejected Malabu Oil & Gas’s lawsuit against Agip, Eni’s subsidiary, by upholding the statute of limitations on the OPL 245 oil block case.
Portugal’s Galp expects a production surge in Brazil driven by the offshore Bacalhau field, in partnership with Sinopec, Equinor and ExxonMobil.
Portugal’s Galp expects a production surge in Brazil driven by the offshore Bacalhau field, in partnership with Sinopec, Equinor and ExxonMobil.

Advertising