OPEC SAYS OUTPUT FELL IN OCTOBER
Major oil producers said their output fell 151,000 barrels a day last month, while projecting an increase in consumer appetite for crude, reports The Wall Street Journal’s Christopher Alessi.
“Crude output by members of the Organization of the Petroleum Exporting Countries dropped by 0.46%, to 32.59 million barrels a day in October, compared with the month prior. That decline was aided by reduced production in Iraq, Nigeria, Venezuela, Algeria and Iran, the cartel said in its closely watched, monthly oil market report,” writes Mr. Alessi.
OPEC also raised its forecasts for world oil demand growth in 2017 and 2018. The cartel now expects demand growth to rise by 1.53 million barrels a day in 2017 and 1.51 million barrels a day in 2018.
The report, which comes just of ahead of a highly anticipated OPEC meeting in Vienna on Nov. 30, highlights the cartel’s increasingly successful efforts to rebalance the oil market by withholding production to reduce the global supply glut and boost prices.
Oil futures were mixed on Monday but hovered around multi-year highs despite investor concern about rising output from the U.S.
Brent crude, the global oil benchmark, fell 0.02% to $63.51 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.16% at $56.84 a barrel.
Oil prices reached two-year highs last week after Saudi Arabia detained hundreds of individuals in a corruption investigation and after rising tension between the kingdom and Iran.
OIL EXECUTIVES GATHER IN ABU DHABI
Top oil executives and Middle Eastern government officials are gathering in Abu Dhabi for the influential annual conference called ADIPEC, write Summer Said and Sarah McFarlane.
The top subjects will be OPEC and increased geopolitical tensions. The top speakers are oil ministers from the UAE, Oman, Egypt and Pakistan, along with the chief executives from energy majors including BP and Total SA.
The UAE oil minister Suhail Mohamed Faraj Al Mazrouei said this morning that an extension to OPEC’s production cuts was likely. “I haven’t heard anyone talking about not considering an extension, but the timing, the period of extension is subject to discussion,” the oil minister said.
EU OFFICIALS BOOST EFFORTS TO MEET PARIS CLIMATE-CHANGE COMMITMENTS
European Union officials agreed Thursday to revise the bloc’s cap-and-trade system, ramping up efforts to curb carbon emissions and meet their commitments to fight climate change, reports Emre Peker.
The move is in line with the Paris agreement and the EU’s efforts to curb global temperature increases through its emissions-trading system, or ETS, which has been in place since 2005.
It aims to slash CO2 releases from more than 11,000 energy and major industrial plants by 43% until 2030.
“After more than two years of contentious negotiations, EU lawmakers and governments agreed to reduce the carbon cap by 2.2% annually for the decade through 2030, up from 1.74% from 2013 to 2020,” the Journal reports.
A U.S. NATURAL GAS BONANZA IN CHINA ISN’T A DONE DEAL
Billions of dollars’ worth of natural gas deals were announced during President Donald Trump’s state visit to China last week, but the transactions my not happen, writes Nathaniel Taplin for Heard on the Street.
“The Asian gas market is forecast to be oversupplied until the early-2020s at least, and LNG projects are so risky, companies have a strong incentive to make splashy announcements with big partners, to frighten off other potential suppliers,” writes Mr. Taplin.