Opec+ to discuss 'new, substantial' output cut: Algeria

Market: Crude oil
03/03/20

Opec+ countries plan to discuss a "new, substantial" cut in production this week and appear to have already reached an agreement to extend current quotas, Algerian energy minister Mohamed Arkab said today.

Opec needs to take "swift" action to tackle the "worrying" decline in oil markets resulting from the spread of the coronavirus, said Arkab, who holds the group's rotating presidency. Some non-Opec members requested more time to assess the impact of the coronavirus on the oil market before the Opec+ meeting on 6 March, he said.

The Joint Technical Committee (JTC) that advises Opec+ recommended last month that the group cut a further 600,000 b/d from their combined output in the second quarter, and recommended extending current quotas to the end of the year, to counter the effects of the coronavirus outbreak on global oil demand.

It is clear the group is considering a deeper reduction as the spread of virus since the February recommendation means cuts will be seen as too small to prevent inventory builds, Medley Global Advisors director Mohammad Darwazah said.

The coronavirus has roiled global markets. Yesterday the OECD warned that under its worst-case scenario the outbreak could cut global growth by half this year. Today, the US Federal Reserve cut its benchmark interest rate by 0.5pc, citing risks to economic activity, and the G7 group of major economies said they will intervene to support their economies should that risk arise.

The JTC is currently meeting in Vienna. Russia is still evaluating the JTC recommendation, but has not received any proposal for a 1mn b/d reduction in the second quarter, energy minister Alexander Novak said yesterday.

By Rowena Edwards

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Cop: German opposition pushes for Article 6

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Guyana hires floating generators to avert outages

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14/11/24

Guyana hires floating generators to avert outages

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Cop: EU ETS volatility problem for corporate CCS case

14/11/24

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14/11/24

Cop: EU ETS volatility problem for corporate CCS case

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IEA sees wider oil market surplus next year

14/11/24

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14/11/24

IEA sees wider oil market surplus next year

London, 14 November (Argus) — The IEA is predicting a global oil supply surplus of over 1mn b/d next year, which it says will provide "much-needed stability" to the market. The Paris-based agency's latest Oil Market Report (OMR) shows a 1.15mn b/d supply surplus next year, the highest since it first started projecting supply and demand levels for 2025 in April this year. It is 40,000 b/d higher than its estimate last month. "With supply risks omnipresent, a looser balance would provide some much-needed stability to a market upended by the Covid pandemic, Russia's full-scale invasion of Ukraine and, most recently, heightened unrest in the Middle East," the IEA said. The IEA's projected supply surplus could be much higher if Opec+ members push ahead with a plan to start unwinding 2.2mn b/d of "voluntary" production cuts from January over a 12-month period. But this is not guaranteed. Weaker-than-expected demand has already forced the Opec+ members to delay their plan to start increasing output by three months. Opec+ ministers are set to decide on their output policy for 2025 and beyond in a meeting on 1 December. The IEA's oil demand growth forecasts for this year and next remain below 1mn b/d — a steep drop compared with 2mn b/d last year and 2.5mn b/d in 2022. For this year, the IEA has raised its oil demand growth projection by 60,000 b/d to 920,000 b/d, mostly because of higher-than-expected consumption in Europe. Its forecast for next year has been nudged down by 10,000 b/d to 990,000 b/d compared with last month's OMR. Much of the slowdown in global consumption centres on China, where the economy is not growing as fast as it once did. The IEA has kept its oil demand growth for China unchanged at 150,000 b/d for this year, but this is far below the 710,000 b/d it was forecasting in January. The agency said Chinese oil demand contracted for a sixth straight month in September, pushing consumption in the third quarter 270,000 b/d below year-earlier levels. For next year, the IEA has lowered its Chinese demand growth forecast by 30,000 b/d to 190,000 b/d. China's slowing oil demand is also due to an increased uptake of electric vehicles, LNG-powered trucks and high-speed rail, the IEA said. On global supply, the IEA has trimmed its growth estimate for this year by 20,000 b/d to 640,000 b/d. But for next year, it sees supply growth accelerating to more than 2mn b/d, led by the US, Canada, Guyana, Brazil and Argentina. The agency said global observed oil stocks declined by 47.5mn bl in September to their lowest level since January. It also said preliminary data show stocks fell further in October. By Aydin Calik Supply and demand balance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Argentina pulls delegation from Baku

13/11/24

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13/11/24

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