Oil Daily | OPEC Production Rises Amid Demand Surge; Indian Refiners Eye Alternatives as Urals Discounts Shrink

【Oil-Producing Countries Dynamics】

Indian refiners are experiencing a shrinking price gap with Russian Urals crude, as high demand and reduced availability tighten discounts. Some refiners are considering alternatives like UAE’s Murban or U.S. WTI due to the narrowing spread. Russia maintains Urals prices below the $60-per-barrel cap to access Western logistics.

OPEC production rose by 270,000 bpd in June, primarily due to Saudi Arabia and the UAE. Despite the increase, compliance and actual additions remain inconsistent. The group's planned production hikes face skepticism amid a backdrop of a global production decline and rising demand.

Kazakhstan defies production targets, citing lack of authority over foreign operators. Iraq, previously criticized for overproduction, is reducing output. Investors question OPEC's ability to meet production goals, with real volumes remaining uncertain against bullish optics.


【Company News】

Saudi Aramco plans to sell up to five gas-fired power plants to increase funds for dividends and growth. The company is exploring asset sales, including stakes in pipelines and infrastructure, and tapping bond markets to optimize capital structure and support payouts to Saudi Arabia. Aramco's debt remains low compared to major oil companies.

Brazil's Petrobras aims to increase oil and gas production despite climate criticisms. The COP30 summit will address transitioning away from fossil fuels, with Brazil focusing on economic and technological viability. Petrobras's investment plan includes $77 billion for exploration and production over five years, amid global trends of boosting oil output.


【Latest Oil Policies】

The UK government launches its first onshore wind strategy, targeting 29 GW by 2030. This includes reforms in planning, grid connections, and market routes to enhance supply chains and workforce. The strategy follows the removal of England's ban on onshore wind, aiming for 95% low-carbon electricity by 2030.