Oil Daily | OPEC Eyes Extended Cuts Amid Slowing Demand Growth and Non-OPEC Supply Challenges

【Global Oil Supply and Demand】

Global oil demand is rising, with BP's CEO noting a steady annual increase of about 1%. In August, demand reached an all-time high of 103.79 million barrels per day. Analysts report that the demand growth is slowing but still outpaces the non-OPEC supply rate, affecting market dynamics.

OPEC is likely to continue production cuts, as indicated by Azerbaijan's energy minister. Some members favor a rollback due to dependency on oil revenues, but the group may delay output increases to 2025, influenced by a slightly improving demand outlook.

【Oil-Producing Countries Dynamics】

Kazakhstan plans to boost its oil exports through Turkey, reducing reliance on Russian routes. The country aims to increase exports via the Baku-Tbilisi-Ceyhan pipeline while addressing its OPEC production commitments. Russia, Iraq, and Kazakhstan have submitted compensation plans for overproduced crude to OPEC.

【Latest Oil Policies】

President-elect Trump plans to expand U.S. oil and gas drilling, lift pauses on LNG exports, and increase offshore lease sales. The new administration may also push the IEA to focus on oil supply rather than emissions reductions, reflecting a shift in energy policy priorities.

【Industry News】

TotalEnergies will pause new investments in Adani Group's projects due to U.S. investigations into alleged bribery by Adani executives. The company awaits clarification on the charges before resuming financial contributions to joint ventures in renewable energy businesses.

【Company News】

EQT Corporation has formed a midstream joint venture with Blackstone, selling minority interests in pipelines and storage assets for $3.5 billion. The deal includes EQT's interest in the Mountain Valley and Hammerhead Pipelines, providing capital for growth projects.

Anglo American is selling its Australian coal mines to Peabody Energy for up to $3.775 billion as part of a restructuring strategy. The company plans to focus on copper, premium iron ore, and crop nutrients while divesting its coal, platinum, and diamond businesses.

【Others】

Fitch Ratings has downgraded Adani Group's bonds amid a bribery scandal involving U.S. investigations. The scandal has led to the suspension of deals and investments from entities like TotalEnergies and financial scrutiny from credit rating agencies such as Fitch and S&P Global Ratings.

OMV has seized $241 million of Gazprom's natural gas deliveries following an arbitration award, prompting Gazprom to halt supply. The move reflects ongoing tensions over European gas supplies, especially as future Russian deliveries face uncertainties.