Oil Daily | OPEC Eyes Extended Cuts Amid Slowing Demand Growth and Non-OPEC Supply Challenges
Tuesday, Nov 26, 2024 7:00 am ET
1min read 【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.
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.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.