Oil Daily | OPEC Maintains Output Plan for December Amid Compliance Concerns

【Global Oil Supply and Demand】

India's coal production from captive and commercial mines surged by 32% in the first half of the financial year, reaching 79.7 million tons. Total production grew by 11.65% to 997.25 million tons. Despite climate pledges, India remains a major coal consumer and producer, focusing on domestic production to meet demand.

【Oil-Producing Countries Dynamics】

The OPEC joint ministerial monitoring committee meeting concluded without changes to production policy, maintaining plans to increase output in December. Saudi Arabia emphasized the importance of compliance, warning that quota violations could drop oil prices. OPEC plans to raise output by 180,000 bpd in December as cuts unwind.

【Latest Oil Policies】

Japan's new industry minister announced plans to continue restarting nuclear power plants and boosting renewables, maintaining the country's current energy policy. Japan aims to protect its energy security with a mix of nuclear and renewables, aligning with its net-zero goals despite a heavy reliance on fossil fuels.

【Industry News】

Australia's Origin Energy will exit its hydrogen project due to uncertainty in the hydrogen market, reflecting challenges in costs and technology. Despite government support, the slow market development and risks in capital-intensive projects prompted the decision. Green hydrogen faces challenges in safety, costs, and infrastructure.

【Company News】

TotalEnergies plans to narrow its focus on cheaper upstream output, increasing dividends and buybacks. The company targets 4% production growth annually from 2024 to 2030, with substantial free cash flow growth. TotalEnergies is also expanding LNG production and sales contracts, addressing market excess supply concerns.

Chevron resumed natural gas production from two offshore platforms in Israel after a brief suspension due to an Iranian missile attack. The platforms supply significant natural gas to Israel and surrounding regions, crucial for energy stability. Chevron also holds interests in Israel's largest energy project, the Leviathan gas field.