Oil Daily | OPEC May Extend Production Cuts as Saudi Arabia Considers Price Reductions in Asia
Friday, Nov 1, 2024 8:00 am ET
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【Oil-Producing Countries Dynamics】
Australia’s tax revenues from the oil and gas industry reached a record A$11.6 billion for fiscal 2022-23, spurred by legislative changes to improve tax collection, as major companies like Woodside and Exxon paid substantial taxes. These changes resulted in A$4.3 billion in additional revenues.
Saudi Arabia may cut the official selling prices for its oil grades for Asia next month, according to industry sources. A poll suggests discounts ranging from $0.27 to $0.50 per barrel, indicating perceived weak demand, although strong high-sulfur fuel oil demand from shipping may limit some price cuts.
【Latest Oil Policies】
OPEC might delay its planned easing of production cuts due to current price vulnerabilities. The group is withholding 5.86 million barrels daily, with a planned rollback of 180,000 bpd. However, if prices remain low, OPEC may extend the delay by at least a month to protect market stability.
Economic growth in the Middle East and North Africa (MENA) region is expected to be sluggish at 2.1% this year, affected by ongoing conflicts and OPEC oil production cuts, according to the IMF. Growth is anticipated to rebound to 4% next year, contingent on reversing production cuts and easing regional challenges.
【Industry News】
Rosneft plans to resume crude processing at its Tuapse refinery after a month-long halt due to poor margins. The refinery is expected to process 480,000 metric tons of crude in November. This facility has been targeted by Ukrainian drone attacks and contributes significantly to exports but not to domestic gasoline or diesel supply.
【Company News】
Aston Martin reduced its pre-tax loss by 90% in its latest financial period, aided by increased wholesale volumes. The company reported a loss of £12.2 million for Q3 2024, down from £117.6 million in Q3 2023. Revenue rose by 8%, but supply chain disruptions and a weak Chinese market remain challenges.
ConocoPhillips raised its dividend and share buyback program following a better-than-expected third-quarter earnings report. Increased oil and gas production, especially in U.S. shale, helped offset lower prices. The company anticipates completing its acquisition of Marathon Oil and exceeding synergy goals.
Canadian Natural Resources reported lower earnings in Q3 2024 due to declining natural gas prices and oil sales in North America. Despite this, the company plans to drill fewer natural gas wells in 2024. They recently agreed to buy assets from Chevron in a $6.5 billion deal.
Cheniere Energy reported decreased Q3 revenues and profits due to reduced market volatility and lower LNG and gas prices. The decline was attributed to less short-term agreement sales and lower margins. Nevertheless, Cheniere is optimistic about long-term LNG demand growth, especially in Asia.
TotalEnergies' Q3 earnings fell short of expectations, with adjusted net income at $4.1 billion, the lowest quarterly profit in three years. The French company was impacted by weak refining margins and lower prices, but it maintained its share buyback pace and confirmed its investment guidance.
Australia’s tax revenues from the oil and gas industry reached a record A$11.6 billion for fiscal 2022-23, spurred by legislative changes to improve tax collection, as major companies like Woodside and Exxon paid substantial taxes. These changes resulted in A$4.3 billion in additional revenues.
Saudi Arabia may cut the official selling prices for its oil grades for Asia next month, according to industry sources. A poll suggests discounts ranging from $0.27 to $0.50 per barrel, indicating perceived weak demand, although strong high-sulfur fuel oil demand from shipping may limit some price cuts.
【Latest Oil Policies】
OPEC might delay its planned easing of production cuts due to current price vulnerabilities. The group is withholding 5.86 million barrels daily, with a planned rollback of 180,000 bpd. However, if prices remain low, OPEC may extend the delay by at least a month to protect market stability.
Economic growth in the Middle East and North Africa (MENA) region is expected to be sluggish at 2.1% this year, affected by ongoing conflicts and OPEC oil production cuts, according to the IMF. Growth is anticipated to rebound to 4% next year, contingent on reversing production cuts and easing regional challenges.
【Industry News】
Rosneft plans to resume crude processing at its Tuapse refinery after a month-long halt due to poor margins. The refinery is expected to process 480,000 metric tons of crude in November. This facility has been targeted by Ukrainian drone attacks and contributes significantly to exports but not to domestic gasoline or diesel supply.
【Company News】
Aston Martin reduced its pre-tax loss by 90% in its latest financial period, aided by increased wholesale volumes. The company reported a loss of £12.2 million for Q3 2024, down from £117.6 million in Q3 2023. Revenue rose by 8%, but supply chain disruptions and a weak Chinese market remain challenges.
ConocoPhillips raised its dividend and share buyback program following a better-than-expected third-quarter earnings report. Increased oil and gas production, especially in U.S. shale, helped offset lower prices. The company anticipates completing its acquisition of Marathon Oil and exceeding synergy goals.
Canadian Natural Resources reported lower earnings in Q3 2024 due to declining natural gas prices and oil sales in North America. Despite this, the company plans to drill fewer natural gas wells in 2024. They recently agreed to buy assets from Chevron in a $6.5 billion deal.
Cheniere Energy reported decreased Q3 revenues and profits due to reduced market volatility and lower LNG and gas prices. The decline was attributed to less short-term agreement sales and lower margins. Nevertheless, Cheniere is optimistic about long-term LNG demand growth, especially in Asia.
TotalEnergies' Q3 earnings fell short of expectations, with adjusted net income at $4.1 billion, the lowest quarterly profit in three years. The French company was impacted by weak refining margins and lower prices, but it maintained its share buyback pace and confirmed its investment guidance.