Oil Daily | Saudi Arabia to End Production Cuts; Libya Resumes Talks Amidst Oil Output Crisis

【Oil-Producing Countries Dynamics】

Saudi Arabia is adjusting its oil policies to regain market share, moving away from its $100 oil price target. Despite short-term revenue losses, it plans to unwind production cuts in December. This shift follows delayed cut reversals due to weak market sentiment and demand concerns, especially in China.

Talks between Libya’s rival administrations are resuming to resolve a political impasse that has halted oil production. Libya's oil exports have dropped significantly due to disputes over the Central Bank leadership, impacting the country's output and escalating the political crisis.

【Latest Oil Policies】

Belgium is advocating for an EU ban on Russian LNG imports, criticizing current sanctions as ineffective. The EU's new sanctions restrict reloading services for Russian LNG but allow imports. Yet, Russian LNG imports into the EU remain high, prompting calls for a unified European approach.

【Industry News】

In southeastern Pakistan, a consortium has discovered a significant oil and gas reserve, potentially reducing LNG imports. The find could replace imports but requires $5 billion and several years to develop, crucial for Pakistan's energy needs given its current import dependency.

The UN Net-Zero Asset Owner Alliance reported a more than 6% annual reduction in financed emissions, urging governments to act on climate risks. The alliance emphasizes the need for policy alignment with the Paris Agreement and increased finance for vulnerable economies.

【Company News】

Chevron paid higher taxes in Nigeria, Angola, and Equatorial Guinea than in the U.S., as disclosed under the Dodd-Frank Act. The disclosure highlights global tax dynamics and Chevron's compliance with international requirements amid its acquisition of Hess Corp.

State Farm and Berkshire Hathaway have increased investments in fossil fuels, contrary to the trend of divestment by many insurers. Their portfolios now have a higher percentage of fossil fuel investments, reflecting strategic decisions despite growing ESG concerns.

【Others】

Equinor shut down its Titan platform in the Gulf of Mexico due to a Tropical Cyclone threat. Although operations were halted, oil prices declined, influenced by China’s economic uncertainty and U.S. stockpile data. Other companies like Shell and Chevron also evacuated staff from Gulf platforms.