Are OPEC+ Members Ignoring 2024 Production Cuts?

Tom Kool

Tom learnt International Business at Amsterdam's Higher School of Economics, he is Oilprice.com's Head of Operations

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Oil rates continued their sideways journey, with some bullishness emerging from weak United States retail sales promptly quashed by brand-new escalation in the Middle East, with Israel assaulting Rafah and the Houthis anticipated to strike back quickly.

Friday, February 16, 2024

Market whispers are beginning to emerge that OPEC+'s 2024 production cuts appear to be overlooked by the oil group members, nevertheless that is yet to make an effect on Brent, still hovering around the $82 per barrel mark. Congress Votes to Overturn Biden's LNG Pause. The United States House of Representatives passed a costs looking for to remove President Joe Biden's power to freeze approvals of melted gas exports with votes divided along celebration lines 224-200, nevertheless, the legislation is not likely to pass the Democrat-controlled Senate.

EU to Discontinue Russia's Ukraine Gas Transit. The European Union turned down the possibility of extending Russian pipeline gas products through Ukraine beyond 2024, some 11 billion cubic meters in 2015, as the existing 5-year offer abandons 31 December 2024.

Occidental Flags CrownRock Deal Delays. United States oil manufacturer Occidental Petroleum (NYSE: OXY) signified that the Federal Trade Commission's approval of its $12 billion acquisition of CrownRock may be pressed back into H2 2024, stating the regulators have actually been asking “for whatever”, decreasing the procedure.

Vitol Eyes Japanese Power Market Entry. Product trading significant Vitol is thinking about opening a workplace in Tokyo to trade Japanese electrical power, with Japan's extremely unstable power market drawing in an increasing variety of Western majors following its 2016 liberalization.

Australia Lists Nickel as Critical Mineral. The Australian federal government categorized nickel as an important mineral, opening access to billions of dollars in subsidized federal government loans to embattled mining business as rates dropped 40% in a year in the middle of continually increasing Indonesian supply.

Indonesia's New President Mulls Scrapping Subsidies. Indonesia's President-elect Prabowo Subianto, a previous army basic, vowed to cut down on the federal government's energy aids, totaling up to a substantial $22 billion mainly invested in diesel and cooking gas aids for all, consisting of higher-income Indonesians.

Environment Action 100+ Starts to Fall Apart. Environment Action 100+, the $68 trillion financier union released in 2017 to press the world's biggest emitters to decarbonize, appears to be breaking down as leading United States bank JP Morgan (NYSE: JPM)formally stop the group, together with State Street.

Exxon and Enbridge Sued in Antitrust Case. United States oil significant ExxonMobil (NYSE: XOM) and Canada's prominent pipeline operator Enbridge (NYSE: ENB) were taken legal action against in Illinois federal court by facilities designer Ducere for supposedly disallowing a rival from constructing a barge terminal in the Chicago location.

Talos Energy Becomes a Target for Carlos Slim. When the world's wealthiest individual, the Mexican billionaire is mulling increasing his share in United States independent oil manufacturer Talos Energy (NYSE: TALO), having currently purchased a 49.9% share in its Mexican subsidiary in 2015 for $124 million.

Norway's Only Refinery Ablaze. Norway's only refinery, the 230,000 b/d Mongstad plant run by Equinor (NYSE: EQNR)saw its production closed down after a fire broke out in an electrical kiosk at the refinery, nevertheless, emergency situation services handled to consist of the blaze within numerous hours.

Woodside Slumps on $1.2 Billion Impairment. Australia's leading oil manufacturer Woodside Energy (ASX: WDS) flagged non-cash problems of around $1.2 billion from its Shenzi gas field in the Gulf of Mexico, purchased in 2021 as part of its takeover of BHP oil possessions, due to a decrease in reserves.

Fortescue CEO Slams Carbon Capture. Andrew Forrest, the Australian billionaire running Fortescue Metals, stated carbon capture is a “total fraud” which federal governments ought to supply genuine dedications to stimulate renewables financial investment, not greenwashed untried options.

Iraq Promises Better Compliance with OPEC+. The Iraqi oil ministry validated it would compensate over the next 4 months for its January boost in unrefined production, with OPEC's secondary sources putting the Middle Eastern nation's output at 4.19 million b/d, some 190,000 b/d above target.

By Tom Kool for Oilprice.com

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