OPEC oil output rises more on Libya restart, Iraq - Reuters survey | Reuters
OPEC oil output has risen for a fourth month in October, a Reuters survey found, as a restart of more Libyan installations and higher Iraqi exports offset full adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum Exporting Countries has pumped 24.59 million barrels per day (bpd) on average in October, the survey found, up 210,000 bpd from September and a further boost from the three-decade low reached in June.
An increase in OPEC supply and a new hit to demand as coronavirus cases rise have weighed on oil prices, which have fallen 8% in October to near $37 a barrel. This puts pressure on OPEC and allies, known as OPEC+, to postpone a planned January 2021 supply boost, some analysts say.
“Oil demand is currently not supportive,” said Stephen Brennock of broker PVM. “At the bare minimum, OPEC+ will have to roll over its current production levels until the end of March.”
Libya is one of the OPEC members exempted from a deal by OPEC+ to curb supply.
Saturday 31 October 2020
With No Cuts Left to Make, Big Oil Sits and Waits for a Recovery - Bloomberg
With No Cuts Left to Make, Big Oil Sits and Waits for a Recovery - Bloomberg
It was Andrew Swiger, the chief financial officer at Exxon Mobil Corp., who summarized the attitude of the whole industry after Big Oil ended reporting another dismal set of quarterly earnings: “Prices will have to rise.”
After months of low oil and gas prices driven by weak demand, the world’s largest international oil companies have largely exhausted their financial defenses, leaving little room to maneuver if they’re dealt further blows. Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc have already reduced 2021 spending probably to as much as they can.
With the exception of perhaps Chevron and Total, which entered the downturn with the strongest balance sheets, leverage is approaching uncomfortable levels. Put together, Big Oil is now completely at the mercy of a worldwide rout in fuel demand that, absent a Covid-19 vaccine, shows no signs of abating, as well as OPEC+ leaders Saudi Arabia and Russia.
“I will say that a lot of the performance of the company today, but also in the future, will depend on the macro environment that we will be enjoying or suffering as the case may be,” said Ben van Beurden, chief executive officer of Shell.
It was Andrew Swiger, the chief financial officer at Exxon Mobil Corp., who summarized the attitude of the whole industry after Big Oil ended reporting another dismal set of quarterly earnings: “Prices will have to rise.”
After months of low oil and gas prices driven by weak demand, the world’s largest international oil companies have largely exhausted their financial defenses, leaving little room to maneuver if they’re dealt further blows. Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc have already reduced 2021 spending probably to as much as they can.
With the exception of perhaps Chevron and Total, which entered the downturn with the strongest balance sheets, leverage is approaching uncomfortable levels. Put together, Big Oil is now completely at the mercy of a worldwide rout in fuel demand that, absent a Covid-19 vaccine, shows no signs of abating, as well as OPEC+ leaders Saudi Arabia and Russia.
“I will say that a lot of the performance of the company today, but also in the future, will depend on the macro environment that we will be enjoying or suffering as the case may be,” said Ben van Beurden, chief executive officer of Shell.
Brent crude closed this week below $38 a barrel, bringing the year’s decline to 43%. At such levels, the industry is underinvesting in supply to such an extent that shortages are inevitable in the future, which means higher prices, Exxon’s Swiger argued. But a price recovery relies on two other things: higher demand and OPEC+ holding the line on production curbs, underpinned by the often uncomfortable alliance between Russia and Saudi Arabia.
Go cold #Turkey - Riyadh Bureau ht @ahmed
Go cold Turkey - Riyadh Bureau
When Riyadh’s chamber of commerce held its election in February, one candidate was utterly ubiquitous: Ajlan al-Ajlan, billionaire founder of a company that sells Saudi men’s clothes, appeared to spare no expense for his campaign. On street billboards, newspaper pages, television channels and social media networks, his face was inescapable. People even joked they found him inside their microwaves and bread toasters.
Al-Ajlan’s heavy spending paid off as he came first in the election, winning a total of 6,283 out of 42,112 votes. His elevated profile earned him an interview on the kingdom’s top talk show during Ramadan where he was asked if his campaign has gone overboard considering the low stakes. “I’m serious and take everything seriously,” he said as he defended spending nearly $5m for the seat.
Despite his election win, many people outside Saudi Arabia would not have probably heard of al-Ajlan until earlier this month when he emerged as the leading voice calling for a full boycott of Turkey. “The boycott of everything Turkish, whether it is imports, investment or tourism, is the duty of every Saudi (trader and consumer) in response to continued hostility by the Turkish government against our leadership, country and citizens,” he said on Twitter.
When Riyadh’s chamber of commerce held its election in February, one candidate was utterly ubiquitous: Ajlan al-Ajlan, billionaire founder of a company that sells Saudi men’s clothes, appeared to spare no expense for his campaign. On street billboards, newspaper pages, television channels and social media networks, his face was inescapable. People even joked they found him inside their microwaves and bread toasters.
Al-Ajlan’s heavy spending paid off as he came first in the election, winning a total of 6,283 out of 42,112 votes. His elevated profile earned him an interview on the kingdom’s top talk show during Ramadan where he was asked if his campaign has gone overboard considering the low stakes. “I’m serious and take everything seriously,” he said as he defended spending nearly $5m for the seat.
Despite his election win, many people outside Saudi Arabia would not have probably heard of al-Ajlan until earlier this month when he emerged as the leading voice calling for a full boycott of Turkey. “The boycott of everything Turkish, whether it is imports, investment or tourism, is the duty of every Saudi (trader and consumer) in response to continued hostility by the Turkish government against our leadership, country and citizens,” he said on Twitter.