Column: OPEC+ to boost output as oil market tightens - John Kemp | Reuters
OPEC and its partners have agreed to raise their collective production by 0.5 million barrels per day (bpd) in January, with output to be reviewed and adjusted at monthly intervals thereafter.
The increase is much smaller than the 2 million bpd scheduled last April, but marks a significant shift from the start of November, when the group seemed poised to leave output unchanged for another three months.
The shift responds to news of successful coronavirus vaccine trials, which could lead to a rapid immunisation programme and resumption of more normal business activity and international air travel.
Brent futures prices have already climbed by more than $11 per barrel (30%) since the start of November as traders anticipate a faster recovery in oil consumption and a sharper drawdown in global inventories.
And Brent’s six-month calendar spread has moved into backwardation of more than $0.40 per barrel, from a contango of $2.50 at the start of November, as traders expect a larger production-consumption deficit in 2021.
Spreads for every month next year have moved into backwardation, which will prompt traders and refiners to empty tank farms of discretionary inventories, keeping only the minimum needed to maintain reliable operations.
Saturday, 5 December 2020
#Kuwait’s Economy in Crisis a Sideshow as Nation Goes to Polls - Bloomberg
Kuwait’s Economy in Crisis a Sideshow as Nation Goes to Polls - Bloomberg
Kuwaitis get another chance Saturday to do something rare in the Arab Gulf -- elect lawmakers with a real say in how their country is run.
Yet it’s hard to detect much enthusiasm. The parliamentary election comes at a make-or-break moment for an economy reeling from lower oil prices, the pandemic and stalled reform. But rescue efforts are stuck as a government appointed by Kuwait’s ruler and lawmakers with enough power to probe and delay legislation disagree over the best way forward.
The nation’s financial plight was often a sideshow in campaigning, as candidates pledged to write-off personal loans or protect salaries even after warnings the Treasury is running short of cash and as parliament blocks plans to borrow overseas.
“The issue of utmost importance, diversification of the economy, isn’t really being discussed,” said Ayed Al-Manna, a political analyst and columnist. “There’s no systemic plan to transform the country.”
Kuwait is a key member of OPEC and plays an outsized role in mediating regional disputes, including recent efforts to heal a rift between regional powerhouse Saudi Arabia and major gas exporter Qatar.
Some 568,000 Kuwaitis, just under half of the citizen population, are eligible to choose from 326 candidates, including 28 women, vying for the National Assembly’s 50 seats.
Kuwaitis get another chance Saturday to do something rare in the Arab Gulf -- elect lawmakers with a real say in how their country is run.
Yet it’s hard to detect much enthusiasm. The parliamentary election comes at a make-or-break moment for an economy reeling from lower oil prices, the pandemic and stalled reform. But rescue efforts are stuck as a government appointed by Kuwait’s ruler and lawmakers with enough power to probe and delay legislation disagree over the best way forward.
The nation’s financial plight was often a sideshow in campaigning, as candidates pledged to write-off personal loans or protect salaries even after warnings the Treasury is running short of cash and as parliament blocks plans to borrow overseas.
“The issue of utmost importance, diversification of the economy, isn’t really being discussed,” said Ayed Al-Manna, a political analyst and columnist. “There’s no systemic plan to transform the country.”
Kuwait is a key member of OPEC and plays an outsized role in mediating regional disputes, including recent efforts to heal a rift between regional powerhouse Saudi Arabia and major gas exporter Qatar.
Some 568,000 Kuwaitis, just under half of the citizen population, are eligible to choose from 326 candidates, including 28 women, vying for the National Assembly’s 50 seats.
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