OPEC+ countries to boost oil production by 547,000 barrels per day
NEW YORK — A group of countries that are part of the OPEC+ alliance of oil-exporting countries has agreed to boost oil production, a move some believe could lower oil and gasoline prices, citing a steady global economic outlook and low oil inventories.
The group met virtually on Sunday and announced that eight of its member countries would increase oil production by 547,000 barrels per day in September.
The countries boosting output, including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, had been participating in voluntary production cuts, initially made in November 2023, which were scheduled to be phased out by September 2026. The announcement means the voluntary production cuts will end ahead of schedule.
The move follows an OPEC+ decision in July to boost production by 548,000 barrels per day in August. OPEC said the production adjustments may be paused or reversed as market conditions evolve.
When production increases, oil and gasoline prices may fall. But Brent crude oil, which is considered a global benchmark, has been trading near $70 per barrel, which could be due to a potential loss of Russian oil on the market and a large rise in crude inventories in China, according to research firm Clearview Energy Partners.
'President Trump has not obviously relented from his threat to sanction Russian energy if the Kremlin does not reach a peace deal with Ukraine as of August 7, potentially via 'secondary tariffs' on buyers,' Clearview Energy Partners said in an analyst note Sunday.
The eight countries will meet again on Sept. 7, OPEC said in a news release.
Cathy Bussewitz, The Associated Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
NBIS Q2 Earnings Coming Up: How Should You Play the Stock?
Nebius Group N.V. NBIS will report its second-quarter 2025 results on Aug. 7, before market open. The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter stands at a loss of 42 cents. The estimate has remained unchanged in the past 30 days. The consensus estimate for total revenues is pinned at $95.05 million. Based in Amsterdam, Nebius is positioning itself as a specialized AI infrastructure company. Its core operation is Nebius, which is an AI-powered cloud platform designed for intensive AI and ML workloads in both owned and colocation data center capacity. It resumed trading as a public company in October 2024. What Our Model Predicts for NBIS' Q2 Our proven model does not conclusively predict an earnings beat for NBIS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. NBIS has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Factors to Focus on Ahead of NBIS' Q2 Earnings Accelerating demand for its AI infrastructure services is likely to have driven the top-line performance in the to be reported quarter. On the last earnings call, NBIS had highlighted that annualized recurring revenues or ARR for April were $310, providing a strong start for the second quarter. Due to strong April ARR, Nebius was confident in achieving its full-year ARR guidance of $750 million to $1 billion for 2025. Nebius is focused on boosting its data center footprint and its GPU deployments as part of its strategy to ramp up installed capacity across the United States and Europe. Establishing facilities in the United States means lower latency while serving domestic clients and boosting the advantages of the AI-native cloud. It added three new regions, including a strategic data center in Israel, in the last reported quarter. Collaboration with Saturn Cloud and deeper NVIDIA (NVDA) integration bodes well. It announced the general availability of NVIDIA GB200 Grace Blackwell Superchip capacity for its customers in Europe in June 2025. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster. Nebius is making substantial investments in improving its object storage capabilities, and the upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. These factors are likely to have contributed to gaining more clients in the to be reported. Nonetheless, the intense competition from behemoths remains a concern, along with profitability issues. Nebius is a relatively new entrant in the AI cloud infrastructure space, which boasts behemoths like Amazon AMZN and Microsoft MSFT, and other upcoming players like CoreWeave CRWV. Amazon Web Services and Microsoft's Azure cloud platform together dominate more than half of the cloud services market. Nebius Group N.V. Price and EPS Surprise Nebius Group N.V. price-eps-surprise | Nebius Group N.V. Quote Despite its exceptional top-line growth, NBIS remains unprofitable, with management reaffirming that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' NBIS has also raised its 2025 capital expenditure forecast to approximately $2 billion from the previous estimate of $1.5 billion, primarily due to some planned fourth-quarter spending shifting into the early first quarter. Higher capex can be a concern if revenues do not keep up the required pace to sustain such high capital intensity. Moreover, NBIS also highlighted that it will be deconsolidating Toloka as its voting share dropped below 50% due to investments from Jeff Bezos and Mikail Parakhin. Since the transaction closed in May 2025, NBIS will update its financials and guidance, excluding Toloka in its second quarter earnings report. Analysts have significantly revised their earnings estimates downward for NBIS' bottom line over the past 60 days. NBIS Stock Performance Nebius shares have risen 59.6% over the past six months, outperforming the Zacks C omputer & Technology sector and the Zacks Internet Software Services industry's growth of 6.8% and 10.4%, respectively. The S&P 500 Composite has returned 2.5% over the same time frame. Price Performance Image Source: Zacks Investment Research The gain is better than its peers, like Microsoft (up 29.6%) and Amazon (down 10.4%). On the other hand, CoreWeave, which is another hypergrowth pure play AI infrastructure company, has registered gains of 165%. NBIS' Stretched Valuation NBIS stock is also not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment. In terms of Price/Book, NBIS shares are trading at 4.04X, almost the same as the Internet Software Services industry's ratio of 4.03, but it could mean more risk than opportunity. What to Do With NBIS Stock Before Q2? Intense competition, ongoing profitability issues, and high capex pressure weigh on short-term prospects. The recent Toloka deconsolidation adds uncertainty to future guidance. Given these risks and limited near-term upside, investors could benefit from offloading NBIS ahead of the second quarter results. Investors looking to invest should wait for a better entry point. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Nebius Group N.V. (NBIS): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report
Globe and Mail
an hour ago
- Globe and Mail
ConocoPhillips' Q2 Earnings on Deck: Remain Invested in the Stock?
ConocoPhillips COP is set to report second-quarter 2025 results on Aug. 7, before the opening bell. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.36 per share, implying a decline of 31.3% from the year-ago reported number. Three analysts have revised their estimates upward in the past 30 days. The Zacks Consensus Estimate for quarterly revenues is currently pinned at $14.9 billion, indicating a 5.6% increase from the year-ago actuals. COP beat the consensus estimate for earnings in three of the trailing four quarters and missed the same once, with the average surprise being 1.94%. Q2 Earnings Whispers Our proven model doesn't predict an earnings beat for COP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here. The leading upstream energy player has an Earnings ESP of 0.00%. COP currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Factors Shaping Q2 Results According to the U.S. Energy Information Administration ('EIA'), the average spot prices for Cushing, OK, West Texas Intermediate (WTI) crude for April, May and June were $63.54, $62.17, and $68.17 per barrel, respectively. Based on the EIA data, the pricing environment was healthier in the first quarter, with average prices of $75.74, $71.53 and $68.24 per barrel for January, February and March, respectively. The same story also applies to natural gas prices. Our model forecasts a 21% year-over-year increase in the company's total daily oil equivalent production volumes. In the prolific Lower 48 region, which significantly contributes to COP's production, daily oil equivalent volumes are expected to rise 27.8% year over year, according to our model. Notably, the Lower 48 represents the company's high-quality unconventional resources in the United States. Price Performance & Valuation COP's stock has lost 8.4% over the past year compared with the decline of 12.3% of the industry 's composite stocks. One-Year Price Chart Although COP declined less than the industry, it still appears relatively undervalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 5.18, which is trading at a discount compared to the industry average of 10.83. COP's Investment Thesis ConocoPhillips has extensive oil and natural gas resources that it can develop, earning substantial profits, even if the price of oil declines. The upstream player had claimed on its first-quarter earnings call that it had identified sufficient oil and gas resources that could be developed and produced for decades, which would be highly economical. The leading upstream player is confident that it will conduct the extraction, development and delivery of the oil to the market profitably even if the price of West Texas Intermediate oil falls to as low as $40 per barrel. Thus, ConocoPhillips has a significant competitive advantage, especially when the pricing environment of oil becomes challenging. Like COP, Exxon Mobil Corporation XOM and Chevron Corporation CVX can also conduct low-cost operations due to their presence in prolific shale resources. However, ConocoPhillips' global footprint exposes it to high-tax regions like Norway and Libya, which may weigh on net earnings. Also, ConocoPhillips is spending heavily on big projects like Willow and LNG that may boost profits later, but for now, they're tying up cash and limiting how much the company can return to investors. How the Diversified Energy Majors XOM, CVX Fared in Q2 Chevron reported adjusted second-quarter earnings per share of $1.77, beating the Zacks Consensus Estimate of $1.70. The outperformance stemmed from higher-than-expected production in the company's key upstream segment. However, the bottom line came well below the year-ago adjusted profit of $2.55 due to weaker oil price realizations. CVX generated revenue of $44.8 billion. The sales figure missed the Zacks Consensus Estimate of $47.1 billion and decreased 12.4% year over year. Coming to XOM's story, the large integrated player reported earnings per share of $1.64 (excluding identified items), which beat the Zacks Consensus Estimate of $1.49. The bottom line declined from the year-ago level of $2.14. ExxonMobil's total quarterly revenues of $81.5 billion missed the Zacks Consensus Estimate of $82.8 billion. The top line declined from the year-ago figure of $93.06 billion. Last Word While COP offers promising long-term potential and appealing valuations, investors should not rush to buy the stock. However, those already holding the stock are advised to maintain their position. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report
CTV News
2 hours ago
- CTV News
Saudi Aramco profit drops as it flags cost cuts, divestments
Saudi Aramco engineers at Khurais oil field during a tour for journalists, on June 28, 2021. (Amr Nabil / AP) DUBAI — Saudi Arabian oil company Aramco reported a 22 per cent drop in second-quarter profit on Tuesday, and the world's top oil exporter said it was cutting costs and looking to divest assets as crude prices drop and its debt mounts. The firm's generous dividends, a key source of funding for ambitious plans to cut the kingdom's reliance on oil, will be about a third lower this year. Aramco reported its 10th decline in quarterly net profit to US$22.7 billion in the quarter through June, from US$29.1 billion a year earlier. Aramco's shares were up 0.3 per cent at 23.98 riyals. They have dropped about 14.5 per cent this year, trailing industry peers. Adjusted net income fell 13.7 per cent to US$24.5 billion, above a company-provided median analyst estimate of US$23.7 billion. 'What we're looking at across the portfolio is to unlock capital that is currently locked into low - relatively low-return (assets) ... invest it in our core investment, which are high return,' CFO Ziad Al-Murshed told reporters. He declined to name the assets, but said: 'it is your typical low-return that is tied in things like infrastructure.' Reuters reported last month that Aramco was close to a deal to raise US$10 billion from a group led by BlackRock, and is considering selling up to five gas-powered power plants to raise up to US$4 billion. Total borrowing rose to US$92.9 billion at June 30 from US$74.4 a year prior. Gearing, a measure of indebtedness, rose to 6.5 per cent from minus 0.3 per cent a year earlier and 5.3 per cent the previous quarter. Aramco is looking at different geographies, currencies and instruments for debt issuance, Al-Murshed said. The company, long a reliable source of revenue for the Saudi state, confirmed a previously outlined US$21.3 billion in total dividends for the second quarter, about US$200 million of which is performance-linked dividends. Dividends sink Aramco in March outlined total dividends of US$85.4 billion for 2025 - a 31 per cent drop from more than US$124 billion the previous year. The performance-linked component is set to plunge 98 per cent from 2024 to US$900 million as free cash flow dwindles. Free cash flow dropped nearly a fifth year-on-year in the second quarter to US$15.2 billion. For the Saudi government, which owns 81.5 per cent of Aramco shares directly and another 16 per cent through its sovereign wealth fund PIF, dividends are a critical source of income, particularly as it invests to diversify the economy away from oil. Oil generated 62 per cent of the government's revenue last year, and the International Monetary fund estimates the kingdom needs oil prices at more than US$90 a barrel to balance its 2025 budget. Aramco's average realized crude oil price was US$66.7 a barrel in the quarter, down from US$76.3 in the first quarter and US$85.7 in the second quarter of 2024. 'We've penciled in for Saudi Arabia to run a budget deficit of 5.0 per cent of GDP this year,' said James Swanston, senior economist at Capital Economics, adding the government would likely overshoot its annual borrowing plan. That would be more than double the 2.3 per cent deficit, or about US$27 billion, the kingdom projected in November for the 2025 budget. --- Reporting by Yousef Saba and Luke Tyson in Dubai; Editing by Mark Potter and Bernadette Baum
