Latest news with #OpecPlus
Times
5 days ago
- Business
- Times
Business live: Boeing jet workers to strike for first time in nearly 30 years
Oil prices fell on Monday after Opec+ agreed to another large production increase in September. Benchmark Brent crude futures fell 0.2 per cent to $69.49 a barrel after closing about $2 a barrel lower on Friday. Opec+, which includes the Organization of the Petroleum Exporting Countries and its allies, including Russia, agreed on Sunday to raise oil production by 547,000 barrels a day for September. It is the latest in a series of accelerated output increases aimed at regaining market share. The decision was attributed to a healthy economy and low stockpiles. While the move added to global supply, worries about disruptions in Russian oil shipments to India, a major importer, limited losses. BP: The oil company has announced an oil and gas discovery at the Bumerangue prospect in the deepwater offshore Brazil. The exploration well is located in the Santos Basin, 218 nautical miles from Rio de Janeiro, in a water depth of 2,372 metres. The well was drilled to a total depth of 5,855 metres. In other corporate news: Senior: The engineering specialist has reported a 5 per cent rise in revenue to £371 million and a 14 per cent increase in adjusted operating profit to £31.7 million, boosted by a stronger performance from its aerospace division. The £200 million sale of its aerostructures business is on track to completed by the end of the year, the company said. Clarkson: The shipping broker has reported a sharp fall in first-half profits as it navigates 'a highly complex global environment'. Pre-tax profits dropped by a quarter to £37.5 million from £50.1 million in the six months to the end of June. Revenue fell to £297.8 million from £310.1 million. Convatec: The FTSE 100 wound care company said Karim Bitar, its chief executive, is taking a medical leave of absence from the company. Jonny Mason, the chief financial officer, will become interim chief, and Fiona Ryder, the group financial controller, will take up the role of interim chief financial officer. Shares in Lloyds Banking Group, Close Brothers, and other major motor finance providers will be in focus on Monday after the City regulator said on Sunday that it would consult on launching a redress scheme for millions of consumers who bought a vehicle from a dealership that failed to properly disclose commission arrangements. The scheme, which could cost lenders between £9 billion and £18 billion, should cover car loans dating back to 2007. Individuals could receive payments of almost £950 each. Lloyds said on Monday morning that while there remained 'a number of uncertainties' over provisions it had already made for potential customer redress, any change in the amount set aside was 'unlikely to be material' for the lender. Close Brothers said it looked 'forward to engaging with the FCA in respect of the consultation'. • Lenders in car finance scandal brace for judgment from investors The Greek energy and metals group begins trading on the London Stock Exchange on Monday. Metlen, which was formerly known as Mytilineos Energy and Metals, is building four gas-fired plants across Britain, has completed the Cleve Hill solar park in Kent earlier this month, and is part of the £1 billion consortium building the east coast subsea link. The company has switched its primary listing from Athens, where it will retain a secondary listing. Metlen will not raise any fresh capital as part of the move. With a market value of about £5.4 billion, the company is poised for inclusion in the FTSE 100 when the index is reshuffled next month. Union members who assemble Boeing's fighter jets in the St Louis area have rejected the aircraft maker's latest contract offer and will go out on strike at midnight on Monday, the International Association of Machinists and Aerospace Workers union said. The move is bad news for Boeing, amplifying financial pressure on its defence and space division, which accounted for about 30 per cent of revenue in the second quarter. It will be the first time in nearly 30 years that Boeing's defence union will halt work at its St Louis-area factories. Its original proposal included a 20 per cent general wage increase over four years and a $5,000 ratification bonus, as well as more vacation time and sick leave. The union had rejected the offer as insufficient. Boeing said it was disappointed but was ready for the action and had a contingency plan in place. Japanese shares fell by the largest amount in almost four months as concerns mounted over the US economy after Friday's disappointing jobs data and a potential upheaval in domestic politics. The Nikkei 225 dropped 1.5 per cent and was set for its steepest decline since April 11. In mainland China, Hong Kong and South Korea, stock markets edged higher on the prospect of US interest rate cuts in September, the one upside to the jobs data in which downward revisions left the three-month average of jobs growth at 35,000 from 231,000 at the start of the year. Wall Street led global equities lower on Friday as traders dumped stocks and the dollar and bought government bonds after the weak US jobs figure. The FTSE 100 was not immune to sell-off on Friday and snapped a five-week winning streak with a fall of 0.6 per cent over the five days. London's leading share index is forecast to bounce when trading begins shortly, rising 42 points.
The National
5 days ago
- Business
- The National
Opec+ agrees to 547,000 bpd oil output increase for September
Opec+ has agreed to increase its oil production by 547,000 barrels per day for September, as the alliance of oil producers led by Saudi Arabia and Russia continues to unwind voluntary cuts introduced during the pandemic. "The eight participating countries will implement a production adjustment of 547 thousand barrels per day in September 2025 from August 2025 required production level," the Organization of the Petroleum Exporting Countries (Opec) stated in a press release on Sunday. The decision marks the sixth month in a row the group has raised output as it gradually restores 2.2 million barrels a day of supply that was withheld from the market. The alliance previously approved monthly rises of 138,000 barrels a day in April and 411,000 barrels a day for May, June and July. Last month, Opec+ announced a larger-than-expected increase of 548,000 barrels a day for August, accelerating the pace of its phased supply return. Policy and market fundamentals Since December 2024, Opec+ has maintained that it would gradually and flexibly unwind its voluntary cuts beginning in April 2025. In past statements, the group cited a steady global economic outlook, healthy market fundamentals and low oil inventories as reasons for restoring output. Opec+ has reiterated that future increases can be paused or reversed if market conditions deteriorate, to maintain oil market stability. The return of production cuts – originally agreed by eight Opec+ members including Saudi Arabia, Russia, the UAE and Iraq in November 2023 – had been pushed back several times amid concerns about growing supply in the market. The next gathering will take place on September 7. Added pressures Oil prices dropped on Friday after a weaker-than-expected US jobs report and tariffs announcements weighed on prospects for energy demand growth. The Labour Department employment report for July put employment growth at a much lower level than expected, at 73,000 jobs. Markets had expected a gain of 100,000. Brent, the benchmark for two-thirds of the world's oil, dropped 2.83 per cent to $69.67 a barrel at the market close on Friday, while West Texas Intermediate, the gauge that tracks US crude, fell 2.79 per cent to settle at $67.33 a barrel on Friday, its biggest drop in a single day since June 24. Recent geopolitical tensions have added to oil market volatility this year. A 12-day conflict between Israel and Iran earlier this year drove oil prices up by more than 13 per cent before they retreated below pre-war levels. Opec+ is scheduled to meet again in October to decide on output levels for that month.
Zawya
11-07-2025
- Business
- Zawya
Global oil demand rising steadily, to hit 123m bpd by 2050: OPEC
The Organisation of the Petroleum Exporting Countries (Opec) revealed its World Oil Outlook 2025 today (July 10) at the 9th Opec International Seminar, delivering a firm message: global oil demand is not in decline. On the contrary, Opec forecasts that demand will rise steadily to nearly 123 million barrels per day (bpd) by 2050, driven by rapid growth in developing economies. The report comes as Opec+ begins easing voluntary production cuts. Since May, over 400,000 bpd has been gradually restored to the market. However, a core cut of 3.65 million bpd remains in effect through to the end of 2026, reflecting a cautious approach to market stability. Addressing the gathering, Opec Secretary General Haitham Al Ghais, said that the world requires more energy in the decades to come, and 'for this to be available in a secure, stable and realistic manner that the world will continue to need all energies'. Al Ghais also highlighted that the world will continue to need all energies. "It is also a future in which we need to embrace all technologies, to drive innovation and efficiencies, and ensure that all peoples are taken into account, particularly given that it is the non-OECD developing world that will drive future energy growth," he stated. This long-term projection runs counter to the International Energy Agency (IEA), which expects oil demand to peak before 2030 due to increased adoption of electric vehicles (EVs) and renewable energy. Opec, however, sees fossil fuels, particularly oil, playing a central role in the global energy mix for decades to come. While demand in Europe and North America is expected to plateau or fall, consumption is set to surge in India, Africa, and the Middle East. Population growth, urbanisation, and rising incomes are increasing energy needs in these regions — and oil remains one of the most accessible and reliable sources. Opec has slightly revised its medium-term demand forecast, citing slower economic growth in China and faster-than-expected EV uptake. Still, it predicts oil demand will hit 111.6 million bpd by 2029, down only marginally from the 111.8 million forecasted previously. To keep pace with rising demand, the oil industry will need to invest approximately $18.2 trillion by 2050, according to Opec. This includes funding for exploration, production, refining, transport, and maintenance. Without adequate investment, the report warns, the world could face supply shortfalls and price instability. Given that many existing oil fields naturally decline by 4–5% each year, sustained funding is essential just to maintain current output - let alone meet future demand. Opec stresses that the global energy transition should be 'orderly, just, and inclusive.' While renewables are expanding, many countries still depend on oil for transport, manufacturing, and development. By 2050, Opec expects fossil fuels to account for over 60% of global energy supply, with oil contributing around 29%. -TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Khaleej Times
10-07-2025
- Business
- Khaleej Times
Opec+ output hike finds strong market demand: Al Mazrouei
The oil market is absorbing additional crude supplies from Opec+ without creating excess inventories, underscoring robust global demand and justifying the recent accelerated output hikes, UAE Energy Minister Suhail Al Mazrouei said in Vienna. Speaking on the sidelines of the 9th Opec International Seminar, Al Mazrouei emphasised that the oil market fundamentals remain strong despite persistent speculation and price volatility. He pointed to the lack of stockbuilds in recent months — even after eight core Opec+ members began raising production targets — as evidence that the market needed the additional supply. 'You can see that even with the increases for several months we haven't seen a major buildup in inventories, which means the market needed those barrels,' he said. 'We need to look at the fundamentals and build the narrative around them, rather than just news and speculation.' Oil market analysts said the UAE's message is clear: supply increases are not a sign of surplus but a necessary response to resilient demand, underlining the need for a pragmatic approach to energy policy and production planning. Opec+ — which includes key producers such as Saudi Arabia, Russia, the UAE, Iraq, and Kuwait — recently announced a sharper-than-expected increase in crude output for August, raising the collective target by 548,000 barrels per day (bpd). This follows three months of more moderate hikes of 411,000 bpd each, as the group gradually unwinds a voluntary 2.2 million bpd cut agreed in April 2023. The decision to step up production came after sustained pressure from major consuming nations and market signals pointing to tighter supply in the second half of 2025. With demand for oil forecast to reach record levels, particularly from non-OECD Asia, analysts say the increased supply is not only timely but necessary to prevent price spikes. According to the International Energy Agency (IEA), global oil demand is expected to grow by 1.1 million bpd in 2025, driven by robust consumption in India and China and rising jet fuel usage as air travel rebounds. The IEA also reported that global commercial oil stocks remained below the five-year average through the second quarter, reinforcing the UAE minister's claim that the market is far from being oversupplied. Al Mazrouei dismissed concerns that the group's output hikes could lead to a supply glut later in the year. 'Opec+ assesses the market balance at each meeting,' he said. 'What we want is stability. That goal requires accepting whatever price the market accepts. Focusing only on prices is short-sighted.' He also raised the alarm about chronic underinvestment in oil and gas production, warning that the industry is not spending enough to ensure future energy security. 'We are living in an underinvestment environment. The longer this period lasts, the more pain we will face in the years to come,' he said. His remarks echoed similar concerns voiced by other oil executives at the seminar, where energy security, investment, and the role of hydrocarbons in a balanced energy transition topped the agenda. The Opec International Seminar, held at Vienna's Hofburg Palace, gathered over 1,000 ministers, CEOs, and policymakers for high-level discussions on global energy challenges.
The National
09-07-2025
- Business
- The National
Oil markets are absorbing extra barrels from Opec+, UAE energy minister says
Oil markets are absorbing Opec+ production increases and there has been no major build-up in inventories, which indicates higher demand in global markets, Suhail Al Mazrouei, Minister of Energy and Infrastructure said on Wednesday. Opec+, which has been curtailing production for several years, reversed its course in April and started boosting production amid plans to regain some market share. The group will boost production by 548,000 barrels per day for August, it said last week, after increasing output by 411,000 barrels per day for each of May, June and July. The group also approved an increase of 138,000 barrels per day in April. "You can see that even with the increases for several months, we haven't seen a major build-up in inventories, which means the market needed those barrels," Reuters reported on Wednesday, citing Mr Al Mazrouei speaking in Vienna. "What we want is stability and you cannot be short-sighted just by looking at the price. We need the price to be right for investments to happen," he said, adding that countries with big oil reserves were still not investing enough. The comments come as oil markets remained volatile this year amid US President Donald Trump's tariff plans and the Israel-Iran conflict. Oil prices started the year strongly. The closing price of Brent, the benchmark for two-thirds of the world's oil, peaked at more than $82 a barrel on January 15, while West Texas Intermediate, the gauge that tracks US crude, hit almost $79 per barrel on that day. However, demand concerns, a slowing global economy and less-than-stellar growth in China, the world's biggest crude importer, have weighed on crude prices this year. Mr Trump's push to impose hefty tariffs on trade partners has been the biggest driver of declining oil prices. Brent and WTI surged as much as 13 per cent after the conflict broke out between Iran and Israel on June 13 on supply-related disruption concerns. However, prices declined in subsequent days as the geopolitical premium faded and markets focused on fundamentals instead. Bob McNally, president of Rapidan Energy, told The National in Vienna that "Opec+ have a robust view of demand growth". "If we look out the window, the oil market is tight. Cushing [a key US trading and storage centre] is empty, diesel inventories in the United States are very low." However, he said "macro deterioration" is the biggest risk to oil prices in the second half of this year. "Demand for oil started off in the first quarter at 1.1 million barrels a day, but it hit the skids and slowed down in the second quarter, especially in China, with almost no demand growth,' Mr McNally said. 'The question is whether it's a one-time blip or will China recover? A lot of that depends on these trade talks, on this uncertainty with regard to interest rates and so forth." Apparent oil demand – an indicator of consumption trends – in China has been running nearly 3 per cent lower year on year for the first five months of 2025, despite economic momentum stabilising in the country, Dubai lender Emirates NBD said last week. The Federal Reserve last month held its target range for interest rates between 4.25 per cent and 4.50 per cent – the fourth consecutive time it has left rates unchanged.
