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Al Arabiya
9 hours ago
- Business
- Al Arabiya
OPEC+ agrees further accelerated oil output hike for July
OPEC+ agreed on Saturday to hike July oil output by 411,000 barrels per day (bpd), the same as in May and June, as the group of oil-producing countries continues to bring back supply more rapidly than earlier planned. In a statement issued after a meeting, OPEC+ cited a 'steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories' as its reasoning for the July increase. OPEC+ pumps about half of the world's oil and includes OPEC members and allies such as Russia.
South China Morning Post
10 hours ago
- Business
- South China Morning Post
Opec+ agrees on sharp increase in July oil production to deepen price slump
Opec+ has agreed to surge oil output by 411,000 barrels a day for the third month in a row, doubling down on a historic policy shift that has sent crude prices sinking. Advertisement Key nations led by Saudi Arabia agreed during a video conference on Saturday to add that amount to the market in July, according to delegates. The surge follows equally sized increases scheduled for May and June, marking a clear break with years of efforts by the group to support global oil prices. 'Opec+ isn't whispering any more,' said Jorge Leon, an analyst at Rystad Energy A/S, who previously worked at the Opec secretariat. 'May hinted, June spoke clearly, and July came with a megaphone.' In a statement issued after the meeting, Opec+ cited a 'steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories' as its reasoning for the July increase. While there was ultimately a consensus for the July increase, some members expressed reservations. During Saturday's discussions, Russia was among members that recommended a pause in the supply increases, delegates said, asking not to be named because the information was private. Advertisement Oil briefly crashed to a four-year low under US$60 a barrel in April after the Organization of the Petroleum Exporting Countries (Opec) and its allies first announced that they would bolster output by triple the scheduled amount, even as faltering demand and President Donald Trump's trade war were already crushing the market.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Oil prices climb after U.S. court blocks most of Trump's tariffs
Oil prices rose on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Brent crude futures climbed 27 cents, or 0.4%, to $65.17 a barrel. U.S. West Texas Intermediate crude advanced by 26 cents, or 0.4%, to $62.10 a barrel at 6:45 a.m. ET. A U.S. trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute. 'Markets are positive since Donald Trump got the setbacks on the tariffs,' said Bjarne Schieldrop, chief commodities analyst at SEB. 'That's less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster.' The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but some analysts said the relief may only be temporary given the Trump administration has said it will appeal. Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands 'But for now, investors get a breather from the economic uncertainty they love to loathe,' said Matt Simpson, an analyst at City Index in Brisbane. On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July. 'We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,' said ING analysts in a note. Adding to supply risks, Chevron Corp. CVX-N has terminated its oil production and a number of other activities in Venezuela, after its key licence was revoked by the Trump administration in March. Venezuela in April cancelled cargoes scheduled to Chevron, citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 barrels a day of Venezuelan oil or over a third of the country's total before that. 'From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply,' Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 600,000 to 700,000 bpd. Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the U.S. Department of Energy. According to the market sources familiar with the API data, U.S. crude and gasoline stocks fell last week while distillate inventories rose. Meanwhile, a wildfire in Alberta has forced residents of a small town to evacuate and prompted the temporary shutdown of some oil and gas production which could reduce supply.
Bloomberg
2 days ago
- Business
- Bloomberg
OPEC+ Prepares Third Dose of Oil Shock Therapy
Welcome to our guide to the commodities markets powering the global economy. Today, OPEC reporter Grant Smith looks at the cartel's oil production strategy ahead of a virtual meeting at the weekend. OPEC+ looks set to push more oil onto a fragile global market for the third month in a row — but the motive behind the group's strategy is no less elusive.
Asharq Al-Awsat
3 days ago
- Business
- Asharq Al-Awsat
OPEC+ Adopts Plan for 2027 Baselines
OPEC+ agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production. The 39th OPEC and non-OPEC Ministerial Meeting was convened in light of the continued commitment of the participating countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market. The participants reaffirmed the Framework of the DoC, signed on December 10, 2016, and further endorsed in subsequent meetings. They reaffirmed the level of overall crude oil production for OPEC and non-OPEC participating countries in the DoC as agreed in the 38th OPEC and non-OPEC Ministerial Meeting until December 31, 2026. They reaffirmed the mandate of the Joint Ministerial Monitoring Committee (JMMC) to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC, assisted by the OPEC Secretariat. The JMMC meeting will be held every two months. The participants underlined the JMMC's authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary. They also reiterated the critical importance of adhering to full conformity and the compensation mechanism. Furthermore, they mandated the OPEC Secretariat to develop a mechanism to assess participating countries' maximum sustainable production capacity (MSC) to be used as reference for 2027 production levels for all DoC countries. The 40th OPEC and non-OPEC Ministerial Meeting will be held on November 30.
