OPEC+ looks set to further hike oil output

The eight OPEC+ countries have already increased production by around 2.7 million barrels per day in total. (Reuters pic)

LONDON: Saudi Arabia, Russia and six other key members of the OPEC+ alliance are expected to agree to further hike oil production in a virtual meeting Sunday, as the group continues to seek greater market share.

Analysts predict a slight output hike when the group of eight oil-producing countries known as the “Voluntary Eight” (V8) holds its online meeting.

Since April, the V8 group — comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman — has boosted production by around 2.7 million barrels per day (bpd) in total.

Emily Ashford, an energy analyst at Standard Chartered bank, expects a production hike of 137,000 bpd from December, which would mirror last month’s decision.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have sped up output increases at a pace very few had anticipated at the beginning of the year, following a long period of producers seeking to combat price erosion by implementing production cuts to make oil scarcer.

But faced with growing competition, particularly from US shale oil producers, gaining a larger share of the oil market has become the group’s main priority.

The group’s change in strategy “is working to a certain degree”, said Ole Hvalbye, commodities analyst at SEB bank.

Supply by US shale producers “is not increasing anymore, it’s going sideways”, he told AFP, adding that there is “less investment in new US production”.

Price resilience

As in previous months, the V8 group is likely to cite “low oil inventories” worldwide to justify a further increase in production quotas.

According to the US Energy Information Administration (EIA), crude oil inventories in the United States have recently recorded a sharp drop, allowing the price of a barrel of Brent, the global benchmark for crude, to remain steady at around $65.

Amid a growth in supply, the announcement came as a surprise, with oil inventories expected “to start stockpiling”, said Hvalbye.

Since September, most of the volumes at sea have risen sharply — even exceeding the levels reached during the Covid pandemic — and they are on their “way to (the) harbour”, he noted.

Adding barrels to the market thus exposes the group to a drop in prices that cuts into its profits, analysts say.

But not reintroducing them “would cause panic” among investors, said Ashford, because it would imply that OPEC+ “doesn’t see a strong enough market to absorb barrels, which would be seen as bearish”.

However, she said that an increase in OPEC+ quotas of 137,000 barrels would result in lower actual production, limiting the impact on prices.

Uncertainty over sanctions

Looking forwards, some V8 members that have exceeded their output quotas in the past will need to compensate for their overproduction, and Russia in particular “is already at full capacity”, Ashford told AFP.

In late October, pressure on Russian oil supplies mounted after the United States hit the country’s two biggest oil producers — Rosneft and Lukoil — with sanctions.

Analysts say the real impact of the US measures remains unclear, since it will largely depend on how strictly Washington enforces secondary sanctions on foreign financial institutions involved in transactions with the two firms.

“The market is underestimating what it means when you have US sanctions against two large Russian companies, which are (at) the core of trading Russian oil,” said Patrick Pouyanne, CEO of French oil and gas giant TotalEnergies on Thursday, suggesting that a significant reduction in Russian supply would support prices.

But many analysts are cautious, arguing that Russia has been circumventing Western sanctions successfully. Furthermore, the United States may not take any action against purchases by China, the main importer of Russian oil, with which it has just signed an agreement to reduce trade tensions.

6 thoughts on “OPEC+ looks set to further hike oil output”

https://shorturl.fm/XHLkr

Diese sind natürlich auch als Live Casino Spiele verfügbar,
wo noch die beliebten Spielshows im Verde Casino online dazukommen. Dazu
gehören die Brettspiele, die wir eher als Tischspiele bezeichnen würden, wie Poker, Roulette, Blackjack, Baccarat oder Craps.
Dennoch gibt es neben den Verde Casino Spielautomaten auch
jede Menge andere Casinospiele im Spielangebot.

Als moderne Alternative zu klassischen Slots bietet das
Verde Casino einen Bereich mit sogenannten „Insta Games“.

Das Live Casino ist das Kronjuwel des Verde Casinos und bietet ein erstklassiges, authentisches Spielerlebnis.
Wenn Sie beispielsweise planen, insgesamt 400€ einzuzahlen, könnten Sie diese auf die vier Stufen verteilen (z.B.
100€, 100€, 100€, 100€), um den maximalen Bonus von 1.200€ zu erhalten.

References:
https://online-spielhallen.de/monro-casino-freispiele-ihr-schlussel-zu-mehr-spielspas/

This enhancement creates a more interactive and rewarding
loyalty system, incentivizing players to participate
actively with the casino. In conclusion, the comprehensive
range of promotions at Royal Reels Casino enriches gaming experiences by supplying additional resources to explore, engage, and ultimately enjoy everything this premium casino
has to offer. By keeping an active eye on these channels, players can seize opportunities that align with their gaming strategies.
For Australian players, promotions tailored to local
preferences enhance the appeal of Royal Reels Casino,
mirroring promotional trends that resonate among the domestic audience.
Additionally, Royal Reels places emphasis on ongoing promotions that entice
and reward players for their loyalty.
Engaging walkthroughs introduce the game catalog,
the variety of bonus offers available, and direct access to the customer support team.

This customization capability ensures that each player can tailor their gaming experience at Royal Reels to
suit personal preferences, fostering an environment of
enhanced user satisfaction. Players at Royal Reels are offered a robust selection of over 2000
games, carefully curated to align with their preferences
and backed by reputable gaming software providers for seamless
experiences. This esteemed platform, known for its stellar variety of pokies and high-value bonuses, continues to redefine the digital casino landscape.

References:
https://blackcoin.co/galaxy-96-casino-a-comprehensive-review/

Currently available to a small subset of users, Bing Search now incorporates AI-generated answers in addition to traditional search results directly on the search page.
The images.readLink attribute in the official API
which provides the URL for the equivalent API image search can be found at inline_images.serpapi_link in our API.
To get more help on the forum, why not use the search bar at the top
to search for questions already asked and answered by other Community users?
Sky martial arts has changed back to sky action
Try searching ‘Sky customer service number’ …. Please
mark a response as an ANSWER if it has solved your query/issue I need to speak to
an actual human being to get sky tv installed Sorry, you can’t
reply to this discussion as it’s been locked by our Community Managers.

Bing has purposely designed their generative AI layout to maintain clicks to websites.
Bing’s layout is a huge departure from the zero-click style of
layouts seen in other search engines. Early data indicates that this experience maintains the number of clicks to websites and supports a healthy
web ecosystem. “We are continuing to look closely at how generative search impacts traffic to publishers. In addition to those contextually relevant organic search results there are also search results on the right hand side (not shown in the above screenshot). Below is a screenshot of a typical Bing AI search result for a query about the life span of elephants.

References:
https://blackcoin.co/vip-casinos-in-canada-2022/