OPEC+ and Russian allies ‘historic’ cut

OPEC+ and Russian-led allies for the first time in 2 years are meeting in person to discuss a significant
oil production cut that not all participants are in favor of.
The 45^th Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 45^th OPEC and non-OPEC
The Ministerial Meeting will take place in person at the OPEC Secretariat in Vienna, Austria, on
Wednesday, 5 October 2022.
The OPEC Secretariat looks forward to welcoming all ministerial delegations again to Vienna.

Topics

The reason

What if?

Not all are in favor

Not all are in favor of the OPEC+ and Russian allies ‘historic’ cut
Now not all members are on board with the proposed production cuts. Iran, for instance,
has been reluctant to reduce its output levels because it needs revenue to fund its economy.
OPEC+ meeting on Wednesday to discuss the proposed output cut. It is not yet clear if all members of
the Russian allies will agree to the cut. Russia, which is not a member of OPEC, has not yet said if it will
support the output cut. The coronavirus outbreak has already caused a sharp drop in demand for oil as
travel restrictions and other measures have been put in place to contain the virus. The International
Energy Agency has forecast that global oil demand will fall by 435,000 barrels per day in the first quarter
of 2020 because of the outbreak.

Additionally, some analysts believe that Saudi Arabia and other major producers may be overstating their
reserves to justify cuts. As such, it remains to be seen whether or not this meeting will result in an agreement
among all members, yet OPEC is expected to announce a production cut. This would be a historic move, as it
would be the first time in two years that OPEC has taken action to reduce output.

The reason

The reason is simple: global oil demand has been weak due to the pandemic and OPEC wants to prop up prices.
A production cut will do just that. Some argue that Saudi Arabia, the largest producer within OPEC, should shoulder
most of the burden when it comes to cuts. After all, they have been able to weather the storm better than most
thanks to their large reserves.
However, investors believe that all members should make a sacrifice for this deal to work. Otherwise, we could see
prices continue to decline and further harm producers who are already struggling.

What if?

If OPEC does agree on a production cut at this meeting, it could help alleviate some of the pressure on oil prices.
However, it is worth noting that such cuts would likely only be temporary fixes; without fundamental changes to global
demand and supply dynamics (such as increasing the use of renewable energy), oil prices are highly likely to continue
their downward trend over the long term.
In conclusion, it’s the first time in two years since 2020, the OPEC ministers are not heading to Austria and not taking any
action. Therefore, a historic cut will be made, and investors believe that an agreement will be reached at this week’s meeting
and that it will be good for both consumers and producers alike. All members must come together and make some sacrifices
so that we can get through these tough times together – stronger

Oil prices rise after Ida hurricane

Oil prices rise after the Ida hurricane: International oil markets were affected by the evacuation of the biggest companies
in the Mexican gulf since Thursday 26th August 2021 when they began to evacuate workers on offshore platforms.

Other companies stopped oil and gas production before the tropical storm Ida which produced the hurricane later,
since offshore wells in the gulf shape nearly 17% of the American production.

On Tuesday about 79% of USA production in the Gulf remained inoperative,
as 79 platforms remained out of order for more than a week since the strike of the hurricane Ida.

About 17.5 million barrels of crude oil have been taken out of the market up till now.

Traders are waiting for any data by the API about the American stockpiles that were expected to be released today.

Traders are still waiting for data from the Energy Information Administration (EIA) tomorrow to get a clear image
of the hurricane’s effects on oil production and refineries production.

Topics:

Analysts’ predictions for the current position
Yesterday oil prices
Today’s oil prices
Oil companies developments effects on the market
China increases its crude oil imports in August
Chevron seeks to sell Eagle Ford assets
Only nine companies in Brazil’s next auction
Gazprom finishes Nord stream2 pipeline
Total Energies signs a big contract with Iraq
Adnoc sells 7.5% of its drilling unit
Saudi Arabia markets Guyana’s crude oil
Mexico tries to pay off debts of PEMEX

Analysts’ predictions for the current position

According to a survey by Reuters analysts expected a decline by 3.8 million barrels of stockpiles by the week ending September 3rd,
gasoline stockpiles would decline by 3.6 million barrels, and a decline by 3 million barrels of distillate stockpiles.

Yesterday oil prices

Oil prices fell vastly on Tuesday as dollar prices rose due to fears of the rise of Covid-19 infections in the USA and Asia which would delay the growth.

The strict reductions made by Saudi Arabia for October 2021 also aroused concerns about oil demand recovery in Asia
as OPEC restarts part of its suspended production gradually.

While the cut In production in the USA still hinders crude oil production in the Mexican gulf.

IT seems that offer restrictions aren’t efficient to stop oil prices decline.

On Tuesday Brent crude was less than 72$ in trades, while West Texas Intermediate crude was for 68.5$ a barrel.

Today’s oil prices

Oil prices rose on Wednesday 8th September, reducing yesterday’s losses as producers in the American Mexican gulf restarted operations after nine days of the Ida hurricane strike.

West Texas Intermediate crude oil futures contracts were up 27 cents or 0.4% to 68.62$ a barrel, after Tuesday’s decline of 1.4% on labor day vacation.

Brent crude futures contracts were up 14 cents or 0.2% to 71.83$ a barrel, after Tuesday’s decline by 0.7%.

Oil companies developments effects on the market

The Italian oil and gas company ENI (Listed in New York stock exchange under the code NYSE:E) contributed with an oil exchange company headquartered in Emirates to collaborate on projects of Hydrogen and carbon capturing around the world fosters its existence in Emirates.

British petroleum company (NYSE:BP) collaborated with the investing company Macquarie Group ASX:MQG to establish a potential green hydrogen center to be built in the Kwinana refinery which is closed for now.

Canadian pipelines company Enbridge (TSE:ENB) will buy logistics services company Moda Midstream which concentrates on the gulf coast,
which will give the company access to the Ingleside station that belongs to Moda company and other channels as the Cactus II pipeline.

China increases its crude oil imports in August

Chinese buyers increased their imports throughout the last month,
according to data by the Chinese customs, to reach 10.5 million barrels per day of crude oil by 8% monthly.

As refinery restrictions continued due to a lack of importing shares,
companies controlled by the state conducted most of the buying operations.

Chevron seeks to sell Eagle Ford assets

Reports showed that Chevron, the biggest American company ( listed in the New York stock exchange under the code NYSE:CVX)
is trying to sell its oil and gas assets of Eagle Ford in Texas, inherited by its foreclose of Noble Energy last year, for 3.8 billion dollars.

Only nine companies in Brazil’s next auction

The next round of bidding held by Brazil’s organization for oil had only nine companies registered, the lowest number ever registered,
although the list includes giant oil companies such as ExxonMobil(NYSE:XOM), Chevron(NYSE;CVX),
Shell(NYSE:RDS), and Total Energies(NYSE:TTE).

Gazprom finishes Nord stream2 pipeline

The giant Russian company Gazprom (MCX:GAZP) finished a gas channel pipeline under the sea of 11 billion dollars,
only the wilding works between the German and Denim sectors are left,
so Gazprom stocks rose on Monday by more than 4% on the day.

Total Energies signs a big contract with Iraq

The French giant company Total Energies (listed in New York stock exchange under the code NYSE:TTE) signed a big deal with Iraq of 27 billion dollars to build
a lot of installations to shift seawater to southern oil fields, and gas processing factory of 2 billion dollars to decrease Iraq’s dependence on Iranian gas,
and also establishing solar power station.

Adnoc sells 7.5% of its drilling unit

Emirates national oil company Adnoc declared that it would offer 7.5% of its drilling company in the second public subscription in October,
Adnoc previously offered 5% in 2018 to go to Baker Hughes ( listed in New York stock exchanges under the code NYSE:BKR) for 550 million dollars.

Saudi Arabia markets Guyana’s crude oil

Guyana’s government chose ATL the commercial arm of Saudi Aramco( trade:2222) located in London to market its next share of crude oil,
it offered a bid of 0.025% a barrel as a potential commission which indicates the potential winner in the country a long time ago.

Mexico tries to pay off debts of PEMEX

The Mexican president Lopez Obrador assumed that Mexico would use the fund presented by the International Monetary fund by allocating 12 billion dollars in special drawing rights to pay off PEMEX’s 115 billion dollars debts.

Oil prices rise after the Ida hurricane