Oil hedging activity reaches record levels in October as traders take on market risks
Oil futures and option trading reached record levels during October as investors sought to hedge against the growing uncertainty caused by the ongoing war in the Middle East, and an upcoming bearish supply and demand forecast for 2025. This led to big swings in oil prices. By locking in an oil price, hedging can protect producers from market volatility and reduce their risk. This can give traders the opportunity to make money during volatile times. According to the Intercontinental Exchange, 68.44 millions barrels of crude oil were traded as futures and options in October.
Prabowo wants to increase Indonesia's energy independence through biofuels and oil and gas reforms
Officials have stated that Indonesia's new Government aims to revitalize oil and gas production. They plan to reduce regulations, reactivate inactive wells, and increase output in producing assets to reverse a decades-long drop in output.The new president, Prabowo Subianto, took his oath on Sunday. He also plans to continue the efforts of the previous administration to exploit the massive gas finds in South Andaman, and to increase the use of biofuels.Indonesia, a former member of the Organization of the Petroleum Exporting Countries(OPEC)…
China's rapid electricification is hurting oil producers, says Russell
O Ver-estimating China's desire for crude oil has played a role in the oil markets, particularly by OPEC. This theme is likely to continue into future years. China is the leader in the transition to electric cars, having already reached 50% of new sales. The rest of the globe is expected to reach this level by 2030. According to this forecast (which is what the IEA calls the Stated Policies Scenario, or STEPS), the growth of EVs will displace around 6,000,000 barrels of crude oil per day.
Azerbaijan's oil production for 9 months down 4.8%, says ministry
Azerbaijan’s oil production fell by 4.8% in the first nine-month period of 2024 to 21.6 millions metric tonnes, down from 22.7million metric tons one year ago, said Energy Minister Parviz Shabazov on Monday. He didn't explain the cause of the decline. Production of oil in Azerbaijan has been declining for several years as the output at Azeri-Chirag-Gunashli complex of offshore oilfields, operated by BP, has passed its peak. Azerbaijan belongs to the OPEC+, a group of major oil producers that has reduced oil production in order to stabilize energy markets.
Oil Minister: India ready to handle any oil shortages caused by Middle East conflict
Hardeep Singh Puri, the oil minister of India, said that India would be able navigate any potential disruption to its oil supply from a possible expansion of the Middle East conflict. India, which is the third largest oil consumer and importer in the world, imports 85% of their daily oil requirements of over 5 million barrels. A large part of this oil comes from Middle East producers. Brent oil is now nearing $80 per barrel due to concerns about a larger Middle East conflict.
OPEC rebuts WSJ Article on Saudi Saying Oil Prices Could Drop to $50
OPEC rebutted a Wall Street Journal article on Wednesday. It called it inaccurate and misleading, stating that Saudi Arabia's Energy Minister warned oil prices would drop to $50 if OPEC+ member countries did not adhere to production limits agreed upon. Unidentified delegates of the oil producers' group told the report that they heard Prince Abdulaziz Bin Salman give the warning during a conference last week. According to the WSJ, he singled out Iraq for overproduction. The…
OPEC+ panel doubles down on compliance with output policy
The top OPEC+ Ministers met to keep the oil production policy unchanged, including a plan for a gradual increase in output starting from December. They also stressed that some members must make additional cuts to compensate for excessive output. On Wednesday, a number of ministers of the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, led by Russia, met online in a joint ministerial monitor committee (JMMC). The oil price dropped below $70 per barrel for the first since 2021 in September…
OPEC+ unlikely change policy on output at Oct. 2 panel
Five sources within the group said that despite recent drops in oil prices an OPEC+ panel will not recommend any changes this week to its current agreement to reduce production or to begin unwinding cuts made since December. On Wednesday, 1200 GMT, top ministers of the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, led by Russia, will meet online to form a Joint Ministerial Monitoring Committee (JMMC). Brent crude oil prices fell in 2024. Last month, Brent crude dropped below $70 a barrel for the first since 2021.
Russia's Novak believes that oil volatility is easing despite Middle East turmoil
Alexander Novak, Russian Deputy Premier Minister, told Al Arabiya News that he expects the volatility in oil prices to subside after the Middle East tensions have triggered it. Geopolitical risk has already been factored into the price fluctuations. Novak, who oversees the Russian economy as a whole, has said that the economy is still suffering from sanctions and will withstand any pressure or price cap imposed by the West on oil. Novak said in an interview with Al Arabiya News published on Monday that "we can live through any cost". The oil prices continued to rise on Monday.
Morgan Stanley lowers Brent crude oil price forecast as market signals softening demand
Morgan Stanley cut its Brent crude forecasts for the coming quarters on Monday and said that the global oil market was facing a period similar to recessions when demand is weak. Brent crude futures reached their lowest level since December 2021 at $71,06 on Friday. Brent crude was trading at around $71.74 per barrel by 1026 GMT. Morgan Stanley stated that the rising fuel inventories and lower refining margins, as well as the spread between the current price and the future price, all echo past recessionary periods and other moments of low demand.
APPEC/S&P Global predicts OPEC+ will increase their oil production next year
An executive from S&P Global told a Monday conference that the Organization of the Petroleum Exporting Countries (OPEC+) and its allies are expected to increase their production in 2025 for the first time since a few years. OPEC+ agreed last week to postpone a planned increase in oil production for October and November after crude prices fell to their lowest level in nine months. It added that it could further pause, or reverse, the hikes if necessary. Jim Burkhard told the Asia Pacific Petroleum Conference that OPEC+ would increase its production in 2025…
OPEC+ Has Oil Price and Demand Problems. It Should Solve Demand
OPEC+ has two problems and two solutions.The first problem is that crude oil prices are too low for the comfort of most of the members of the group, which pulls together the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia.The second issue is that crude demand has so far disappointed the somewhat optimistic forecasts made by OPEC for 2024 growth.The first solution is for OPEC+ to surprise the market and change its mind on increasing output from the fourth quarter onwards.The second solution is to increase output as planned…
OPEC+ agrees two-month delay in October oil production increase
OPEC+ agreed to postpone a planned increase in oil production for October and November, the producers' group announced on Thursday, after crude prices fell to their lowest level in nine months. It added that it may further pause, or reverse, the increases if necessary. Oil prices are falling, along with other asset categories. This is due to concerns over a weakening global economy as well as soft data coming from China, which is the world's largest oil importer. Eight members of OPEC+ (which is composed of the Organization of the Petroleum Exporting Countries…
Sources say OPEC+ is close to an agreement on delaying the increase in oil production.
Two sources within the group said on Thursday that OPEC+ was close to reaching an agreement with regards to delaying a planned increase in oil production for October after crude prices fell to their lowest level in nine months. Oil prices are falling, along with other asset categories. This is due to concerns over a weakening global economy as well as soft data coming from China, which is the world's largest oil importer. One of the sources stated that "it is likely the countries will act to balance the market…
Sources say that OPEC+ is discussing a delay in the planned increase of oil production for October.
Three sources within the group said that OPEC+ was discussing a possible delay to a planned increase in output next month, as oil prices have fallen to their lowest level in nine months. Oil prices are falling along with other asset classes due to concerns over a weakening global economy, and in particular soft data coming from China, which is the world's largest oil importer. Sources said that the group was initially planning to increase production by 180,000 barrels per day in October.
Oil continues to fall on the back of weak China data and the prospect of increased OPEC+ supplies
The oil prices continued to fall on Monday, as OPEC+ is expected to increase production in October. Meanwhile, signs of sluggish consumption in China and America, the two biggest oil consumers in the world, have raised concerns over future growth. Brent crude futures dropped 61 cents or 0.8% to $76.32 a bar by 0450 GMT, while U.S. West Texas intermediate crude fell 52 cents or 0.7% to $73.03 a bar. Last week, Brent fell by 0.3% and WTI dropped 1.7%. Six sources within the…
Oil prices continue to fall on the prospect of increased OPEC+ supplies
The oil prices continued to fall on Monday as investors weighed higher OPEC+ output in October against a sharp decline in Libyan production amid sluggish demands in China and the U.S. Brent crude futures dropped 57 cents or 0.7% to $76.36 per barrel at 0108 GMT, while U.S. West Texas Intermediate Crude fell 50 cents or 0.7% to $73.05 per barrel. Last week, Brent fell by 0.3% and WTI dropped 1.7%. Six sources within the producer group have confirmed that the Organization of the Petroleum Exporting Countries (OPEC+) is planning to increase oil production starting in October.
Sources say that OPEC+ is likely to continue with its planned production increase from October.
OPEC+ will proceed with a planned increase in oil production from October as Libyan outages, and pledged reductions by some members, to compensate for the overproduction, counteract the impact of sluggish consumer demand, according to six sources within the producer group. Eight OPEC+ member countries are expected to increase their output by 180,000 barrels a day in October as part of a strategy to unwind the most recent layer (2.2 million bpd) of cuts while maintaining other cuts until end-2025. Oil prices have been impacted by a slowdown in the growth of demand, notably China.
Sources say that OPEC+ is likely to continue with its planned production increase from October.
OPEC+ will proceed with a planned increase in oil production from October as Libyan outages, and pledged reductions by some members, to compensate for the overproduction, counteract the impact of sluggish consumer demand, according to six sources within the producer group. Eight OPEC+ member countries are expected to increase their output by 180,000 barrels a day in October as part of a strategy to unwind the most recent layer (2.2 million bpd) of cuts while maintaining other cuts until end-2025. Oil prices have been impacted by a slowdown in the growth of demand, notably China.
Demand Concerns Drive Oil Prices Down
Oil prices edged lower for a fifth session on Thursday as investors worried about the global demand outlook, however a decline in U.S. fuel inventories limited declines.Brent crude futures LCOc1 slipped 2 cents to $76.03 a barrel, while U.S. West Texas Intermediate crude CLc1 futures fell 13 cents to trade at $71.80 at 0840 GMT.Prices have plunged amid a report on Wednesday of revised employment statistics in the U.S., the world's biggest oil consumer, that showed fewer jobs were added in 2024 than previously reported…
