EIA Forecast World Oil Consumption to Overtake Production This Year with Russia and KSA Cuts

In the July STEO, EIA forecast that world oil consumption will overtake production this year, this reverses earlier forecasts. The EIA 2023 world oil demand growth forecast was raised by 170kbpd to 1.76mbpd Y/Y,however, the 2024 forecast demand cut by 60kbpd to a 1.64mbpd Y/Y. A small drop in oil production from OPEC+ alliances with the extension of production cuts and those outside of them will trim global supply to 101.1mbpd a day, just short of demand. EIA sees US … Continue reading “EIA Forecast World Oil Consumption to Overtake Production This Year with Russia and KSA Cuts”

Banco de México Leaves Rates Unchanged at Record High 11.25%, Inflation Risks to Upside

The Mexican Central Bank, Banco de México kept interest rates at 11.25% at its June 2023 meeting, in a unanimous decision. The bank said guidance is to hold rate at 11.25% for a prolonged period. The bank still sees balance of risks for the trajectory of inflation within the forecast horizon is considered to be biased to the upside. The Central Bank continues to project that inflation will converge to the 3% target by the fourth quarter of 2024. Headline … Continue reading “Banco de México Leaves Rates Unchanged at Record High 11.25%, Inflation Risks to Upside”

EIA Sees Brent Higher but Forecast Non-OPEC Growth will Offset OPEC+ Production Cuts

In the June STEO, EIA forecast that despite the extension of OPEC+ production cuts, global liquid fuels production will increase by 1.5 million b/d in 2023 and by 1.3 million b/d in 2024, primarily because of growth from non-OPEC producers. EIA also raised its 2023 world oil demand growth forecast by 30Kbpd, seeing an increase of 1.59m bpd this year. However, the EIA lowered next year’s demand forecast by 20Kbpd to a 1.70 mbpd increase. They see most of this … Continue reading “EIA Sees Brent Higher but Forecast Non-OPEC Growth will Offset OPEC+ Production Cuts”

Citigroup to IPO Banamex Mexico Retail, Resume Buybacks

Citigroup reported Wednesday it plans to spin off its Mexican retail and small and mid-market banking operations through an initial public offering (IPO) rather than sell the Banamex unit outright. Banamex’s institutional business will remain part of Citi. Citigroup has been on a path of rationalizing it’s business, the Bank reported better than expected first quarter earnings of $2.19 per share for the quarter beating estimates of $1.70 a share last month. Citi divested its consumer business in India and … Continue reading “Citigroup to IPO Banamex Mexico Retail, Resume Buybacks”

EIA Expects Energy Demand Growth to Balance Global Oil Market Between Q3 2023 and Q1 2024

In the May STEO, EIA expects energy demand growth to bring the global oil market into balance between Q3 2023 and Q1 2024. EIA estimated global liquids fuel production to increases by 1.5 million b/d in 2023 compared with 2022 primarily because of growth from non-OPEC producers. Excluding production from Russia, which is forecast to fall by 0.3 million b/d in 2023, they expect non-OPEC liquid fuels production to increase by 2.2 million b/d in 2023 and by an additional … Continue reading “EIA Expects Energy Demand Growth to Balance Global Oil Market Between Q3 2023 and Q1 2024”

EIA Sees OPEC+ Oil Production Cuts Offset, Led by U.S., Brazil, Norway & Canada

In the April STEO, EIA estimate global liquids fuel production will increase by 1.5 million b/d in 2023 because of strong growth from non-OPEC countries, which (excluding Russia) increase by 2.3 million b/d in their forecast. Non-OPEC production growth is largely driven by USA, Brazil, Canada and Mexico. EIA had already accounted for some of the reduction in crude oil output from OPEC countries (Russia’s 0.5 million b/d cut) in their latest production cuts. EIA reduced their forecast for OPEC’s … Continue reading “EIA Sees OPEC+ Oil Production Cuts Offset, Led by U.S., Brazil, Norway & Canada”

Shell Deal to Take Another 1.1M MT/yr LNG from Mexico Pacific

Shell added to their 2.6M tons/year LNG purchase agreement with Mexico Pacific with a further ~1.1M metric tons/year from the third train of Mexico Pacific’s planned Seguaro Energia LNG export facility. On Monday the now UK based Shell ($SHEL) signed a 20-year sales and purchase agreement to offtake a further ~1.1M metric tons/year of liquefied natural gas from the third train of Mexico Pacific’s planned Seguaro Energia LNG export facility. Shell has a previous agreement signed in July 2022 for … Continue reading “Shell Deal to Take Another 1.1M MT/yr LNG from Mexico Pacific”

Banco de México Raises Rates by 50 bps to Record High 11.00%, Reacts to Higher Inflation

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 11.00% at its February 2022 meeting, higher than expected. It was the 14th consecutive rate hike, adding to the 700bps of rate increases since the start of the bank’s tightening cycle in June. The Bank was expected to rise by 25bps, however January inflation accelerated for the second straight month to 7.91% in January up from 7.82% in the prior month and higher than expectations. Five … Continue reading “Banco de México Raises Rates by 50 bps to Record High 11.00%, Reacts to Higher Inflation”

Banco de México Raises Rates by 50 bps to Record High 10.50%, Hints at More Hikes

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 10.50% at its December 2022 meeting, as expected. It was the 13th consecutive rate hike, adding to the 650bps of rate increases since the start of the bank’s tightening cycle in June. The Bank signaled that future decisions will be dependent on up-to-date economic data available. with the bank saying headline and core inflation forecasts were revised upwards. Five of the six board members voted in … Continue reading “Banco de México Raises Rates by 50 bps to Record High 10.50%, Hints at More Hikes”

Banco de México Raised Rates for 11th Straight Time to Record 9.25%

The Mexican Central Bank, Banco de México raised rates for the 11th consecutive rate increase since June of 2021 and third straight by 75 basis points to 9.25% matching the previous three interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 11th Straight Time to Record 9.25%”