Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy rate from 0.25 percent to 0.5 percent on Thursday as widely expected. The bank and said more hikes were likely next year although that would depend on the impact of a surge in coronavirus infections and the emergence of the Omicron variant. Norges Bank’s action was its second hike in three months, as predicted economists polled by Reuters and in line with the central … Continue reading “Norway Raised Interest Rate with More Hikes Likely Depending on Coronavirus Impact”
OPEC+ led by Saudi Arabia on Sunday agreed to a request from the United Arab Emirates to ease cuts by 2 mln bpd until year end. UAE, KSA, Russia, Iraq see output quota adjustment. Oil prices are near 2-1/2 year highs on pandemic economic recovery.
In the June STEO, EIA raised its estimate that 2022 crude oil production will average 11.8 million b/d, up from a forecast average of 11.1 million b/d in 2021. EIA expects rising production will end the persistent global oil inventory draws that have occurred
EIA STEO raised its forecast for 2021 world oil demand up 180,000 up to 5.5M. In 2022 it sees world oil demand to decrease by 180K to 3.65M BPD. At the same time sees crude oil output in 2021 to fall 270K to 11.04M and t in 2022 unchanged increase by 820K to 11.86M.
Oil prices have collapsed with Canada’s key benchmark under $4, WTI under $20 and Russia under $9. Norway’s Rystad Energy says the ‘largest oil supply surplus the world has seen will hit the global market from April.
Saudi Arabia aggressively slashed oil prices Saturday. Divorce can be bitter, especially when it is between two parties like Saudi Arabia and Russia that should have never got married. The collapse of OPEC+ after Russia walked away and said produce as much as you want is the inevitable result of tolerating a cheating spouse
EIA cut it’s world oil demand forecasts by 50K Bpd for 2019 and by 100K Bpd for 2020 world oil demand growth. EIA estimates production from OPEC was down 1.6 million b/d from August, the lowest level of OPEC production since November 2003 from disruptions in Saudi Arabia, down 4.0 million b/d from September 2018.
Feedstock for Saudi petrochemical companies is expected to be back to normal levels by the end of September according to two of the Kingdom’s biggest downstream users. This is earlier than expected after the attacks on the Aramco facility a few weeks ago.
Houthi rebels from Yemen launched successful drone attacks on the world’s biggest petroleum processing facility in Saudi Arabia Saturday. Reuters reports that up to 5 mbpd of production has been impacted, half of Saudi Arabia’s output. Fires reportedly under control but damages unclear.
Russian President Putin said that ahead of the OPEC+ meeting in Vienna that Russia and Saudi Arabia have agreed to extend the existing production cuts for another 6=9 months. The U.S. is near record productions and exports. The cuts promised are at 1.2 bpd by OPEC and Non-OPEC.