Surging US oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months, the International Energy Agency (IEA) said on Friday. The forecasts appear to predict the need for producer club Opec and its allies to reduce production to balance the market despite extending their existing pact, forecasting a fall in demand for Opec crude to only 28-million barrels per day (barrels a day) in early 2020.
Mozambique has put on hold plans to raise funds for its portion of Anadarko Petroleum’s $20-billion gas project, as the government tries to limit its debt sales following a default about three years ago. Empresa Nacional de Hidrocarbonetos EP, the national oil company, will revive efforts to raise $2.3-billion for the liquefied natural gas project probably later in the year, after Anadarko starts implementing it, said ENH Chief Executive Officer Omar Mitha. That will help reduce risk and result in better terms, he said.
Italian prosecutors are widening an investigation into suspected obstruction of justice by officials of oil group Eni, sources said, threatening to open a new legal front for the company as it defends itself in a major corruption trial. The inquiry is preliminary and has been overshadowed by the ongoing trial, which centres on the 2011 purchase of a Nigerian oilfield by Eni and oil major Shell, but it is gathering momentum, said three sources familiar with the probe.
AfriForum and the Treasure the Karoo Action Group (TKAG) have succeeded in their appeal to have Mineral Resources and Energy Minister Gwede Mantashe, and Environment, Forestry and Fisheries Minister Barbara Creecy set aside the regulations on petroleum exploration and production. The regulations were promulgated in 2015 and allow for fracking to proceed in South Africa.
Oil had its worst reaction to an Opec meeting in more than four years, with prices sliding just after the cartel agreed to prolong production curbs as fears about the global economy mount. Futures closed down 4.8% in New York, the steepest decline since May 31 and the biggest drop after an Opec gathering since November 2014. Bank of England Governor Mark Carney warned of dangers from rising protectionism around the globe, citing a “widespread slowdown” that may require a major policy response. That added to worries following weak manufacturing reports from the US, China and Europe.
Remember those Somali pirates? Earlier this decade, they brazenly hijacked giant oil tankers, demanded ransoms in the millions of dollars, and gave Tom Hanks yet another chance to play the everyman overcoming a life-defining crisis. Now, thanks to a multinational naval crackdown and tighter security measures by shippers, they’ve been forced back to dry land. But as often happens with crime waves, the problem wasn’t really eliminated; it just popped up in a more vulnerable location. And for pirates, the treasure hunt now takes place in the Gulf of Guinea, which stretches off West Africa from Senegal to Angola, nearly 4 000 miles of shoreline.
Opec+ nations are close to finalizing a “charter” for a long-term alliance, with a document likely to be signed as soon as this week, said two delegates. Members of the group received a revised draft of the document on Sunday that appeared to have broad support, one of the delegates said, asking not to be named because the information was private. There were only a few final details of the charter to resolve, another delegate said.
The Organisation Undoing Tax Abuse (Outa) on Friday reported that the Central Energy Fund (CEF) and multinational commodity trader Glencore had agreed not to proceed with their case, which had been scheduled to be heard in the Cape High Court on Friday. The CEF had filed an affidavit earlier this week, which halted the process that could have influenced the case regarding the sale of South Africa’s oil reserves.
South Africa is working on a policy to govern the development of oil and gas resources after calls by potential investors to shield the industry from a long-running debate over laws that apply to mining exploration. The finalising of oil legislation has become more urgent since Total announced the first significant deep-water oil find off the coast of South Africa in February. Since the discovery, which has an estimated one-billion barrels of crude reserves, rival Royal Dutch Shell has bought a stake in exploration blocks in the same area from Anadarko Petroleum Corp.
Glencore is cutting out many of its intermediaries – the agents and dealmakers once essential to cracking the toughest markets – amid growing scrutiny of its operations around the world. Under pressure from its compliance division, Glencore is dismantling much of its global network of trading agents, according to people familiar with the situation. To continue operating, the company is setting up teams in some countries, said the people, asking not to be named as the matter is private. In other places, Glencore is still using agents who pass strict compliance tests and have a clear role.