Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
In the week since our last edition of What’s Affecting Oil Prices, Brent fell $3.31/bbl last week to average $59.53/bbl. WTI fell $2.64/bbl to average $51.17/bbl.
Oil prices rebounded over the weekend after the news that President Trump and President Xi Jinping came to an agreement to hold off on increasing tariffs on $200 billion of Chinese goods from 10% to 25% on January 1. The agreement provides 90 days for both sides to come to an agreement on trade and intellectual property rights. As of Dec. 2, Brent had risen above $62/bbl. For the week ahead, we expect prices to average $65/bbl with upside possible based on the outcome of the OPEC meeting.\
OPEC is scheduled to meet on Dec. 6 to discuss the current state of oil markets and a possible extension of the current production agreement. Consensus appears to be building for a production cut. However, what form this will actually take remains to be seen. At the June meeting, Saudi Arabia declared it would add nearly a million barrels back to markets by ceasing to over-comply with the current production agreement.
Although Saudi Arabia did reduce over-compliance, it took several months. OPEC may decide to reduce production, or could instead choose to focus on reducing over-compliance from those countries that are still producing less than their quotas. After this week’s meeting, OPEC will be one country less, with Qatar announcing on Monday that it would be leaving the organization in order to focus on its natural gas production.
Geopolitical: Neutral
Dollar: Negative
Trader Sentiment: Positive
Supply: Positive
Demand: Positive
Refining Margins: Positive
How We Did:
Recommended Reading
BP Pursues ‘25-by-‘25’ Target to Amp Up LNG Production
2024-02-15 - BP wants to boost its LNG portfolio to 25 mtpa by 2025 under a plan dubbed “25-by-25,” upping its portfolio by 9% compared to 2023, CEO Murray Auchincloss said during the company’s webcast with analysts.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Enbridge Advances Expansion of Permian’s Gray Oak Pipeline
2024-02-13 - In its fourth-quarter earnings call, Enbridge also said the Mainline pipeline system tolling agreement is awaiting regulatory approval from a Canadian regulatory agency.
Chesapeake Slashing Drilling Activity, Output Amid Low NatGas Prices
2024-02-20 - With natural gas markets still oversupplied and commodity prices low, gas producer Chesapeake Energy plans to start cutting rigs and frac crews in March.
Will the Ends Justify the Means for W&T Offshore?
2024-03-11 - After several acquisitions toward the end of 2023, W&T Offshore executives say the offshore E&P is poised for a bounce-back year in 2024.