Daily Energy Report
OPEC+ update, US crude inventories, Venezuelan crude exports, Maersk & Red Sea attacks, Libyan oil still flows, Lula favors biofuel to oil, US grid batteries fast-growing, and more.
Important News:
The 8 countries that made voluntary cuts have delayed the unwinding of the voluntary cuts by two months until the end of November. The full OPEC+ ministerial meeting is planned for early December. This will give the ministers of the 8 countries time to meet separately to discuss their next move. See our note from last night:
OPEC+, the "V8," and the Oil Market: An Update
Having Iraq and Kazakhstan compensate for earlier overproduction and delaying the unwinding by two months is bullish as long as we do not have a recession.
Link to short Podcast discussing the implications:
Chart of the Day: UAE Crude Oil Production Remains in Line with Production Targets
Summary
Figure (1) shows trends in UAE crude oil production according to secondary sources as published by the latest OPEC report, which also corresponds to the official numbers that were sent to OPEC from the UAE oil ministry. Crude oil production increased slightly in June and July but remains in line with production targets. Why is this important, especially after today’s decision to delay the unwinding of voluntary cuts by two months? Answers below.