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Angola plans to launch its next round of oil licensing bidding in the fourth quarter to maintain crude oil production above 1 million barrels per day (bpd). This bidding round will be the final under a multi-year strategy launched in 2019 to grant 50 oilfield development rights to Africas third-largest crude producer. "Our goal is to achieve 1 million bpd next year," Minerals, Oil, and Gas Minister Diamantino Azevedo said in a statement on Sunday. "Most of our countrys oilfields have mature wells, and the solution is to find new reservoirs." This round of bidding is part of the governments efforts to attract investment in the oil industry. In July, Angolas daily crude oil production fell below 1 million bpd for the first time since its exit from OPEC in 2023.On September 7, OPEC+ agreed to increase production again in October. Amid weakening global demand, the Saudi-led OPEC group is pressing ahead with a six-month plan to regain market share. This decision will put pressure on oil prices, further confirming that Saudi Arabia has given up on pursuing higher prices and is focused on increasing revenue by restoring as much idle production as possible. Eight OPEC members, including Saudi Arabia, Iraq, and the UAE, said they will increase production by a total of 137,000 barrels per day next month. However, analysts say only Saudi Arabia and the UAE will be able to increase supply because most other members are already close to their production capacity limits. People familiar with the matter said that for Saudi Arabia, the political and economic costs of maintaining production cuts are too high. By quickly restoring production, Riyadh will also be able to assess the production capacity of each member country for possible future renegotiation of quotas.With a September Federal Reserve rate cut all but certain, options traders are widely betting on a stable stock market ahead of Thursdays CPI data. However, this bet could be risky if the data shows rising inflation. The markets rationale for a rate cut is straightforward: US job growth is stagnant and the economy needs stimulus. Fridays weak jobs data reinforced this expectation, prompting investors to fully price in a 25 basis point rate cut from the Fed next week. The markets reaction has been muted: US stocks fell slightly on Friday, and the fear gauge edged up slightly, but remains well below the critical 20 level, where it has mostly remained since June. Looking ahead, options traders are betting on a roughly 0.7% two-way move in the S&P 500 following Thursdays CPI release, below the 1% average realized move over the past year. However, this trade ignores a key risk: what if inflation figures significantly exceed expectations? "Its a very delicate balance right now," said Eric Teal, chief investment officer of Comerica Wealth Management. "Any data thats very positive or very negative could change the market outlook."On September 7, U.S. Treasury Secretary Jeffrey Bessant stated that the United States and Europe are discussing a new round of sanctions and secondary tariffs against Russia, hoping that the "collapse" of the Russian economy will prompt Putin to engage in peace talks with Ukraine. "We are ready to increase pressure on Russia, but we need the cooperation of our European partners," Bessant said. He also stated that President Trump and Vice President Cyril Vance spoke with European Commission President Ursula von der Leyen on Friday, and that von der Leyen subsequently discussed sanctions with Bessant.Israel Airports Authority: The first flight from Ramon Airport to Tel Aviv will take off soon.

Oil Prices Rise Following Saudi Arabia's Raise in Crude Oil Prices

Aria Thomas

Jun 06, 2022 10:54

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Oil prices were up in Asia on Monday morning after Saudi Arabia sharply increased the price of its crude sales in July, a warning that supplies remain tight despite OPEC+'s agreement to accelerate output growth over the following two months.


Brent oil futures increased 0.62 percent to $120.46 around 10:06 p.m. ET (2:06 a.m. GMT), while WTI crude oil futures increased 0.67 percent to $119.42.


Saudi Arabia increased the official selling price (OSP) for its flagship Arab Light crude to Asia to a $6.50 premium above the average of the Oman and Dubai benchmarks, up from a $4.40 premium in June, according to Saudi Arabian national oil company Aramco (TADAWUL:2222).


The decision was made despite a request by the Organization of Petroleum Exporting Countries and its partners, known collectively as OPEC+, to boost production in July and August by 648,000 barrels per day, or 50 percent more than had been planned.


"After opening the taps a bit wider, Saudi Arabia lost little time increasing its official selling price for Asia, its key market," said Stephen Innes, managing partner at SPI Asset Management, in a note. "This had knock-on consequences at the futures open across the oil market spectrum."


Saudi Arabia also raised the Arab Light OSP to northwest Europe for July to $4.30 over ICE (NYSE:ICE) Brent, up from $2.50 in June. However, it maintained the premium for U.S.-bound barrels at $5.65 over the Argus Sour Crude Index (ASCI).


As numerous member nations, notably Russia, are unable to increase output, it is commonly believed that the OPEC+ plan to increase supply will not meet demand. During the peak driving season in the United States, demand is surging, and China is reducing COVID restrictions.


In light of the EU's partial embargo on Russian oil imports, this increase falls short of estimates for demand growth, said Commonwealth Bank analyst Vivek Dhar.


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