1. OPEC+ Confronts Quota Imperfections, Weak Sentiment
- Saudi Arabia and Russia, the two heavyweights of OPEC+, have managed to coordinate a wider response to weakening market sentiment and agree on voluntary cuts of 2.2 million b/d in their latest November 30 summit.
- Saudi Arabia is rolling over its voluntary 1 million b/d production cut into Q1 2024, joined by Russia which promised to curb the supply of crude by 300,000 b/d and of oil products by another 200,000 b/d.
- Six other OPEC+ members chipped in with their voluntary cuts, spearheaded by Iraq (223,000 b/d), the UAE (163,000 b/d), Kuwait (135,000 b/d) as well as Kazakhstan, Algeria, and Oman with smaller volumes.
- The OPEC+ meeting also set production quotas for Nigeria and Angola into 2024, at 1.5 and 1.11 million b/d respectively, although the Angolan delegation announced that it would defy the mandate and produce above that level.
2. Europe Cannot Get Enough of US LNG
- As exports of US LNG into Eastern Asia continue to be hindered by hefty congestion-driven delays in Panama Canal operations, the European continent has become the key outlet market for US liquefied gas exports.
- Year-to-date imports of US LNG to Europe have already soared to 45.1 million tonnes in January-November, surpassing the full-year total of 2022 and setting the stage for a 10% year-on-year increase.
- The relative ease of shipping across the Atlantic Basin has sent Europe-bound…