2025-05-30 12:07
OPEC+ may discuss hike larger than 411,000 bpd, sources say Eight OPEC+ members to meet online on Saturday at 0900 GMT Kazakhstan has informed OPEC it won't cut output For an EXPLAINER on OPEC+ output cuts, click here LONDON/MOSCOW, May 30 (Reuters) - OPEC+ may discuss an increase in oil output for July at its meeting on Saturday larger than the 411,000 barrels per day (bpd) increases it made for May and June, sources familiar with OPEC+ talks told Reuters. Eight OPEC+ countries have been raising output more rapidly than earlier planned, even though the extra supply has weighed on prices. The strategy of group leaders Saudi Arabia and Russia is partly to punish over-producing allies and to win back market share, Reuters has reported. Sign up here. On Saturday, the eight members may decide to increase output by 411,000 bpd for July, OPEC+ sources have told Reuters. Two more sources familiar with OPEC+ talks and two OPEC+ delegates said they could also discuss a larger increase. Kazakhstan's statement on Thursday that it won't cut production has sparked debate in OPEC+, some of the sources said on Friday, with one saying that this factor may tilt discussions towards a larger output hike on Saturday. All sources declined to be identified by name due to the sensitivity of the matter. OPEC and authorities in Russia and Saudi Arabia did not immediately respond to requests for comment on Friday. United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei, asked about the plan for July output on Tuesday, said OPEC+ was doing its best to balance the oil market and needed to be mindful of rising demand. Kazakhstan has been pumping hundreds of thousands of barrels over its OPEC+ target for months, a factor that has angered other OPEC+ members and helped sway a decision by the group to proceed with plans to hike output in April, sources said at the time. OPEC+ wants it to compensate by making further cuts, but on Thursday Russia's Interfax news agency cited Kazakhstan's deputy energy minister as saying that the country has informed OPEC that it does not intend to reduce production. Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns about global economic weakness. Since then prices have recovered to about $65. OPEC+, which includes OPEC members and allies such as Russia, has made deep output cuts since 2022 to support the market. Eight members of the group have been increasing production since April to unwind some of those cuts. https://www.reuters.com/business/energy/opec-may-discuss-oil-output-hike-larger-than-411000-bpd-july-sources-say-2025-05-30/
2025-05-30 11:55
Brent projected to average $66.98 per barrel in 2025 WTI to average at $63.35 per barrel in 2025 For table of crude price forecasts, click May 30 (Reuters) - Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. Sign up here. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. "On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility," Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move "seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan," said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, "demand growth is largely coming from the resource nations themselves," said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. "Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices," said Sarkar. https://www.reuters.com/business/energy/oil-price-outlook-weakens-opec-hikes-lingering-trade-concerns-2025-05-30/
2025-05-30 11:48
MOSCOW, May 30 (Reuters) - The Russian government said on Friday it had agreed to support the struggling coal industry, including by deferring tax payments, as well as by limiting dividends and bonuses to top management. Russian coal producers face a number of challenges, including international sanctions over Ukraine. According to the government, the country's coal exports fell almost 8% to 213 million tonnes last year, while production rose 1.3% to 438 million metric tons. Sign up here. The European Union, which previously depended on Russia for around 45% of its coal imports, banned supplies from Russia in 2022. Under the government measures, Russian coal companies will be granted a deferral of mineral extraction tax (MET) and insurance contributions until December 1 2025. The possibility of debt restructuring is envisaged for indebted companies, taking into account the position of the Central Bank of Russia, the government added. Russia's NEFT Research consultancy said Russia's coal exports have been declining due to the international sanctions, rising transportation costs and weaker demand. It cited energy ministry data, which showed that the Russian coal industry had lost 1.2 trillion roubles ($15 billion) since 2022 due to the sanctions, including the loss of lucrative markets in Europe and difficulties in getting payment for supplies. ($1 = 78.5000 roubles) https://www.reuters.com/business/energy/russia-provide-state-support-ailing-coal-industry-2025-05-30/
2025-05-30 11:44
Gazprom: Q1 net income up 1% to 660 bln roubles Gazprom: Q1 revenue rises to 2.81 trln roubles Contribution of stronger rouble to profit "significant" MOSCOW, May 30 (Reuters) - Russian energy giant Gazprom's (GAZP.MM) , opens new tab first-quarter net income edged up around 1% compared with the same period last year to 660.4 billion roubles ($8.4 billion), with sales and the rouble exchange rate also up, the company said on Friday. Gazprom said the strengthening of the rouble generated a gain thanks to a revaluation of its foreign currency debt. Sign up here. The rouble has firmed more than 40% against the dollar this year, a rise analysts attribute to easing tensions mainly with the U.S. administration since President Donald Trump's return to the White House and to the Russian central bank's tight monetary policy, which has reduced demand for foreign currency. The Gazprom profit beat analysts' consensus forecast, compiled by Interfax news agency, for net earnings of 487 billion roubles. The company said the revenue of Gazprom Group increased to 2.81 trillion roubles in the January-March period, up from around 2.78 trillion roubles in the same period in 2024. State-owned Gazprom's natural gas supplies to the lucrative European market have plummeted since Russia sent thousands of troops into Ukraine in February 2022, while Nord Stream gas supply pipelines to Germany were blown up in September of that year. Earlier this month, a court in Switzerland said that Nord Stream 2, part of Gazprom, reached a debt restructuring agreement with its creditors. Gazprom said in its report that the agreement has come into force as the ruling was not appealed. Gazprom last month reported a net profit on its 2024 results following a loss of almost $7 billion in 2023, its first annual loss since 1999 amid collapsing gas exports to Europe. Despite being profitable, Gazprom still faces challenges from plummeting gas sales in Europe as gas supplies to the region via Ukraine were halted on January 1 after a transit deal with Kyiv expired and was not extended. ($1 = 78.5000 roubles) https://www.reuters.com/business/energy/russias-gazprom-says-q1-net-profit-edges-up-84-billion-2025-05-30/
2025-05-30 11:34
LAGOS, May 30 (Reuters) - Nigerian President Bola Tinubu has signed an executive order introducing a performance-driven framework for oil sector operators, designed to link tax incentives directly to verifiable cost savings. Under the new Upstream Petroleum Operations Cost Efficiency Incentives Order 2025, operators who successfully implement industry-standard cost reductions in onshore, shallow water, and deep offshore fields will qualify for defined tax relief. These tax credits will be capped at 20% of an operator's annual tax liability. "This Order is a signal to the world: we are building an oil and gas sector that is efficient, competitive, and works for all Nigerians," Tinubu said in a statement. "It is about securing our future, creating jobs, and making every barrel count." Sign up here. Analysts say success will largely be dependent on implementation. "President Tinubu referred in the announcement to the importance of alignment between government agencies. Succeed there and this could be highly significant towards improving Nigeria's investment appeal," said Clementine Wallop, director for sub-Saharan Africa at Horizon Engage. This order is a key component of the government's ongoing reforms aimed at boosting competitiveness within the sector. Last year, Nigeria offered a 25% gas utilisation investment allowance for equipment and plant for new and ongoing projects, and began streamlining contracting processes as part of commercial enablers to make offshore drilling more attractive. These incentives, while they haven't yielded investments in a new field, have spurred a few producers to return to existing fields. https://www.reuters.com/business/energy/nigeria-offers-oil-tax-relief-cost-cutting-measures-2025-05-30/
2025-05-30 11:29
KYIV, May 30 (Reuters) - Ukraine needs an initial 500 million euros ($566 million) to rebuild the most important infrastructure facilities at its Black Sea ports destroyed by constant Russian missile and drone attacks, a government minister said on Friday. Almost 400 port infrastructure facilities have been damaged as a result of Russian attacks during more than three years of war. Seaports are critical for Ukraine, which ships more than 90% of its exports by sea. Sign up here. "The main critical infrastructure facilities for ports and shipping that we have already lost have been identified ... and now we have to restore them," Andriy Kashuba, deputy minister of territorial development, told the Black Sea Security Forum in Odesa. Ukraine currently operates three major seaports in the Odesa area. Other Black Sea ports suspended operations after Russia launched its full-scale invasion in February 2022. Kashuba said the total cost of rebuilding the ports' infrastructure was estimated at around 1 billion euros. That figure is dwarfed by the total estimated cost for Ukraine's overall reconstruction and recovery. The World Bank last December put that cost at $524 billion (€506 billion) over the next decade, or about 2.8 times the country's estimated nominal GDP for 2024. Many industrial and residential infrastructure facilities across Ukraine have been destroyed or severely damaged by Russian attacks. ($1 = 0.8828 euros) https://www.reuters.com/world/ukraine-needs-500-million-euros-rebuild-critical-port-facilities-damaged-by-2025-05-30/
