OPEC Production Dips Despite Surge in Saudi Arabian Output | Weekly News Update

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OPEC Oil Production Dips Despite Saudi Arabian Surge

In the Organization of Petroleum Exporting Countries (OPEC) Monthly Report, the collective group’s crude oil production declined in November.  Iran continues to see the largest drops in crude oil production in the cartel with output falling 0.380 million barrels per day (mmbd).  Venezuela, Nigeria, and Iraq also experienced declines.  However, Saudi Arabia boosted production significantly which effectively offset the declines in Iran.  Saudi Arabia’s production rose by 0.377 mmbd, which is a record high for the country.  Saudi Arabia’s oil production surge was announced less than a week before OPEC decided to collectively cut 1.2 mmbd starting January 2019 with the support of other non-OPEC producing countries.  Although the group plans to cut a significant amount, it is expected that the cuts will be gradual starting in 2019.

Libya, an oil producing country apart of OPEC, declared force majeure on exports from the El Sharara oilfield, due to an attack by local militia group.  The oil field will see a production loss of 0.315 mmbd at El Sharara – Libya’s largest oil field – and an additional 0.073 mmbd at the El Feel oilfield.  The Libyan government said they will not negotiate or “pay a penny to anyone who closed the field.”  Libya produced roughly 1.1 mmbd before the force majeure.

Volvo Trucks to Introduce All-Electric VNR Model

Volvo Trucks are introducing a class 8, all-electric version of their VNR regional-haul commercial truck to North America.  The first version of the truck will be released in California in 2019 and will expand across North America in 2020.  Specifications such as weight, range, or final design were not yet announced, however the powertrain will be based on its FE Electric cabover model in Europe.

In Other News

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12/10

NY Times: Trump Team Pushes Fossil Fuels at Climate Talks. Protests Erupt, but Allies Emerge, Too.

Trump administration officials at high-stakes climate talks here offered an unapologetic defense of fossil fuels on Monday, arguing that a rapid retreat from coal, oil and gas was unrealistic.

Reuters: Militia Forces Libya’s NOC to Declare Force Majeure on Biggest Oil Field

Libya’s National Oil Company (NOC) on Monday declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group. NOC said the shutdown would result in a production loss of 315,000 barrels per day (bpd) at its biggest oilfield, and an additional loss of 73,000 bpd at the El Feel oilfield.

WSJ: Cheaper Oil Ripples Through the Global Economy

Oil prices posted their worst month in a decade in November and have fallen more than 30% from multiyear highs. The dramatic move has prompted investors to try to assess the impact on global growth heading into next year.

JOC: New Low-Sulfur Fuel Clauses Clarify Time Charters

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AP News: Inslee wants 100 percent clean energy in Washington by 2045

Washington Gov. Jay Inslee on Monday proposed an ambitious package of legislation to tackle climate change, including eliminating fossil fuels like natural gas and coal from the state’s electricity supply by 2045.

12/11

WSJ: China Moves to Address U.S. Economic Concerns

Beijing sought to ease tensions with Washington as its top trade negotiator told U.S. officials that China was planning to reduce auto tariffs and boost purchases of soybeans and other crops, according to people in both capitals briefed on the discussions.

Reuters: Daimler to buy £18 billion of battery cells for electric car drive

Daimler will buy battery cells worth more than 20 billion euros (18 billion pounds) by 2030 as it readies mass production of hybrid and electric vehicles, the maker of Mercedes-Benz cars said on Tuesday.

Transport Topics: Volvo Trucks to Introduce All-Electric Version of VNR Model

Volvo Trucks will bring electric-powered commercial trucks to North America next year by introducing a battery-electric version of its VNR regional-haul model. The truck manufacturer said it will first deploy the zero-emissions VNR Electric tractor in 2019 through demonstrations in California and will begin selling the vehicle across North America in 2020.

FreightWaves: Freight Rates on the Rhine Subside as Water Levels Finally Rise

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12/12

EIA: For one week in November, the U.S. was a net exporter of crude oil and petroleum products

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JOC: Supply Chains Readied for Worst-Case Brexit Scenario

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WSJ: Brexit or Not, Britain’s Oil and Gas Business is Booming

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Transport Topics: Drivers, Carriers Have Different Concerns Regarding Driver Shortage, Retention

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WSJ: OPEC Oil Production Dips Despite Surge in Saudi Arabia’s Output

OPEC said Wednesday that its total crude-oil production came down slightly in November but output from Saudi Arabia—the cartel’s largest member—surged to a record high, just as producers are gearing up to cut output next year, reports the Journal.

12/13

Transport Topics: Class 8 Truck Sales Rise 21.8 Percent in November

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Transport Topics: Volvo’s Voorhoeve Sees Strong 2019 Truck Market

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NY Times: The Oil Industry’s Covert Campaign to Rewrite American Car Emissions Rules

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Reuters: IEA Sees Global Oil Supply Tightening More Quickly in 2019

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JOC: Cost Found to Outweigh Port Automation Benefits

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CCJ: EPA Launches Second Probe into Glider Kits Emissions Studies

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JOC: What US Truck Shippers Need to Watch in 2019

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WSJ: Seaborne Exports Plummet at Southern California Ports

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12/14

Transport Topics: Electric Trucks Advance

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CCJ: Spot Market Slides in ‘Month of High Volatility’ in November

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Platts: Credit-Starved Bunker Industry Limps Toward IMO 2020

The bunker industry is in a fragile state as it enters its last year before tougher sulfur restrictions come into force, with several key players in retreat. The supply questions around fuel availability and compatibility for this change are starting to be answered, but a big question for the industry next year will be whether credit availability will be sufficient.

This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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