Saudis Push for Longer-Lasting OPEC Cuts as Aramco IPO Approaches
Saudi Arabia, the de facto leader of the Organization of Petroleum Exporting Countries (OPEC) and the third-largest oil producer in the world, is pushing for a longer extension of oil production cuts. The group meets on December 5 and 6 to discuss production cuts. Saudi Arabia wants to extend the current production cuts to at least June 2020, past the original deadline of March 2020. The intent of the production cuts extension is to increase oil prices and boost Saudi Aramco’s value ahead of the launch of their Initial Public Offering (IPO). Saudi Aramco’s target price is over $60 per barrel, which has been the case since mid-October.
On the other hand, Iraq mentioned that they will consider deepening the production cuts. Currently, Iraq is the only nation with this sentiment. The country would like to increase the production cuts to 1.6 million barrels per day, up 400,000 barrels per day from the original production cuts agreement.
Canadian National Railway and the Teamsters Union Reach Deal to End Strike
Canada’s largest railroad has agreed to an initial deal with the workers union to end the countries longest railroad strike in a decade. The strike lasted eight days, which costed the company sales and increased their expenses to avoid shutting the railroad down completely. The deal is not finalized yet but will go into effect when the union members vote on the deal within the next eight weeks.
Top Energy Stories
Saudi Arabia will push for an extension of oil-production cuts through mid-2020 at a producers’ summit this week in an effort to prop up Saudi Aramco’s initial public offering share price, Persian Gulf officials said.
At least half a dozen clean-energy companies are taking legal action against the Mexican government over changes in regulations they say reduce the value of their investments and put the country’s environmental targets at risk.
Top Freight Transportation Stories
Teamsters Canada and Canadian National Railway Co on Tuesday said they reached a tentative deal to end a strike at the country’s largest railroad that had entered its eighth day, disrupting supply chains across the country.
Gebis, co-founder and chief executive of the Lisle, Ill., technology company Autobon AI, spent months testing the truck’s abilities to steer and brake on its own on the Chicagoland Speedway track in Joliet, Ill. And now the company is ready to try it in regular traffic on the Jane Addams Tollway.
Top Economic Stories
The U.S. merchandise-trade deficit unexpectedly narrowed to the lowest in more than a year as imports plummeted, signaling the impact of tariffs on shipments.
President Donald Trump said yesterday that talks on a phase one trade deal with China were near completion, saying he is holding up the agreement to ensure the U.S. does better out of it. His comments follow developments this week showing progress in the talks, with Chinese officials saying consensus had been reached on properly resolving relevant issues.