- The DOE will sell 10 MMBbl of low-sulfur oil from the U.S. SPR in November, extending the already planned 180 MMBbl sale, which expires in October (BBG)
- The DOE is offering up to 5 MMBbl from Big Hill in Texas and up to 7 MMBbl from West Hackberry in Louisiana for delivery in November
- Bids are due by September 27, and contracts will be awarded no later than October 7, the department said
- The sale will come before EU sanctions against Russian crude go into effect in December
- To date, the SPR sales have resulted in delivery or commitment for delivery of 155 MMBbl of crude oil through October 22 to help mitigate global supply disruptions
- The OPEC+ group continues to vastly underperform its collective oil production target (Reuters, BBG)
- OPEC+ fell short of its oil production target by 3.583 MMBbl/d in August, having missed the target quota by 2.892 MMBbl/d in July, according to a report seen by Argus
- While OPEC members were 1.399 MMBbl/d behind the quota, non-OPEC producers were 2.185 MMBbl/d below their quota for August
- Russia and Nigeria were the two biggest laggards of their respective groups, and the next OPEC+ meeting is scheduled for October 5
- The organization increased its monthly target by 0.100 MMBbl/d for September; therefore, the underperformance is expected to be higher this month
- The UAE intends to ramp up its oil production capacity to profit from high energy prices before the world switches to cleaner energy sources
- Currently, UAE produces nearly 3.4 MMBbl/d, and state-owned ADNOC expects to be able to produce 5 MMBbl/d by 2025, which is earlier than the previously disclosed goal of 2030
- The revised target will be challenging to meet and will drive up costs for a project that is already expected to cost billions, according to sources familiar with the matter