Drama in the Desert
Discover more from Reserve Report
“You never really understand a person until you consider things from his point of view” - Atticus Finch
***Well, we decided to keep you waiting -> the bigger piece that we’ve been working on will be released early next week***
OPEC.
Good news:
OPEC+ did curtail production
Demand has recovered quickly
Bad news:
The world still needs the cuts
Compliance needs improvement
From Bloomberg
On an absolute basis, Iraqi compliance is the issue.
And it comes as no surprise -
This is not a criticism of the Iraqi character, but rather a criticism of the state of the Iraqi economy.
Throughout the year, there have been headlines out of Iraq, noting that the Central Government has not paid bills on time.
Lately, those outstanding bills are due to Kurdistan.
While the issue with OPEC may be resolved…
…the Iraqi economy is far from fixed -
CRISTOBAL.
COVID
Civil Unrest
And now… a Storm
2020 keeps it coming.
The first storm to potentially affect the oil markets is hanging off the north shore of Yucatan:
It’s too early to be certain of it’s impact on the GOM / Gulf Coast oil complex…
That said, action is being taken:
Per S&P / Platts - Equinor, BP, Talos & Murphy all have plans - some in motion - to remove workers from platforms.
The double-edged sword of this storm is that is has the potential to shut-down producers & refiners…
…but - that considered - the current forecast is only for a tropical storm.
We’d give the situation more attention were we facing a hurricane forecast -
OTHER NEWS.
Someone in Norilsk is in big trouble
Market pricing for oil products in Nigeria
Black Stone Minerals Permian divestitures
Bankruptcy & E&P management comp
That’s it for today - next week should be a fun one - we’re hoping to see Haaland back for Dortmund tomorrow, but we’re not betting on it -