(Bloomberg) — Ministers and oil industry chiefs are gathering for the biggest energy conference in the Middle East as crude heads toward $100 a barrel. Whether prices can hold at these levels and the outlook for OPEC+ supply cuts are among topics that will be discussed from Monday.
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But this year, climate is looming large over the forum. Delegates at the annual Adipec summit in Abu Dhabi, which has been dominated by oil in its long-running history, will devote a lot of their time to the energy transition. The meeting comes just two months ahead of the United Arab Emirates also hosting the crucial COP28 conference.
Chief executive officers of Shell Plc, TotalEnergies SE and Occidental Petroleum Corp., among others, will later Monday discuss plans for the energy transition. UAE Energy Minister Suhail Al Mazrouei and OPEC Secretary-General Haitham al-Ghais are also scheduled to speak.
All times UAE:
UAE Warns About Lack of Oil Investment as It Boosts Own Capacity (2:30 p.m.)
The global oil industry has been losing capacity in the last few years due to a lack of investment, said United Arab Emirates Energy Minister Suhail al Mazrouei.
The minister rebuffed concerns about rising oil prices, arguing that crude needs to be high enough to justify making new investments. The UAE will expand its own capacity to 5 million barrels a day by 2027, Mazrouei said. From 2025, OPEC+ output quotas will be based on the latest capacity numbers, not outdated figures, he said.
Non-OPEC+ Oil Supply Is Outstripping Demand Growth: Yergin (2:11 p.m.)
Oil production in countries that are not part of the OPEC+ alliance, such as the US and Canada, is growing faster than demand, Dan Yergin, vice chairman at S&P Global Inc., said in a Bloomberg TV interview. Still, continued supply curbs by Saudi Arabia can be worrying because of concerns over global economic growth.
India Is Telling Oil Producers That Prices are Too High (1:54 p.m.)
India has “a constant dialogue with all producing countries where we keep raising this point” that crude prices are too high, Pankaj Jain, secretary at the Ministry of Petroleum and Natural Gas, said in an interview.
His country isn’t comfortable with current oil prices, which are near $93 a barrel in London, and “we need more production now,” Jain said. While India acknowledges OPEC’s right to decide how much they produce, the group’s cuts have increased prices.
“High prices lead to demand destruction,” Jain said. “Our viewpoint is we are finding these prices difficult to pass, difficult to continue to meet our energy needs.”
Iraq Official Says Ceyhan Pipeline Can’t Restart Yet (1:11 p.m.)
An Iraqi official cast doubt on a statement from Turkey that a key pipeline bringing oil from northern Iraq to the Mediterranean coast can resume this week.
Flows can’t restart until commercial and financial issues have been resolved, the official said, speaking on condition of anonymity. Earlier on Monday, Turkish Energy Minister Alparslan Bayraktar said the pipeline will resume operations this week. The oil conduit, which can carry almost half a million barrels of crude a day, has been offline since March amid a payment dispute between Ankara and Baghdad.
OPEC+ Has ‘Right Policy’: UAE Energy Minister (11:22 a.m.)
OPEC+ currently has the “right policy” for the oil market, the UAE’s Mazrouei said in an interview at the Adipec conference in Abu Dhabi.
Prices will increase if there’s no further investment in the industry, he said, adding that OPEC isn’t setting a price target.
Iraq Oil Pipeline Will Resume This Week (11:08 a.m.)
A crude oil pipeline running from Iraq’s Kurdistan region to the Mediterranean coast of Turkey will resume operations this week, Turkish Energy Minister Alparslan Bayraktar said.
The pipeline was shut earlier this year after an arbitration court ordered Ankara to pay about $1.5 billion in damages to Iraq for transporting oil from Kurdistan without Baghdad’s approval.
Citi Says Oil to Collapse to Low $70s in 2024 (9:53 a.m.)
Brent crude will collapse to the low $70s a barrel next year as the global market swings back to a surplus, according to Citigroup Inc. The shift reflects “more oil coming into the market,” analysts including Ed Morse said in a quarterly report.
“Higher prices in the near term could make for more downside for prices next year,” the Citi analysts said.
Oil Markets Will Continue to Tighten, Halliburton Says (9:18 am)
There’s a lot of support for oil prices and the market will continue to tighten, Halliburton Co. Chief Executive Officer Jeff Miller said in a Bloomberg TV interview at the Adipec conference.
The company is returning cash for our shareholders, he said.
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