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Sources say that OPEC+ will be subject to an annual audit of their oil capacity under the new plan.
OPEC+ said that members of the group will be assessed annually for their oil production capacities starting in 2020. This assessment is to be used by 2027. The goal is to align output quotas with each country's actual capacity. The agreement was reached on Sunday, which is a significant step forward in resolving a thorny problem for OPEC+ that has plagued the group for many years. It will also boost its credibility with investors and other oil market participants. Some members, such as the United Arab Emirates, have increased their production capacity and want to increase their targets. Others such as African members are experiencing declines. Others find it difficult, both politically and economically, to accept a production target or theoretical capacity that is lower. Angola left the Organization of Petroleum Exporting Countries (OPEC) in 2024 due to a disagreement over its production quotas. APPOINTMENT OF CONSULTANTS Saudi Energy Minister Prince Abdulaziz bin Salman stated on Monday that the meeting held on Sunday was the most successful day of his career. The output capacity mechanism will help stabilize the markets and reward those investors who invest in production. Assessments will begin in 2026 and be used to establish baselines for outputs in 2027, on which quotas will be set. Three OPEC+ sources and industry sources have confirmed that OPEC+ – which is a grouping of OPEC, Russia and its allies – plans to appoint U.S. Petroleum Consultant DeGolyer and MacNaughton for the purpose of estimating oil prices for 19 out 22 OPEC+ member countries. The company did not respond when contacted for comment. DeGolyer, a Dallas-based company, was among the companies who audited Saudi Aramco’s oil reserves in advance of its 2019 initial publicly offered. Sources said that DeGolyer refused to assess the capacities of Russia, Iran, or Venezuela. Sources said that these OPEC+ producers were under U.S. sanction and did not want a U.S. company to carry out the work. The sanctions may have also made it difficult for the U.S. firm to perform this work. Sources said that a firm from India will be appointed to assess the capacity of Russia and Venezuela in the next few weeks, while Iran has chosen to have its production figures used to estimate its capacity. One of the OPEC+ members declined to identify themselves because they weren't authorised to publicly speak about the issue. GROWING GAP IN QUOTAS VS ACTUAL OUTPUT OPEC+’s production increases in 2025, after several years of cutting output, have revealed a growing difference between the targets of many members and their actual output. Data from S&P Commodity Insights (Platts), which is a source of data for OPEC+, shows that in October, 12 out of 18 members who had quotas pumping were below their targets. Platts, one of OPEC+'s sources for monitoring its output, is used by the group. Russia is the country that has fallen most behind target, with a deficit of 101,000 barrels per day. Kazakhstan is the country with the highest production, at 144,000 barrels per day. OPEC+ has a limited spare production capacity – idle output that could come online quickly – after years of low investments, according to OPEC+ and industry executives. It takes time for producers and drillers to increase drilling and output. Since OPEC+ has not set production targets, it is hard to know what the maximum capacity is. The use of consultants to conduct the assessment is in line with OPEC’s long-standing practice, which involves using secondary sources like analysts and industry media such as Platts for assessing its members’ actual production. It is a result of historical disputes about how much oil OPEC member countries claimed to produce. The objective is to provide an impartial assessment. A source stated that after the 2026 audit of the baseline outputs for 2027, the countries would prepare the data for the assessment for 2028 during January and February 2027. The update process will begin in March 2027. Source: The same steps would be repeated in future years. (Reporting and editing by Simon Webb, Emelia Sithole Matarise, Emelia Sithole, Alex Lawler)
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Tajikistan cuts power after a dry autumn affects hydroelectric plants
The authorities of the Central Asian nation announced this week that Tajikistan had imposed energy restrictions, including on some industrial users. This was due to low water levels in hydroelectric power plants. According to the economy ministry, electricity users representing nearly 20% of Tajikistan GDP will be affected. The majority of streetlights will be turned off and the power supply to public sector institutions will also be shut off after hours. Tajikistan is the poorest successor state of the Soviet Union, with a population nearing 11 million. It faces power shortages almost every year. A particularly warm and dry fall in Central Asia left the water levels of hydroelectric plants in that region dangerously low. The authorities in Kyrgyzstan, a neighbouring country, have also imposed similar restrictions on energy usage. They have turned off street lights and ordered restaurants and bars to close their doors at night in Bishkek. The reservoir of Tajikistan’s Nurek Hydroelectric Power Station (which generates 70%) is 3.5 metres (11.5 foot) below the level it was in 2024. The Tajikistan energy ministry has stated that the country is looking to import electricity from Uzbekistan Turkmenistan, and Kazakhstan. The main mosques of the Tajik capital Dushanbe and Tashkent in Uzbekistan's capital, Uzbekistan were filled with worshipers who prayed for rain on Friday. Reporting by Felix Light, Editing by Mark Trévelyan.
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TotalEnergies announces that Mozambique LNG Partners will provide additional equity
By America Hernandez PARIS, December 2 - French oil giant TotalEnergies, along with its other partners in the $20 billion Mozambique Gas Project, have agreed to provide more equity to replace previous contributions from British and Dutch Export Credit Agencies, the company announced on Tuesday. Total reported that the UK and Dutch agencies accounted for about 10% of the initial $15.4 billion external funding obtained by the project. Total's 13 million tons per year liquefied gas project will turn Mozambique into a major exporter of gas when it starts production in 2029, but the project has been bogged down in issues related to security, finance and rights. The region was hit by jihadist attacks that forced a construction freeze for four years starting in 2021. Meanwhile, government soldiers tried to suppress the insurgency using methods that were often criticized. The British government announced on Monday that it would cancel $1.15 billion worth of loans and export insurance for the project because the project was too high-risk. The Dutch government announced that Total had chosen to cancel an Insurance Request with Atradius. Atradius is its export credit arm. This announcement came as the Netherlands finalized a decision about whether or not to withdraw, based on a independent human rights assessment. Total stated that after the lifting of the force majeure last month on the project, the partners chose to move forward without the support from Atradius or UK Export Finance (UKEF), as they were the only agencies who had not yet reconfirmed financing. Total announced that the Mozambique LNG Partners had unanimously agreed to replace UKEF and Atradius' contributions with additional equity. The financing agreements with the remaining lenders were amended to reflect the new project schedule and four-year freeze. TotalEnergies stated that the Netherlands' human rights report, which concluded that the allegations of government soldiers torturing civilians near the project site was "credible", was based on information collected by third parties and not an investigation. TotalEnergies is the largest partner in Mozambique, with 26.5%, followed by Japan's Mitsui at 20.5%, Mozambique state-owned ENH at 15%), Bharat Oil (10%) Oil India (10%) ONGC Videsh (10) and Thailand's PTTEP (8.5%). Reporting by America Hernandez, Paris; Editing and proofreading by Alexandra Hudson
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Copper falls from its peak due to a stronger dollar and a weaker risk appetite
The copper prices fell on Tuesday due to the stronger dollar and a lower risk appetite. Investors also locked in profits after a rally that reached a record-high in the previous session. The benchmark three-month copper price on the London Metal Exchange dropped 0.4% in open-outcry official trading to $11,207 per metric ton, after hitting a record high of $11,334 Monday. LME copper is up 27% this year so far, mostly due to fears about possible shortages. Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said: "We are pausing today as we have seen the dollar recovering and a general decrease in risk appetite." After a decline in cryptocurrency and a global bond saleoff, traders were cautious on Tuesday. After a strong demand for Japanese government bonds, the dollar rose against yen. The dollar's strength makes goods priced in U.S. dollars more expensive for buyers who use other currencies. Hansen stated that "Copper is still in a good mood but it needs a correction. As long as we keep $11,000 we are poised to see higher prices, as the outlook for 2019 indicates a tightening market." Investors are reaping profits by arbitraging between the U.S. Comex and the LME, delivering copper to U.S. warehouses. The market is also assessing how the plan of major Chinese smelters to reduce production by 10% in 2011 will affect it. Analysts at Chinese broker Jinrui Futures stated in a report that the plan of smelters to reduce output confirmed the view that supply of refined copper would become tight. After reaching a record-high of 89.920 yuan per ton earlier, the most traded copper contract at the Shanghai Futures Exchange ended daytime trading 0.1% higher, closing at 88.920 yuan. Other metals include LME aluminium, which fell 0.2% at $2,887 per ton. Zinc dropped 0.4% to 3,084, Nickel lost 0.2% at $14,900, Tin dropped 0.1% to 39,115, and Lead added 0.2% at $2,005.
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Nigeria's Oil Content Board unveils $100 million equity fund to support local producers
Nigeria's oil-and-gas content regulator announced on Tuesday a $100 million equity scheme to increase indigenous participation in energy sector. It also said that it will tighten the compliance rules starting next year. Felix Ogbe (executive secretary of the Nigerian Content Development and Monitoring Board, NCDMB) told the Practical Nigerian Content Forum at the Bank of Industry that the fund would be launched in partnership to provide equity financing for high-growth local energy services firms. Ogbe stated that the board would also introduce, from January 1, 2026 onwards, a certificate of compliance, which will confirm companies' compliance with a mandatory 1% payment obligation. The certificate is required for permits, approvals and other documents. Ogbe stated that Nigerian content in monitored projects increased to 61%, from 56% the previous year. He cited major projects like NLNG Train 7 and NNPC’s AKK pipeline as well as TotalEnergies’ Ubeta Gas Development. Some of the other initiatives include a challenge on technology in 2026, a training program for oilfield skills and measures to stop fraudulent applications for local-content certificates. Ogbe stated that "the work ahead of us is important, but so too is the opportunity." "Nigerian Content is Key to National Development and Industrialization" (Reporting by Tife Oholabi, Writing by Chijioke Ahuocha).
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Gold drops 1% as investors book profits, Treasury yields increase
The gold price fell by 1% on Monday, mainly due to rising U.S. Treasury rates and profit booking after a six-week-high was reached in the previous session. Silver prices also declined from their record high. After falling more than 1% earlier, spot gold fell 0.7%, to $4,204.50 an ounce, by 1215 GMT. U.S. Gold Futures for February Delivery were down 0.9%, at $4,235.50 an ounce. The combination of a strong dollar, higher Treasury rates and profit-taking has conspired to reduce the shine of gold," said Ross Norman, an independent analyst. The U.S. Dollar rebounded from a two-week high in the previous session. The benchmark 10-year U.S. Treasury rates hit a nearly two-week-high, due to the weakness of Japanese and European government debt, which reduced the appeal of non yielding bullion. The data released on Monday revealed that U.S. Manufacturing contracted for the ninth consecutive month in November. Investors will now be watching the November ADP Employment Report and Friday's PCE Index for clues about a Fed rate cut next week. According to CME’s FedWatch tool, traders are pricing in a 87% chance that the Fed will cut rates by December. Gold that does not yield is usually favored by lower interest rates. Carlo Alberto De Casa is an external analyst with Swissquote. He said, "I expect the gold price to consolidate lateraly between $4,000 and $3,400 over the next few months." Silver fell 0.9% from its record high on Monday of $58.83 an ounce to settle at $57.42. Norman said that it is not uncommon to see a little profit taken off the top after a move as dramatic as we witnessed. Silver has risen 98% in value this year. This is due to the bull market for gold, a persistent shortage of supply, and its inclusion in a draft U.S. list of critical minerals. Palladium rose 1.3% to $1,442.20, while platinum fell 2.1% at $1,622.56. (Reporting and editing by Harikrishnan Nair, Leroy Leo and Pablo Sinha from Bengaluru)
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Serbia will permit payments and transactions to Russian oil company NIS in the coming week
Serbian President Aleksandar Vucic announced on Tuesday that the country will continue to allow payments and transactions with the U.S. sanctioned Russian oil company NIS, until the end the week. This is despite the threat of secondary sanctions. Gazprom and Gazprom of Russia, who own the majority of NIS, are required to sell their shares in the company. The U.S. has imposed sanctions on NIS because it is owned by Russians. Vucic, the president of Serbia, said that payments made with NIS by its banks, which includes the central bank will continue through Monday. After meeting with government officials responsible for energy, he stated, "We have agreed to, at the risk to Serbia, ensure payment transactions to NIS until the weekend... in order to allow NIS workers to be paid and make payments due." Vucic stated that the only NIS oil refinery in the country will be shut down this coming week unless it receives a reprieve of sanctions from the U.S. Treasury Department Office of Foreign Assets Control. (Reporting and editing by Ivana Sito-Sucic and Daria Sekularac; Bernadette and Jan Harvey)
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Mali expects annual windfall of $1.2 billion from miners after new code
Audit uncovers irregularities leading to significant recoveries The new code will increase revenue by 586 billion CFA Francs annually Barrick settles dispute and migrates to new code By Tiemoko Diallo BAMAKO, 2 December - Mali recovered 761 billion CFA Francs ($1.2billion) in arrears due from mining companies after a thorough audit, the finance minister announced. This is one of Mali's largest clawbacks from extractive industry. In early 2023, the military-led government conducted an audit of Mali’s mining sector that revealed massive shortfalls and led to the creation of a new code. The new mining law increased royalties, increased state stakes in companies that mine and eliminated stability clauses. After an audit by Inventus and Mozar revealed financial irregularities, a recovery commission was established. The state's estimated shortfalls and irregularities were between 300 and 600 billion CFA francs. A two-year dispute erupted with Canadian mining company Barrick Mining - Mali's largest gold producer – over the overhaul of the industry. In November, a deal was reached. Alousseni Sanou did not mention Barrick's 244 billion CFA Francs deal in his Monday evening speech on state TV. B2Gold, Allied Gold, Resolute Mining and Endeavour Mining as well as lithium players such Ganfeng, Kodal and Kodal have all settled their arrears earlier and migrated over to the new regime. Sanou, who presented the audit report to Assimi Gouta during a ceremony, said: "I am thrilled with these results. We can mention that 761 billion CFA were recovered out of the 400 billion CFA target." Sanou said that all mining firms will now be operating under the code 2023, which should increase annual revenues by about 586 billion CFA Francs for audited companies alone. Their total contribution is estimated to be around 1,022 billion CFA Francs every year. He said that the total cost of audit and legal fees was 2.87 billion CFA Francs. Mamou Toure said that the aim was to not only recover the funds, but to also give the state an important stake in the mining contracts. Mali is one of Africa's largest gold producers and heavily relies on its mining industry for both export revenues and fiscal revenue. As a result of the scrutiny for tighter oversight, industrial gold production fell 32% on an annual basis to 26.2 metric tonnes by August.
Russian grain harvest exceeds 145 million tonnes, according to deputy PM
Dmitry Patrushev said that Russia has been the largest exporter of wheat in the world this year. He oversees the Russian agricultural sector. Patrushev, who oversees the Russian agriculture sector, said that the volume of grain by clean weight may be lower than expected due to the bad weather which accompanied harvesting.
Gross or bunker weight is the total of all impurities, foreign matter, such as dust, chaff and small stones, and excess moisture. This weight will increase if harvesting is done in bad weather.
"The new crop harvesting is almost complete." Patrushev told a government gathering that despite weather disruptions during the entire season, major crops have produced more than last year. Patrushev stated that the forecast clean weight crop of 135 millions tons of grain was on track, including 90,000,000 tons of wheat. He added that rapeseed and soy crops will likely reach a new record in 2018.
Patrushev stated that the sowing of winter grains for the harvest in 2026 was completed on the planned area of 20 million hectares. The agriculture ministry will approve the finalised structure for the sown areas next year by December. Oksana LUT, the Agriculture Minister, said at the same meeting that 97% of the seeded areas had been harvested. She also said that the weather conditions have been favorable for winter sowing.
"The winter crop sowing is almost in line with the forecasts." Lut stated that the weather conditions were generally favorable, which allowed for expectations of good harvest.
Despite the fact that drought affected some of Russia's major grain-producing areas in the south, a better-than-expected crop harvest was achieved in Siberia and central regions. Reporting by Gleb Stolarski, Writing by Gleb Bryanski and Alexander Smith; Editing and Revision by Andrea Ricci and Alexander Smith
(source: Reuters)