OPEC, for some quiet moments..

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Petronet LNG Ltd. has reached an agreement to rework a liquefied natural gas supply agreement with  ExxonMobil Corp., the second such renegotiation by the Indian company for gas supplies after reaching a similar deal with Qatar, according to people with knowledge of the development. Under the new terms, the cost of the gas from the Gorgon LNG project in Australia will be 13.9% of the price of Brent crude, said the people, who asked not to be identified because they aren’t authorized to speak to the media. That’s down from an earlier ratio of 14.5% of the cost of a slightly more-expensive basket of crudes that has traditionally been used to price LNG contracts, according to data from Bloomberg New Energy Finance.

India swaps cheaper LNG for more volume in second reworked deal with Exxon

World oil demand growth in 2017 is expected to rise by 1.42 mb/d after an upward revision of around 50 tb/d. The adjustment mainly reflects better-than-expected data from OECD region for the 2Q17, particularly OECD Americans and Europe, as well as China. In 2018, world oil demand is anticipated to grow by 1.35 mb/d, an increase of 70 tb/d from the previous report. This reflects higher growth expectations for OECD Europe and China.

MOMR September 2017.pdf

One of the biggest energy stories this year has been Russia’s Rosneft buying India’s Essar Oil — giving the Russian company a firm grip on one of the world’s biggest emerging oil and gas markets.  And this past week, that story got more complex. With Rosneft striking another big deal — drawing in another heavyweight energy nation.  China.

Unknown Oil & Gas Deal Just Changed The Global Energy Balance | OilPrice.com

This model doesn’t work with oil. If prices drop, as they have done since mid-2014, businesses don’t drop out. They often try to pump more. The plan is to try to make up for inadequate prices by increasing the volume of extraction. Of course, this doesn’t fix the problem. The hidden assumption is, of course, that eventually oil prices will again rise. When this happens, the expectation is that oil businesses will be able to make adequate profits. It is hoped that the system can again continue as in the past, perhaps at a lower volume of oil extraction, but with higher oil prices.

Oil Is Unlikely To Return To $80 | OilPrice.com