*Power Demand Pushes UAE August Oil Output Above OPEC+ Quota*
Stay at home vacations have been the reason for why the UAE have exceeded their OPEC+ quota as there has been a greater demand for gas in power generation. The rate is around 2.693 million bpd, which is 100,000 above the quoted level for August as agreed according to a source to Reuters. The UAE has said it will compensate by reducing supply and exports in the coming months, confirmed by the Energy minister Suhail al-Mazrouei. The Abu-Dhabi national oil company has told customers that it will reduce supplies by 30% for all crude grades in October.
*Supply Curbs, Uncertain Demand to Keep Oil Rangebound*
A Reuters poll consisting of analysts forecasting crude at $42.75 for the rest of the year and into 2021 have the level at around $50.45, as uncertainty around the effects of COVID-19 on demand deriving partly from the throttled airline industry, and output causes a turbulent outlook for crude. Global demand was contracting steeply this year by between 8-10 million bpd versus July 7.2-8.5 million bpd. This coincides with the cuts that OPEC+ have called for at about 7.7 million bpd.
*BP’s Summer Surprise Shines Spotlight on Stranded Oil*
An August strategy move shows that a turn to renewable energies comes earlier in the plans for the company, as the pandemic has worried markets that oil demand is in terminal decline. The announcement took some by surprise as BP looks to become an integrated energy company and face the transition head on. The key point on this, is that they are looking to shrink oil and gas flows by 1 million bpd according to the report in S&P, equivalent to 40% over the next 10 years. S&P Global Platts Analytics predict a fall in demand of oil at around 50 million bpd under a low-carbon scenario by 2050.
*India’s GDP Contracts at Record Pace in April-June*
Record falls in the GDP of India between April and June come as lockdown starves demand for fuel and refining investment. In Q2, GDP fell 23.9% in stark comparison to the 3.1% growth in the first quarter of this year. This news partners that of the highest daily increase in recorded cases at over 80,000 reports Argus, with head of All India Institute of Medical Science stating they are yet to even reach the peak or plateau.