Oct 12, 2017

IEA: Big crude players must show 2018 "discipline"

Ben Geman, author of Generate
Quarterly global changes in oil inventories, demand, and supply. Chart: IEA

The International Energy Agency sees strong potential for some stability in global crude markets next year — if OPEC and Russia re-up their production-limiting deal beyond the first quarter (check out the chart above).

  • "Looking into 2018, we see that three quarters out of four will be roughly balanced — again using an assumption of unchanged OPEC production, and based on normal weather conditions," they said in the latest closely watched monthly outlook.
  • "The next few weeks ahead of the producers' meeting in Vienna on 30 November will be crucial in shaping their decision on output. A lot has been achieved towards [stabilizing] the market, but to build on this success in 2018 will require continued discipline."

By the numbers: The IEA expects supply from outside of OPEC to grow by 1.5 million barrels per day next year, alongside similar growth in crude demand of 1.4 million.

The IEA notes that there has been progress in cutting the glut of global inventories, with a "major reduction in floating storage, oil in transit, and stocks held in some independent areas."

  • At the end of August, combined stocks of crude oil and refined products in industrialized countries were slightly over 3 billion barrels, dropping down to 170 million barrels above the five-year average, a sign of progress in clearing the global glut.

Go deeper: Reuters has much more on the report here.

Go deeper

Trump and Zuckerberg share phone call amid social media furor

Photo: Alex Wong/Getty Images

In the week that President Trump took on social media, Axios has learned that he had a call Friday with Facebook CEO Mark Zuckerberg that was described by both sides as productive.

Why it matters: With the White House and Twitter at war, Facebook has managed to keep diplomatic relations with the world's most powerful social-media devotee.

Twitter, Google lead chorus of brands backing George Floyd protests

Illustration: Lazaro Gamio/Axios

Twitter and Google are among the dozens of brands over the past 24 hours that have taken public stances in favor of Americans protesting racial equality. Some companies have changed their logos in solidarity with the movement, while others have pledged money in support of efforts to address social injustice.

Why it matters: The pressure that companies feel to speak out on issues has increased during the Trump era, as businesses have sought to fill a trust void left by the government. Now, some of the biggest companies are quickly taking a public stand on the protests, pressuring all other brands to do the same.

NYPD commissioner: "I'm extremely proud" of officers' response to protests

New York City Police Commissioner Dermot Shea in February. Photo: Yana Paskova/Getty Images

New York City Police Commissioner Dermot Shea said in a public statement Sunday that he is "extremely proud" of the New York City Police Department's response to protests over the death of George Floyd Saturday night, writing: "What we saw in New York City last night and the night before was not about peaceful protest of any kind."

Why it matters: New York City residents captured several instances of police officers using excessive force against demonstrators. In one video, two NYPD SUVs are seen ramming into protesters who were blocking a road and throwing traffic cones at the vehicles.