OPEC: The cartel and allied producers said Thursday that they may extend their production-limiting deal beyond the first quarter of next year.
"All options, including the possible extension of the Declaration of Cooperation beyond Q118, are left open to ensure that all efforts are made to rebalance the market for the benefit of all," the committee monitoring the agreement said in a statement.
- Why it matters: OPEC and Russia have struggled to bolster prices and tame the global supply glut, though Thursday's statement claims some progress, noting: "Oil commercial [supply] stocks fell in July and the latest five-year average has been reduced from the beginning of this year."
- What's next: The joint monitoring committee will meet on Sept. 22.
Operating environment: While there's constant focus on how crude prices and breakeven costs affect capital spending decisions, a new Wood Mackenzie report takes stock of how the fiscal regimes in different countries come into play.
- "[G]enerating profits at current prices is not simply down to a company's ability to keep costs below current prices. Governments have a role to play too. If the fiscal system is targeted on revenues, rather than profits then, for the investor, a $50/bbl price could mean as little as $25/bbl is available to cover costs and make a return on investment," they note.
Chevron fallout: MarketWatch looks at a broader dynamic in company leadership in the wake of the news the Chevron CEO John Watson is slated to step down.
- "A change of guard at Chevron would be a highly orchestrated, leave-no-room-for-mishaps event, but some saw a trend in the way major oil companies' boards are looking for the next leaders: those experienced with penny-pinching."
Stormy weather: Via Reuters, oil companies including Shell and Anadarko are removing workers from offshore platforms in the Gulf of Mexico as tropical storm Harvey heads for the Texas coast.
Global flows: Bloomberg reports that Saudi Arabia has increased sales of oil to energy-hungry China. "Competition over China, which has topped the U.S. so far in 2017 as the world's biggest importer, intensified since last year's deal between the Organization of Petroleum Producing Countries and its allies to curb supplies in a bid to raise oil prices," their piece notes.