OPEC continues to increase production and the United States is looking for a replacement for Gazprom

2022-02-03T22:40:34
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OPEC continues to increase production and the United States is looking for a replacement for Gazprom

OPEC continues to increase production and the United States is looking for a replacement for Gazprom: Yesterday, OPEC ended its meeting on oil production for next March and committed to its plan to gradually increase oil production. 

Evest follows market developments in the following report.

Topics

Why is oil approaching its 7 year high? 

OPEC + production

The United States is discussing with countries including Qatar on a possible alternative to Russian gas

Qatar’s Minister of Energy

Spotify experienced new losses

Spotify’s average revenue

 

Why is oil approaching its 7 year high?

CNN reported that one of the main reasons oil prices are so close to their 7-year high,
is that OPEC and Russia produce less than they promised.

The Organization of Petroleum Exporting Countries (OPEC) and 10 major crude oil producers,
including Russia, are gradually increasing their production after-market production was reduced by 9.7 million barrels per day,
with demand falling sharply in the early days of the Coronavirus pandemic.

However, OPEC + has repeatedly failed to meet its monthly goal ,
of returning 400 thousand barrels per day due to a lack of production in several countries.

Despite considerable pressure from major energy-consuming countries, including the United States,
to help tame the high prices that fuel global inflation,
it will be difficult for the Alliance to increase production quickly due to,
limited excess energy and a tense geopolitical background.

OPEC + allowed an additional 400 thousand barrels per day increase for March on Wednesday,
ignoring calls for the group to pump more.

The modest production jump, even if fully delivered,
is unlikely to reduce world oil prices, which jumped to a seven-year high ,
of about $90 per barrel after two months of steady gains.

OPEC production

OPEC + production rose by only 250 thousand barrels per day in December,
or 63% of the group’s declared target, according to the International Energy Agency. 

The IEA attributed most of the shortage to reduced supplies from Nigeria and Russia,
which have pumped below its monthly share.

OPEC+ was managing 790 thousand barrels per day below its total production target, including a December deficit.

OPEC Core reduced its share of production again in January,
according to survey data committed by Reuters, which means that the gap may widen further.

On Monday, Goldman Sachs analysts said oil prices were “entering the political intervention zone.

” However, many OPEC + countries harness their full production capacity,
and increases in production may upset the balance of power within the group.

 

The United States is discussing with countries including Qatar on a possible alternative to Russian gas

The US administration is concerned about reducing the supply of Russian gas,
to Europe should the situation worsen over Ukraine,
turning to the major gas buyers and asking them to cut back their purchases so ,
that the gas can be redirected to Europe, Bloomberg reports.

According to the Agency, Joe Biden’s team,
led by the State Department’s energy security adviser Amos Hochstein,
makes such requests to gas consumers worldwide. 

In particular, there are negotiations with China (the world’s largest buyer of liquefied natural gas) ,
and officials from Japan, South Korea, and India.

The White House also asked gas producers, including Qatar, Nigeria,
Egypt, Libya and companies operating in Algeria, to increase production in the event of hostilities.

As well as the Biden administration’s consultations with oil and gas companies,
including Chevron and ExxonMobil.

The agency said that, unlike oil, there is little idle capacity in the world,
natural gas market and no producer said it could increase production in the short term.

Qatar’s Minister of Energy

For his part, Qatar’s Minister of Energy Saad bin Shreida Al-Kaabi said the previous day:
“The amount of gas needed by the European Union cannot be compensated unilaterally,
without disrupting supplies to other regions of the world.

Europe‘s energy security requires the collective efforts of many parties. “

Earlier, some media reported on the US Administration’s efforts to ,
negotiate with gas suppliers in the event of a potential crisis in Europe when Russia’s supplies were cut. 

Foreign Minister Anthony Plinkin mentioned such negotiations at a press conference on January 26. On January 31,
the Associated Press learned that Biden would ask the Emir of Qatar,
Hamad bin Khalifa al-Thani, for help if the situation worsened.

For its part, Moscow denied that Gazprom could violate previous agreements,
on gas imports and stated that Russia has always been a reliable energy supplier.

 

Spotify experienced new losses

The Swedish company, Spotify Technology, the operator of the same-name music streaming service,
reduced its net loss in the fourth quarter of 2021,
but the growth forecast for new subscribers paying fees fell short of analysts’ expectations.

In October and December, the company’s net loss was €39 million versus the loss of €125 million in the previous year.

Spotify suffered a loss of €0.21 per stock compared to €0.66 per stock in the previous year.

Spotify’s quarterly revenues rose to $2.69 billion from $2.17 billion the previous year.

Analysts surveyed by FactSet projected an average loss rate of €0.51 per share on revenue of €2.65 billion.

For the whole of 2021, the company’s net loss was €34 million versus the loss of €581 million in the previous year.

Revenue rose to €9.67 billion from €9.41 a year ago.

Spotify’s free cash flow for the quarter was €103 million, €74 million higher than the previous year.

At the end of the fourth quarter, the number of users of the service (at least once Monthly Active Users, MAU),
was 406 million, 18% higher than the previous year.

The growth rate of the index also coincided with the company’s maximum expectations.

The number of paid participants rose by 16% to 180 million, which met analysts’ expectations.

Spotify’s average revenue

Spotify’s average revenue per subscriber paid rose by 3% to €4.4.

The revenue from services paid in the last quarter increased by 22% to €2.295 billion.

Advertising revenues grew by 40% to €394 million, representing 15% of Spotify’s total revenue, a record high.

According to company forecasts, the number of active users will increase in the current quarter to 418 million,
the number of paid subscribers – up to 183 million (compared with analysts’ projections of 184 million),
and revenue will reach 2.6 billion euros.

Spotify’s capitalization has fallen by 8% to $38.2 billion since the beginning of the year.

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