Out of bounds
OPEC Secretary-General: Saudi and Russian comments "shake off" before the November 30 meeting
OPEC's secretary-general Mohamed Barkindo told Reuters on Friday that Saudi Arabia and Russia's clear announcement of their support for a global oil production cut for another nine months would remove fog ahead of next week's OPEC meeting. The Organization of the Petroleum Exporting Countries (OPEC), along with Russia and nine other producers, have been cutting oil output by 1.8 million bpd since January. The agreement expires in March 2018 and producers are considering extending it. Saudi Crown Prince Mohammed bin Salman said this week he supported keeping the agreement in force for nine months after similar remarks by Russian President Vladimir Putin. "OPEC welcomes the Saudi Crown Prince's clear guidance on the need to stabilize and maintain oil markets after the first quarter of 2018," Barkindo told Reuters on the sidelines of the conference. He added that, in addition to Putin's remarks, "this will clear the fog on the way to Vienna on November 30."
France's total profit grew 29% in the third quarter, supported by increased production and cost savings
France's total oil and gas company Total said its adjusted net profit rose 29 percent in the third quarter, in line with expectations, thanks to higher production and higher refining margins, while cost cuts exceeded its target for the year. Total oil production rose 6 percent in the third quarter, while adjusted net operating profit from its downstream unit, which includes exploration and production, rose 84 percent from the same period last year, boosted by a 14 percent rise in global benchmark crude. "The group has benefited fully from the favorable climate thanks to the performance of its integrated model and its strategy to reduce the level of equivalence" between revenue and expenditure, Chief Executive Patrick Boyan said in a statement. Total said its third-quarter net profit was $ 2.7 billion, in line with analysts' expectations polled by Reuters. Production increases in projects such as Kashagan in Kazakhstan, Moho Nord in the Republic of Congo and Angola LNG along with new concessions such as Al-Shaheen in Qatar contributed to production reaching 2.58 million barrels of oil equivalent per day. Total has maintained its annual production growth target of about 5 percent in 2017 and expects to stay at this level until 2022.
The company said its goal of reducing costs in the year would increase to $ 3.6 billion compared to $ 3.5 billion in previous forecasts, while continuing to reduce costs. The cost of production fell below $ 5 a barrel in the last three months, below the $ 5.5 per barrel target for the year.