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OPEC+ agrees to cuts, prices fall on skepticism
STORY: The group of oil producing nations known as OPEC+ is cutting supply by nearly 2 million barrels a day beginning next year.The decision came during a virtual meeting Thursday to discuss 2024 output amid concerns the market faces a potential surplus.OPEC+, which is led by Saudi Arabia and includes member allies such as Russia, pumps more than 40% of the world's oil.The group’s current output already reflects cuts of about 5 million barrels a day… aimed at supporting prices and stabilizing the market.Oil prices first rose on the news by more than 1%… but by Thursday afternoon had reversed course - with U.S. crude dropping by nearly 2.5% to under $76 a barrel.One expert told Reuters there is a high degree of skepticism on how individual OPEC+ members will reach their voluntary cuts… going so far as to call the plan “sketchy.”He added that the UAE, for example, is supposed to be increasing production by 200,000 barrels per day by 2024.OPEC+ is focused on lower output with prices down from nearly $98 a barrel in late September, and concerns brewing over weaker economic growth in 2024.
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COP28 kicks off with climate disaster fund victory
STORY: The U.N. climate summit clinched an early victory on Thursday, (November 30) with delegates adopting a new fund to help vulnerable nations cope with cost of climate driven disasters.The deal was adopted following the COP28 opening ceremony in Dubai and already follows many months of negotiations.But some groups were cautious, noting there were still unresolved issues including how the fund would be financed in the future.The United Arab Emirates will contribute $100 million to the pot, along with other countries contributing a total of just over $300 million.Germany pledged $100 million and the United States $17.5 million, with hopes the amount would build to a substantial sum.The early breakthrough on the damage fund - which poorer nations have demanded for years - could help grease the wheels for other compromises.Earlier in the day COP28 president, Sultan al-Jaber - who is also the CEO of the UAE’s national oil company - opened the summit urging countries and fossil fuel companies to work together to meet global climate goals.Al-Jaber aimed to strike a conciliatory tone following months of criticism over his appointment as the head of COP28."Let history reflect the fact that this is the Presidency that made a bold choice to proactively engage with oil and gas companies. We had many hard discussions, let me tell you, that wasn't easy, but today many of these companies are committing to zero methane emissions by 2030 for the first time.""And now many national oil companies have adopted net-zero 2050 targets for the first time and I am grateful they have stepped up to join this game-changing journey. And I must say, it is not enough, and I know that they can do much more."Over the next two weeks governments will also debate whether to agree, for the first time, to phase out use of CO2-emitting coal, oil and gas globally - the main source of emissions.Also on the agenda is what’s known as the "global stocktake".This is when countries assess their progress in meeting global climate goals.The main one being the Paris Agreement goal of limiting global warming to well below 3.6 degrees Fahrenheit (2 degrees Celsius).
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China Evergrande has last-ditch debt plan - sources
STORY: China Evergrande has made a last-minute effort to fight off the threat of imminent liquidation.Three sources close to the matter said the property firm has put forward a debt restructuring proposal.But the sources said creditors were unlikely to accept Evergrande's new pitch.They cited low recovery prospects and growing concerns about the future of the world's most indebted property developer.Evergrande did not respond to a request for comment.The firm has more than $300 billion in liabilities and is representative of a crisis in China's property sector.Authorities have tried to support the industry as troubles at various developers have worried global markets.Evergrande defaulted on its offshore debt two years ago.This coming Monday (December 4), the Hong Kong High Court will rule on a liquidation petition.This week, sources said Evergrande offered to swap some debt held by offshore creditors into equity in the company and two Hong Kong-listed units.They said it also offered to repay the rest with non-tradeable "certificates" backed by offshore assets.A collapse of Evergrande has been a major concern for global investors while the Chinese economy struggles.Property sales have slowed in the country and hundreds of thousands of homes are unfinished.If the Hong Kong court orders Evergrande's liquidation, appointed liquidators would take control and arrange to sell the company's assets to repay its debts.
