The November Brent futures contract has seen a weak morning, falling from $71.70/bbl at 07:00 BST to $70.78/bbl levels at 11:20 BST (time of writing). In headlines, Exxon Mobil has withdrawn from bidding on Galp Energia’s 40% stake in Namibia’s offshore Mopane oil discovery, estimated to contain at least 10 billion barrels of oil and gas worth over $10 billion. According to Reuters, over 12 oil companies, including Shell and Petrobras, had shown interest in the stake, though reasons for Exxon’s exit are unclear. Separately, oil and gas production in the Gulf of Mexico could face disruption unless the US National Marine Fisheries Service updates its endangered species protection regulation by December 20, following a court ruling. Without an update, the regulatory process to ensure oil and gas operations are carried out following the Endangered Species Act would become more cumbersome and complicated, potentially affecting production, as highlighted by the API. The Gulf currently produces 15% of the nation’s oil and employs over 400,000 people. At the time of writing, the Nov/Dec and Nov/May’24 Brent spreads are at $0.43/bbl and $1.16/bbl, respectively.
