Power Up: IEA sees oil surplus in 2025
Power Up is published on Mondays and Thursdays. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.
Nov 14 - By Gavin Maguire, Energy Transition Columnist
Oil markets look set to end the week on the defensive after the International Energy Agency published a fresh downbeat outlook calling for global supplies to exceed demand next year even if OPEC+ output cuts remain in place. This follows a crude oil price decline earlier in the week due to the strength in the U.S. dollar, which is trading near a one-year high against major currency peers. In the power sector, U.S. naturalgas prices have also retreated on expectations for a rise in inventories ahead of winter.
Meanwhile, U.N. climate talks are underway at COP29in Baku, Azerbaijan, where delegates are grappling with the prospect of a U.S. withdrawal from major climate agreements under the upcoming Trump administration as well as the massive financial needs of developing economies to cope with climate change. More on that and more below:
A TRILLION DOLLAR TASK
Developing countries need at least $1 trillion per year by the end of the decade to cope with climate change, economists told U.N. talks in Baku, where early efforts to reach a finance deal risk being overshadowed by diplomatic rows.
Reaching a deal is likely to be especially hard at a summit where the mood has been soured by disputes and pessimism about shifts in global politics, according to the Reuters team covering the event.
So far, the Dutch Prime Minister, the French climate minister and Argentina’s government delegates to the talks have all either skipped or withdrawn from the event for various reasons, leaving the remaining attendees saddled with the task of maintaining progress without key stakeholders.
That said, many key attendees are still planning to make big climate-related deals and investments, including billions of dollars pledged by major development banks, financial firms and insurers already this week. Find more reporting from the Reuters team covering the conference here.
Essential reading
Siemens Energy’s vicious circle becomes virtuous
The German wind power giant has been hit hard by supply chain disruptions and management missteps in recent years. But over the past year things have changed for the better. Breakingviews columnist Yawen Chen delves in.
Europe seeks resolution against Iran at IAEA
European powers are pushing for a new resolution against Iran by the U.N. atomic watchdog's board next week to pressure Tehran over its poor cooperation, as the world awaits the return of U.S. President-elect Donald Trump, diplomats say. Here's the full exclusive.
China battery giant CATL would build US plant if Trump allows it
CATL, the world's top battery maker, will consider building a U.S. plant if Trump opens the door to Chinese investment in the electric vehicle supply chain, the company's founder and chairman, Robin Zeng, told Reuters.
The company also aims to reinvent the world’s largest battery maker as a green-energy provider and to slash the cost of developing electric vehicles, upending the economics of the industry that has powered its growth.
COP29 host Azerbaijan hits out at West in defence of oil and gas
United Nations Secretary-General Antonio Guterres told world leaders at the COP29 summit on Tuesday to "pay up" to prevent climate-led humanitarian disasters, and said time was running out to limit a destructive rise in global temperatures.
Global CO2 emissions to hit record high in 2024, report says
Global carbon dioxide emissions, including those from burning fossil fuels, are set to hit a record high this year, pulling the world further off course from averting more destructive climate extremes, scientists said on Wednesday.
We hope you're enjoying the Power Up newsletter. We'd love to hear your thoughts and feedback. You can reach us at: powerup@thomsonreuters.com.
Editing by Marguerita Choy
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
