Brent crude prices continued to march higher Monday amid a growing market consensus that OPEC will likely extend its production-cut deal.
The Australian government on Monday warned that the country's east faced a worse-than-expected natural gas shortfall in 2018, but the competition watchdog said the gap could easily be filled by diverting uncontracted exports to the local market. It is now up to the government to decide by Nov. 1 whether to pull the trigger on its Australian Domestic Gas Security Mechanism, which allows it to curb liquefied natural gas (LNG) exports from the nation's east coast if it determines there will be a shortfall in any year. The supply gap identified by Australian Energy Market Operator of between 54 petajoules and 107 PJs is equivalent to about 4 percent to 9 percent of the natural gas projected to be used by the LNG plants.
A shutdown at Israel's Tamar natural gas field caused by a cracked pipe is not expected to have a significant impact on quarterly revenue, and the problem will likely be resolved this week, the partners behind the project said on Sunday. The stoppage, however, will take a toll on the country's power stations, which have been forced to turn to more expensive fuels to generate electricity. Production at Tamar, Israel's sole commercial field, was halted on Thursday when a crack in an exhaust pipe was discovered during routine maintenance work by operator Noble Energy.