Daily Brief: OPEC Extends Production Cuts Amid Worries Over U.S. Oil

Council on Foreign Relations Newsletter If you are unable to see the message below, click here to view. December 1, 2017 Daily News Brief TOP OF THE AGENDA OPEC Extends Cuts Amid Worries Over U.S. Oil At an OPEC meeting in Vienna on Thursday, oil-rich nations agreed to extend production cuts through the end of next year, a move aimed at keeping prices above $60 a barrel (FT) and clearing a global crude oil glut. The extension of the year-long effort to curb global production relied on agreement between Saudi Arabia and Russia, two of the world's largest producers. Russia, not an OPEC member, has raised concern that the increased price could spur the United States (Reuters), which did not take part in the deal, to boost its production. U.S. oil production rose sharply in September to 9.48 million barrels per day, one of the highest levels seen in over four decades, as output surged in shale basins (Bloomberg). ANALYSIS "Innovations paid off handsomely, with U.S. oil production increasing 66 percent from 2011 to 2015. But all this unexpected production contributed to a price bust that started in late 2014," Samantha Gross writes for the Brookings Institution. "Saudi Arabia, which historically has urged restraint in OPEC's price ambitions fearing the long-term impact on demand, now finds itself aligned loosely with hawks such as Venezuela, as Riyadh looks to shore up the economic and political reforms of Crown Prince Mohammed bin Salman with oil cash," David Sheppard writes for the Financial Times. "The show of friendship [between Saudi Arabia and Russia] sought to dispel fears flagged by Wall Street analysts about Moscow's reluctance to keep its side of the bargain in the absence of an exit strategy for the deal," Rakteem Katakey and Ben Sharples write for Bloomberg. PACIFIC RIM Japanese Court Sentences Former U.S. Marine to Life An Okinawa court has given a life sentence to a former U.S. marine who admitted to raping a Japanese woman (Japan Times) and then dumping her body in April of last year. The man worked as a civilian for an internet company providing services to a U.S. airbase. MALAYSIA: Kim Jong-nam, the murdered half brother of North Korean leader Kim Jong-un, was carrying a dozen doses of the antidote (Reuters) for the nerve agent used by assailants to kill him in a Malaysian airport in February.  SOUTH AND CENTRAL ASIA Nine Killed in Attack on Pakistani University An attack claimed by the Pakistani Taliban (Dawn) killed nine people at an agricultural university in the northern city of Peshawar on Friday. The militant group said the location hosted a safe house used by Pakistan's spy agency (NYT), a claim authorities denied. AFGHANISTAN: A Taliban spokesman claimed that a high-ranking deputy of the self-proclaimed Islamic State in Afghanistan has defected and joined the Taliban (VOA). The spokesman released a recording of a purported interview in which the deputy calls the Islamic State an "anti-Islam" organization. Kosh Sadat and General Stanley McChrystal (Ret.) discuss America's longest war in Foreign Affairs. MIDDLE EAST AND NORTH AFRICA Egypt, Russia Reach Deal on Sharing Air Bases Cairo and Moscow have approved a draft agreement that would allow each country's warplanes to use the air bases of the other (AP). The deal would give Russia its most significant presence in Egypt since Cairo pushed out the Soviet military in 1973 in favor of improving ties with Washington (NYT). LIBYA: Fayez al-Sarraj, prime minister of the internationally-backed Tripoli government, will meet U.S. President Donald J. Trump at the White House on Friday. Sarraj is expected to seek a relaxing of a UN arms embargo (Reuters) on branches of the Libyan military.  SUB-SAHARAN AFRICA Niger Reportedly Signs Off on Armed U.S. Drones Additional U.S. troops and armed drones will be deployed to air bases in the Nigerien cities of Niamey and Agadez, according to a memorandum reportedly signed by the United States and Niger (NYT). The base would allow U.S. drones to reach targets across West Africa, including in Mali, Chad, Nigeria, and Libya. Jason Warner discusses a deadly October attack on U.S. forces in Niger in this CFR interview. ZIMBABWE: President Emmerson Mnangagwa has named top military officials to his cabinet (BBC), including the general who announced a military takeover of Zimbabwe on state TV last month. CFR's John Campbell writes that deposed President Robert Mugabe was both an icon and kleptocrat.  EUROPE Turkey-Based Businessman Implicates Erdogan in U.S. Court A Turkish-Iranian gold trader told a New York court on Thursday that Turkish President Recep Tayyip Erdogan personally approved an international money-laundering scheme (WaPo) to bypass sanctions against Iran. The businessman has pled guilty to conspiracy and is cooperating with U.S. prosecutors (BBC). GERMANY: The country posted its lowest unemployment rate last month (VOA) since the reunification of East and West Germany in 1990, at 5.3 percent. AMERICAS Venezuela Arrests Two Former State Oil Officials Venezuelan authorities have arrested two former top officials from the state oil company, including a former minister who headed the company until this week (NYT), over corruption charges. The attorney general said the former oil chief sought debt refinancing deals without government approval. BOLIVIA: President Evo Morales said Thursday that he will seek a fourth consecutive term (LAHT) in a 2019 election after Bolivia's Supreme Court ruled earlier this week that he may do so despite constitutional term limits. UNITED STATES White House Dismisses Reports on Tillerson's Exit The White House called media reports that President Trump plans to dismiss U.S. Secretary of State Rex Tillerson and replace him with CIA chief Mike Pompeo (BBC) "pure speculation."         Council on Foreign Relations — 58 East 68th Street — New York, NY 10065 CFR does not share email addresses with third parties. Forward This Email | Subscribe to CFR Newsletters | Unsubscribe - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  

From: dailybrief@e.cfr.org

Date: December 01, 2017 at 11:03PM