As the market awaits the results of the OPEC+ meeting on December 5, ICE Brent crude oil futures rose slightly during early Asian trading.
As of 12:00 PM Beijing time, the price of ICE Brent crude oil futures was $71.95 per barrel, an increase of 12 cents compared to the settlement price of $71.83 per barrel on December 2, when the contract price ended 1 cent lower than the previous trading day.
WTI crude oil futures price was $68.16 per barrel, an increase of 6 cents compared to the settlement price of $68.10 per barrel on December 2, when the contract price ended 10 cents higher than the previous trading day.
Kazakhstan's Deputy Minister of Energy Alibek Zhamauov stated on December 2 that the Tengiz oil field's production of 600,000 barrels per day remains partially shut down due to maintenance reasons. He mentioned that the crude oil output from Tengiz decreased by 170,000 barrels per day to 430,000 barrels per day in November due to maintenance on the second-generation plants. Zhamauov said that the oil field, operated by the Chevron-led Tengizchevroil consortium, began operations at the end of October. 'We do not know how many more days are needed,' he said.
In China, the state-owned company CNOOC announced on December 2 that it has begun production at its Jinzhou 23-2 oil field located in the Bohai Sea. CNOOC is the operator of this heavy oil field, holding 100% interest. The project is located at a water depth of 13 meters, with a peak production expected to reach approximately 17,000 barrels of oil equivalent per day by 2027.
Drilling activity in Canada’s oil and gas industry is set to rise to its highest level in a decade by 2025 as export channels for oil and gas attract more rigs to the western provinces.
The Canadian Association of Energy Contractors (CAOEC) stated in its annual drilling and service rig forecast released on November 29 that the number of active rigs in Canada is expected to rise to 190 next year, up from an estimated 178 in 2024. This marks the highest level since the 358 recorded in 2014—almost double the current level—just as the U.S. shale gas boom began to push global crude oil prices down.
U.S. President-elect Donald Trump's envoy is responsible for promoting a peace agreement between Russia and Ukraine, believing that lifting Western sanctions would incentivize Russia to end the conflict.
Since the outbreak of the Russia-Ukraine conflict in February 2022, the import ban and sanctions implemented have forced oil supplies away from the former core market of Europe and increased logistics costs, thereby weakening Russia's energy export revenue. After the state-controlled Gazprom stopped fulfilling long-term contract obligations in the summer of 2022, Russia's gas supply to Europe has been at its lowest level in decades.
U.S. crude oil production fell by 1.2% in September due to offshore operators in the Gulf of Mexico cutting production in response to Hurricane Franklin hitting the region.
The U.S. Energy Information Administration (EIA) reported on November 29 in its (Monthly Oil Supply Report) that the average output in September was 13.2 million barrels per day, down from the average of 13.4 million barrels per day in August, which was the highest level recorded in any month. September's output was still higher than 13.18 million barrels per day in the same month of 2023.
(The above content comes from the latest insights from the independent international energy and commodity price assessment agency Argus)
Article forwarded from: Jinshi Data
