Something odd is happening in the oil market. Despite news that Saudi Arabia would extend its voluntary production cuts for another month and possibly beyond, and despite Russia saying it would reduce exports by half a million barrels daily, prices are falling.
Challenger Energy Group has officially been awarded the licence for the offshore AREA OFF-3 block in Uruguay, the oil independent announced on Monday.
ADNOC Gas has signed a USD 1.34-billion contract with Petrofac and its partners for expansion of its pipeline network in the UAE, the Emirati state-owned gas entity announced on Monday.
An official source from the Ministry of Energy announced that Saudi Arabia will extend the voluntary oil cut of one million barrels per day, which had gone into effect in July, for another month to include August.
Oil and gas companies are reinvesting record profits from the fossil fuel price surge driven by the Ukraine war to intensify the hunt for new deposits despite repeated calls by the United Nations to phase out hydrocarbons to avoid a climate crisis.
Saudi Arabia on Monday extended its oil-export cut of 1 million barrels per day for another month and Russia said it will cut 500,000 bpd from its oil exports in August, in moves that could support prices at comfortable levels for producers.
India’s crude oil imports from Russia hit a new record high of 2.2 million barrels per day (bpd) in June, having risen in 10 consecutive months, per data from analytics firm Kpler cited by Bloomberg.
Reports of Iran/U.S. talks have surfaced repeatedly over the last couple of years, spooking the markets each time it’s suggested that Iran’s oil could return to the market. But Iran’s crude oil does add a mystery element to the oil markets that transcends demand forecasts.
Long-term contracts for LNG supply are back after a year of record-high prices and energy crises.
OPEC last week underlined that Asia’s continued strong economic growth would account for virtually all the growth in demand for oil this year.