The history of the Middle East since the 1990s has been in many aspects been defined by China’s need to secure sufficient energy to power its economic growth to rival the superpower status of the U.S., and Washington’s efforts to keep these efforts in check.
Doubts about oil demand growth will persist beyond 2024, and fears of a price slump will be there to keep them company. That’s according to some recent predictions about the state of the oil market in 2025, which see demand growing, China directing the market, and OPEC still likely to unwind its production cuts.
West Texas Intermediate dropped almost 1% to settle near $70 a barrel, while Brent slid to around $73. Equities retreated in most regions, adding to the pressure on crude from weak Chinese refining and retail sales numbers on Monday.
Oil slipped as economic data from China reinforced concerns about weakening demand in the world’s biggest crude importer.
Preliminary estimates see the November CPI reading at 2.7%, which would be a slight increase on October’s 2.6%. Core inflation for November is seen at 3.3% on an annual basis—for the fourth month in a row. These figures might make a new rate cut decision a bit problematic but media reports suggest that market players overwhelmingly expect that decision.
The year-to-date rate of oil imports, however, remains a decline on 2023 and chances are that the full-2024 figure will be lower than the 2023 total as well. This will probably add fuel to trader pessimism about future demand even as China doubles down on stimulus to accelerate its economic growth.
Africa was one of the first regions where CNPC established its presence. Over the past 30 years, CNPC has managed 14 oil and gas projects across six African countries and deployed engineering service teams in 18 African nations.
Crude oil prices have found some support this week, driven by China’s economic recovery and OPEC+ production strategies. China, the world’s second-largest oil consumer, reported its fastest factory activity growth in five months, reinforcing optimism about future crude demand. Analysts view Beijing’s targeted stimulus measures as a potential catalyst for stabilizing global oil markets.
In practical energy terms, the Mansuriya field holds an estimated 4.5 trillion standard cubic feet (Tscf) of gas and is expected to produce around 300 million scf per day (Mmscf/d) of gas at its peak, although it will start running at about 100 Mmscf/d within 18 months, a senior energy source who works closely with Iraq’s Oil Ministry told OilPrice.com. That said, the site has a deeper and broader appeal to China, with the Mansuriya field having long been regarded by it, the U.S., Russia and Iran as holding a vital strategic position in the heart of the Middle East.
The project is located in the Pearl River Mouth Basin, with an average water depth of approximately 110 meters. The main production facilities include a new intelligent drilling production platform, as well as the adaptively modified “NAN HAI FEN JIN” FPSO. A total of 19 development wells are planned to be commissioned, including 2 oil production wells and 17 gas production wells. The project is expected to achieve a peak production of approximately 20,600 boed in 2027. The main products include light crude and natural gas.