RIYADH: Oil prices rose on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring gas prices drive some consumers to switch to oil.
Brent crude futures were up 0.80 percent, to $98.18 a barrel at 01.50 p.m. Saudi time.
US West Texas Intermediate crude futures edged up 0.86 percent, at $92.72.
Norway’s DNO raises its Tawke output forecast
Norwegian oil firm DNO raised its guidance on Monday for output from Iraq’s Tawke license and said the company now has more cash on its hands than debt for the first time since 2018.
Gross output from Tawke, located in the Iraqi Kurdish region, is now projected at between 107,000 and 109,000 barrels of oil equivalent per day in 2022, up from a previous forecast of 105,000 boed, the company said in a statement.
“DNO is committed to put its capital to work in its core competency and capture new opportunities created as peers and even some of the largest European companies scale back spending,” Executive Chairman Bijan Mossavar-Rahmani said.
“We believe in the oil and gas business and in our responsibility to all stakeholders, including host governments who want to capitalize on current prices and consumers who now call for more production, not less,” he said.
Brazil’s Bolsonaro pledges privatizations if re-elected
Brazil’s President Jair Bolsonaro did not mention privatizing state-controlled oil company Petrobras in his re-election plan released on Wednesday that promises to continue pursuing policies that reduce the size of the state.
“The government ... will proceed with reordering the state’s role in the economy, through privatization and divestment of state-owned companies, to focus on state participation in essential activities and in promoting Brazil’s economic, social and sustainable development,” the plan said.
The document contrasts with his 2018 election plan that dedicated specific pages to Petrobras. The company was not even mentioned this time, despite Mines and Energy Ministry Adolfo Sachsida requesting its privatization be studied.
Shell launches sale of North Sea Cambo oil prospect: sources
Shell has launched a sale process for its 30 percent stake in the Cambo oil prospect in the British North Sea, potentially paving the way for the field’s controversial development, industry sources said on Thursday.
The London-based company hired investment bank Jefferies to run the sale process for the stake in Cambo, which has become a lightning rod for climate activists seeking to halt the development of new oil and gas resources.
The British government has, however, come out in support of developing North Sea oil and gas resources following Russia’s invasion of Ukraine as Western countries focus on energy security despite commitments to slash greenhouse gas emissions in the coming decades.
Located in the West of Shetland region, the field is the second-largest undeveloped resource in the aging North Sea basin.
It is operated and 70 percent-owned by Ithaca Energy, which is owned by Israel’s Delek Group.
IEA cuts Nigeria’s sustainable oil output capacity
The International Energy Agency has cut Nigeria’s sustainable oil output by about 200,000 barrels per day, the agency said in its July report, on the back of persistent technical issues and sabotage.
The IEA estimates Nigeria’s new sustainable capacity at around 1.3 million bpd. The West African country’s output has been steadily declining since 2019, in part due to the pandemic-related output cuts.
Sustainable output means the capacity level can be reached within 90 days and stay there for an extended period.
Nigeria combined with Angola accounted for nearly 40 percent of OPEC+’s 2.7 million bpd output target shortfall, the IEA said.
(With input from Reuters)
