Global demand growth is “coming somewhere close to 1.6 to 1.7 million barrels per day and is driven by distillates”, BP’s Regional CEO for Supply and Trading for the Eastern Hemisphere, Janet Kong, said at the conference.
Oil prices have increased while global benchmark Brent continues to trade at 26-month high levels following reports of an unexpected fall in United States crude stocks.
Brent, the global benchmark for crude, jumped $2, or 3.6%, to $58.86 a barrel, its highest since July 2015 by 1:45 p.m. EDT.
Brent crude hit a near two-year high of $59.49 on Tuesday, before sliding to $59.01 a barrel.
Jim Ritterbusch of Ritterbusch & Associates in Chicago said delaying a decision allows producers “to leave some arrows in their quiver to throw something bullish at the market at their November meeting” if necessary.
The discount of the WTI to Brent futures widened to $6.61, the widest since August 2015.
NPDC is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
Mr. Matashi said having attained the position of fifth largest exploration and production (E&P) firm in the Nigeria, the NPDC was poised to efficiently manage its portfolios to achieve the new target. “In a nutshell, the Company is involved in 29 concessions which comprises 22 OMLs and seven Oil Prospecting Leases”, General Manager, Group Public Affairs Division at NNPC, Mr. Ndu Ughamadu, quoted Matashi as saying in a statement yesterday. This, he said, “is supporting Brent and in turn is supporting USA products and WTI as well”.
Mr. Matashi added that NPDC also carried out some intervention activities which led to the peak production of approximately 10,000 bpd in OML 65 in June, 2017.
The spread “could stretch a bit further” but US refinery restarts and growing USA exports should eventually lift WTI prices and narrow the spread, Ritterbusch said. It was trading higher for the session at around $52.04 before the supply report.
On September 25, 2017, Kurdish people voted “yes” in their independence referendum.
The Iraqi government does not recognise the referendum and has called on foreign countries to stop importing Kurdish crude oil. But experts warn that OPEC needs to extend the cuts beyond March 2018 in order to continue depleting crude oil stockpiles.
“If OPEC do not extend their cuts beyond 1Q 18, we would no longer see stock draws from 2Q 18 and we forecast builds from 3Q 18”, she said.
He said Brent futures got an additional boost in late trade when Nigeria’s oil minister said in Vienna that his country, which OPEC had exempted from the output cuts, was actually pumping less crude than its agreed cap.