Oil Prices Plunge on OPEC+ Production Cut Speculation

Libya’s upstream segment has gone almost completely haywire with 60% of production shut in because of a nationwide oil blockade, but that story has by now been overshadowed by wild speculation over OPEC+ policy. The eight leading OPEC+ producers are expected to start unwinding voluntary output curbs with a 180,000 b/d boost in October, sending oil prices tumbling with Bent plunging toward the $73 handle.

According to Kpler, China’s crude imports averaged 10.5 million b/d in August, up almost 1 million b/d compared to the 18-month low of July, however they remain well below any monthly average in February-June, OilPrice.com reports.

According to several sources, Libya’s Sarir, Mesla and Nafoura oil fields have received instructions to resume production amidst an ongoing oil blockade by Field Marshal Haftar, however, only to feed local power plans and small refineries in the east.

Houthi militias have almost hit the Saudi-flagged tanker Amjad operated by the state-owned shipping firm Bahri (TADAWUL:4030) as they attacked the Blue Lagoon I vessel that was sailing next to it, carrying fuel oil from Russia.

According to industry group Offshore Energies UK, the Labour government’s windfall tax hikes on North Sea oil and gas producers would lead to a $16 billion drop in state revenue in between 2025 and 2029, whilst also accelerating the UK’s production declines.
Venezuela experienced a nationwide blackout on Friday, blaming the disruptions in power supply on a cyberattack on the Guri hydropower dam, with operations at the José export terminal as well as crude upgraders disrupted for one day.

Canadian mining giant Teck Resources (NYSE:TECK) will restructure its assets into two regional business units in North and Latin America after its $7 billion divestment of metallurgical coal assets to Swiss-based trader Glencore.

Nigeria’s 650,000 b/d Dangote refinery has started producing gasoline after several months of commissioning works, with the plant’s declared goal of ending the African country’s costly dependence on fuel imports now being within reach.

QatarEnergy has announced its 2030 target of doubling the production of urea, a key component in fertilizers, from 6 million tonnes annually to 12.4 mtpa, finding additional ways of refining natural gas into higher-value products.

India’s state-controlled refiner Bharat Petroleum (NSE:BPCL) and upstream firm ONGC are jointly exploring building a new refinery as the country’s demand continues to rise strongly and refining capacity is set to reach 9 million b/d by 2030.

US oil major Chevron (NYSE:CVX) has amended its production plan for its long-delayed 3.5 TCf Aphrodite gas field in Cyprus and submitted it to Cypriot authorities, with costs rising to $4 billion as it seeks to build an offshore floating production unit.

Indonesia wants to set aside some 10 million barrels of crude to create a strategic petroleum stock in a country that usually refines 800-900,000 b/d, with new government regulation also stipulating the creation of a 10-million-barrel gasoline reserve inventory.

ADNOC, the national oil company of the UAE, has started an international roadshow as it is looking to raise 5-, 10- and 30-year debt, believed to be linked the upcoming purchase of German chemical market Covestro in a deal worth $13 billion.

Chinese state-run oil company Sinochem is planning to quit its 40% stake in the Permian-focused upstream joint venture Wolfcamp that it operated jointly with US oil major ExxonMobil (NYSE:XOM), currently producing around 44,000 boe/d of which 75% is oil.