Markets

Short-term US outages due to freezing weather as well as forecasts from the IEA and OPEC for strong demand this year supported prices for benchmarks ICE Brent, NYMEX WTI, and DME Oman.

Recent assessments from both the International Energy Agency (IEA) and OPEC provide nuanced insights into the complex landscape of the global oil and gas market, with a notable focus on the anticipated trajectory of demand.

In Feb., the Energy Information Administration (EIA) anticipates a fifth consecutive monthly decline in US crude oil production, with a projected decrease of 2K b/d to 9.68MM b/d.

Newly approved North Sea oil projects, including the Rosebank field, are facing scrutiny as a study by the Energy and Climate Intelligence Unit suggests their contribution to the UK's petrol needs will be minimal, estimated at less than 1% within seven years.

Norwegian oil and gas companies are set to intensify exploration efforts in 2024, aiming to drill between 40 and 50 wells, up from the 34 completed in the previous year.

Offshore oil drilling in a Sub-Saharan African country,  located in the southwest of the continent, witnessed a significant boost as TotalEnergies increased its stake in the Venus discovery, marking a crucial step towards development.

In the realm of oil price forecasting, two prominent entities— the US Energy Information Administration (EIA) and Citi—present contrasting viewpoints, shedding light on the intricacies of the oil market.

The country’s oil and gas sector experienced a groundbreaking year in 2023, with a record-high combined production exceeding 390MM mt of oil equivalent.

Escalating tensions in the Middle East, particularly the US and UK strikes on Houthi targets in Yemen on Jan. 12, have triggered significant disruptions in the global oil and gas market.

Despite the ongoing outage at Libya's Sharara oil field and the tensions in the Middle East, futures prices for benchmark crudes retreated over the period ending Jan. 12 due to indications of weak demand.