Top Oil News Brief/Roundup As Reported to 31st October 2016….
The price of OPEC basket of fourteen crudes stood at $47.04 a barrel on Friday, compared with $47.23 the previous day, according to OPEC Secretariat calculations.
The OPEC High-level Committee, established by the Algiers Accord, met with non-OPEC oil producing countries on Saturday, 29 October, at OPEC headquarters in Vienna. It was preceded by the first High-Level Committee Meeting, held Friday, 28 October, among OPEC Member Countries.
In addition to OPEC Member Countries, six non-OPEC countries attended the joint Meeting. They were Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and the Russian Federation.
The Meeting acknowledged the landmark Algiers Accord, which was a consensus decision of all OPEC Member Countries, and underscored the positive impacts it has had on the markets, with a reversed trend in oil prices and reduced volatility, providing a common platform for all producers to work jointly on restoring stability to the markets.
Delegates also discussed current oil market conditions and prospects for the rest of the year and in 2017. Deliberations focused on oil market fundamentals and driving factors for the economy, oil demand and supply, including the exceptionally high stock overhang.
The Meeting noted that the world economy, despite prevailing uncertainties, is expected to see improvements in the current year and in 2017. There has already been an increase in oil demand growth so far in 2016 in both the OECD and other regions, with potential for similar growth in 2017. On the supply side, significant declines were noted in non-OPEC regions in 2016. However, the stock overhang continues to be very high.
NNPC proposes moving petroleum products through rail
The Nigerian National Petroleum Corporation (NNPC) and Total Nigeria Plc are considering the movement of petroleum products through the rail system in order to reduce the cost of transportation, The Guardian reports. This, they believe, is possible if plans by government to overhaul the rail sector becomes realistic.
Chevron pipeline attack in Nigeria may cause power supply to fall by 600MW
Tuesday’s attack on Chevron’s gas line by militants in the Niger Delta has affected the flow of gas to some power plants, leading to a loss of about 500 to 600 megawatts of electricity, The Punch reports.
Dangote calls on Nigeria to reverse power privatisation
The President/CEO Dangote Group, Aliko Dangote has said that the power sector privatisation process was done wrongly and suggested that it should be reversed, Daily Trust reports.
PIB, gas development key to Nigeria’s petroleum sector
Nigeria’s Minister of State for Petroleum, Emmanuel Ibe Kachikwu said at a forum in Abuja aimed at outlining a strategy for the petroleum industry on Thursday, that ending the insurgency in Nigeria’s Delta region which has hobbled oil production is the first goal of a seven-point plan for the sector, Reuters reports.
PetroChina Q3 Profit Drops 77%
PetroChina on October 28 reported a sharp 77% drop in third quarter net profit as oil and gas prices remained soft and demand stayed sluggish. Net profit attributable to its owners stood at yuan 1.2bn ($177mn) for the July-September period.
In the exploration and production segment in the first three quarters of 2016 the company recorded crude oil output of 696.6mn barrels, representing a decrease of 3.6% compared with the same period last year. Marketable natural gas output was 2,428.9bn ft³, up 6.1% on year. Its oil and natural gas output reached 1,101.5mn barrels of oil equivalent (boe), representing a decrease of 0.3% compared with the same period in 2015. Overseas production was 154.7mn boe, up 7.8% on year.