Oil prices rebounded more than 1 percent on Wednesday, recovering from the previous day’s fall, after the Organization of Petroleum Exporting Countries’ upwards revision for Chinese consumption offset bearish global investor sentiment trigged by US bank failures.
Brent crude futures climbed 90 cents, or 1.16 percent, to $78.35 a barrel at 10.40 a.m. Saudi time.
US West Texas Intermediate crude futures gained 90 cents, or 1.26 percent, to $72.23 a barrel.
On Tuesday, the benchmarks shed more than 4 percent to a three-month low.
The OPEC on Tuesday further raised its forecast for Chinese oil demand growth in 2023 due to the relaxation of the country’s COVID-19 curbs, although it left total global demand steady, citing potential downside risks for world growth.
OPEC+ to stick to production cut, Saudi minister tells Energy Intelligence
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told Energy Intelligence in an interview on Tuesday that the OPEC+ alliance will stick until the end of the year to production cuts agreed in October.
Earlier in October, OPEC+ had agreed to cut output by 2 million barrels per day, which equals to about 2 percent of world demand, from November until the end of 2023.
“There are those who continue to think we would adjust the agreement … I say they need to wait until Friday, Dec. 29, 2023, to demonstrate to them our commitment to the current agreement,” said the minister.
Prince Abdulaziz also said global demand growth would outpace current global spare capacity while emergency reserves were at a historic low.
He added: “That is why it is crucial that policies are put in place to support investments needed to increase spare capacity in a timely manner and that global emergency stocks are maintained at an adequate and comfortable level.”
Canada’s Pembina Pipeline’s Cedar LNG project gets environmental approval
Pembina Pipeline Corp. said on Tuesday that its Cedar LNG project had received British Columbia’s environmental approval.
Cedar also received its first permit from the province’s energy regulator for about 8.5-kilometer pipeline that will connect the project to the Coastal GasLink pipeline.
Pembina Pipeline said the project also entered into a memorandum of understanding with oil and gas producer ARC Resources Ltd. for 20-year liquefaction services and they are working to finalize a supply deal for 1.5 million tons of LNG per annum.
Cedar LNG is a partnership between the indigenous group the Haisla Nation and Pembina Pipeline to develop a floating LNG facility in Kitimat, British Columbia with the capacity to export 3 MTPA of LNG.