RIYADH: Oil prices fell on Monday following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand.
Brent crude futures dropped 60 cents, or 0.63 percent, to $95.17 a barrel by 11.10 a.m Saudi time, after slipping 1.2 percent on Friday.
US West Texas Intermediate crude was at $87.32 a barrel, down 58 cents, or 0.66 percent, after settling down 1.3 percent on Friday.
Kashagan’s oil processing complex to restart in coming days
Kazakhstan’s energy company KazMunayGas said that it expects the Bolashak onshore processing complex at the giant Kashagan offshore oilfield to resume operations in the coming days after repair works at a complex unit.
“At the moment, all the mechanical repair work, aimed at the restoration of production levels, has been completed. The unit is expected to come onstream in several days,” the company said following a visit by its head, Magzum Mirzagaliyev to Kashagan.
Production at Kashagan, one of the world’s largest oilfields, sharply declined on Aug. 3 due to a gas release.
Kazakhstan’s Energy Minister Bolat Akchulakov told Reuters earlier this month that Kashagan will resume production of 400,000 barrels per day (bpd) by the end of October after maintenance.
Kashagan is operated by the North Caspian Operating Co., which includes TotalEnergies, Eni, Shell, Exxon Mobil, KazMunayGas, Inpex and China National Petroleum Corp.
Exxon’s record-smashing Q3 profit nearly matches Apple’s
Exxon Mobil Corp. has smashed expectations as soaring energy prices fueled a record-breaking quarterly profit, nearly matching that of tech giant Apple.
Its $19.66 billion third-quarter net profit far exceeded recently raised Wall Street forecasts as skyrocketing natural gas and high oil prices put its earnings within reach of Apple’s $20.7 billion net for the same period.
As recently as 2013, Exxon ranked as the largest publicly traded US company by market value — a position now held by Apple. Exxon shares rose 3 percent to $110.70, a record high that gave it a market value of $461 billion.
Oil company profits have soared this year as rising demand and an undersupplied energy market collided with Western sanctions against Russia over its invasion of Ukraine. US exports of gas and oil to Europe have jumped and promise to set all-time profit records for the industry.
The top US oil producer reported a per-share profit of $4.68, exceeding Wall Street’s $3.89 consensus view, on a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.
“Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest,” CEO Darren Woods told investors. Its quarterly profits “reflect that deep commitment” as well as higher prices, he added.
Oil poised for limited gains as economic risks loom
Oil prices will find support from the decision of the Organization of Petroleum Exporting Countries, and its allies, known as OPEC+ to cut output, and sanctions on Russia for the rest of the year and into the early part of 2023, a Reuters poll showed on Monday, but a recession could limit further gains.
A survey of 42 economists and analysts forecast benchmark Brent crude would average $101.10 a barrel this year, and $95.74 in 2023, up from estimates of $100.45 and $93.70 respectively in September.
US crude forecasts were raised slightly to $96.23 a barrel in 2022 and $90.39 next year, from the $95.73 and $88.70 consensus last month.
However, on a quarterly basis, the Brent forecasts indicated a gradual trend downward next year, with the second quarter consensus at $96.38 a barrel versus $98.01 in the first, and a further dip to $94.70 in the third quarter.
(With input from Reuters)
