RIYADH: Crude prices rose on Tuesday amid rising indications of strengthening demand in China.
Brent crude futures rose 34 cents or 0.44 percent to $78.46 a barrel at 11.30 a.m. Saudi time, while West Texas Intermediate US crude was up 45 cents, or 0.62 percent, to $73.26 a barrel.
China's crude oil imports are expected to rise 6.2 percent in 2023 to 540 million tons, according to an annual forecast by a research unit of China National Petroleum Corp. on Monday.
Russian oil and gas output to decline this year: Energy Minister
Russia’s Energy Minister Nikolay Shulginov said on Tuesday that the country had managed to successfully re-direct its oil exports to new markets, but that oil and gas production was expected to decline in 2023.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Tuesday that Russia needed to focus on boosting energy exports to so-called “friendly” countries, as he said Russian oil supplies to India jumped 22-fold last year.
Novak said energy revenues accounted for 42 percent of Russia’s federal budget in 2022 and added the country’s energy industry was sustainable, despite the challenges faced by Western sanctions.
BP, ADNOC offer to buy 50 percent of Israel’s NewMed Energy
BP and Abu Dhabi’s state oil giant on Tuesday made an offer to acquire 50 percent of Israeli offshore natural gas producer NewMed Energy for around $2 billion.
The offer would involve acquiring NewMed’s free-floating shares and taking the company private and would mark Abu Dhabi National Oil Co. and BP’s entry into Israel’s growing energy sector.
ADNOC and BP said they intend to form a new joint venture as part of the deal that will be “focused on gas development in international areas of mutual interest including the East Mediterranean.”
NewMed is the largest stakeholder in the giant Leviathan offshore field, operated by Chevron, which produces 12 billion cubic meters of gas that are supplied to Israel, Egypt and Jordan.
The field’s partners are planning to further expand its production and are also exploring plans for a liquefied natural gas terminal to further boost exports.
The offer is a further sign of the strengthening economic ties between Israel and the UAE since the two countries agreed to normalize ties in 2020.
(With input from Reuters)
