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RIYADH: Oil prices rose slightly on Thursday, finding some support after heavy losses in the previous two sessions driven by fears of a US recession and an increase in Russian oil exports.
Brent crude was trading at $77.93 a barrel, up 24 cents, or 0.31 percent at 10:30 a.m. Saudi time, while US West Texas Intermediate crude added 13 cents or 0.17 percent to trade at $74.43.
Oil prices dropped almost 4 percent on Wednesday, extending sharp losses from the previous session with recession fears overshadowing a bigger-than-expected fall in US crude inventories.
As of Wednesday’s close, Brent is down 4.9 percent for the week while WTI has lost 4.6 percent.
Russia says OPEC+ sees no need for further oil output cuts
Russian Deputy Prime Minister Alexander Novak said on Thursday that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, saw no need for further oil output cuts despite lower-than-expected Chinese demand, but that the organization can always adjust policy if necessary.
He said Russia reached its targeted output this month after announcing cuts of 500,000 barrels per day, or 5 percent of its oil production, until the year-end.
Russia is part of the OPEC+ group of oil-producing countries that announced a combined reduction of around 1.16 million bpd earlier this month, a surprise decision the US described as unwise.
Novak said Russian oil and gas condensate production is expected to decline to around 515 million tons this year from 535 million tons in 2022.
Novak said OPEC+ did not expect oil shortages in the global oil market after the production cuts, even though the International Energy Agency said they risked exacerbating a supply deficit expected in the second half of the year.
“My opinion is that now the market is balanced, taking into account the decisions made earlier, taking into account our reduction, the reductions that we saw in other countries,” Novak said.
Following severe Western sanctions against Moscow over Ukraine, Russia has maintained its oil production and exports by increasing sales of its energy products outside Europe, its traditional supply market for oil and gas.
Novak said that Russia will this year divert to Asia 140 million tons of oil and oil products that previously would have headed to Europe. He also said Russia will supply between 80 million tons and 90 million tons of oil and oil products to the West in 2023.
Repsol’s Q1 net profit shrinks on lower oil, gas prices
Spanish oil company Repsol said on Thursday that its first-quarter net profit fell 20 percent from the same period a year ago as oil and gas prices shrunk from the first three months of 2022.
The company said its net profit was €1.11 billion ($1.23 billion).
On an adjusted base, Repsol booked a quarterly profit of €1.89 billion, which compares with €1.06 billion a year earlier and expectations of €1.51 billion, according to an average forecast provided by the company.
The uncertain economic outlook weighed on oil and gas prices, with crude oil prices down by an average of 20 percent compared with the first quarter of last year, when the war in Ukraine sparked a sharp increase in oil prices.
The sale of a 25 percent stake in its oil and gas exploration division helped the company cut its net debt to €880 million at the end of March. It was €2.26 billion at the end of last year
(With input from Reuters)