Oil: Prices continue to rise

Oil prices rose Wednesday for the third day in a row as analysts forecast higher Chinese demand amid volatility in the global market. Expected U.S. inventories should also influence the market.

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Oil prices continued to rise on Wednesday for the third day in a row, thanks to growing hopes of a recovery in Chinese demand. A barrel of North Sea Brent cr ude for April delivery rose 1.03% to $84.55 and a barrel of West Texas Intermediate (WTI) for March delivery gained 1.30% to $78.14.

 

The global economy is recovering and demand in China is rising

Analysts point to “volatility” in oil prices centered on the global economy, where fears of recession are currently being overshadowed by hopes of improving demand in China. Although Chinese consumption of black gold in January remained “relatively static”, expectations of a rebound in Chinese demand continue to drive the market.

Saudi Arabia has been optimistic about demand in recent days and raised the official selling price of its crude to Asia in March. This increase in its largest market probably reflects Saudi expectations of increased demand in Asia from the second quarter onwards, particularly from China.

Analysts expect China’s oil consumption to increase by up to one million barrels per day in the last quarter of 2023, and more black gold purchases outside China due to international travel. On the supply side, the Ceyhan oil terminal is still disrupted after the earthquake that hit Turkey and Syria.

The market is also awaiting the release of the U.S. inventory report by the U.S. Energy Information Agency (EIA). Analysts expect commercial crude reserves to rise by 2 million barrels and gasoline reserves by 1.6 million barrels, according to the median of a consensus compiled by Bloomberg.

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Kazakhstan adopts an ambitious roadmap to develop its refining and petrochemical industry, targeting 30% exports and $5bn in investments by 2040.
Turkey has officially submitted to Iraq a draft agreement aimed at renewing and expanding their energy cooperation, now including oil, natural gas, petrochemicals and electricity in a context of intensified negotiations.
The Dangote refinery complex in Nigeria is planning a scheduled forty-day shutdown to replace the catalyst and repair the reactor of its gasoline production unit, starting in early December.
Indonesia Energy plans to drill two new wells on the Kruh block in Indonesia before the end of 2025, following a 60% increase in proven reserves thanks to recent seismic campaigns.
CanAsia Energy Corp. confirms it has submitted a bid for oil and gas exploration and production in Thailand, reinforcing its international strategy within a consortium and targeting a block in the 25th onshore round.
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Pacific Petroleum and VCP Operating finalise the $9.65mn acquisition of oil assets in Wyoming, backed by a consortium of Japanese institutional investors and a technology innovation programme focused on real-world asset tokenisation.
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The Organization of the Petroleum Exporting Countries (OIES) confirmed its Brent price forecast at 69 USD/b in 2025 and 67 USD/b in 2026, while adjusting its 2025 surplus forecast to 280,000 barrels per day.
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Portuguese group Galp Energia announced an adjusted net profit of €373 million for Q2 2025, a 25% increase from the previous year, driven by higher hydrocarbon production in Brazil.
Kuwait Petroleum Corporation (KPC) adjusts its strategy by reducing its tenders while encouraging private sector participation to meet its long-term objectives by 2040, particularly in the petrochemical industry.
Xcel Energy plans to add over 5,000 MW of generation capacity by 2030, including solar, wind, and storage projects, to support the growing energy demand in its service areas.
Following the imposition of European Union sanctions, Nayara Energy adjusted its payment terms for a naphtha tender, now requiring advance payment or a letter of credit from potential buyers.
US Senator Lindsey Graham announced that President Donald Trump plans to impose 100% tariffs on countries purchasing Russian oil, including China, India, and Brazil.
Russian oil group Rosneft rejects EU sanctions targeting Nayara Energy, in which it holds a 49.13% stake, citing a breach of international law and a threat to India’s energy security.
Chevron finalised the acquisition of Hess for nearly $60bn, after winning an arbitration case against ExxonMobil over pre-emption rights in Guyana.