Oil Daily | OPEC Boosts Production; Petrobras Resumes Tupi Output; Ukraine Disrupts Russian Fuel Supply

【Oil-Producing Countries Dynamics】

Chinese solar manufacturers saw a surge in stock prices following a report from state media about impending regulations to control excessive manufacturing capacity. This comes after Chinese authorities intensified efforts to address overcapacity in the solar industry, which has led to price wars and losses. The Financial Times recently reported significant combined losses for major solar companies due to low product prices and trade issues.

Novatek, a Russian company, is exporting LNG from its Arctic LNG 2 facility despite sanctions. Exports began in August 2024, mainly to China, due to trade tensions with the U.S. Novatek reported record production recently, aided by favorable shipping conditions. The facility aims to boost Russia's LNG market share significantly by 2030-2035.

ONGC, India's leading energy producer, expects oil prices to remain steady between $60 and $65 per barrel. Despite a decline in production, the company plans to increase oil output and self-sufficiency without job cuts. ONGC focuses on optimizing wells and using internal resources for expansion.

Petrobras resumed production at its Tupi oilfield after maintenance, boosting Brazil's position as a top-five global oil producer. The Tupi field, a key asset for Petrobras, enhances Brazil's offshore production capacity, challenging traditional OPEC producers. This comes amid Brazil's increasing oil exports and new platform deployments.

Kuwait Oil Company announced a significant offshore gas discovery at the Jaza field, with substantial initial output. The discovery adds to Kuwait's recent offshore successes and efforts to boost non-associated gas production. The Jaza discovery offers potential flexibility for Kuwait's energy resources and supports its OPEC positioning.

The OPEC group increased oil production by 630,000 barrels per day in September, completing the unwinding of earlier production cuts. Saudi Arabia and the UAE led the growth, while non-OPEC Russia also boosted output. Kazakhstan exceeded its OPEC quota, raising production beyond its set limits.

Saudi Aramco can maintain its oil production at 12 million barrels per day without additional investments, according to CEO Amin Nasser. Despite concerns about declining spare capacity, Aramco expects oil demand to continue growing and sees hydrocarbons as essential for global energy. Aramco plans to sustain its dominance in oil production.

Algeria's Sonatrach signed a $5.4-billion exploration agreement with Saudi Arabia's Midad Energy in the Illizi Basin. The 30-year contract aims to boost Algeria's gas exports to Europe. Algeria is also finalizing agreements with U.S. supermajors for shale gas exploration, positioning itself as a significant gas supplier.

Ukraine's drone attacks on Russian refineries have disrupted fuel production, leading to a 17.1% drop in seaborne shipments in September. Fuel shortages emerged in Russia, with estimates of up to 20% of demand unmet. The attacks have significantly impacted Russia's energy infrastructure.