Oil Daily | U.S. Crude Inventories Surge, Russian Shipments Decline; Kurdistan-Iraq Oil Flow May Resume

【Company News】

Pipeline owner DT Midstream is set to acquire three interstate natural gas pipeline systems from ONEOK for $1.2 billion in cash. This acquisition aligns with DT Midstream's strategy to expand its natural gas operations. The transaction, pending regulatory approvals, is expected to close in late 2024 or early 2025.

Crude oil inventories in the U.S. rose by 4.753 million barrels for the week ending November 8, according to API data. The increase was larger than analysts' expectations. Meanwhile, the Strategic Petroleum Reserve saw a rise of 1.4 million barrels. Gasoline and distillate inventories fell, while Cushing inventories also decreased.

TC Energy Corporation anticipates higher core profits in 2025, driven by increased demand for natural gas and electricity in North America. The company plans to leverage its natural gas and power assets to capitalize on this growth, with significant natural gas demand expected in the U.S. and Canada.

【Oil-Producing Countries Dynamics】

Crude oil flows from Kurdistan might resume next year after the Kurdistan regional government and Iraq's central government agreed on a new production sharing agreement. This follows a long-standing dispute over oil export authorization and profit-sharing between Erbil and Baghdad.

Russian crude oil shipments fell to a two-month low in the four weeks to November 17, due to reduced loadings from Western ports. This decline came after a significant slump in shipments from Baltic and Black Sea terminals, likely due to increased domestic refining rates.

【Latest Oil Policies】

The G20 avoided making explicit calls to phase out fossil fuels in its final statement, despite COP28's agreement to do so by 2050. The G20's decision reflects a political reality favoring fossil fuels, with critics labeling its climate finance promises as vague.

【Industry News】

The natural gas prices at key regional hubs in the U.S. Pacific Northwest and Western Canada have hit record lows this year. High production in the Western Canadian Sedimentary Basin and elevated inventory levels have contributed to these low prices.

The Johan Sverdrup oilfield offshore Norway resumed production after a power outage, reaching two-thirds capacity. The outage had briefly spiked oil prices, but the resumption brought them back down. Johan Sverdrup is a major contributor to Norway's oil production.

【Others】

Requests for Russian natural gas via Ukraine rose by 6% on Tuesday, despite Gazprom cutting off supply to Austrian energy group OMV amid a contractual dispute. The European gas market is bracing for the potential end of the gas transit deal for Russian flows via Ukraine, set to expire in December 2024.