Oil Daily | China's Diesel Demand Weakens; Libya's Oil Output Recovers; CNOOC Hits Record Production

【Global Oil Supply and Demand】

Chinese diesel demand has peaked earlier than expected due to increased LNG use in heavy-duty vehicles. This shift, along with a property sector crisis, has weakened diesel demand and overall oil demand growth in China, historically a major driver of global demand. Analysts expect continued weakness.

Crude oil production in Libya has recovered to 1.3 million barrels daily after resolving a political dispute over the central bank's leadership. The dispute, which led to a suspension of production, highlighted the vulnerability of Libya's oil sector to political tensions.

The China National Offshore Oil Corporation (CNOOC) announced record production from the Deep Sea 1 ultra-deepwater field. This is part of China's effort to boost domestic oil and gas production, reducing reliance on imports. CNOOC plans further expansion and has made additional discoveries in the South China Sea.

【Oil-Producing Countries Dynamics】

Libya's oil production was disrupted due to a political rift over central bank appointments. The resolution of this dispute allowed production to resume, but the oil sector remains susceptible to future disruptions due to ongoing political instability.

【Latest Oil Policies】

The Chinese government announced further economic stimulus efforts to tackle deflationary pressures, aiming to boost domestic demand. Despite this, oil traders remain skeptical about the stimulus's impact on global markets. The U.S. plans to expand sanctions against Iran, targeting its oil tanker fleet to restrict financial resources for missile and terrorism support.

【Industry News】

CNOOC achieved record production from its Deep Sea 1 field and plans to increase capacity, aligning with China's strategy to enhance energy self-sufficiency. The company is expanding exploration and production activities to meet government goals.

【Others】