Oil Daily | Global Oil Demand Hits Record High; CNOOC Profits Soar Amid Lower Prices

【Global Oil Supply and Demand】

Oil market fundamentals remain sound with global demand reaching an all-time high in August, hitting 103.79 million barrels per day. The demand growth was noted in countries like Korea, Italy, and Saudi Arabia. StanChart has revised its 2024 global demand growth estimate upwards to 1.45 mb/d.

【Oil-Producing Countries Dynamics】

China plans to export 12.4% less refined petroleum in November, with different allocations for gasoline, gasoil, and kerosene. Refinery processing rates have been declining, and China issued the final batch of annual fuel export quotas. Falling margins have led to reduced production despite building inventories.

QatarEnergy partners with TotalEnergies on a solar project in Iraq, part of a $27 billion investment plan also focusing on gas. The project will supply power to Basra and includes recovering flared gas, aiming to boost Iraq's reliance on domestic gas.

Mexico has sent 400,000 barrels of crude to Cuba amidst fuel shortages and blackouts. Venezuela remains Cuba's biggest supplier. Reductions in shipments from Venezuela and Mexico have increased Cuba's energy vulnerability.

【Latest Oil Policies】

Europe's natural gas prices dropped due to Israel's measured response to Iran's missile strike, avoiding energy infrastructure. Europe's gas supply remains stable despite platform outages, and gas storage sites are nearly full, easing supply concerns.

【Industry News】

Masdar has delayed its 1 million tons per year green hydrogen target beyond 2030, citing challenges in the sector. The firm is involved in strategic hydrogen projects globally but faces regulatory and demand uncertainties affecting green hydrogen plans.

【Company News】

IndianOil reported a 98.6% drop in net profit for the September quarter due to low demand and margins. Refining throughput and fuel demand fell during the monsoon season, affecting profits. However, crude demand is expected to rise by 4% in the year's final quarter.

Oman's OQEP saw an 8% drop in its IPO debut amid falling oil prices due to geopolitical tensions. Despite successful previous IPOs, market conditions influenced investor sentiment. The company raised $2 billion, valuing it at up to $8.1 billion.

CNOOC reported its highest-ever quarterly profit supported by record production despite lower oil prices. The company's net production rose, driven by operations in China and internationally, including the Payara project in Guyana. CNOOC continues to support China's domestic production goals.

【Others】

Despite potential supply disruptions from ongoing geopolitical tensions, the measured responses have helped stabilize markets. The reduction in rhetoric signals possible de-escalation, impacting oil and gas prices and easing the war risk premium.