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Jeddah - Yasmine El Tohamy - RIYADH: Oil prices rose on Thursday, reversing earlier losses, as a potential pause in US interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism about further fuel demand growth in the world’s biggest oil consumer.
Brent crude futures for August rose 58 cents, or 0.80 percent, to $72.18 a barrel by 9:55 a.m. Saudi time, while US West Texas Intermediate crude edged up by 49 cents, or 0.72 percent, to $68.58 a barrel.
US Federal Reserve officials on Wednesday pointed toward a potential rate hike “skip” in June that reversed market expectations of an imminent hike that could slow economic growth and weaken oil demand.
Additionally, the US House of Representatives’ passage of a bill suspending the US government’s $31.4 trillion debt ceiling improved the chances of averting a disastrous government default.
Barclays slashes Brent oil price
British multinational bank Barclays has slashed the average price of its Brent crude forecast for this year from $92 to $87 a barrel.
The bank also slashed its price forecast of Brent for 2024 as it cut the average projected price to $87 a barrel from $97.
China’s CNOOC begins production at new offshore well in Brazil
China’s CNOOC Ltd. has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday.
The well is the fifth phase of the Buzios oil field off Brazil’s southeast coast. At an average water depth of 1,900 meters to 2,200 meters, the field is the world’s largest deep-water pre-salt oil field, with daily production of 600,000 barrels, the company said.
CNOOC’s Brazilian subsidiary owns 7.34 percent of the Buzios shared reservoir, which is 88.99 percent owned by Brazilian state-owned oil and gas company Petrobras.
CNOOC paid $1.9 billion to Petrobras last year to secure a 5 percent stake in a production sharing agreement at the field.
Russia says ‘no final decisions’ yet on oil refiner subsidies
Russia’s Finance Ministry said on Wednesday that no final decision had been made regarding plans to halve subsidies for oil refiners.
The Interfax News Agency, citing sources, said the plans to halve the subsidies may be postponed to September.
“The issue is being discussed in the government. No final decisions have been taken,” a finance ministry spokesperson told Reuters.
(With input from Reuters)
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