Crude oil slips as China demand fears offset tighter supply outlook

Brent crude futures for December settlement fell by as much as 1.1 per cent and was down 40 cents, or 0.4 per cent, at $97.52 a barrel by 1240GMT. — File report

NAIROBI, Kenya - The Oil prices slipped on Thursday as fears of a sluggish demand recovery in the world’s top crude importer China offset the prospect of tighter supply, with top exporters Saudi Arabia and Russia cutting output. 

While brent crude futures dipped 21 cents, or 0.3 percent, to $76.44 a barrel at 09:50 a.m. Saudi time, after settling higher than 0.5 percent the previous day. 

US West Texas Intermediate crude fell 4 cents to $71.75 a barrel, after closing 2.9 percent higher in post-holiday trade on Wednesday to catch up with Brent’s gains earlier in the week. 

Demand concerns lingered over China’s slow economic recovery after the lifting of pandemic restrictions, on top of global macroeconomic headwinds and interest rate hikes by central banks. 

UAE’s Al-Jaber urges the oil and gas industry to step up its climate game. The UAE’s incoming COP28 president urged the oil and gas industry on Thursday to “step up its game” toward building a clean energy system. 

Oil and gas firms need to achieve net-zero emissions by or before 2050 while an industrywide commitment to reach near-zero methane emissions by 2030 needs to be accelerated, Sultan Ahmed Al-Jaber told the Organization of the Petroleum Exporting Countries’ International Seminar in Vienna.  

“The phase-down of fossil fuels is inevitable. It is in fact essential. But it cannot be irresponsible,” he added. 

Al-Jaber called for an inclusive summit that brings together all stakeholders including the fossil fuel industry. 

“The critical challenge of this century is to dramatically reduce emissions while maintaining robust sustainable development,” he said. “That is why I am so focused on COP28 being truly inclusive.” 

Four new countries consulted to join OPEC 

OPEC Secretary-General Haitham Al-Ghais told Emirates News Agency on Wednesday that there are discussions with four new countries — Azerbaijan, Malaysia, Brunei, and Mexico — to join the organization. 

“Consultations with new countries from outside the organization contribute to strengthening the cohesion of OPEC,” Al-Ghais added.  

Kuwait’s oil minister said that his country hopes to have a higher oil production quota when it ramps up capacity and that Kuwait remains committed to OPEC decisions. 

Saad Al-Barrak said his country hopes to reach 3.2 million barrels per day of production capacity before the end of 2024. The hope for a higher OPEC quota was not urgent, he told the media.