Tausi Insider

European refiners have found themselves oversupplied with crude as an expected shortage owing to the looming EU ban on Russian oil has yet to materialize. The front-month Brent crude futures spread narrowed sharply this week, reflecting better supply in the physical oil market as fears over the EU embargo on Russian crude begin to subside. Premiums on prompt prices to future prices – known as a backwardated market structure – usually indicate supply tightness. Traders cited Europe’s ability to replace Russian oil with grades from the Middle East, the United States and Latin America while Asia is asking for less crude because of an economic slowdown and increased use of Russian barrels. Brent futures prices have also slumped by about 7 per cent this week, weakening for a second week in a row. “There’s too much oil around,” one European crude trader said. “(European] refiners seem to have overbought in November and December, probably because of fears around Urals,” he said, adding that...

An Exxon gas station in Upper Darby, Pa., on April 26. Matt Rourke/The Associated Press Exxon Mobil Corp XOM-N on Thursday said it will lift capital spending next year by about 10%, to between $23 billion and $25 billion, and boost share buybacks. Exxon led rivals with record profits in the second and third quarters of this year, aided by its highly criticized decision during the COVID-19 pandemic to double down on fossil fuels as European competitors shifted to renewables. Wall Street on Thursday cheered the increase in buybacks. Exxon shares rose more than 1% even as most other oil stocks fell on weaker oil prices. Exxon is up 65% so far this year. Share buybacks will average $17.5 billion annually for the next two years, from $15 billion this year, the company said. Exxon is distributing more cash to shareholders than it is investing in new production – $30 billion between share buybacks and dividends this year. It kept unchanged its annual capital investment range of $20 billion-...

A CNOOC booth during the China International Fair for Trade in Services, in Beijing, on Sept. 1, 2022. FLORENCE LO/Reuters China’s CNOOC Ltd has raised its 2023 production target by around 8 per cent to a record 650 million to 660 million barrels of oil equivalent (boe), it said on Wednesday. The state-controlled offshore oil and gas company produced about 620 million boe last year, exceeding its goal of 600-610 million boe, CNOOC said in a filing to the Hong Kong Stock Exchange outlining its annual strategic outlook. CNOOC is aiming for 6 per cent average annual production growth by 2025 when output is forecast to hit 2 million boe a day, Chief Executive Officer Zhou Xinhuai told reporters following the release. Under its stated strategy to boost the share of natural gas in its portfolio, CNOOC is stepping up the development of large domestic finds like Baodao 21-1 in the Qiongdongnan basin of South China Sea as well as gas reservoirs in global projects. CNOOC has made a “good disco...