The oil price slide has continued this week as recessionary fears have been aggravated by a reversal in crude inventory draws, even the carefully worded DOE announcement that they might start refilling SPRs failed to spark a sustainable price recovery. OPEC tried to intervene with its monthly report, hiking Chinese demand growth this year to 800,000 b/d, but these attempts at altering the broader narrative are failing to break into the market, OilPrice reports.
US could start buying SPRs again.US Energy Secretary Jennifer Granholm told Congress that her department could start repurchasing crude for the Strategic Petroleum Reserve as soon as the congressionally mandated sales, currently ongoing, finish. EIA Lowers US Supply Forecast.The US Energy Information Administration expects domestic crude production to rise 5% this year to 12.53 million b/d and slightly more than 1% to average 12.69 million b/d in 2024, with consumption increasing by an annual 1-1.5% to 20.8 million b/d next year. Texas natural gas prices turn negative.For the first time in almost three years, next-day natural gas prices at the Waha hub in Texas settled in negative territory this week, at -$0.35 per mmBtu, on the back of robust production of associated gas in the Permian basin as well as mild weather and pipeline maintenance.
Saudi Aramco sees weaker demand.According to media reports, Saudi Aramco will supply full volumes of crude oil nominated for June loading to its Asian customers, though requests from Chinese refiners might have dropped some 5 million barrels compared to May, signaling demand weakness in China. UAE to sell 15% of ADNOC Logistics. Following up on a string of successful IPOs, the national oil company of the UAE is planning to sell 15% of its shares in its maritime logistics unit in an offering set to take place on June 1, seeking to garner some 5-8 billion from the listing.
Shell wins court case on Nigeria oil spill. The UK Supreme Court ruled that it was too late for Nigerian claimants to sue oil major Shellover a 2011 offshore oil spill that leaked 40,000 barrels from the Bonga oil field and that the ongoing consequences do not constitute a continuing nuisance. Nigerian production plummets to 7-Month Low. Figures released by the Nigerian Upstream Petroleum Regulatory Commission show that the country’s oil production last month fell to 998,602 b/d, down 300,000 b/d compared to previous months, as strikes at ExxonMobilassets hit output.