Our free weekly round-up of the latest news in the oil market is below, available to download in PDF format.
- Brent crude remains steady at $82/bbl, supported by favourable US economic indicators, an extension of OPEC+ production cuts to 2Q2024, and heightened tensions in the Red Sea due to increased attacks by the Houthis. These factors offset worries about weaker oil demand from China. The extension of OPEC+ cuts aligns with market anticipations.
- Despite a modest build in US commercial crude inventory at 1.37 mbbls, significant product draws of 6.88 mbbls in the latest weekly data reflect robust US oil demand.
- In February, the US added 275,000 jobs, exceeding expectations.
- The UK government extends the Energy Profit Levy (EPL) by one year to March 2029. Initially introduced in 2022, it adds a 25% tax on oil and gas profits, raising the total levy to 35%. Investment allowances drop from 80% to 29%, except for decarbonisation investments, which still receive an 80% allowance. This may impact project FIDs.
- Pemex is planning a $400 million spree on exploration in the deepwater Holok-Han area in Mexico’s gulf.
- Operators heighten activity in Africa.
- New deepwater frontier areas including Uruguay and Somalia to be tapped
- Majors have been approved for a multi-well exploration campaign in Egyptian Mediterranean waters, set to begin in late 2024 or early 2025.
- Renewable news including: Equinor and SSE scrap a green hydrogen project in the UK; The UAE fires up the 4th reactor at the Baraka nuclear power plant, adding 1.4 GW of capacity, totaling 5.6 GW or 25% of the country’s electricity consumption.
