Analysts: Good outlook for CNPC
in international oil prices during the first six months of this year.
Brent oil, the global benchmark, averaged some $53 a barrel during the first half of 2017, up 29 percent year-onyear.
The oil price recovery has helped to boost profitability of upstream industries, said Oceana Zhou, a senior analyst at S&P Global Platts, adding that the ICE Brent crude price averaged at around $53 per barrel in the first half of this year, up 28 percent from the $41 per barrel average in the same period last year.
“Better profitability also helped China to slow the decrease in domestic crude oil production, but competition in the domestic refining market is expected to be increasingly intense,” said Zhou.
CNPC, which attributed the drastic boost to a moderate recovery in the world economy, an increase in international oil prices, the optimization of manufacturing operations and expenditure cuts during the first six months.
International oil companies are gradually recovering from the oil sector’s two-year crash, with many of them resorting to cost reductions.
According to analyst estimates compiled by Bloomberg, oil giants Exxon Mobil Corp and Royal Dutch Shell Plc are expected to more than double second-quarter profit from a year earlier, far outstripping the gain in benchmark Brent crude.
CNPC said on Wednesday that it would continue optimizing its business and asset structures while reducing expenditure.
Oil prices through the rest of the year will fluctuate at a mid-low level, it said.
A China National Petroleum Corp engineer examines equipments at in Suining, Sichuan province.