An­a­lysts: Good out­look for CNPC

China Daily (Hong Kong) - - BUSINESS -

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.

ZHONG MIN / FOR CHINA DAILY

A China Na­tional Petroleum Corp en­gi­neer ex­am­ines equip­ments at in Suin­ing, Sichuan prov­ince.

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