OPEC cut to affect upstream sectors
OPEC’s agreement to curb crude OPEC’s production agreementfor the first to curbtime in crude eight productionyears will have for the more first impacttime in eighton yearsthe will upstream have sectorsmore impactof China’s on theoil giants, upstream analysts sectors said. of China’s Domesticoil giants, oil analysts companies said. that Domesticfocus on oil upstream companiessectors, that focus includingon upstream exploration sectors, and production,including explorationare likely to andsee a production,rise in revenue are as likelythe to deal see reacheda rise in by revenueOPEC on as the Wednesdaydeal reachedis believedby OPECto on help Wednesdaybolster globalis believedoil prices to helpat least bolsterin the globalshort term,oil pricessaid at Wang least Lu, in an the Asia-Pacificshort term,oil saidand gas Wang industryLu, an analyst AsiaPacificfrom oil Bloombergand gas industryIntelligence. analyst from Bloomberg Intelligence.“The State-owned China National“The State-ownedOffshore Oil ChinaCorp, Nationalwhich has Offshoremore upstreamOil Corp, which business has related more to upstreamoil and businessgas exploration related and to production,oil and gas explorationwill be more and exposed production,to oil prices will thanbe moreits other exposedtwo to competitors—oil prices than ChinaNationalits other two Petroleum competitorsCorp and— ChinaChina National Petrochemical Petroleum Corporation,” Corp and saidWang. China Petrochemical Corporation,”The impact saidon CNOOCWang. is believedThe impactto be on the CNOOCgreatest is among believed the to three,be the with greatestthe recovery amongof oil the prices three, improving with the recovery CNOOC’s of revenueoil pricesand improvingoperating income, CNOOC’sshe said. revenue CNPC and operatingand Sinopec, income, she accordingsaid. to Wang, focus more CNPCon downstreamand Sinopec,oil and accordinggas sectors, to includingWang, focusrefining more and on marketing, downstream which oil and gives gas them sectors,an edge includingwhen the refiningoil price is andlow. marketing, which OPEC giveshas reachedthem an a edgedecision when to the reduceoil price outputis low. by about OPEC 1.2 has million reached barrelsa decisionper day to to 32.5 reduce million output bpd byin about January. 1.2 million barrels per Oil day pricesto 32.5 have million dropped bpd in drastically January. since the second half Oil of prices2014. Oversupplyhave droppedand drasticallya sluggish world since economythe second were half amongof 2014.the factors Oversupplythat drove and the a prices sluggish down. world
OPECproduces about onethird economyof werethe world’s among oil, the accordingfactors that to drove Reuters. the prices down. However, Wang said it still takes OPEC time producesto tell how big aboutthe impact one-thirdof theof the move world’sin accelerating oil, according the to industry’s Reuters. recovery However,would be. Wang said it still “A takes promise time to to cut tell is howone thing,big the but impactto deliverof the moveit is another,”in accelerating saidWang. the industry’s “The recoveryOPEC agreementwould be. to cut output has improved market sentiment and led to the price surge on Wednesday. It will take months to monitor whether OPEC members actually deliver their promise. ”
the amount of daily output reduction set by OPEC members from January
“A promise to cut is one thing, but to deliver it is another,” said Wang.
“The OPEC agreement to cut output has improved market sentiment and led to the price surge on Wednesday. It will take months to monitor whether OPEC members actually deliver their promise. ”
Li Li, energy research directorLi Li, with energy ICIS research China, directorsaid: “OPEC’s with deal ICIS will China, surely said: have “OPEC’s some deal short-termwill surely effect have in some bolstering short-term global effectoil pricesin bolsteringand helping global oil oil pricesand gas and firms helpingin China.”oil and gas Analystsfirms in China.”said soaring oil prices Analystsin the said next soaring three oil to pricesfive yearsin the would next be three unlikelyto five consideringyears would the be currentunlikely consideringdemand and the supply current situation demandin the and oil supply market. situation US in shalethe oil oil market.is likely to returnUS shaleto volumeoil is likely growthto returnnext year. to “US volume shale growthoil may next serve year.as the “US stabilizershale oil to may oil serve prices as and the cap stabilizerthe amountto oil pricesof recovery,”and cap Wang the said. amount of “All recovery,”the movingWang said. parts, including“All the the moving OPEC parts, cut includingand demandthe OPEC growth, cut makeand demandthe rebalance growth, a make dynamicthe rebalanceprocess anda dynamicnot easy process to forecast.”and not easy to forecast.”
the amount of daily output reduction set by OPEC members from January See more