The Brent oil price rose this month to $61.04 on August 27, representing a monthly increase of 3.0%. The WTI price also rose, to $55.79, a monthly increase of 1.3%. The price fluctuated, reaching highs of nearly $70, after drone strikes targeted one of Saudi Arabia’s largest refineries temporarily knocking out a significant portion of global supply. The Saudi production has since been restored at a faster-than-expected rate, bringing the oil price down to its current level.
The IEA expressed concern this month over the potential oversupply of oil to the market in 2020 and the impact that this may have on oil price. The IEA Monthly Report suggested that there would be a deficit in the market through to the end of 2019, but that production is likely to surge in 2020, meaning that OPEC countries would be producing 1.4m barrels per day more than the market required.
ExxonMobil agreed this month a deal to sell its Norwegian assets to Vår Energy as the supermajor looks to move out of the North Sea to focus on US shale operations and other deepwater projects such as those in Guyana. The transaction value is $4.5 billion and encompasses non-operated stakes held by Exxon which are largely operated by Equinor. The deal will see Vår Energy nearly double its output and make the joint venture between HitecVision and Eni one of the largest producers in the North Sea.
In local news, Global Energy Group has clinched a contract with Apache worth an estimated £100m for the provision of brownfield services on Apache’s UK assets, including Forties and Beryl fields. The company said the contract would secure around 200 jobs and that it was likely to hire an additional 60 members of staff to meet