Asian spot liquefied natural gas (LNG) prices breached the $$9 per million British thermal unit (MMBtu) mark this week, a three-year summer season high driven by crude oil gains, production outages and demand from key Asian consumers.
Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels per day (MMbbl/d), sources said, while OPEC’s chief said a complaint from U.S. President Donald Trump over high prices had triggered the idea of upping output.
Many NOCs will continue to spend cautiously as improving oil prices free up cash for more investment, higher production and growing operations outside their borders, a report said.
U.S. Senate Democrats on May 23 urged President Donald Trump to try to prod OPEC to take steps to lower oil prices and suggested that millions of Americans will see tax cut proceeds canceled out by higher fuel costs.
The oil major seeks to cut methane leaks by 15% and flared gas by 25% by 2020.
Oil fell on May 23, under pressure from a potential increase in OPEC crude output to cool the market’s recent rally and cover any shortfalls in supply from Iran and Venezuela.
The oil and gas industry is pushing to improve returns as it rebounds from a long downturn.
Outlook may depend on meeting of oil ministers from Saudi Arabia, UAE and Russia later this week.
A successful bid would give Harbour access to a recently revived company with a low cost of gas production and stakes in LNG in the Asia-Pacific, where demand is soaring.
Falih also said he had reassured the executive director of the IEA of "commitment to the stability of oil markets and the global economy" and that he would contact others.