Global Oil and Gas Markets: A Rollercoaster of Events

Eni Starts Production in Côte d’Ivoire

Italian hydrocarbon giant Eni has commenced oil and gas production from the Baleine field off the coast of Côte d’Ivoire. The field is touted as the “largest hydrocarbon discovery” in the Ivorian sedimentary basin and Africa’s “first zero-emissions project.” Initial production will be managed jointly with Ivorian oil company Petroci and will be ramped up in phases, aiming to reach up to 150,000 barrels of oil and 200 million cubic feet of gas per day by the third phase.

Mixed Oil Prices Amid Global Concerns

Oil prices showed mixed trends, influenced by OPEC+ production cuts and concerns about Chinese demand. While Brent crude slightly decreased by 0.07% to $84.42, its American counterpart, WTI, increased by 0.33% to $80.10. The market is caught between Saudi Arabia’s production cuts and China’s dwindling demand due to its economic slowdown.

Gas Prices Surge Due to Australian Strike

European gas prices soared above 35 euros following the announcement of a rotating strike by Chevron employees in Australia, threatening up to 5% of global supplies. The strike will affect the Gorgon and Wheatstone plants in Western Australia. This comes at a time when gas supplies from Norway, Europe’s primary supplier, have dropped to their lowest in over a year.

Implications and Future Trends

The oil and gas markets are currently influenced by a complex interplay of supply cuts, labor strikes, and economic factors. OPEC+ has reduced production by 2.7 million barrels per day between September 2022 and August 2023. Meanwhile, concerns about China’s economic health and its impact on global demand cannot be ignored.

As the global oil and gas markets continue to evolve, several questions arise:

How will the labor strikes in Australia and production cuts by OPEC+ impact global oil and gas prices in the long term?

With China’s economic slowdown, what measures will Beijing introduce to stabilize its economy, and how will these actions influence global oil and gas demand?

Chart # 1: WTI Crude Oil (Oct’23)

Chart # 2: Henry Hub Natural Gas (Oct’23)