- Eunisell Seeks Development of Downstream Oil Sector
The Chief Executive Officer, Eunisell International, Iain Fraser, has said that it is important to develop the downstream sector of the Nigerian oil and gas industry.
He said this during a technical training that was organised by the firm for lubricant additive customers with the theme: ‘Advances and trends in automotive, transmission and industrial fluids’, in Lagos.
Speaking on the topic, ‘Base oils and viscosity modifiers’, Fraser expressed the company’s determination to assist Nigeria to benefit from the development of the downstream sector.
He stated, “Nigeria must not be left out of the developments in the downstream sector; this is why we carry out such training for various organisations at no cost.
“We have done this every year for the past 15 years, empowering participants with the requisite knowledge to guarantee the production of top quality lubricants for automobiles and industries in Nigeria.”
The Chief Executive Officer, Eunisell Limited, Ramesh Hullur, who spoke on the topic: ‘Eunisell in Africa and industrial gear oils, hydraulic oils’, said that the training was part of efforts to raise the participants’ technical awareness on the lubricants market, and to enable them to have a better understanding of the link between engine design lubricant performance and knowledge of global trends in the downstream sector of the oil and gas industry.
According to him, the training is designed to help participants gain cutting-edge knowledge on trends and developments in the automotive, transmission and industrial fluids market.
“This training is essential and is meant to bring together professionals, who are into blending of lubricants and other petroleum and allied products in Nigeria, with a view to bringing them up to speed with industry developments and technological breakthroughs that have led to the advancement of additives and lubricants in other parts of the world,” Hullur added.
He also said that the seminar created a platform to access the latest information on specialty fluids, thereby enhancing application expertise.
Hullur said that Eunisell had been supplying key products and solutions to customers operating in Africa since 1996, and was a major supplier of oil field chemicals such as demulsifiers, corrosion inhibitor, water clarifier and sludge breaker to local and international oil companies, including Shell, Total, Nigerian Petroleum Development Company, Network E&P and Oando.
Oil Prices Recover Slightly Amidst Demand Concerns in U.S. and China
Oil Prices Continue Slide as Market Skepticism Grows Over OPEC+ Cuts
Global oil markets witnessed a continued decline on Wednesday as investors assessed the impact of extended OPEC+ cuts against a backdrop of diminishing demand prospects in China.
Brent crude oil, the international benchmark for Nigerian crude oil, declined by 63 cents to $76.57 a barrel while U.S. WTI crude oil lost 58 cents to $71.74 a barrel.
Last week, the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, agreed to maintain voluntary output cuts of approximately 2.2 million barrels per day through the first quarter of 2024.
Despite this effort to tighten supply, market sentiment remains unresponsive.
“The decision to further reduce output from January failed to stimulate the market, and the recent, seemingly coordinated, assurances from Saudi Arabia and Russia to extend the constraints beyond 1Q 2024 or even deepen the cuts if needed have also fallen to deaf ears,” noted PVM analyst Tamas Varga.
Adding to the unease, Saudi Arabia’s decision to cut its official selling price (OSP) for flagship Arab Light to Asia in January for the first time in seven months raises concerns about the struggling demand for oil.
Amid the market turmoil, concerns over China’s economic health cast a shadow, potentially limiting fuel demand in the world’s second-largest oil consumer.
Moody’s recent decision to lower China’s A1 rating outlook from stable to negative further contributes to the apprehension.
Analysts will closely watch China’s preliminary trade data, including crude oil import figures, set to be released on Thursday.
The outcome will provide insights into the trajectory of China’s refinery runs, with expectations leaning towards a decline in November.
Russian President Vladimir Putin’s diplomatic visit to the United Arab Emirates and Saudi Arabia has added an extra layer of complexity to the oil market dynamics.
Discussions centered around the cooperation between Russia, the UAE, and OPEC+ in major oil and gas projects, highlighting the intricate geopolitical factors influencing oil prices.
U.S. Crude Production Hits Another Record, Posing Challenges for OPEC
U.S. crude oil production reached a new record in September, surging by 224,000 barrels per day to 13.24 million barrels per day.
The U.S. Energy Information Administration reported a consecutive monthly increase, adding 342,000 barrels per day over the previous three months, marking an annualized growth rate of 11%.
The surge in domestic production has led to a buildup of crude inventories and a softening of prices, challenging OPEC⁺ efforts to stabilize the market.
Despite a decrease in the number of active drilling rigs over the past year, U.S. production continues to rise.
This growth is attributed to enhanced drilling efficiency, with producers focusing on promising sites and drilling longer horizontal well sections to maximize contact with oil-bearing rock.
While OPEC⁺ production cuts have stabilized prices at relatively high levels, U.S. producers are benefiting from this stability.
The current strategy seems to embrace non-OPEC non-shale (NONS) producers, similar to how North Sea producers did in the 1980s.
Saudi Arabia, along with its OPEC⁺ partners, is resuming its role as a swing producer, balancing the market by adjusting its output.
Despite OPEC’s inability to formally collaborate with U.S. shale producers due to antitrust laws, efforts are made to include other NONS producers like Brazil in the coordination system.
This outreach aligns with the historical pattern of embracing rival producers to maintain control over a significant share of global production.
In contrast, U.S. gas production hit a seasonal record high in September, reaching 3,126 billion cubic feet.
However, unlike crude, there are signs that gas production growth is slowing due to very low prices and the absence of a swing producer.
Gas production increased by only 1.8% in September 2023 compared to the same month the previous year.
While the gas market is in the process of rebalancing, excess inventories may persist, keeping prices low.
The impact of a strengthening El Niño in the central and eastern Pacific Ocean could further influence temperatures and reduce nationwide heating demand, impacting gas prices in the coming months.
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