oil price

National production of liquid hydrocarbons, which includes production by Petróleos Mexicanos (Pemex) and private companies, was 1 million 835 thousand barrels per day in April-June 2024, a figure that translated into a drop of 6.56 percent compared to the same period last year, according to information released by the National Hydrocarbons Commission (CNH).

The decline in crude oil and condensate extraction was explained by the reduction reported by the state-owned company in the period referred to, according to data from the regulatory body.

In the second quarter of 2024, Pemex averaged a production of 1,747,000 barrels per day, a figure that translated into a contraction of 6.09 percent compared to the same period in 2023.

Despite this negative result, the state oil company accounted for 95.2 percent of the national hydrocarbon extraction.

Private companies only produced an average of 88 thousand barrels per day in the second quarter of 2024, which meant a drop of 15.08 percent compared to the same period in 2023.

Taking into account national crude oil production alone, it amounted to 1,672,000 barrels per day in April-June of this year, a figure that showed a decline of 6.45 percent.

Pemex’s oil production averaged 1.475 million barrels per day — the lowest level on record. This represented a decrease of 5.88 percent compared to the second quarter of 2023.

In June, national production of liquid hydrocarbons was 1 million 840 thousand barrels per day, which meant an increase of 0.35 percent compared to May, but a decrease of 6.18 percent compared to the sixth month of 2023.

Pemex’s oil production reached 1.74 million barrels per day in June, a level that showed an increase of 0.20 percent compared to the fifth month of the year, but a decline of 6.01 percent annually.

For its part, private production was 94 thousand barrels per day, which translated into an increase of 11.68 percent monthly, but a drop of 9.38 percent compared to June 2023.

Taking into account national crude oil production alone, it averaged 1.57 million barrels per day in the sixth month, which meant an increase of 0.45 percent compared to May and a fall of 6.20 percent annually.

Pemex extracted one million 476 thousand barrels in the sixth month of 2024, data that observed a monthly drop of 0.21 percent and 6.00 percent compared to June 2023.

London. The rise in world oil inventories through the month of April, on account of weak gasoline demand, may reinforce the explanations for producers from the Group of the Petroleum Exporting International locations and their allies (OPEC+) to keep up provide cuts At their assembly on June 2, delegates and analysts from the group met.

OPEC and its allies, led by Russia, meet on Sunday to debate provide coverage and whether or not to increase voluntary cuts.

OPEC+ sources said this month that producers may keep pumping reductions.

Susannah Streeter, of the agency Hargreaves Lansdown, expects that “producers will prolong manufacturing cuts into the third quarter, thus decreasing provide in world markets.”

The oil reserves of the wealthy international locations of the Group for Financial Cooperation and Improvement (OECD) stood at 2.79 billion barrels in March, which represents a rise of 20 million barrels within the month and 34 million barrels for the 12 months, regardless of OPEC+ cuts, in keeping with preliminary OPEC knowledge in its Could oil market report.

For its half, the Worldwide Vitality Company indicated in its personal Could report that whole world inventories elevated in March by 34.6 million barrels in comparison with February, citing a pointy improve within the quantity of crude oil on tankers in transit . Many ships are making longer voyages to keep away from the Crimson Sea, the place Yemen’s Houthi group has launched a collection of assaults towards transport.

Costs go down

Oil costs fell about one % on Wednesday on considerations about weak gasoline demand in america and financial knowledge that would trigger the US Federal Reserve (Fed) to maintain rates of interest larger for longer. . Excessive rates of interest, which search to deal with persistent inflation, can hamper financial development and cut back demand for oil.

The European benchmark, North Sea Brent, fell 62 cents to $83.60; The American West Texas Intermediate (WTI) misplaced 60 cents to 79.23 {dollars} and the Mexican export combine fell 54 cents, closing at 74.71 {dollars} a barrel.

Oil opened larger after an assault on a ship within the Crimson Sea, broken by missiles from Yemen’s Houthi rebels who additionally launched a number of drones.

This expectation was a bullish issue earlier than bond actions turned extra essential. “Excessive rates of interest typically destroy demand,” summarized Robert Yawger of Mizuho USA.

Excessive charges make credit score dearer, and have an effect on consumption and funding bills, and due to this fact the demand for crude oil. (With info from la rmodifying)