Oil prices traded higher but in a narrow range on Thursday, after being rocked earlier in the week by supply losses from Libya and a worrying outlook for demand as the International Monetary Fund cut its global growth forecasts.
Brent crude futures rose 55 cents, or 0.5 percent, to $107.35 a barrel at 0117 GMT, recouping losses from the previous session.
US West Texas Intermediate crude futures gained 41 cents, or 0.4 percent, to 102.60 a barrel, adding to a 19-cent gain in the previous session.
Chinese oil giant soars in Shanghai debut
China’s CNOOC Ltd. saw its stock surge as much as 44 percent in its Shanghai debut on Thursday in defiance of overall market weakness, as investors sought safety in the oil giant amid lofty energy prices and quickening inflation.
The stock started to trade 20 percent higher than its offering price. But the Shanghai Stock Exchange almost immediately imposed a 30-minute trading suspension when the price hit the upper limit of the daily allowable band for new main-board listings, citing abnormal fluctuation.
The stock ended morning trade up 28.8 percent in a market that saw China’s blue-chip index shed 1.4 percent. CNOOC’s Hong Kong-listed stock was down roughly 3 percent after surging as much as 4.3 percent.
China’s largest offshore oil producer raised $4.41 billion in the country’s 11th-biggest public stock offering. It said it would use the proceeds to fund one gas and seven oilfield projects in China and overseas, and replenish capital.
Brazil discussing oil output boost
Washington and Brazil have discussed the South American nation’s role in keeping a lid on global crude prices since Russia’s invasion of Ukraine, Brazilian Energy Minister Bento Albuquerque told Reuters in an interview on Wednesday.
Brazil, with a current output of around 3 million barrels of oil per day, has been increasing production for years and is aiming for a 10 percent increase to 3.3 million bpd in 2022.
Asked if the US had reached out to talk about potential production increases, Albuquerque said the two countries were cooperating.
“I already had two meetings with energy secretary (Jennifer) Granholm, and we have been talking about this, the importance to stabilize the offer and demand of oil and gas around the world,” he said.
Albuquerque’s comments underline the breadth of the Biden administration’s diplomatic campaign to find alternatives to Russian crude.
Albuquerque, however, said a dramatic short-term boost would be logistically difficult.