Oil slipped on Friday, posting a weekly loss of nearly 5 percent, on the prospect of weaker global growth, higher interest rates, and COVID-19 lockdowns in China hurting demand even as the European Union considers a ban on Russian oil that would tighten supply.
Brent crude LCOc1 settled down $1.68, or 1.6 percent, at $106.65 a barrel. US West Texas Intermediate crude CLc1 declined $1.72, or 1.7 percent, to $102.07.
Global benchmark Brent hit $139 a barrel last month, its highest price since 2008, but both oil benchmarks declined nearly 5 percent this week on demand concerns.
Explosion at illegal oil refinery in Nigeria
More than 100 people were killed overnight in an explosion at an illegal oil refining depot on the border of Nigeria’s Rivers and Imo states, a local government official and an environmental group said on Saturday.
“The fire outbreak occurred at an illegal bunkering site and it affected over 100 people who were burnt beyond recognition,” the state commissioner for petroleum resources, Goodluck Opiah, said.
The bunkering site was in the OHajji-Egbema Local Government Area of Imo state in the Abaezi forest that straddles the border of the two states.
Unemployment and poverty in the oil-producing Niger Delta have made illegal crude refining an attractive business but with deadly consequences. Crude oil is tapped from a web of pipelines owned by major oil companies and refined into products in makeshift tanks.
The hazardous process has led to many fatal accidents and has polluted a region already blighted by oil spills in farmland, creeks and lagoons.
The Youths and Environmental Advocacy Center said several vehicles that were in a queue to buy illegal fuel were burnt in the explosion.
Petroecuador begins renegotiation talks
Ecuador’s state-owned oil company Petroecuador has started meetings to renegotiate long-term sales of oil contracts with PetroChina, a process it hopes to conclude in June with the signing of a new deal, it said on Friday.
The negotiations with China’s largest oil and gas producer form part of a bid by Ecuador’s President Guillermo Lasso to renegotiate his country’s debt with China, including long-term oil contracts that supported credit operations with Chinese banks.
Petroecuador holds two contracts with PetroChina that end in 2024 but hopes to modify the current conditions to be able to free up some crude oil supplies and be able to sell directly in the spot market.
The first meeting between officials of both oil companies took place virtually, Petroecuador said.
“The topics to be discussed in upcoming sessions are the price formula for Ecuadorian Napo and Oriente crude oils and the extension in the schedule for the delivery of crude oil shipments, which at the moment are valid until 2024,” the company added in a statement.
“Petroecuador hopes to complete this renegotiation — with the signing of the respective agreements — next June,” it said.
The company also hopes to extend crude delivery times with its Thai counterpart.