Benchmark Dubai crude firmed slightly on Friday as some spot trading continued to emerge, although the market remained broadly stable despite news of Angola leaving OPEC.

Angola said on Thursday it would leave OPEC, in a blow to the Saudi-led oil producer group that has sought to rally support for further output cuts to prop up oil prices.

The departure follows an earlier protest from Angola about OPEC+’s decision to cut its output quota for 2024.

Crude futures settled lower on Thursday amid the exit, but rebounded again in Friday Asia trade as the market continued to eye ongoing shipping disruptions in the Red Sea.

CHINA OUTPUT

China aims to keep domestic crude output stable at 200 million metric tons per year (about 4 million barrels per day), according to a report from CCTV, citing National Energy Administration Director Zhang Jianhua on Friday.

Production for 2023 was at around 4.18 million bpd, remaining below the 2015 record of 4.3 million bpd.

Global retailers selling apparel, household staples and white goods face bigger risks from disruptions in freight movement through the key Suez Canal trade route as Iran-backed Yemeni militants attack ships sailing through the lower Red Sea.

The heads of Mexican state oil firm Pemex and its Venezuelan counterpart PDVSA met to discuss a possible collaboration, according to messages on social media by both parties.

Asia’s fuel oil market could come under pressure in 2024 as Kuwait exports are set to rise, while Russian supplies to China and India will stay elevated, traders and analysts said.

Russia’s largest producer of liquefied natural gas Novatek has sent force majeure notifications to some of its clients over future LNG supplies from its Arctic LNG 2 project, four industry sources told Reuters.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sonia Cheema)