Oil Prices Hit 11-Month High, Rosebank Development Approved

Oil edged higher on Thursday after surging to its highest price in 2023 after petroleum stocks plummeted and Rosebank received the green light.

The US West Texas Intermediate (WTI) crude oil futures for November delivery closed 0.96% higher at $94.58 per barrel on September 27. In the same session, Brent oil December futures gained 0.59% and settled at $94.92 per barrel.

US petroleum inventories fell by 2.17 million barrels last week, 64.39% higher than the estimated 1.32-million-barrel drop. The Energy Information Administration (EIA) has placed inventory levels at 416.00 million barrels, 3.00% lower than a year ago.

Fears of scarcity ahead of the winter season also helped bolster prices for the energy source. The OPEC+ (13 member states plus 10 other countries) has diminished the global crude oil supply by 5.00 million barrels.

For instance, Saudi Arabia has cut its daily black gold production by 1.30 million barrels for the remainder of 2023. Similarly, Russia has announced plans to reduce its petroleum exports by 300,000 barrels per day (bpd).

GasBuddy analyst De Haan cautioned that the current policies of OPEC+ may push oil prices to over $100.00 a barrel.

Rosebank Oil and Gas Field Ready for Startup

On September 27, British regulators granted two energy companies rights to develop the UK offshore Rosebank oil and gas field. The Norway-based Equinor received 80.00% stakes, while British oil and gas producer Ithaca Energy accepted 20.00%.

Located 80 miles west of Shetland, Rosebank is Merry Old England’s last major undeveloped oil site. With an estimated capacity of 300.00 million barrels, industry watchers anticipate £8.10 billion in direct investment for the project.

Production will begin in late 2026 with an expected yield of 69,000 barrels of oil and 44.00 million cubic feet of gas per day. The United Kingdom plans to use a portion of the output for its reserves while selling a majority to Europe.