Oil Up $1 on Tight US Supply, China Demand

Gas prices are seen at a gas station in Los Angeles on September 28, 2023. California gas prices are nearing USD $7 per gallon in some locations as oil prices surge toward $100 a barrel. (Photo by Robyn Beck / AFP)
Gas prices are seen at a gas station in Los Angeles on September 28, 2023. California gas prices are nearing USD $7 per gallon in some locations as oil prices surge toward $100 a barrel. (Photo by Robyn Beck / AFP)
TT

Oil Up $1 on Tight US Supply, China Demand

Gas prices are seen at a gas station in Los Angeles on September 28, 2023. California gas prices are nearing USD $7 per gallon in some locations as oil prices surge toward $100 a barrel. (Photo by Robyn Beck / AFP)
Gas prices are seen at a gas station in Los Angeles on September 28, 2023. California gas prices are nearing USD $7 per gallon in some locations as oil prices surge toward $100 a barrel. (Photo by Robyn Beck / AFP)

Oil prices rose on Friday and were headed for a gain of about 3% for the week, driven by tight US supply and expectations of strong fuel demand in China during the Golden Week holiday.

US West Texas Intermediate crude (WTI) was up $1.31, or 1.43%, to $93.02 per barrel at 1208 GMT.

Front-month Brent November futures were up 88 cents, or 0.92%, at $96.26 per barrel ahead of the contract's expiry later in the day. The more-liquid Brent December contract was up 97 cents, or 1.04%, at $94.07 per barrel.

A backdrop of tight supplies in the US provided further price support, with storage at Cushing, Oklahoma, the delivery point for US crude futures, already at its lowest since July 2022.

"Any additional decline would threaten to bring them down to a critical level, which could make further withdrawals difficult," said Commerzbank analyst Carsten Fritsch.

China's fuel demand was set to firm as the week-long Golden Week holiday began on Friday.

"(An) increase in international travel during the Golden Week holiday is boosting Chinese oil demand," ANZ analysts said in a client note.

Domestic travel is also expected to boost demand, with data from flight app Umetrip showing the average number of daily flights booked is a fifth higher than for Golden Week in 2019, before COVID.

Meanwhile, inflation in the euro zone fell to a two-year low of 4.3% in September, the latest Eurostat flash reading showed, suggesting the European Central Bank's policy of steady interest rate hikes was taking effect.

Russia is considering introducing fuel export quotas if the current export ban is not effective in bringing down domestic prices.

Russian gasoline and diesel exchange prices on the St. Petersburg International Mercantile Exchange (SPIMEX) fell slightly on Friday.

Brent is forecast to average $89.85 a barrel in the fourth quarter, and $86.45 in 2024, according to a survey of 42 economists compiled by Reuters on Friday.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
TT

Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.