Italian oil and gas major Eni reported a 10% drop in production to 1.7 million boed during the first nine months of the year, compared to the same period in 2019. The company registered an adjusted net loss of €0.15bn ($177m) in Q3, a dip of €0.76bn ($893m) compared to 2019, due to the coronavirus pandemic induced oil demand slump.
US-based oil pipeline firm Enterprise Products recorded a 26.1% drop in crude oil pipeline transport volumes during Q3 as the ongoing pandemic reduced oil prices and consequently production. The Covid-19 crisis impacted the boom in US shale production, which led to an expansion of pipeline networks. Enterprise Products’ revenue declined by 13.1% to $6.92bn due to dwindling gas, natural gas liquids and crude oil volumes.
OPEC and its allies will need to deal with demand issues before the planned increase of oil output by two million barrels per day starting January 2021, to offset the production cuts implemented in view of Covid-19 induced demand slump. The oil demand in China is expected to continue its strong run in Q4, while recovery is still subdued in other parts of the world. The second wave of infections in Europe and increase in output in Libya is also leading to uncertainties in the oil market.
Consumption of aviation fuel in China bounced back in September, owing to surge in domestic air travel, although international flight traffic remained subdued. The sales of domestic aviation fuel reached 523,300 barrels per day in September, reaching pre-lockdown levels and is expected to further increase, according to a Reuters report.