CNOOC: Nexen faces oil glut

CNOOC in Canada: Feeling the effects of lower oil prices

REUTERS/SCANPIX

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News Wires

 22 March 2013 21:18 GMT

Chinese state-owned energy company CNOOC, which last month completed a $15.1 billion takeover of Canada's Nexen, has been hit by a Canadian oil glut that is depressing prices for Canadian crude, a senior executive said on Friday.

Vice President Fang Zhi said CNOOC saw Nexen as an eventual secure supply of energy for China but also wanted to secure the highest price possible for its oil in markets currently accessible, Reuters reported.

Western Canada Select heavy oil sold for more than $40 a barrel below the price of US benchmark West Texas Intermediate in January. Prices have improved, but analysts and traders say the fundamentals remain negative.

"As a producer, we would very much like to get rid of the discount in price that we are all suffering," Fang was…

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