US oil prices finished lower for a third consecutive week after Trump committed to talks with Chinese president Xi, possibly defusing a serious trade war, and after the International Energy Agency (IEA) forecast a massive oil glut next year…after falling 3.3% to a five month low of $58.90 a barrel last week as a ceasefire in Gaza threatened the war premium in the Mideast and as global markets sold off sharply after Trump threatened 100% tariffs on China, the contract price for the benchmark US light sweet crude for November delivery rebounded in early Asian trading on Monday, recovering from sharp losses in the Friday session, as traders grew cautiously optimistic that talks between President Trump and President Xi could ease tensions between the world’s two largest oil consumers, then also rose during morning US trade after statements by U.S. President Donald Trump eased Sino-American trade war concerns, and settled 59 cents higher at at $59.49 a barrel after assurances that Trump would meet his Chinese counterpart Xi Jinping later in October, easing the flare-up in trade tensions between the world's top two economies that had pushed crude benchmarks to five-month lows on Friday…however, oil prices fell by more than 2% during Asian trading on Tuesday after the International Energy Agency (IEA) warned the world oil market faced a huge surplus of as much as 4-million barrels per day next year, as OPEC+ producers and rivals lifted output and demand remained sluggish, and continued to trend lower during US trading and as increased trade tension between the U.S. and China and a bearish IEA report weighed on sentiment, and settled 79 cents lower at a five-month low of $58.70 a barrel as trade tensions between the US and China and the IEA’s warning of a huge supply glut were widely cited as the drivers of the day’s drop…oil prices fell in early Asian trading on Wednesday, extending losses from the previous session, as traders assessed the International Energy Agency’s warning about a potential supply surplus next year, then steadied as European markets opened, but remained under pressure from heightened U.S.-China trade tensions as well as the International Energy Agency’s warning of a looming supply glut, and then edged higher as the US session got underway, rebounding from the drop of the prior session that had been pressured by signs of a market tilting significantly into oversupply, only to fade in afternoon trading and settle 43 cents lower at $58.27 a barrel after the U.S.-China trade dispute escalated, with both countries imposing additional port fees on ships carrying cargo between them…oil prices edged higher in Asian trading on Thursday, after US President Trump said that India would stop importing oil from Russia, partially alleviating oversupply concerns and lifting market sentiment, but flattened during US morning trading, holding near a five-month low, amid mixed signals on Trump’s push to stop India’s purchases of Russian crude, his ongoing talks with President Putin, and a surprisingly large crude inventory build reported by the American Petroleum Institute (API), then gave up the early gains and ended the session 81 cents lower at $57.46 a barrel as news of Russia’s President Putin agreeing to meet Trump to discuss ending the war in Ukraine offset the news of a potential halt to India’s Russian oil imports….oil prices edged lower in early Asian trading on Friday, amid uncertainty over global supplies after U.S. President Trump and Russian President Putin agreed to meet in Hungary to discuss ending the war in Ukraine, then steadied Friday morning in New York, even as oversupply woes outweighed geopolitical risks, and managed to settle 8 cents higher at $57.54 a barrel as both major global conflicts showed signs of easing, but still ended 2.3% lower for the week..
meanwhile, natural gas prices finished lower for a second week on mild weather forecasts and ample supplies of gas in storage ahead of winter….after falling 6.6% to $3.106 per mmBTU last week on a larger than expected increase of natural gas inventories and on forecasts for mild weather over the next two weeks, the price of the benchmark natural gas contract for November delivery opened 2.1 cents lower on Monday and fell to an intraday low of $3.048 by 9:45 AM, as stout storage levels and weak demand provided a solid bearish sentiment, but recovered by 11 AM to trade flat the rest of the day and settle 1.2 cents higher at $3.118 per mmBTU, as bearish forecasts largely offset bullish fundamentals… natural gas opened 7.3 cents lower on Tuesday, but recovered to $3.08 by 10.35 AM, as markets weighed the current storage glut and weak demand against strong LNG demand and the impending winter season, but resumed the early slide to settle 9.0 cents lower at $3.028 per mmBTU, moving lower against a mixed fundamental backdrop that included weaker weather demand on the horizon…natural gas prices started Wednesday 4 cents lower, as a wave of bearish fundamentals sent the contract briefly below the $3.00 level, but mostly recovered to settle 1.2 cents lower at $3.016 per mmBTU on mild weather forecasts amid ample supplies of gas in storage….natural gas prices were little changed near $3.02 ahead of the storage report Thursday, then briefly rose to an intraday high of $3.067 as an in-line report hit the wire, but faded into the afternoon to settle 7.8 cents lower at $2.938 per mmBTU, the first close below $3.00 for a November contract in four years, on mild forecasts, a near-normal storage build, and ample gas in storage before winter…natural gas futures hovered near even early Friday, as traders digested mixed overnight weather outlooks and a modestly tighter-than-expected government storage report, then traded higher through midday on oversold conditions to reclaim the $3 level after shaking off earlier weakness, and settled 7.0 cents higher at $3.008 per mmBTU, on a decline in well output so far this month, and on near-record amounts of gas flows to LNG export plants, but were still 3.2% lower for the week…
The EIA’s natural gas storage report for the week ending October 10th indicated that the amount of working natural gas held in underground storage rose by 80 cubic feet to 3,721 billion cubic feet by the end of the week, which left our natural gas supplies 26 billion cubic feet, or 0.7% more than the 3,695 billion cubic feet of gas that were in storage on October 10th of last year, and 154 billion cubic feet, or 4.3% more than the five-year average of 3,567 billion cubic feet of natural gas that had typically been in working storage as of the 10th of October over the most recent five years….the 80 billion cubic foot injection into US natural gas storage for the cited week was in line with the 81 billion cubic foot addition to storage that analysts had forecast in a Reuters poll ahead of the report, and only a bit higher than the 77 billion cubic foot of gas that were added to natural gas storage during the corresponding week of 2024, and also just a bit lower than the average 83 billion cubic foot addition to natural gas storage that has been typical for the same early October week over the past five years…
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending October 10th indicated that in spite of a decrease in our oil imports an increase in our oil exports, we again had surplus oil to add to our stored crude supplies for the twentieth time in thirty-six weeks, and for the 37th time in sixty-six weeks, largely on a big drop in domestic refining, record production from US wells, and an increase in oil supplies that the EIA could not account for….Our imports of crude oil fell by an average of 878,000 barrels per day to average 5,525,000 barrels per day, after rising by an average of 570,000 barrels per day over the prior week, while our exports of crude oil rose by an average of 876,000 barrels per day to 4,466,000 barrels per day, which, when used to offset our imports, meant that the net of our trade of oil worked out to an import average of 1,059,000 barrels of oil per day during the week ending October 10th, an average of 1,754,000 fewer barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supplies from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 266,000 barrels per day, while during the same week, production of crude from US wells was 7,000 barrels per day higher than the prior week at a record 13,636,000 barrels per day. Hence, our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 15,154,000 barrels per day during the October 10th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 15,130,000 barrels of crude per day during the week ending October 10th, an average of 1,167,000 fewer barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period, the EIA’s surveys indicated that a net average of 612,000 barrels of oil per day were being added to the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from net imports, from transfers, and from oilfield production during the week ending October 10th averaged a rounded 587,000 fewer barrels per day than what was added to storage plus oil refineries reported they used during the week. To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [+587,000 ] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus indicating there must have been an error or omission of that magnitude in this week’s oil supply & demand figures that we have just transcribed.…moreover, since 161,000 barrels per day of oil supply could not be accounted for in the prior week’s EIA data, that means there was a 426,000 barrel per day difference between this week’s oil balance sheet error and the EIA’s crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week’s report are off by that much. and hence pretty much useless....However, since most oil traders react to these weekly EIA reports as if they were gospel, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil supply, see this EIA explainer….also see this old twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had once hoped to do about it)
This week’s rounded 612,000 barrel per day average increase in our overall crude oil inventories came as an average of 503,000 barrels per day were being added to our commercially available stocks of crude oil, while an average of 109,000 barrels per day were being added to our Strategic Petroleum Reserve, extending the string of nearly continuous weekly additions to the SPR since September 2023, which followed nearly continuous SPR withdrawals over the 39 months prior to August 2023… Further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports fell to 6,064,000 barrels per day last week, which was 2.4% less than the 6,213,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be 7,000 barrels per day higher at a record 13,636,000 barrels per day because the EIA’s estimate of the output from wells in the lower 48 states was 5,000 barrels per day higher at 13,204,000 barrels per day, while Alaska’s oil production was 2,000 barrels per day higher at 432,000 barrels per day...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 4.1% higher than that of our pre-pandemic production peak, and was also 40.6% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 85.7% of their capacity while processing those 15,130,000 barrels of crude per day during the week ending October 10th, down from the 92.4% utilization rate of a week earlier, with at least part of that drop coming in the wake of the El Segundo refinery fire in California…. the 15,130,000 barrels of oil per day that were refined that week were 4.0% less than the 15,755,000 barrels of crude that were being processed daily during the week ending October 11th of 2024, and were 2.0% less than the 15,436,000 barrels that were being refined during the prepandemic week ending October 11th, 2019, when our refinery utilization rate was at 83.1%, which was well below the pre-pandemic normal range for this time of year, likely due to catastrophic flooding in Southeast Texas in the wake of tropical storm Imelda of that year…
With the decrease in the amount of oil being refined this week, gasoline output from our refineries was also lower, decreasing by 394,000 barrels per day to 9,359,000 barrels per day during the week ending October 10th, after our refineries’ gasoline output had increased by 409,000 barrels per day during the prior week.. This week’s gasoline production was still 0.7% more than the 9,288,000 barrels of gasoline that were being produced daily over the week ending October 11th of last year, but 6.4% less than the gasoline production of 9,998,000 barrels per day seen during the prepandemic week ending October 11th, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 577,000 barrels per day to 4,592,000 barrels per day, after our distillates output had increased by 210,000 barrels per day during the prior week. With this week’s unusually large production decrease, our distillates output was 3.4% less than the 4,754,000 barrels of distillates that were being produced daily during the week ending October 11th of 2024, and 2.0% less than the 4,688,000 barrels of distillates that were being produced daily during the pre-pandemic week ending October 11th, 2019....
With this week’s decrease in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the 11th time in thirteen weeks and for the 24th time in thirty-three weeks, decreasing by 267,000 barrels to 218,826,000 barrels during the week ending October 10th, after our gasoline inventories had decreased by 1,601,000 barrels during the prior week. Our gasoline supplies decreased by less this week despite the production drop because the amount of gasoline supplied to US users fell by 464,000 barrels per day to 8,455,000 barrels per day, while our imports of gasoline fell by 95,000 barrels per day to 532,000 barrels per day and as our exports of gasoline rose by 113,000 barrels per day to 1,018,000 barrels per day… Even after twenty-six gasoline inventory withdrawals over the past thirty-six weeks, our gasoline supplies were 2.9% more than last October 11th’s gasoline inventories of 212,697,000 barrels, and just slightly below the five year average of our gasoline supplies for this time of the year…
With the big decrease in this week’s distillates production, our supplies of distillate fuels fell for the 22nd time in 41 weeks and by the most since January 24th, decreasing by 4,529,000 barrels to 117,030,000 barrels during the week ending October 10th, after our distillates supplies had decreased by 2,018,000 barrels during the prior week.. Our distillates supplies decreased by more this week even though the amount of distillates supplied to US markets, an indicator of domestic demand, fell by 113,000 barrels to 4,233,000 barrels per day, and even as our exports of distillates fell by 78,000 barrels per day to 1,166,000 barrels per day, while our imports of distillates rose by 28,000 barrels per day to 160,000 barrels per day... With 51 withdrawals from inventories over the past 89 weeks, our distillates supplies at the end of the week were still 1.8% more than the 114,979,000 barrels of distillates that we had in storage on October 11th of 2024, while about 7% below the five year average of our distillates inventories for this time of the year…
Finally, with the drop in our oil refining and record domestic production, our commercial supplies of crude oil in storage rose for the 13th time in twenty-six weeks, and for the 29th time over the past year, increasing by 3,524,000 barrels over the week, from 420,261,000 barrels on October 3rd to 423,785,000 barrels on October 10th, after our commercial crude supplies had increased by 3,715,000 barrels over the prior week… Even after three straight increases, our commercial crude oil inventories were still 4% below the recent five-year average of commercial oil supplies for this time of year, while they were about 28% above the average of our available crude oil stocks as of the second weekend of October over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to increased exports to Europe following the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze-offs, our commercial crude supplies have somewhat leveled off since, and as of this October 10th were 0.8% more than the 420,550,000 barrels of oil left in commercial storage on October 11th of 2024, and were 1.0% above the 419,748,000 barrels of oil that we had in storage on October 13th of 2023, but were 3.1% less than the 437,357,000 barrels of oil we had left in commercial storage on October 14th of 2022…
This Week’s Rig Count
The US rig count was up by one over the week ending October 17th, the first increase in three weeks, as the number of rigs targeting natural gas was up by one, while the count of rigs targeting oil was unchanged…for a quick snapshot of this week's rig count, we are again including below a screenshot of the rig count summary pdf from Baker Hughes...in the table below, the first column shows the active rig count as of October 17th, the second column shows the change in the number of working rigs between last week’s count (October 10th) and this week’s (October 17th) count, the third column shows last week’s October 10th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 18th of October, 2024…
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BG City Schools closed today due to gas line being struck at high school/middle school campus - Bowling Green City Schools will be closed today (Monday, Oct. 13) due to a gas line being struck on the Bowling Green High School and Middle School campus this morning. For the safety of students and staff, no one is permitted on campus until the area is deemed safe. The school district’s transportation department is in the process of returning all secondary students who receive bus transportation to their homes. Because buses are being used to transport secondary students home, the district is unable to complete elementary student pick-up and transport to the elementary schools. As a result, school will be canceled district-wide.
Ohio Bill Makes Major Changes to Law Governing O&G Wells - Marcellus Drilling News - Ohio Republican Senators have introduced Senate Bill (SB) 219, the first significant update to Ohio’s oil and gas laws since the Kasich administration more than a decade ago. SB 219, introduced by Sen. Al Landis, aims to reform Ohio’s orphaned oil and gas well program. The bill proposes establishing the Oil and Gas Resolution and Remediation Fund, funded by filing fees and penalties, to protect orphan well funds from being raided by the state legislature (as often happens now). The bill also streamlines notification procedures for abandoned wells, requiring only publication in a newspaper or on the ODNR website. Additionally, the bill accelerates drilling by eliminating the Ohio Department of Natural Resources’ (ODNR) discretion to deny expedited project reviews and by making road-use agreements with local governments voluntary and capped at three years.
OH Dems Propose Bill to Ban Fracking Under Lake Erie, State Parks - Marcellus Drilling News - Ohio Democrat House members have introduced a bill to solve a problem that doesn’t exist. House Bill (HB) 399 would ban fracking under Lake Erie (which has NEVER been proposed or even thought of), and ban fracking under state-owned parks, which is now happening. With respect to drilling under (not on) state-owned parks, when it happens, nobody knows it’s happening (see Drilling Begins Under Salt Fork State Park – “No Signs of Fracking”). There is no noise, no pollution, nothing. There *are no* impacts to the parks themselves as all drilling is done from adjacent properties. Yet the Dems want it banned. We have to ask, why? What possible reason is there to ban something that isn’t doing any harm yet brings revenue to the state?
INR Sees a Bright Future in the Utica Shale Despite EOG/Encino Deal - Marcellus Drilling News - Infinity Natural Resources (INR), headquartered in Morgantown, WV, focuses 100% on the Marcellus/Utica. The company went public earlier this year with a $265 million ($20/share) initial public offering, giving INR a $1.18 billion market capitalization (see INR IPO Does Better than Expected, Stock Trading Pops 10% Higher). An INR competitor in the Utica is EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in several other countries) and a Fortune 500 company, which closed on the $5.6 billion purchase of Encino Energy in August, adding 675,000 net acres in the Utica and over 1,000 operating shale wells (see EOG Closes on $5.6B Purchase of Encino Assets in Ohio Utica). EOG now owns over 1 million acres with active drilling operations, including five rigs and three completion crews, working in the Ohio Utica. The EOG/Encino tie-up doesn't concern INR.
Ascent Resources Utica Holdings, LLC Announces Private Placement of Senior Notes-- Ascent Resources Utica Holdings, LLC (together with its subsidiaries, "Ascent" or the "Company") today announced that it has entered into a definitive note purchase agreement providing for a private placement of an additional $101.0 million in aggregate principal amount of its existing 5.875% senior unsecured notes due 2029 (the "Additional Notes"). The Additional Notes will be issued at a price of 99.26% of their principal amount, plus accrued and unpaid interest from September 1, 2025. Ascent intends to use the net proceeds from this private placement to pay down borrowings under its revolving credit facility. The Additional Notes are an add-on issuance to the $400.0 million aggregate principal amount of 5.875% senior unsecured notes due 2029 that were issued by Ascent on June 14, 2021 (the "Initial Notes" and together with the Additional Notes, the "2029 Notes"). The Additional Notes will form a single series with, have the same terms (other than the initial price and issue date), trade under the same CUSIP number as, and are expected to be fungible for trading purposes with, the Initial Notes. Following the completion of this private placement, the aggregate principal amount of the 2029 Notes outstanding will be $500.0 million. The private placement is expected to close on October 14, 2025, subject to customary closing conditions. The Additional Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state or other jurisdiction's securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws. The Additional Notes, when issued, will be sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Ascent is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, and operating natural gas and oil properties located in the Utica Shale in southern Ohio.
7 New Shale Well Permits Issued for PA-OH-WV Oct 6 – 12 - Marcellus Drilling News - For the week of October 6 – 12, the number of permits issued to drill new wells in the Marcellus/Utica dropped significantly from the previous week. There were only seven new permits issued across the three M-U states last week, down from 32 issued two weeks ago. The bottom fell out of the new permits issued. In fact, only one state, Pennsylvania, issued new permits last week. Both Ohio and West Virginia issued no new permits. Last week marked the third consecutive week with no new permits issued in WV. Is someone asleep at the switch in the Mountain State? BRADFORD COUNTY | EXPAND ENERGY | JKLM ENERGY | RANGE RESOURCES CORP | TIOGA COUNTY (PA) | WASHINGTON COUNTY
Company to begin repair of underground pipeline that leaked in Upper Makefield -- A three-phase “excavation and dig” project is to begin this week along Taylorsville Road in Upper Makefield Township in the cleanup of an underground pipeline leak that contaminated several residential water wells. Energy Transfer, owner and operator of the Sunoco jet fuel pipeline, said the project likely would run several weeks and include “mobilization, excavation and inspection.” According to the company, additional phases include “continued inspections, site preparations and demolitions” beginning Oct. 20; “mobilization and maintenance repairs during pipeline outage” Nov. 5-7, and “backfill, cleanup, restoration and demolition” Nov. 10-14. Energy Transfer recently ran several “tools” through the 14-inche pipeline. “The tool run identified a site for excavation to investigate the pipeline along Taylorsville Road,” said Energy Transfer. “The site was not flagged as an immediate concern and does not pose any threat to public safety.” Anomaly digs are a “routine part” of pipeline integrity designed to prevent potential issues, the company said.
Some Pennsylvania legislators are trying to silence local voices on fracking - by PennLive Letters to the Editor --A recent community meeting led by the Mountain Watershed Association discussed the proposal to place a gas well for fracking of the Utica Shale between Indian Creek & Laurel Ridge State Park. Although this was announced several months ago, it is still in very early stages. Environmental review, water impacts & other reports have to be completed before drilling can start. There was standing room only in this meeting room.I follow efforts in the Pennsylvania legislature to speed permitting of energy projects. HB502, would remove the opportunity for local residents to voice their concerns, because an appointed committee would grant permits without environmental review.HB502 did not move out of the House Environmental Resources Committee. However, with erroneous statements by energy leaders & elected officials that methane is a renewable resource, we expect other bills will trample personal rights of long time inhabitants of Pennsylvania to support rapid harvesting of fossil fuels. Already we have lost the ability to prohibit extraction of gas from under the land we inhabit if many of our neighbors accept this destructive process.The fastest path to producing more energy is to expand solar sources. This is being done faster, more cheaply & with many fewer adverse environmental effects around the world. [See Here Comes the Sun, by Bill McKibben, W.W. Norton & Co., 2025.]The only urgency about gas extraction is that there is still money to be made as demand for fossil fuels continues to decline. People who understand the dangers associated with fracking do not want to sacrifice their clean water, their health or their beautiful natural surroundings so multinational corporations profit. -- Dr. Barbara W. Brandom, of Concerned Health Professionals of Pennsylvania.
THE Delaware Riverkeeper Sues DRBC re NJ LNG Export Dock - Marcellus Drilling News - In September 2022, the Delaware River Basin Commission (DRBC), a dysfunctional, hot mess of an organization, voted to extend a permit to build a special LNG export dock along the shoreline of the Delaware River in New Jersey by an extra three years (see DRBC Gives LNG Export Dock in Dela. River Extra 3 Yrs to Build). That action sent the enviro-left, including THE Delaware Riverkeeper (Maya van Rossum), into apoplectic fits. Three years later (in September of this year), at the end of the original time extension, the five members of the DRBC voted unanimously to extend the deadline *another* five years (see DRBC Gives LNG Export Dock in Dela. River Extra 5 Yrs to Build). Van Rossum and the Riverkeeper gang have sued to block the time extension.
West Virginia well-plugging program may face funding gap - The biggest owner of U.S. oil and gas wells said Thursday it will create a $70 million fund to help plug its abandoned and inactive wells in West Virginia, drawing praise from the state and concern from environmental critics. Diversified Energy officials said they’ll use the money to pay a subsidiary to plug retired wells, and that the funds would go to the state of West Virginia if the company eventually folds. West Virginia Gov. Patrick Morrisey (R) and Diversified officials said it was the first agreement of its kind in the country — and that it is backed by a new type of oil and gas insurance. But environmental groups and landowners say Diversified has already faced legal issues for failing to plug wells and that the $70 million fund is not enough to plug the thousands of abandoned wells it owns in the state. “On the one hand, it’s nice to see some commitment of money,” said Adam Peltz, a director and senior attorney in the Environmental Defense Fund’s Energy Program. “But why aren’t they just plugging their wells?”
Who is Growing? U.S. Natural Gas Leaders - Visual Capitalist The following content is sponsored by Shale Crescent USA. A map of U.S. regions by their growth in natural gas production from 2008 to 2024.- Key Takeaways
- Shale Crescent USA leads U.S. natural gas leaders, adding 34 Bcf/d (351 Bcm/yr) since 2008—more than Texas, Louisiana, and the rest of the U.S. combined.
- Natural gas in the Shale Crescent USA has grown more than any other region of the world over the last 20 years.
- Each 1 Bcf/d (~10 Bcm/yr) serves about 5.5 million homes per day, highlighting industrial and consumer impact.
Gas production in different U.S. regions varies over time, but which region has had the highest growth in output in recent years?This map, created in partnership with Shale Crescent USA, shows where natural gas production growth from 2008 to 2024 is concentrated, using data from theEIA.Here is a table showing 2008–2024 growth in Billion Cubic Feet Per Day (Bcf/d) and Billion Cubic Meters Per Year (Bcm/yr) for each region.From 2008–2024, Shale Crescent USA (Ohio, West Virginia, Pennsylvania) grew by 34 Bcf/d (351 Bcm/yr), outpacing the Gulf Coast’s 16 Bcf/d (165 Bcm/yr) and the rest of the U.S. at 6 Bcf/d (62 Bcm/yr).Notably, the Shale Crescent’s growth exceeded Texas, Louisiana, and the rest of the U.S. combined. Additionally, 1 Bcf/d (~10 Bcm/yr) can supply roughly 5.5 million U.S. single-family homes per day, underscoring the scale of this surge.Shale Crescent USA’s remarkable growth stems from technological breakthroughs that unlocked vast energy resources within world-class rock formations. This region was the birthplace of the oil and gas industry more than150 years ago, and it remains a global leader. No other area on Earth has experienced greater growth over the past two decades.The Marcellus and Utica shale formations hold one of the largest, most prolific gas endowments in North America, giving gas producers a deep inventory of high-quality drilling locations.The second key driver is infrastructure and market access. As demand shifted toward gas-fired power—especially in the Northeast—new and expanded pipelines connected Marcellus/Utica volumes to nearby load centers and, increasingly, to the Midwest and Gulf Coast.Landmark projects such as Shell’s ethane cracker in Pennsylvania, Nucor’s steel plant in West Virginia, and Intel’s semiconductor facility in Ohio, along with a growing number of data centers and other energy-intensive users, are benefiting from this region’s reliable and affordable energy supply.
Mixed News for Southgate in Environmental Assessment - FERC's environmental assessment on MVP Southgate said the line would have minimal environmental impact, but an alternative would impact the environment even less, giving mixed news ahead of a final ruling. The Federal Energy Regulatory Commission (FERC) issued an environmental assessment Friday on the Southgate pipeline, which would receive 550 MMcf/d from the tailgate of Mountain Valley Pipeline (MVP). This assessment does not represent approval by the FERC but will be used to guide the approval decision. The environmental assessment concluded that Southgate would not “constitute a major federal action significantly affecting the quality of the human environment.” However, it also says that the alternative of approving only Transco’s Southeast Supply Enhancement (SSE) would reduce environmental effects, so the commission will have to determine whether market rationales justify the approval of both projects. Transco claimed in filings earlier this year that the 1.6-Bcf/d SSE would be sufficient to supply all the shippers on Southgate. MVP and several of its anchor shippers claim that supply diversity, higher minimum pressure, and alleviated constraints during extreme winter weather justify the approval of Southgate. Currently Mountain Valley Pipeline runs full in the winter (see purple line in graph below) but is less utilized in the spring and summer, as more gas south of Station 165 comes from legacy Transco pipe originating in Northeast Pennsylvania. Southgate and SSE are both designed to alleviate constraints south of Station 165, so MVP can run closer to capacity year-round.
Cove Point LNG Back Online After 22 Days of Maintenance -- Marcellus Drilling News - Each fall, typically in September/October, Cove Point LNG (along the shore of Maryland) shuts down for a few weeks for annual maintenance. According to a notice posted on the Berkshire Hathaway Energy Informational Postings website, reductions in flows to the Cove Point facility would happen between Monday, September 15, and Friday, October 10 (see Cove Point LNG Offline for Annual Maintenance Until Mid-October). Reuters reports that Cove Point came back online over the weekend, on Sunday, October 12. Read More
Louisiana Court Vacates Commonwealth LNG Permit, Orders Environmental Review -- A Louisiana district court has vacated a state permit for the Commonwealth LNG export project planned for Cameron Parish after finding that state authorities did not properly consider the environmental impacts. At A Glance:
State agency faulted for missing impacts
Commonwealth requested federal extension
Environmental groups claim victory
Energy Transfer delays FID for Lake Charles LNG to 2026 – Bloomberg --Energy Transfer has pushed back its targeted final investment decision for the proposed Lake Charles liquefied natural gas export project in Louisiana to Q1 2026 from the end of this year, due to rising costs and the need for more time to finalize contracts, Bloomberg reported Wednesday.The company has planned for years to expand the existing LNG import terminal at Lake Charles into an export plant with a total capacity of 16.5 million metric tons/year. Chevron, China's ENN Energy, and South Korea's SK Gas Trading are among the companies that have signed long-term deals to buy LNG from Lake Charles.Earlier this month, Bloomberg reported that Energy Transfer (NYSE:ET) was nearing an agreement to sell LNG from Lake Charles to EIG Global Energy Partners subsidiary MidOcean Energy.
Venture Global’s CP LNG Loses Arbitration to BP, Owes Big Money - Marcellus Drilling News - Venture Global’s Calcasieu Pass (CP) LNG export facility in Louisiana began operations in March 2022 (see Calcasieu Pass LNG Loads Inaugural Cargo; Sabine Pass LNG Expands). Typically, a new LNG facility will load and ship several (maybe two or three) cargoes to “work out the kinks” and ensure everything is working as advertised. Venture Global, using loopholes in its signed contracts, maintained that they were working out the kinks long after it began shipping. After hundreds of cargoes were shipped, CP’s customers were still not receiving their contracted (at lower prices) shipments. Shell, along with several other customers, sued (see Shell, Edison, BP File for Arbitration Against Venture Global LNG). Last week, BP won its case against Venture Global.
Chevron Complains that VG’s Plaquemines LNG to Delay Startup - Marcellus Drilling News - Don’t say we didn’t warn them, because we did. Chevron is complaining that Venture Global is behaving like Venture Global—screwing over its contracted customers so it can make billions by selling LNG to uncontracted customers while pretending its LNG export facility isn’t commercially ready. We have to ask, what the heck did Chevron *think* would happen? Fool me once, shame on you. Fool me twice…
Pressure Mounts Against Venture Global to Start Commercial Service on Time at Plaquemines LNG - Federal regulators have granted Venture Global Inc. another 15 months to place Plaquemines LNG into commercial service, a possibility that has raised concerns among some offtakers that their contracted cargoes could again be delayed as they were from the company’s Calcasieu Pass export facility. Chart and map of Lower 48 LNG export facilities tracking daily natural gas feedstock flows to sites for market intelligence. At A Glance:
FERC granted 15 month service extension
Orlen, Chevron have filed to intervene
Venture Global affirms commitment to contracts
New $2.3 Billion Natural Gas Pipeline to Boost Texas LNG Exports -ARM Energy announced on Thursday, October 9, that it will move forward with a $2.3 billion natural gas pipeline in Southeast Texas, marking another major investment in the state’s booming liquid natural gas (LNG) sector. The Houston-based company and its financial partner, Pacific Investment Management Company (PIMCO), are backing the 236-mile Mustang Express pipeline projected to transport up to 2.5 billion cubic feet of natural gas daily from the Bay City area to the LNG export hub in Port Arthur. The pipeline consists of two main segments: a 55-mile line from Tres Palacios Storage to the Katy Hub and a 178-mile mainline from the Katy Hub to Port Arthur. "By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export," ARM Energy CEO Zach Lee said in a statement. Much of the transported gas is intended for Sempra Infrastructure's $14 billion Port Arthur LNG Phase 2 project, which serves growing demand in European and Asian markets. With the construction of the Mustang Express scheduled for completion by early 2029, the project joins a growing list of new energy infrastructure in the region. Early this year, Kinder Morgan approved the construction of its 216-mile Trident Intrastate Pipeline, also connecting the Houston area to Port Arthur, partly to supply power to new data centres. In August, WhiteWater Midstream also gained approval for the 450-mile Eiger Express pipeline, designed to move gas from the Permian Basin to the Texas coast.
U.S. Feedgas Demand Continues to Rise | RBN Energy - U.S. LNG feedgas demand rose last week after Cove Point returned to full capacity, and the commissioning Plaquemines terminal continued to gain momentum. Feedgas demand was about 15.9 Bcf/d last week (see dotted blue line in chart below) up 0.2 Bcf/d week on week. Cove Point restarted on October 12 after being offline for 22 days for annual maintenance and is already operating at full capacity. Plaquemines has averaged 3.5 Bcf/d so far in October and the new terminal continues to receive FERC authorizations for additional equipment. Blocks 1-16 and 18 are now approved to take feedgas and produce LNG, while Block 17, the final block not yet taking feedgas, was approved to take nitrogen gas at the end of September. It remains unclear what Plaquemines’ typical long-term feedgas intake will look like, largely because of the capacity upsize FERC approved during commissioning. The liquefaction equipment has been consistently performing above its original design, and Venture Global requested an increase in its export capacity to 28 MMtpa, which would require roughly 4.1 Bcf/d of feedgas at peak output. The U.S. is likely headed for record feedgas demand this winter as new capacity ramps up and existing terminals reach peak seasonal production. For more insights on the U.S. LNG industry, check out the LNG Voyager Weekly Report.
U.S. Modifies Fees on Chinese Vessels, Assessments Start Today -- The office of the U.S. Trade Representative (USTR) began assessing fees on vessels that are Chinese owned, operated or built on October 14. However, last Friday (October 10), the office announced changes to the fees. To recap, the order was originally set so that fees on vessels that were owned or operated by Chinese companies would have to pay a fee of $50 per net ton (ramping up to $140 per net ton by 2028). This would have applied to portions of the ethane and LPG fleet. However, in the announcement on October 10, the USTR modified the language such that an LPG or "Other Liquefied Gas Carrier" will be exempt from the fees if they are currently under or enter into a long-term charter agreement (defined as 20 years or more) on or before December 31, 2027. The order states that the vessel would then be considered "owned and operated by the charterer." By our reading, Chinese-chartered vessels would still be required to pay the fee. To put these fees in perspective: a typical Very Large Ethane Carrier has an average capacity of around 50,000 tons. That fee would be equal to $2.5 million at the start and would ramp up to $9 million by 2028. This is equal to about 7 c/gal of ethane today and a 25 c/gal in 2028. The non-TET ethane price averaged 28.6 c/gal last week. The second part of the initial order was that vessels built in China that were not owned or operated by Chinese companies pay a fee of $18 per net ton starting October 14 (which would ramp up to $33 per net ton by 2028). However, this rule exempts vessels arriving in ballast so it would have only a small impact on U.S. LPG and ethane, most of which arrive in ballast. The exception would be vessels arriving into the Northeastern U.S. with propane during the winter; however, getting a non-Chinese vessel for this delivery would not be difficult given the liquidity in the LPG shipping market. For those vessels having fees assessed, Friday's amendments also allow for a delay in the collection of the fees until December 10, 2025.
LNG Industry Facing Regulatory Shock as U.S. Tightens Vessel Requirements -- Regulatory uncertainty for U.S. LNG exporters is building once again, but this time it could be more immediate and complicated than a pause on permitting, according to industry policy experts. At A Glance:
U.S. institutes fees on foreign vessels
Shipping companies warn shutdown delays clarity
Experts see “problematic” uncertainty for U.S. LNG
NextDecade makes positive final investment decision on Rio Grande LNG Train 5 -- NextDecade rose post-market Thursday after saying it reached a positive final investment decision on Train 5 of its Rio Grande liquefied natural gas export project in Texas, slightly more than a month after moving forward with a fourth train at the export terminal. NextDecade also said the Train 5 FID came with a notice to proceed to Bechtel, the engineering, procurement and construction contractor for Rio Grande LNG. Train 5 is commercially supported by 4.5 million metric tons/year of 20-year LNG agreements with JERA, EQT Corp., and ConocoPhillips; the planned date of the first commercial delivery from Train 5 is anticipated in H1 2031. Train 5, which NextDecade expects will cost ~$6.7 billion to build, has expected LNG production capacity of ~6 million metric tons/year, bringing the total expected LNG production capacity under construction at Rio Grande LNG to ~30 million tons/year.
NextDecade’s $6.7B Rio Grande LNG Expansion Pushes U.S. Export Development into New Territory - NextDecade Corp. has reached a final investment decision (FID) on the fifth train at its Rio Grande LNG project under construction in South Texas, pushing U.S. export development further into record-breaking territory. At A Glance:
- NextDecade sanctions second Rio Grande expansion
- North American export capacity set to reach 30 Mt/y
- 2025 global LNG investments top $70 billion.
N. American LNG Exports on Track to DOUBLE by 2029, 28.7 Bcf/d -- Marcellus Drilling News - If all of the announced LNG export projects in North America get built (a big “if”), our LNG exports will double between 2024’s 11.4 Bcf/d and a projected 28.7 Bcf/d in 2029. Already in 2025, U.S. exports have grown to a capacity of 15.4 Bcf/d (the largest in the world), so we’re well on our way. A small portion of the total increase will come in Canada (2.5 Bcf/d) and Mexico (0.6 Bcf/d). The vast majority will come from new facilities along the U.S. Gulf Coast. The U.S. Energy Information Administration (EIA) has the details of the coming buildout in LNG exports…
US natgas prices ease to 2-week low on mild weather, ample supplies in storage — U.S. natural gas futures eased to a fresh two-week low on ample amounts of gas in storage and forecasts for mild weather through the end of October that should keep both heating and cooling demand low. Front-month gas futures for November delivery on the New York Mercantile Exchange fell 1.2 cents, or 0.4%, to settle at $3.016 per million British thermal units (mmBtu), their lowest close since September 26 for a second day in a row. That small decline came despite record feedgas flows to liquefied natural gas (LNG) export plants and higher gas demand over the next two weeks than previously expected. Looking forward, the market is showing signs that traders are not worried about having enough gas supplies in storage for the winter. The premium of futures for March over April 2026 (NGH26-J26) was on track to fall to a record low of around 8 cents per mmBtu. The industry calls the March-April spread the "widow-maker" because rapid price moves resulting from changing weather forecasts have forced some speculators out of business, including the Amaranth hedge fund, which lost more than $6 billion in 2006. Traders use the March-April and October-November (NGV26-X26) spreads to bet on winter weather forecasts and supply and demand. March is the last month of the winter-heating season when utilities pull gas out of storage, and October is the last month of the summer cooling season when utilities inject gas into storage. LSEG said average gas output in the Lower 48 states fell to 106.5 billion cubic feet per day so far in October, down from 107.4 bcfd in September and a record monthly high of 108.0 bcfd in August. LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 100.0 bcfd this week to 101.3 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday. The average amount of gas flowing to the eight big U.S. LNG export plants rose to 16.4 bcfd so far in October, up from 15.7 bcfd in September and a monthly record high of 16.0 bcfd in April. On a daily basis, LNG export feedgas was on track to reach a record of 17.4 bcfd on Wednesday, which would top the current daily record high of 17.3 bcfd on April 9, with gas flows to Venture Global LNG's VG 3.2-bcfd Plaquemines plant in Louisiana expected to hit an all-time high of 3.7 bcfd. LNG plants can pull in more gas than they can turn into LNG since they use some of the fuel to fuel equipment.
US natgas prices slide 3% to 2-week low on ample storage levels, mild forecasts — U.S. natural gas futures fell about 3% to a fresh two-week low on Thursday on a federal report showing an expected, near-normal storage build last week that leaves ample amounts of gas in storage, and forecasts for mild weather through the end of October that should keep both heating and cooling demand low. Front-month gas futures for November delivery on the New York Mercantile Exchange fell 7.8 cents, or 2.6%, to settle at $2.938 per million British thermal units (mmBtu), their lowest close since September 26 for a third day in a row. Traders noted that the price decline, which came despite a drop in output so far this month and record gas flows to liquefied natural gas export plants, also caused the front-month to settle below the psychological $3 per mmBtu level of technical support. The U.S. Energy Information Administration said energy firms injected 80 billion cubic feet (bcf) of gas into storage during the week ended October 10. That was in line with the 81-bcf build analysts forecast in a Reuters poll and compared with an increase of 77 bcf during the same week last year and an average build of 83 bcf over the past five years. LSEG said average gas output in the Lower 48 states fell to 106.5 billion cubic feet per day so far in October, down from 107.4 bcfd in September and a record monthly high of 108.0 bcfd in August. The average amount of gas flowing to the eight big U.S. LNG export plants rose to 16.4 bcfd so far in October, up from 15.7 bcfd in September and a monthly record high of 16.0 bcfd in April. One of the primary reasons LNG export feedgas was on track to hit an all-time high in October was the record amounts of gas flowing to Venture Global LNG's VG 3.2-bcfd Plaquemines plant in Louisiana, expected to reach 3.7 bcfd on Thursday, according to LSEG data. LNG plants can pull in more gas than they can turn into LNG since they use some of it to fuel equipment.
U.S. Natural Gas Prices Rise 2% on Lower Output, Record LNG Export Flows - U.S. natural gas prices rose 2% as domestic output eased and LNG export volumes neared record highs, underscoring strong global demand and solid midstream throughput despite mild autumn weather. (Reuters) — U.S. natural gas futures climbed about 2% on Friday on a decline in output so far this month and near-record amounts of gas flows to liquefied natural gas (LNG) export plants. Front-month gas futures for November delivery on the New York Mercantile Exchange rose 7.0 cents, or 2.4%, to settle at $3.008 per million British thermal units (MMBtu). On Oct. 16, the contract closed at its lowest level since Sept. 26 for a third day in a row. Despite the daily gain, the front-month declined about 3% this week after dropping about 7% last week. In the tropics, the U.S. National Hurricane Center projected a tropical wave in the central Atlantic Ocean had a 30% chance of strengthening into a tropical cyclone as it moves into the Caribbean Sea over the next week. The system is not expected to reach the U.S. mainland during that time. Even though storms can boost U.S. gas prices by cutting output along the U.S. Gulf Coast, they are more likely to reduce prices by shutting LNG export plants and knocking out power to homes and businesses. About 40% of the power generated in the U.S. comes from gas-fired plants. LSEG said average gas output in the Lower 48 states fell to 106.6 billion cubic feet per day so far in October, down from 107.4 Bcf/d in September and a record monthly high of 108.0 Bcf/d in August. Record output earlier this year allowed energy companies to inject more gas into storage than usual. There is currently about 4% more gas in storage than normal for this time of year. Meteorologists forecast the weather will remain mostly warmer than normal through November 1. That late-season warmth should reduce gas demand by cutting the amount of fuel used to heat homes and businesses by more than it boosts the amount of fuel that power generators burn to keep air conditioners humming. About 40% of the power produced in the U.S. comes from burning gas. LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 100.1 Bcf/d this week to 100.6 Bcf/d next week and 103.0 Bcf/d in two weeks. The forecast for next week was lower than LSEG's outlook on Thursday. The average amount of gas flowing to the eight big U.S. LNG export plants rose to 16.4 Bcf/d so far in October, up from 15.7 Bcf/d in September and a monthly record high of 16.0 Bcf/d in April. Gas was trading around $11 per MMBtu at both the Dutch Title Transfer Facility benchmark in Europe and the Japan Korea Marker benchmark in Asia.
Natural Gas, LNG Power Shell and BP in 3Q, while ExxonMobil Sees Refining Rebound - Shell plc, the top global natural gas trader, expects to report stronger sequential production in the integrated gas division in the third quarter. At A Glance:
Shell’s gas trading profits surge
Upstream output expands across key regions
ExxonMobil workforce cuts weigh
Stayin’ Alive – Battling Through Tough Times, E&Ps Continue Pursuit of Scale and Fresh Inventory -These are challenging times in the oil patch. Crude oil prices continue to sag, due largely to OPEC+ production increases. E&Ps are trimming their capex, share buybacks, and staff. Some worry that production in key basins may be peaking. And yet, upstream M&A activity continues unabated as producers seek to gain scale, expand into new plays — or double down on old ones — and replenish their inventory of top-tier well sites. In today’s RBN blog, we discuss four of the biggest deals announced in the past few weeks. It hasn’t been easy keeping up with all the buying, selling, swapping and other dealmaking in the upstream space. Used to be we would blog about M&A activity every few months, but lately we find ourselves returning to the topic much more frequently. It seems as if E&Ps of all stripes are keenly aware that this is a critical time in the evolution of the oil and gas industry, and that only the “best” producers — those with size, scope, and highly productive acreage — will survive (and maybe thrive in) the potentially even tougher times ahead. Last time, in We Are Never Ever Getting Back Together, we focused on the divestitures that a number of big acquirers have been making to reduce their M&A-related debt and fine-tune their portfolios. Today, we turn our attention to a quartet of recently announced, nine- or ten-digit acquisitions involving assets in a wide range of production areas: the Permian, Bakken, Anadarko and Uinta — and even California’s Kern County!
- Crescent Energy (stock symbol CRGY), already a leading player in the Eagle Ford and the Uinta, expects to close on the all-stock, $3.1 billion acquisition of Permian pure-play E&P Vital Energy by the end of this year. The deal, announced in late August, will give Crescent more oil-weighted production and a much stronger foothold in West Texas, where the company currently has only ~18,000 net acres in the Permian’s Central Platform. Vital (VTLE) will bring another 267,300 net acres in the Midland and Delaware basins (yellow areas in Figure 1 below), where the company expects to produce an average of ~138 Mboe/d (47% oil) in 2025. Crescent Energy estimates that it will produce about 258 Mboe/d this year (41% oil), ~173 Mboe/d of it in the Eagle Ford, ~23 Mboe/d in the Uinta, and most of the rest in the Rockies. The company said the Vital Energy acquisition will propel Crescent into the Top 10 among liquids-weighted, investor-owned producers (dark-blue bar on right side of Figure 2 below), among the likes of APA Corp. and Permian Resources (PR). Individually, Crescent and Vital are now considered SMID-cap (small-to-mid cap) E&Ps (medium-blue and light-blue bars, respectively, on left side of Figure 2).
- California Resources (CRC) on September 15 announced an agreement to acquire Berry Corp. (BRY) via an all-stock deal valued at $717 million, including the assumption of Berry’s debt. The transaction, which is expected to close in Q1 2026, builds on California Resources’ $2.1 billion purchase of Aera Energy — another California-focused E&P — in June 2024. The Aera deal vaulted the combined company past Chevron into the top spot among Golden State oil and gas producers; the Berry transaction would appear to complete California Resources’ consolidation efforts in a niche market. California Resources said the Berry Corp. acquisition “will add high-quality, oil-weighted, mostly conventional ... reserves and sustainable cash flow.” On a pro forma basis, the combined company would have produced about 161 Mboe/d (81% oil) in Q2 2025 and held ~652 MMboe of proved reserves as of year-end 2024. Figure 3 below shows the two companies’ highly complementary production assets in Kern County, near Bakersfield.
- Also on September 15, Chord Energy (CHRD), the largest producer in the Bakken since its $11 billion acquisition of Enerplus in May 2024, said it will purchase the remaining North Dakota production assets of ExxonMobil subsidiary XTO Energy for $550 million in cash in a deal expected to close by year’s end. The assets include 48,000 net acres (dark-blue areas in Figure 4 below) and 9 Mboe/d of production (78% oil), the vast majority of it in Dunn County and much of it within the Fort Berthold Indian Reservation (area outlined by dark-gray line). The XTO acreage being purchased is largely contiguous with Chord’s existing acreage (bright-green areas) and in some cases the deal will add to Chord’s working interest (WI; striped areas). Formed in July 2022 with the merger of Whiting Petroleum and Oasis Petroleum, Chord Energy in June 2023 acquired 62,000 net acres and 6 Mboe/d of production from XTO for $375 million. In Q2 2025, Chord produced 281 Mboe/d (56% oil). Chord Energy said the latest set of assets it is acquiring from XTO have breakeven economics in the $40s/bbl range and will “compete at the front end of Chord’s program.” The E&P noted that the contiguous nature of XTO’s drilling spacing units (DSUs) and proximity to Chord’s acreage “will facilitate 3- and 4-mile lateral development” — a fast-growing trend in western North Dakota.
- Diversified Energy (DEC), a U.K.-based company with a long history of growth through acquisition, on September 8 announced plans to expand its holdings in the Anadarko with the $550 million, stock-and-cash purchase of privately held Canvas Energy. The deal, which is expected to close in the next couple of months, will give Diversified an additional 241,000 net acres (orange areas in Figure 5 below) and 24 Mboe/d of production (30% oil), most of it in Oklahoma’s Major, Kingfisher and Canadian counties. Included in the transaction are more than 20 “high-quality wells” that have been turned to sales in the past 12 months. Working from its U.S. headquarters in Birmingham, AL, Diversified has increased its production 30-fold since its initial public offering (IPO) in 2017, primarily through the acquisition of low-risk, PDP (“proved developed producing”) assets that generate steady income and cash flow. In March, the company closed on the $1.3 billion purchase of Maverick Natural Resources. That deal gave Diversified a total of more than 900,000 net acres in the Anadarko and the Permian — including the bulk of what it now holds in Oklahoma — and 59 Mboe/d of production (34% oil). When the Canvas Energy acquisition closes, Diversified’s Sooner State holdings will top 1.6 million net acres.
Expect to see another upstream M&A blog by Turkey Day. We, like you, have seen published reports about a number of massive deals that may be in the works, including the possibility that Citadel, the hedge fund, will purchase Comstock Resources’ Haynesville assets in East Texas and northwestern Louisiana (leaving Comstock to focus on its promising Western Haynesville acreage). There’s also buzz that Japan’s LNG-focused JERA is in talks to purchase Haynesville production assets from a joint venture (JV) of GeoSouthern Energy and Williams Cos., and that someone is close to reaching a deal to buy Antero Resources’ assets in the Utica Shale. Stay tuned!
U.S. Crude Oil Stocks Jump As Refinery Activity Hits Eight-Month Low - U.S. crude inventories surged more than anticipated last week as refinery activity declined sharply to its lowest level in eight months, according to data from the Energy Information Administration (EIA) on Thursday. Crude stockpiles rose by 3.5 million barrels to 423.8 million barrels in the week ending October 10, significantly exceeding analysts’ Reuters poll forecast of a 288,000-barrel increase. At the Cushing, Oklahoma, delivery hub, crude inventories fell by 703,000 barrels, the EIA reported. Refinery crude runs decreased by 1.2 million barrels per day, leading utilization rates to drop 6.7 percentage points to 85.7%, the lowest since the week of February 14. Following the report, U.S. and Brent crude prices pared losses due to a drawdown in fuel inventories. West Texas Intermediate (WTI) crude was down 2 cents at $58.25 per barrel, while Brent crude futures fell 11 cents to $61.80 a barrel. “A modestly bearish report, with a large crude build being offset by a large distillate draw, but with implied oil demand considerably weaker than last week,” said UBS analyst Giovanni Staunovo. Distillate inventories, which include diesel and heating oil, declined by 4.5 million barrels to 117 million barrels, far exceeding the expected 294,000-barrel drop. U.S. gasoline stocks decreased by 267,000 barrels to 218.8 million barrels, compared with analysts’ forecast of a 75,000-barrel draw. Net U.S. crude imports fell by 1.75 million barrels per day to 1.06 million barrels per day, the EIA added.
Shutdown impacts may ripple through state oil oversight -As the federal government shutdown stretches into another week, the effects could soon start to trickle down to state offices that oversee oil and gas operations and pollution. State environmental quality departments may soon need to figure out new ways to pay some of their employees, whose salaries are often funded through EPA grants. Holly George, chief financial officer with the Oklahoma Corporation Commission, said it feels like gambling every time she logs on to her computer to see if she can still get to federal funds. “It’s kind of like watching your lottery number being drawn,” George said. “You’re just hoping you see all of them available, because when they’re not, it creates a shift. Any time we have to move funds or personnel around — that’s something we don’t like to do.”
Sable Offshore Seeks $347M in Damages from State - Sable Offshore is upping the ante in its fight against the California Coastal Commission. Earlier this year, the commission gave Sable three cease-and-desist orders, and an $18 million fine, for completing anomaly repair work on the old, corroded oil pipeline running through the Gaviota Coast without obtaining new permits or undergoing environmental review for the work.In the subsequent, ongoing lawsuit between the oil company and the commission, Sable officially quantified the monetary damages it claims it has suffered from the “unlawful delay of, and damages to, the restart of the Las Flores Pipeline System” due to the commission’s disciplinary actions. Sable is seeking damages in excess of $347 million. Said pipeline is the same one that became so corroded under its former owner, Plains All American, that it ruptured and caused the huge Refugio Oil Spill in 2015. Sable’s announcement comes on the heels of the Santa Barbara County District Attorney filing 21 criminal charges against Sable, claiming that Sable polluted waterways and caused other ecological harm when it dug up the Gaviota Coast to repair the damaged pipeline. Sable is also in the midst of continued litigation with the nonprofit group Environmental Defense Center, which is fighting Sable in court over fears of environmental catastrophe should Sable resume pumping oil through the once-ruptured pipeline. Repairing the pipeline is one crucial step in Sable’s attempted restart of oil production in Santa Barbara County, including facilities formerly owned by Exxon Mobil: three offshore platforms, onshore processing plant, and the ruptured pipeline. The Coastal Commission declined to comment on the matter at this time. Additionally, Sable announced that on September 29, it filed a declaratory judgement action against the State of California in Kern County. It is asking the court to confirm that certain provisions of Senate Bill 237 (SB 237) — Gavin Newsom’s fast-tracking oil development bill for Kern County — does not apply to the Las Flores Pipeline System. Although SB 237 — disapprovingly dubbed by some environmental groups as Newsom’s “Drill Bill” — is meant to ease environmental regulations hampering oil development in Kern County, it includes language that, for Sable, instead heightens the regulatory hurdles standing in its way.That includes language that prohibits Sable from restarting the old pipeline without implementing a specific hydrostatic testing program, as well as language stating that Sable would be required to secure a conditional development permit from the Coastal Commission to get a restart permit for the company’s plant, pipeline, and three offshore oil platforms. However, in response to the obstacles and delays to restarting the pipeline system, Sable is threatening to pursue the accelerated “Offshore Storage and Treating Vessel” strategy, which means transporting oil from the offshore platforms via barges in federal waters (and therefore free from state-based restraints). It was the technique used to process oil from the Santa Ynez Unit from 1981 to 1994, producing in that time frame “[more than] 160 million barrels of oil equivalent,” according to Sable.
Sable announces alternative plan to resume oil production -Sable Offshore announced its plans to secure federal permits for an Offshore Storage and Treating Vessel facility that would allow it to resume oil production in federal waters off California’s coast. This proposed system serves as an alternative to restarting operations in the Las Flores Pipeline System, which local environmental and legal organizations have yet to respond to. Sable’s alternative plan involves the Offshore Storage and Treating Vessel (OS&T) strategy, which would be utilized if there are “continued delays related to the [Las Flores Pipeline System]” and would allow for oil to be moved by shuttle tankers from the Santa Ynez Unit, part of the Las Flores Pipeline System, to “provide access to domestic and global markets.” According to Alex Katz, the executive director of the Environmental Defense Center (EDC), a legal nonprofit organization, Sable’s ambitions to restart oil transportation in the Las Flores Pipeline System would be akin to “inviting another environmental disaster on our coast.” Due to how recently Sable’s alternative plan was released, the EDC does not know much about it at present. However, Katz stated that it would involve bringing a floating processing station “about the length of three football fields” — approximately 1,080 feet long — into the Santa Barbara Channel. This would create a significant source of air pollution that could blow ashore to Santa Barbara and other Central Coast communities, and also presents the risk of a potential oil spill. In the same press release, Sable stated that it submitted a request to the California Office of the State Fire Marshal (OSFM) to seek formal approval to restart operations of the Las Flores Pipeline System, which has been shut down since a 2015 rupture spilled over 123,000 gallons of oil — one of the worst coastal spills in California history since the 1969 Santa Barbara oil spill. Sable emphasized that it has fulfilled all of the operational requirements to restart oil transportation through the Las Flores Pipeline System, which includes “anomaly repairs, safety valve installations, control room enhancements, and the production of all supporting documentation and analyses.” Despite Sable’s claim, the EDC is concerned with corrosion on the pipeline, which would make it susceptible to causing an oil spill. According to an Environmental Impact Report draft by the EDC, restarting the pipeline would likely result in a spill every two years, along with a major rupture every six years due to corrosion on the pipeline. “According to experts who have looked at this, the pipeline is not safe. Ten years ago, it was so corroded and was described [as] being like Swiss cheese,” Katz said. “It still does not have an effective system to prevent corrosion.” Katz also stated that the operations of the pipeline alone would become the largest source of greenhouse gas emissions and air pollution in Santa Barbara County (SBC). “Turning it back on creates this huge new source of greenhouse gas emissions and would make it impossible for Santa Barbara County to meet its climate goals,” Katz said. “But also the oil and gas that it produces, according to Dr. Paasha Mahdavi from UC Santa Barbara, would add about two and a half million tons of CO2 to the atmosphere every year at a time when the climate crisis is escalating every day.” Despite Sable’s ambitions to restart operations in the pipeline, they have faced various legal roadblocks that prevent them from doing so. The State of California Department of Justice filed a civil lawsuit against Sable on Oct. 3 for allegedly failing to apply for proper permits to discharge waste into waterways as it excavated pipelines for repairs. The California Coastal Commission (CCC) and Sable are currently in litigation, after the CCC filed a cease and desist against Sable for maintaining and repairing the pipelines without proper permits in November 2024. Sable has since received permits and continued its work. They announced on Oct. 6 that it requested to amend the lawsuit and seeks damages of up to $347 million from the CCC for “unlawful delay of, and damages to, the restart of the Las Flores Pipeline System.” In mid-September, the SBC District Attorney’s Office also charged Sable with 21 criminal charges after the corporation completed illegal repair work on the Las Flores Pipeline, violating various state codes. Additionally, the EDC has filed a lawsuit against the OSFM to challenge waivers that the OSFM issued to Sable in December 2024.
Trump officials back firm in fight over California offshore oil drilling after huge spill -- When the corroded pipeline burst in 2015, inky crude spread along the Southern California coast, becoming the state’s worst oil spill in decades.More than 140,000 gallons (3,300 barrels) of oil gushed out, blackening beaches for 150 miles (240 kilometers) from Santa Barbara to Los Angeles, polluting a biologically rich habitat for endangered whales and sea turtles, killing scores of pelicans, seals and dolphins, and decimating the fishing industry.Plains All American Pipeline in 2022 agreed to a $230 million settlement with fishers and coastal property owners without admitting liability. Federal inspectors found that the Houston-based company failed to quickly detect the rupture and responded too slowly. It faced an uphill battle to build a new pipeline.Three decades-old drilling platforms were subsequently shuttered, but another Texas-based fossil fuel company supported by the Trump administration purchased the operation and is intent on pumping oil through the pipeline again.Sable Offshore Corp., headquartered in Houston, is facing a slew of legal challenges but is determined to restart production, even if that means confining it to federal waters, where state regulators have virtually no say. California controls the 3 miles (5 kilometers) nearest to shore. The platforms are 5 to 9 miles (8 to 14 kilometers) offshore.The Trump administration has hailed Sable’s plans as the kind of project the president wants to increase U.S. energy production as the federal government removes regulatory barriers. President Donald Trump has directed Interior Secretary Doug Burgum to undo his predecessor’s ban on future offshore oil drilling on the East and West coasts.“This project risks another environmental disaster in California at a time when demand for oil is going down and the climate crisis is escalating,” said Alex Katz, executive director of Environmental Defense Center, the Santa Barbara group formed in response to a massive spill in 1969. The environmental organization is among several suing Sable. “Our concern is that there is no way to make this pipeline safe and that this company has proven that it cannot be trusted to operate safely, responsibly or even legally,” he said. Actor and activist Julia Louis-Dreyfus, who lives in the area, has implored officials to stop Sable, saying at a March protest: “I can smell a rat. And this project is a rat.” The California Coastal Commission fined Sable a record $18 million for ignoring cease-and-desist orders over repair work it says was done without permits. Sable said it has permits from the previous owner, Exxon Mobil, and sued the commission while work continued on the pipeline. In June, a state judge ordered it to stop while the case proceeds through the court. The judge on Wednesday denied Sable’s request to dismiss the cease-and-desist orders. Sable in a statement on the ruling vowed to appeal and find a way to restart the operation, citing plans to confine it to federal waters. “This fly-by-night oil company has repeatedly abused the public’s trust, racking up millions of dollars in fines and causing environmental damage along the treasured Gaviota Coast,” a state park south of Santa Barbara, said Joshua Smith, the commission’s spokesman.So far, Sable is undeterred. The California Attorney General’s office sued Sable this month, saying it illegally discharged waste into waterways, and disregarded state law requiring permits before work along the pipeline route that crosses sensitive wildlife habitat. “Sable placed profits over environmental protection in its rush to get oil on the market,” the agency said in its lawsuit. Last month, the Santa Barbara District Attorney filed felony criminal charges against Sable, also accusing it of polluting waterways and harming wildlife. Sable said it has fully cooperated with local and state agencies, including the California Department of Fish and Wildlife, and called the district attorney’s allegation “inflammatory and extremely misleading.” It said a biologist and state fire marshal officials oversaw the work, and no wildlife was harmed. The company is seeking $347 million for the delays, and says if the state blocks it from restarting the onshore pipeline system, it will use a floating facility that would keep its entire operation in federal waters and use tankers to transport the oil to markets outside California. In a filing with the U.S. Securities and Exchange Commission on Thursday, the company updated its plan to include the option.
House Republican moves to erase Biden’s Alaska oil lease plan - An Alaska Republican has introduced legislation that would zero out a Biden administration plan that critics said restricted oil and gas drilling on the state’s North Slope.Rep. Nick Begich (R-Alaska) introduced the Congressional Review Act resolution, H.J. Res. 131, on Friday. It would strike down last year’s Bureau of Land Management plan outlining energy development in the state. Republicans say the Biden plan defied the 2017 Tax Cuts and Jobs Act, which required BLM to hold lease sales within 10 years of the law’s enactment in areas known to be rich with hydrocarbons. Begich’s office did not provide comment on Tuesday.The Congressional Review Act makes it easier for lawmakers to kill recent federal actions. In this case — as with a flurry of recent examples striking down Biden-era actions — the BLM never sent the plan to Congress as a “rule,” so the CRA clock never started.
Alberta’s Crude Oil Production Slipped in August But Still Holds Year-to-Date Record -- Alberta’s crude oil output in August 2025 slipped to 4.23 MMb/d (height of stacked columns inside dashed rectangle in chart below), a record for the month, a small loss of 0.08 MMb/d versus July’s record, and 0.19 MMb/d greater than a year ago. The small monthly decline was driven almost exclusively by lower output of non-upgraded bitumen (green columns) to 2.23 MMb/d, a loss of 0.08 MMb/d versus July. Other production categories were largely unchanged month-on-month. Year-to-date average oil production for Alberta stands at a record 4.08 MMb/d (rightmost stacked columns in chart above), ahead of 2024’s full year average of 3.98 MMb/d. RBN is expecting that Alberta’s full year 2025 average oil output will rise 0.16 MMb/d over 2024 to 4.14 MMb/d as additional expansion work continues in the oil sands, primarily related to the production of non-upgraded bitumen.
TSB releases findings on Alberta pipeline rupture that caused explosion, wildfire | CBC News - A pipeline rupture that sparked a 2024 wildfire in west-central Alberta was caused by a crack, says a report released Thursday. The Transportation Safety Board of Canada (TSB) published its findings on the causes of the rupture of a natural gas pipeline near Edson, Alta., located about 200 kilometres west of Edmonton. The report says that at approximately 10:45 a.m. on April 16, 2024, a 36-inch pipeline transporting sweet natural gas ruptured around 36 kilometres northwest of Edson. The pipeline was owned by Nova Gas Transmission Ltd., a subsidiary of TC Energy Corp. An investigation determined that the pipeline rupture was caused by stress corrosion cracking resulting from a combination of soil conditions, the pipeline’s degraded protective coating and increased internal pressure. The report says soil testing at the location showed microbiological activity with the potential to corrode the pipeline’s steel, and that the pipe’s compromised external coating left its steel exposed to the external environment where corrosion could occur. The report says on the morning of the explosion, the pipeline’s pressure was increased to the highest operating level that the incident location had ever experienced, resulting in the crack fully rupturing. In a news release, the TSB said “the crack that led to the pipeline rupture was detected by a 2022 in-line inspection but was classified as non-reportable” by analysts. The report says a potential crack identified at the location of the rupture was downgraded to a non-reportable “metal loss” feature classification by a team of analysts with the inspection service provider Baker Hughes. As a result of the downgraded classification, the crack was not included in TC Energy’s inspection analysis process or risk assessment for the pipeline, says the TSB report. “The variability of human performance introduces the possibility that a pipeline crack may not be identified, resulting in a missed opportunity to manage it,” the TSB said in a news release. In a statement, TC Energy said it will work with its in-line inspection vendors to strengthen their process and improve integrity management practices. A Baker Hughes spokesperson said in a statement on Friday the company is taking the findings from the TSB report very seriously and will use it to improve its inspection technologies and services. The report also includes new details about the aftermath of the rupture, and the ensuing wildfire. It says following the rupture, the natural gas ignited, which resulted in an explosion that created a seven-metre-deep crater. The investigation noted that about 20 metres of the pipe was ejected due to the explosion, and the largest piece of debris was launched 200 metres away from the location of the rupture. The escaping natural gas from the rupture ignited and burned until the fire self-extinguished at 1:45 p.m. that day. The report says almost six million cubic metres of natural gas was released due to the rupture. The report says the incident then caused a wildfire that burned just over 60 hectares, but no injuries were reported. The ruptured section of the pipeline was replaced and then returned to service under a reduced operation pressure on May 27, 2024.
Panama Canal Working to Boost Access for LNG Transit as Traffic Poised to Grow -- The Panama Canal Authority (PCA) will offer more flexibility to book transit through the waterway for all shippers and ease passage for LNG carriers. Map showing the Panama Canal and Lock System connecting the Atlantic and Pacific oceans, highlighting Gatun, Pedro Miguel, and Miraflores locks, as well as Gatun Lake. Includes inset of old and new lock alignments near Panama City and Colón, sourced from the U.S. Energy Information Administration. At A Glance:
PCA shortens booking horizon for shippers
LNG carriers can gain earlier transit access
Higher water levels aiding operations
YPF, Eni Advance Argentina LNG Exports as Colombia Expands Import Options — LatAm Recap - Argentina’s state natural gas and oil firm YPF SA and Italian energy firm Eni SpA are a step closer to jointly developing a 12 million ton/year (Mt/y) LNG export facility in southern Argentina after the CEOs of both companies met and signed off on the project’s technical details. At A Glance:
Vaca Muerta gas output keeps increasing
Eni brings FLNG expertise to Argentina
Colombia expanding LNG import capacity
Italy's top court blocks extradition of Ukrainian suspect in Nord Stream explosions' case(AP) — Italy’s top court has rejected the extradition to Germany of a Ukrainian man arrested on suspicion of setting off explosions that damaged Nord Stream gas pipelines between Russia and Germany in 2022, his lawyer said on Thursday.Italy’s Cassation Court on Wednesday annulled a previous decision by a Bologna appeals court, which had ordered the extradition to Germany of the 49-year-old suspect, Serhii Kuznietsov.The Italian top court has now demanded another panel of the same appeals court to reassess the case, said Kuznietsov's lawyer, Nicola Canestrini. Canestrini said the motivations of the Cassation court’s decision have not been filed yet and are expected in the coming weeks.“In the meantime, I will evaluate whether the conditions exist to request my client’s release, since the legal basis for detention has ceased to exist,” Canestrini added.The explosions ruptured the Nord Stream 1 pipeline, which carried Russian natural gas to Germany under the Baltic Sea until Russia cut off supplies at the end of August 2022. They also damaged the parallel Nord Stream 2 pipeline, which never entered service because Germany suspended its certification process shortly before Russia invaded Ukraine in February 2022.German prosecutors opened an investigation after the explosions and officials have pointed to an interest in clearing up what happened.Kuznietsov was detained on a European arrest warrant Aug. 21 at a campground near the Adriatic coastal city of Rimini, where he was vacationing with his family.During his first hearing confirming his detention, Kuznietsov denied any involvement in the explosions, saying he was in Ukraine where he was serving in the army as a captain at the time of the blasts.German prosecutors allege that Kuznietsov organized and carried out the detonation of at least four bombs between 14 and 27 kilograms (around 31 to 62 pounds) at a depth of 70 to 80 meters (230 feet to 263 feet) in the Baltic Sea near the Danish island of Bornholm on Sept. 26, 2022, according to the extradition papers. Polish authorities last month arrested another Ukrainian citizen who is suspected of involvement in the undersea explosions. The Warsaw District Court is expected to rule on his extradition on Friday, but the decision can be appealed. Prime Minister Donald Tusk said in early October that it was not “in the interest of Poland” to extradite the man.
Russia-China LNG Trade Unfazed by Sanctions on Chinese Terminal --Despite this week’s UK sanctions on the only Chinese terminal importing LNG from Russia’s Arctic LNG 2 project, a new cargo arrived in China from the Russian plant that is under sanctions from the United States and other Western countries. The Arctic Mulan tanker carrying fuel from Arctic LNG 2 arrived at the Beihai LNG import in China on Friday, vessel-tracking data compiled by Bloomberg showed. The cargo is the first Chinese import of sanctioned Russian LNG since the UK sanctioned on Wednesday seven specialized LNG tankers and the Chinese Beihai LNG terminal. Beihai has been importing LNG from Arctic LNG 2 – the severely disrupted flagship Russian LNG project, sanctioned by the UK in February 2024, and by the U.S. and the EU in the same year. At least another LNG cargo is en route to the Chinese terminal and is expected to arrive after November 13, when the wind-down period in the UK sanctions ends, per the tanker-tracking data monitored by Bloomberg. The continued Russia-China trade from Arctic LNG 2, which began this summer, suggests that Russia and China appear unfazed by sanctions on the project or the Chinese import terminal. China is estimated to have received at least ten LNG cargoes from Arctic LNG 2 as Beijing and Moscow appear bolder in defying U.S. and other Western sanctions on Russia’s energy exports. Arctic LNG 2, operated by Russian energy firm Novatek, had struggled for more than a year to find buyers after the Western sanctions were imposed last year. But the project roared back to life in August, in a sign that Russia is done waiting and is now sending off loaded LNG cargoes, which could be testing the Trump Administration’s willingness to sanction Russia’s LNG customers in China. All exports from Arctic LNG 2 have been shipped to China, after China stopped buying U.S. LNG amid the two countries’ trade spat.
Russia's Gazprom and Kazakhstan Sign Deal for Major Cross-border Natural Gas Pipeline - Russian energy giant Gazprom and the government of Kazakhstan have signed a memorandum of intent to construct a major new natural gas pipeline connecting the two nations to strengthen bilateral energy cooperation and address Kazakhstan’s increasing domestic demand. The agreement was finalized last Wednesday at the 14th St. Petersburg International Gas Forum (SPIGF) during a meeting between Gazprom Chairman Alexey Miller and Kazakh First Deputy Prime Minister Roman Sklyar. Gazprom announced that the memorandum establishes the framework for building a main gas pipeline from Russia to Kazakhstan, with the proposed infrastructure designed to have an initial transport capacity of 10 billion cubic meters per year. Already integrated into Russia’s federal transport infrastructure planning, following a decree signed by Prime Minister Mikhail Mishustin on Feb. 18, the pipeline project is intended to pass through several municipalities in Russia’s Tyumen region, which borders Kazakhstan’s North Kazakhstan region. In addition to the pipeline deal, the officials signed a document outlining the long-term processing of Kazakh gas at the modernized Orenburg Gas Processing Plant in Russia. This facility will handle gas from Kazakhstan's Karachaganak field, further deepening the nations' energy ties. The discussions underscored a commitment to expanding collaboration, particularly as Kazakhstan seeks to improve gas access in its northern and northeastern territories, which remain less connected to its national grid. Kazakhstan has been exploring various supply options, including new routes from Russia to key cities like Semey and Ust-Kamenogorsk. The hydrocarbon-rich country has also been holding talks with Turkey to explore boosting oil exports via the BTC pipeline. Looking to the future, both sides are also studying the feasibility of developing a much larger gas infrastructure capable of transporting up to 45 billion cubic meters per year. Under this long-term vision, 10 billion cubic meters would be reserved for domestic gasification within Kazakhstan, while the remaining 35 billion cubic meters would be exported to China.
Oil leak from OML 29 crude delivery line pollutes Bayelsa communities - An oil spill from an 8-inch crude delivery pipeline at Oil Mining Lease 29 (OML 29) has polluted Nembe communities around the Santa Barbara River in Bayelsa. The OML 29 asset is operated by Nembe Exploration and Production Company Limited, formerly Aiteo Eastern Exploration and Production Company Limited. The News Agency of Nigeria (NAN) reports that the leak at Tora area in Nembe occurred on October 1 discharging a yet to be ascertained volume of Crude stress into the Santa Barbara River and adjourning areas. According to a letter to the operator of OML 29 by the legal counsel to the Opu Nembe Kingdom signed by Mr Iniruo Wills, Managing Partner of Ntephe Smith and Wills, the spill has adversely impacted the people who depend on the Santa Barbara River. The letter sighted by a NAN Correspondent was in response to an invitation to a Joint Investigation Visit (JIV) to the spill site to ascertain the cause and volume of the spill. The oil firm had confirmed the oil spill in a letter Ref:NEPCo/HSE-JIV/2025/04 dated October 5, which proposed a JIV for October 6. The Nembe communities in a response to the letter kicked against the October 6 date and opted for October 9. “We remind you, as you are quite aware of already that the Community requires and deserves decent notice to assemble a competent JIV team, some of whom usually come from Lagos, Port Harcourt and/or Yenagoa, in order to ensure due diligence and avoid or countervail the perennial practice of manipulating the JIV process and suppressing critical information. “Please note that our clients demand a thorough and competent investigation of this spill, and adequate management (including swift post-spill assessment and remediation). “Beyond this spill, for the records, we demand on behalf of our clients again for a top-level engagement (Company, Community Technical Team, and Regulators) for a lasting overall framework to put a stop to this unbearable and continual burden.” the letter read in part.
Oil India shares gain on completion of pipeline project, agreement with NEEPCO - Oil India share price gained in the opening trade on October 14 following the company completed the Numaligarh–Siliguri product pipeline project and also signed a long-term agreement with NEEPCO.The company announced the upgradation of facilities of the Numaligarh–Siliguri Product Pipeline (NSPL), which aims to enhance the transportation capacity of the existing pipeline from 1.77 Million Metric Tonnes Per Annum (MMTPA) to 5.5 MMTPA, thereby strengthening company's midstream infrastructure to handle increased product flows from the Numaligarh refinery, company said in its exchange filing.This achievement supplements the successful execution of the ongoing Numaligarh Refinery Expansion Project by Numaligarh Refinery (NRL) which will increase the refinery capacity from 3.0 MMTPA to 9.0 MMTPA, it added.
Trump says Modi assured him India will stop Russian oil purchases, but timeline unclear - U.S. President Donald Trump said Wednesday that Indian Prime Minister Narendra Modi told him New Delhi will stop buying oil from Russia, though the move will take time. "[Modi] assured me today that they will not be buying oil from Russia. That's a big stop." Trump said at the press briefing in the Oval Office. "Now we've got to get China to do the same thing." He added that Washington was unhappy with New Delhi's purchases of Russian crude because it allowed Moscow to continue waging its "ridiculous war" in Ukraine. However, the U.S. president also said that the halt will not be immediate, and there will be "a little bit of a process," without giving a clear timeline. India's external affairs ministry said Friday that the country's oil import decisions are driven by efforts to protect consumers by ensuring stable energy prices and securing supplies. The ministry's priority was to "safeguard the interests of the Indian consumer in a volatile energy scenario," External Affairs Ministry spokesperson Randhir Jaiswal said in a statement. He added that India's import policies are guided "entirely" by that goal. Jaiswal said that India has sought for years to expand energy trade with the U.S. "This has steadily progressed in the last decade," he said, adding that "the current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing." India's imports of Russian oil have been a sticking point in the relationship between Washington and New Delhi. Trump slapped additional tariffs of 25% on India back in August, raising the total levy to 50%, while India has called out the U.S. for its trade with Russia. "If India doesn't buy [Russian] oil, it makes [ending the war] much easier," Trump said. "They assured me within a short period of time, they will not be buying oil from Russia, and they will go back to Russia after the war is over."
India contradicts Trump on Russian oil pledge - A top Indian official cast doubt on President Donald Trump’s claim that Prime Minister Narendra Modi phoned to say his country would end its purchases of Russian oil. Randhir Jaiswal, spokesperson for India’s Ministry of Foreign Affairs, told reporters during a weekly media briefing Thursday that he was unaware of a conversation between Trump and Modi the previous day. He also said in a statement that “discussions are ongoing” about deepening energy cooperation with the United States but did not confirm Trump’s assertion that India is ending its purchases of Russian oil.“India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario,” Jaiswal said. “Our import policies are guided entirely by this objective.”Jaiswal’s remarks are in contrast to Trump’s unexpected announcement in the Oval Office on Wednesday that Modi had assured him “they will not be buying oil from Russia,” which the president hailed as “a big step.” India gets roughly one-third of its oil from Russia, its largest supplier. The Trump administration has asserted that Russia is using Indian oil purchases to finance its war with Ukraine.
ADNOC begins shale drilling in joint block with EOG Resources -Reports have emerged that ADNOC, or the Abu Dhabi National Oil Company, has begun shale drilling in a joint block with American energy giant EOG Resources. The state-owned energy utility serves the region as a dependable source of energy generation and, at a recent event, outlined the operations taking place in not only the UAE but also in Bahrain. Despite the apparent stance that most of the nations of the world have taken towards decarbonization of the sector, oil remains a steadfast cornerstone of the energy industry and shows no signs of disappearing in the near future. ADNOC reports that progress on site is moving forward on schedule with zero interruptions. The global consensus that the energy sector needs to balance the need for reliable power with the need to integrate the renewable energy sector has not slowed down the progress that the Abu Dhabi National Oil Company has made in its efforts to drill for oil in the region. Oil remains a crucial form of energy generation that the world has relied on for decades and will continue to do so. The global community has made significant inroads inphasing out the dominance that the oil industry has over the energy sector by ensuring a transparent and beneficial environment that promotes the usage of renewable energy sources like wind, solar, and hydrogen. ADNOC has reported that it has begun the process of drilling horizontal wells and testing oil to the surface at a site operated by American energy giant EOG Resources. The announcement came from the company’s CEO and chairman, Ezra Yacob, at the Barclays CEO Energy-Power Conference in New York. In May of this year, EOG Resources, which predominantly operates in North America,was awarded the oil exploration concession for Unconventional Onshore Block 3. The site is an over-pressured, oil-prone basin covering 1393 square miles and is highly valued by the vast number of oil companies in the region. The company had planned to begin drilling operations with ADNOC to explore and appraise the site’s oil resources in the second half of the year. EOG stated at the time that the appraisal phase would take approximately three years. After that, the company would potentially enter a production phase in which ADNOC has the option to participate. Texas-based EOG Resources is aiming to expand its operations in the region following upstream activities in Trinidad and Tobago, the UAE, Bahrain, and Australia. The site in Bahrain is of particular importance, as noted by the company’s CEO in his speech to the attendees at the Barclays CEO Energy-Power Conference. “We have captured abundant resource at both plays, and we’ve partnered with companies that we have very, very strong stakeholder alignment with,” – EOG Resources’ chairman and CEO, Ezra Yacob when referring to the UAE and Bahrain shale exploration efforts.
Oil Prices Rebound After a Sharp Selloff - Oil prices rebounded in early Asian trading on Monday, recovering from sharp losses in the previous session as investors grew cautiously optimistic that potential talks between President Trump and President Xi could ease tensions between the world’s two largest economies and oil consumers. Brent was up 1.64% at $63.76, while WTI had risen 1.73% to $59.92. This rebound came after oil prices tumbled by more than 4% on Friday and hit their lowest level since early May.The rebound follows a week of heightened geopolitical and economic uncertainty. Last Thursday, China expanded its export controls on rare earths, a move widely interpreted as a counter to Washington’s trade measures. In response, Trump announced plans to impose 100% tariffs on all Chinese exports bound for the United States and to introduce new export controls on “any and all critical software” by November 1. The escalation rattled global markets and sent oil prices tumbling, but traders now appear to be betting that both sides will look for a diplomatic off-ramp at the upcoming APEC summit in South Korea, where the two leaders are expected to meet later this month.Goldman Sachs analysts noted that the key question for markets is whether the new trade measures are ultimately implemented or if they remain negotiating tactics ahead of talks. “The most likely scenario seems to be that both sides pull back on the most aggressive policies and that talks lead to a further—and possibly indefinite—extension of the tariff escalation pause reached in May,” the bank wrote in a note.Beyond the geopolitical headlines, Monday’s gains also reflect technical factors. Crude prices were deeply oversold after Friday’s selloff, prompting a wave of bargain-hunting among traders who viewed the drop as excessive. The bounce is more likely a sign investors are positioning for short-term stability rather than a sustained rally, with fundamentals still clouded by mixed signals from both demand and supply sides.OPEC+ continues to follow a cautious production strategy, gradually unwinding voluntary cuts to prevent renewed oversupply. The group’s restraint has helped steady the market in recent weeks, even as global demand growth remains uncertain. For now, oil markets remain delicately balanced between the hope of a diplomatic breakthrough and the risk of deeper economic fragmentation. If trade tensions ease and demand indicators stabilize, crude could find a firmer footing, but volatility will likely continue in the coming weeks.
Oil Prices Partially Rebound on Easing Trade Tensions - Oil prices rose on Monday, Oct. 13, morning trade after statements by U.S. President Donald Trump eased Sino-American trade war concerns. Futures plummeted to five-month lows on Friday after Trump announced an additional 100% tariff on imports from China.The front-month NYMEX WTI crude futures contract rose $0.57 to $59.47 bbl, and ICE Brent for December delivery gained $0.55 to $63.28 bbl.Downstream, November RBOB gasoline futures advanced $0.0144 to $1.8348 gallon, and front-month ULSD futures rose $0.0285 to $2.2329 gallon.The U.S. Dollar Index strengthened, up 0.248 points to 99.015 against a basket of foreign currencies.So far this year, the Trump administration has levied punitive trade tariffs averaging more than 50% on Chinese imports, while China, the world's second-largest oil crude oil importer, has responded with retaliatory tariffs averaging just over 30% on U.S. imported goods. After Trump signaled openness to a trade deal with China, oil prices clawed back about a quarter of Friday's losses.In their latest monthly oil market report published this morning, the Organization of Petroleum Exporting Countries again left their demand growth forecast for 2026 unchanged, and even raised the demand growth estimate for 2025 by 100,000 bpd to 1.3 million bpd. This puts OPEC at odds with forecasting agencies like the U.S. Energy Information Administration and the International Energy Agency, who have throughout the year grown increasingly pessimistic about oil demand growth.The report, however, revealed another significant production push last month, showing combined output from the 22-member strong Declaration of Cooperation, colloquially referred to as OPEC+, growing 630,000 bpd in September. Despite import embargos, sanctions and the G7 oil price cap, Russian production rose 148,000 bpd to 9.321 million bpd last month, but remained behind the targeted quota of 9.425 million bpd. IEA, meanwhile, sees global production growth from OPEC and non-OPEC members alike significantly outpace demand growth heading into 2026.
Oil settles higher as US, China try to de-escalate trade tensions (Reuters) - Oil prices rose on Monday after assurances that U.S. President Donald Trump will meet his Chinese counterpart Xi Jinping later in October, easing a flare-up in trade tensions between the world's top two economies that had pushed crude benchmarks to five-month lows on Friday. Brent crude futures settled 59 cents higher, or 0.9%, at $63.32 a barrel, and U.S. West Texas Intermediate crude futures also closed up 59 cents, or 1%, at $59.49 a barrel. Both contracts fell around 4% on Friday to settle at their lowest since May, after Trump threatened to cancel the meeting with Xi and to impose steep new tariffs on imports from China. However, U.S. Treasury Scott Bessent said on Monday that the meeting between the U.S. and Chinese leaders remains on track to be held in South Korea in late October, and noted substantial communications between the two sides over the weekend. "We have substantially de-escalated," Bessent said in an interview with Fox Business Network. The selloff in markets now looked to be capped by Washington and Beijing's willingness to negotiate, DBS analyst Suvro Sarkar said, adding the near-term outlook hinged on the eventual outcome of the trade talks. Oil prices tumbled in March and April at the height of trade tensions between the two countries. "Any reduction in international trade can only be bearish for oil," On the demand side, China's crude imports in September rose 3.9% from a year earlier to 11.5 million barrels per day, customs data showed. Meanwhile, the Organization of the Petroleum Exporting Countries kept its relatively high global oil demand growth forecasts unchanged for this year and next. In a monthly report on Monday, OPEC implied that the oil market will see a much smaller supply deficit in 2026 as the wider OPEC+ group pushes ahead with output increases. Meanwhile, prospects of peace in the Middle East limited gains in oil prices. Palestinian militant group Hamas freed the last 20 surviving Israeli hostages on Monday under a U.S.-brokered ceasefire deal. Trump proclaimed the "historic dawn of a new Middle East" after two years of war in Gaza. Still, traders want to see the peace hold before factoring it into their bets on oil prices, PVM analysts noted. "(Oil) market has been sceptical by voting with price as to any bullish influence on the recent outbreak of violence, it likewise too will wait for proof of a ceasefire that holds for more than just a couple of days," the PVM analysts said.
Oil falls more than 2% on IEA report of huge surplus in 2026 — Oil prices fell by more than 2% on Tuesday as the International Energy Agency (IEA) warned of a huge supply glut in 2026, and as trade tensions persisted between the US and China, the world's two biggest economies. Brent crude futures fell $1.38, or 2.2%, to $61.94 a barrel by 3.47pm GMT, while US West Texas Intermediate crude was down 2.1%, or $1.24, at $58.27. Both contracts were at a five-month low. In the previous session, Brent settled 0.9% higher, and US WTI closed up 1%. The IEA said the world oil market faces a surplus next year of as much as 4-million barrels per day as Opec+ producers and rivals lift output and demand remains sluggish. In its monthly report on Monday, Opec and allies including Russia took a less bearish view than the IEA, saying the oil market’s supply shortfall would shrink in 2026, as the wider Opec+ alliance proceeds with planned output increases. The Brent oil futures six-month spread traded at its smallest premium since early May, while the WTI spread was at its narrowest since January 2024. Narrowing backwardation, the market term for immediate deliveries fetching a premium over later deliveries, suggests investors are making less money from selling their oil in the spot market because near-term supply is perceived to be ample. “The latest tensions between the US and China will also be a pressure point on crude as China’s economy could be in question if tensions stay elevated,” said Dennis Kissler, senior vice-president of trading at BOK Financial. UBS analyst Giovanni Staunovo said a risk-off mood had taken hold as trade tensions weigh on sentiment and the IEA report was bearish. US treasury secretary Scott Bessent said on Monday that President Donald Trump remained committed to meeting Chinese President Xi Jinping in South Korea this month, as both countries try to defuse tensions over tariff threats and export controls. However, developments last week, such as Beijing’s expanded export controls on rare earths and Trump’s threats of 100% tariffs and software export curbs from November 1, have weighed on sentiment. Beijing also announced sanctions on Tuesday against five US-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, while the US and China will begin charging additional port fees on ocean shipping firms.
Increased Trade Tension and a Bearish IEA Report - The oil market on Tuesday continued to trend lower and breached Friday’s trading range as increased trade tension between the U.S. and China and a bearish IEA report weigh on sentiment. While, U.S. Treasury Secretary Scott Bessent said that President Donald Trump remained committed to meeting China’s President Xi Jinping in South Korea this month, last week’s announcement of China’s export controls on rare earths and President Trump’s threats of 100% tariffs and software export curbs have pressured the markets. Also on Tuesday, China announced sanctions against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, while the U.S. and China will begin charging additional port fees on ocean shipping firms. Meanwhile, the IEA said the world oil market faces a surplus next year of as much as 4 million bpd as OPEC+ producers and non-OPEC producers increase their output and demand remains low. The crude market posted a high of $59.82 before it erased Monday’s gains and sold off to a low of $57.68. The market later bounced off its low and traded back towards the $59.00 level ahead of the close. The November WTI contract settled down 79 cents at $58.70 and the December Brent contract settled down 93 cents at $62.39. The product markets ended the session lower, with the heating oil market settling down 5.21 cents at $2.1976 and the RB market settling down 1.52 cents at $1.8286. The IEA said world oil supply will increase more rapidly than previously expected this year and a surplus could expand in 2026 as OPEC+ members and other producers lift output and demand remains slow. It said supply will increase by 3 million bpd in 2025, up from a previous forecast of 2.7 million bpd. Next year it will increase by a further 2.4 million bpd. In the IEA’s view, supply is rising far faster than demand. The agency on Tuesday trimmed its forecast for world demand growth this year to 710,000 bpd, down 30,000 bpd from the previous forecast, citing a more challenging economic backdrop. Next year, the report implied that global supply may exceed demand by about 4 million bpd, due to growth from OPEC+ and producers outside the group such as the U.S., Canada, Brazil and Guyana, and a limited expansion in demand. That compares to about 3.3 million bpd last month.Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days rose by +8.9% w/w to 93.96 million bbl in the week ended October 10.Israel delayed aid into Gaza and kept the enclave’s border shut on Tuesday, while Hamas fighters demonstrated their grip by executing men in the street, darkening the outlook for U.S. President Donald Trump’s plan to end the war. Three Israeli officials said Israel had decided to restrict aid into the shattered Gaza Strip and delay plans to open the border crossing to Egypt at least through Wednesday, because Hamas had been too slow to turn over bodies of dead hostages. Meanwhile, Hamas has swiftly reclaimed the streets of Gaza’s urban areas, following the partial withdrawal of Israeli troops last week. The return of Hamas taking control of Gaza’s streets demonstrates the hurdles to progressing from the initial ceasefire to a permanent settlement that would prevent a new wave of fighting. A summit co-hosted by President Trump in Egypt on Monday ended with no public announcement of major progress towards establishing an international military force for Gaza, or a new governing body.
Oil settles down 1.5% on US-China trade tensions, IEA warning of glut (Reuters) - Oil prices fell on Tuesday, settling 1.5% lower as the International Energy Agency warned of a huge supply glut in 2026, and as trade tensionspersisted between the U.S. and China, the world's two biggest economies. Brent crude futures fell 93 cents, or 1.5%, to settle at $62.39 a barrel. U.S. West Texas Intermediate crude was down 1.3%, or 79 cents, at $58.70. Both contracts were at a five-month low. In the previous session, Brent settled 0.9% higher, and U.S. WTI closed up 1%. The world oil market faces an even bigger surplus next year of as much as 4 million barrels per day as OPEC+ producers and rivals lift output and demand remains sluggish, the International Energy Agency predicted. On Monday, a monthly report by he Organization of the Petroleum Exporting Countries, and allies including Russia was less bearish than the IEA's view. It said the oil market's supply shortfall would shrink in 2026, as the wider OPEC+ alliance proceeds with planned output increases. However, executives at oil majors and top trading houses said they expect global oil market to tighten in the medium to longer term, recovering from short-term weakness. "The latest tensions between the U.S. and China will also be a pressure point on crude as China’s economy could be in question if tensions stay elevated," s UBS analyst Giovanni Staunovo said a risk-off mood had taken hold as trade tensions weigh on sentiment and the IEA report was bearish. U.S. Treasury Secretary Scott Bessent said on Monday that President Donald Trumpremained committed to meeting Chinese President Xi Jinping in South Korea this month. Washington and Beijing seek to defuse tensions over tariff threats and export controls. Last week, however, China expanded export controls on rare earths and Trump threatened 100% tariffs and software export curbs from November 1. Beijing also announced sanctions on Tuesday against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, while the U.S. and China will begin charging additional port fees on ocean shipping firms.The Brent oil futures six-month spread traded at its smallest premium since early May, while the WTI spread was at its narrowest since January 2024. Narrowing backwardation, the market term for immediate deliveries fetching a premium over later deliveries, suggests traders are making less money from selling oil in the spot market because near-term supply is perceived to be ample.
Oil Prices Fall Amid Expectations of Supply Surplus -- Oil prices fell in early trading on Wednesday, extending losses from the previous session, as investors assessed the International Energy Agency’s warning about a potential supply surplus next year, alongside ongoing U.S.-China trade tensions. Brent crude futures declined 12 cents, or 0.19%, to $62.27 per barrel by 00:21 GMT, while U.S. West Texas Intermediate (WTI) futures fell 10 cents, or 0.17%, to $58.60 per barrel. Both contracts had closed at their lowest levels in five months during the previous trading session. On Tuesday, the International Energy Agency said the global oil market could face a supply surplus of up to four million barrels per day next year — higher than previously expected — due to production increases by OPEC+ members and competitors, coupled with continued weak demand. Trade tensions between the United States and China escalated last week after Beijing tightened restrictions on exports of rare earth elements, and U.S. President Donald Trump threatened to impose 100% tariffs on Chinese goods and tighten software export controls starting November 1.
Oil Prices Edge Higher After Slump on Oversupply Signs - -- Oil prices edged higher Wednesday, Oct. 15, morning, rebounding from the drop of the prior session that had been pressured by signs of a market tilting significantly into oversupply. NYMEX-traded WTI crude for November delivery rose $0.45 to $59.15 bbl, and ICE Brent for December delivery gained $0.35 to $62.74 bbl. In oil products, November RBOB gasoline futures climbed $0.0088 to $1.8374 gallon. Front-month ULSD futures, however, bucked the trend, retreating by $0.0045 to $2.1931 gallon. The U.S. Dollar Index softened 0.170 points to 98.640 against a basket of foreign currencies. The International Energy Agency, in its monthly oil report published Tuesday, Oct. 14, raised its oversupply forecast for 2026 to an unprecedented 4 million bpd. That was 18% higher than what the IEA predicted in its September report. The agency has been steadily raising supply estimates in anticipation that growth in oil production will rapidly outpace demand. The IEA has highlighted global oil inventories at a four-year high in August, from an acceleration in stock builds driven by surging OPEC+ production, and the producer group's commitment since to ramp up output even further. The IEA's forecast of a record high oil glut came as Brent for March delivery and beyond, and WTI for February delivery and beyond, were both in contango -- a dynamic where contracts for nearby delivery traded at a discount to contracts scheduled farther out. Brent's six-month calendar spread traded at $0.25/bbl at Tuesday's close, the lowest since early May, while the 12-month spread flipped into contango for the first time since June, DTN data showed. The Energy Information Administration's Weekly Petroleum Status Report (WPSR), typically published on a Wednesday, is delayed until Thursday, Oct. 16, due to the Columbus Day federal holiday on Monday, Oct. 13. The American Petroleum Institute, which publishes its own oil supply-demand data on Tuesdays, ahead of the WPSR, has deferred its publication until later on Wednesday.
Oil prices hit 5-month low on US-China trade tensions, looming supply surplus (Reuters) - Oil prices eased on Wednesday to a five-month low on escalating U.S.-China trade tensions and the International Energy Agency's prediction of a supply surplus in 2026. Brent crude futures fell 48 cents, or 0.8%, to settle at $61.91 a barrel. U.S. West Texas Intermediate (WTI) futures fell 43 cents, or 0.7%, to settle at $58.27. Those were the lowest settlements for both benchmarks since May 7 for a second day in a row. Bank of America said Brent prices could slip below $50 a barrel if U.S.-China trade tensions intensify while OPEC+ production ramps up. The world's two largest oil consumers have renewed their trade war over the last week, with the U.S. and China imposing additional port fees on ships carrying cargo between them. The tit-for-tat moves could disrupt global freight flows. Last week, China announced it would increase rare earth export controls and U.S. President Donald Trump threatened to raise tariffs on Chinese goods to 100% and tighten software export curbs from November 1. On Wednesday, U.S. Treasury Secretary Scott Bessent insisted that Washington did not want to escalate the trade conflict, addingTrump is ready to meet Chinese President Xi Jinping in South Korea later this month. Deflationary pressures persisted in China, with both consumer and producer prices falling in September. A prolonged property market slump and trade tensions also weighed. Renewed pose a "material" downside risk to the economic outlook, making it more important that the U.S. Federal Reserve cut its benchmark interest rate, Fed Governor Stephen Miran said on Wednesday. Looser economic policies can boost economic growth and demand for oil. U.S. retail sales excluding motor vehicles and parts likely posted further gains in September, data from the Chicago Fed showed, though part of the rise probably reflected higher prices. On Tuesday, the IEA said the global oil market could face a surplus next year of up to 4 million barrels per day, wider than its previous forecast, as OPEC+ and others raise output and demand remains sluggish. OPEC+ includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia and Azerbaijan. Britain on Wednesday targeted Russia's two largest oil companies, Lukoil and Rosneft, and 51 shadow fleet tankers in what it described as a new bid to tighten energy sanctions and choke off Kremlin revenues. Russia was the second-biggest producer of crude oil in the world after the U.S. in 2024, according to U.S. energy data. Any increase in sanctions due to Moscow's war with Ukraine should keep more of that oil out of global markets. In Azerbaijan, oil output fell by 4.2% to 20.7 million metric tons in January-September from 21.6 million metric tons a year earlier, the energy ministry said on Wednesday. The American Petroleum Institute (API) trade group and the U.S. Energy Information Administration (EIA) are due to release weekly U.S. inventory data on Wednesday and Thursday, , a day later than usual due to the U.S. Columbus Day/Indigenous Peoples' Day holiday on Monday. Analysts forecast U.S. crude stockpiles rose by about 0.3 million barrels last week. If correct, that would be the first time energy firms added oil to storage for three weeks in a row since April.
Oil edges higher after Trump says India will halt buying Russian oil - Oil prices edged higher on Thursday after US President Donald Trump said that India would stop importing oil from Russia, a move that helped alleviate oversupply concerns and lifted market sentiment, despite lingering uncertainties over US-China trade tensions. Brent crude was trading at $62.39 per barrel at 11.05 a.m. local time (0805 GMT), up 0.24% from the previous close of $62.24. US benchmark West Texas Intermediate (WTI) also rose 0.29% to $58.50, compared to $58.33 in the prior session. The modest price increase occurred amid shifting supply expectations and renewed geopolitical uncertainty. The International Energy Agency (IEA) warned this week of a potential global oil supply surplus due to rising output from OPEC+ countries and the US. However, Trump's statement on India's planned move to halt Russian imports eased those fears. Trump said that while imports wouldn't stop immediately, the process would be completed "soon." He also urged China to follow India's lead. Meanwhile, traders remained cautious over the prospect of renewed US-China trade tensions. Last week, Trump announced a 100% tariff on Chinese goods effective Nov. 1 in response to Beijing's restrictions on rare earth exports. Though he later said trade tensions "will be resolved," markets remained wary. US Treasury Secretary Scott Bessent added to the uncertainty, stating that China "can't be trusted" and urging allies to reduce risks by diversifying sources. Oil prices also found additional support from expectations of a Fed rate cut at its October meeting. Fed Chair Jerome Powell's dovish tone earlier this week triggered a pullback in the dollar, providing support to oil. Prices, which had hit a five-month low earlier in the week, are now recovering modestly as easing oversupply fears and a weaker dollar boost investor confidence.
WTI Hovers Near 5 Month Lows After India Confusion, Record US Production - Oil prices are flat this morning (holding near five-month low) amid mixed signals on President Trump’s push to stop India’s purchases of Russian crude, his lengthy ongoing talks with President Putin, and a surprisingly large crude inventory build reported by API last night. India’s oil refiners said they expect to reduce - not stop - the purchase of Russian crude, a move that could squeeze global supply, following remarks by Trump that the South Asian nation would halt all buying. Bloomberg reports that Mangalore Refinery and Petrochemicals Ltd Managing Director Mundkur Shyamprasad Kamath told an analyst conference call Thursday that he was “confident” his company would continue buying Russian oil. “We are not trying to slow down or anything,” he said when asked how he sees US push to stop Russian oil buying. “For us it is business as usual, with respect to sourcing. We are sourcing those Russian barrels that is available today.” India has flip-flopped between defying the US and crimping Russian imports in response to pressure from Washington to cut back. The decisions India ultimately takes are vital for Moscow, which needs petrodollars to help fund its war in Ukraine. Still, the market is awaiting clarification on the situation from the government in New Delhi, which didn’t officially confirm or deny Trump’s remarks. Trump didn’t set out a timeline for India to wind down purchases of Russian oil, or give any indication of how Washington might enforce or scrutinize the shift, but said that the buying wouldn’t stop immediately. The development took some air out of the earlier rally, with traders newly assured that the halt to India’s imports of Moscow’s crude won’t be immediate. We will see shortly whether the official data confirms API's notable build. API
- Crude +7.36mm
- Cushing: -978k
- Gasoline: +3.0mm
- Distillate: -4.8mm
DOE
- Crude +3.524mm (+300k exp, +2.3mm whisper)
- Cushing: -703k
- Gasoline: -267k
- Distillate: +4.529mm - biggest draw since Jan
The official crude build of 3.52mm barrels was modest (and well below the huge 7.4mm barrel build reported by API). That is the 3rd weekly build in crude stocks in a row (and 3rd weekly draw in stocks at Cushing). Distillates inventories plunged by 4.53mm barrels - the biggest draw since January - perhaps affected by the El Segundo refinery fire. Graphics Source: Bloomberg. Including the 760k barrel addition to the SPR, last week saw one of the largest weekly builds in total US crude inventories of the year... US Crude production rose once again, to a new record high at 13.636mm b/d... WTI is testing back near 5-month lows... "Inventory builds have now eclipsed 2024 build pace by +220 (million barrels), with pressure pushing on the seaborne market. Nearly all regions are seemingly under selling pressure,"
Oil Prices Drop as Putin–Trump Talks Offset Early Market Gains - The crude oil market ended the session lower as news of Russia’s President Vladimir Putin agreeing to meet U.S. President Donald Trump to discuss ending the war in Ukraine offset the market’s early gains on the news of a potential halt to India’s Russian oil imports. On Wednesday, U.S. President Donald Trump said India’s Prime Minister Narenda Modi pledged to stop buying oil from its main supplier, Russia. There were reports that some refiners were preparing to cut Russian oil imports, even though India’s government did not confirm President Trump’s claims. The crude market was well supported by the news and retraced some of Wednesday’s losses, posting a high of $59.11. However, the market erased its gains and traded lower ahead of the release of the EIA’s weekly petroleum inventory report following the API report late Wednesday that showed a large build in crude stocks of 7.4 million barrels for the week ending October 10th. The market later breached Tuesday’s low of $57.68 and sold off to a low of $57.26 ahead of the close, in light of the EIA report showing a larger than expected build in crude stocks of 3.524 million barrels. The market was also pressured by the news of a meeting between President Trump and Russia’s President Vladimir Putin to discuss the end of the war in Ukraine following a phone conversation. The November WTI contract ended the session down 81 cents at $57.46 and the December Brent contract settled down 85 cents at $61.06. The product markets also ended the session lower, with the heating oil market settling down 2.13 cents at $2.1535 and the RB market settling down 2.27 cents at $1.8117. Kremlin spokesman Dmitry Peskov said that Russia relies on official public statements issued by New Delhi and Beijing regarding oil purchases after U.S. President Donald Trump said that India and China would stop buying Russian oil. India and China have not publicly confirmed President Trump’s assertion. Earlier, Russia’s Deputy Prime Minister, Alexander Novak, said Russia is confident its energy partnership with India will continue.U.S. Treasury Secretary, Scott Bessent, said that he told Japanese Finance Minister Katsunobu Kato that the Trump administration expects Japan to stop importing Russian energy.President Vladimir Putin said on Thursday that Russia will produce 510 million tons of oil in 2025, down 1% on the year. He said the volumes are in line with OPEC+ agreements which Russia continues to follow, fulfilling its obligations to balance the global oil market.Britain targeted Russia’s two largest oil companies, Lukoil and Rosneft, and 44 shadow fleet tankers on Wednesday in what it described as a new bid to tighten energy sanctions and cut Russia’s revenues that help sustain its war in Ukraine. Lukoil and Rosneft were designated under Britain’s Russia sanctions laws for what London described as their role in supporting the Russian government.The Climate Prediction Center issued its seasonal forecast, calling for warmer than normal conditions, from California, the southern Great Basin, the southern Rockies, the Southwest eastward to Texas, the Southeast and to the coastal mid-Atlantic.
Global Oil Prices Fall As Trump-Putin Summit Sparks Supply And Demand Speculation - Oil prices inched lower in early trade on Friday, setting the stage for a weekly loss, as markets weighed the impact of an unexpected diplomatic meeting between US President Donald Trump and Russian President Vladimir Putin. The two leaders are expected to meet in Hungary within the next fortnight to discuss possible measures to end the ongoing conflict in Ukraine, reported Reuters. Around 6 AM, Brent crude futures slipped 8 cents, or 0.13 per cent, to $60.98 a barrel, while US West Texas Intermediate (WTI) crude fell 9 cents, or 0.16 per cent, to $57.37. Both benchmarks were on track for weekly declines of around 3 per cent, pressured by renewed concerns of oversupply and weaker demand projections. The announcement of the Trump-Putin summit has added a fresh layer of uncertainty to oil trading sentiment. Analysts say that while the potential for peace talks could ease geopolitical tensions, it could also reduce the risk premium on crude, leading to softer prices. “Concerns of tighter supplies were eased after it was announced that Trump would be meeting with Putin to discuss ending the war in Ukraine,”. “Markets are now pricing in a potential resolution scenario, which could alter global trade flows.” The diplomatic development coincides with mounting pressure on India and China from Washington to scale down their imports of Russian crude. Meanwhile, Kyiv continues to lobby for additional US military aid, including long-range Tomahawk missiles, even as speculation builds around possible negotiations. Inventory Build-Up and Record US Output Weigh on Sentiment Further adding to downward pressure, data from the US Energy Information Administration (EIA) showed that domestic crude inventories rose by 3.5 million barrels last week to 423.8 million barrels, significantly higher than the 288,000-barrel increase forecast in a Reuters poll. The larger-than-expected build was attributed to reduced refining activity as several plants entered seasonal maintenance. In addition, US crude production climbed to 13.636 million barrels per day, its highest level on record, amplifying concerns about global oversupply. The figures underscored the International Energy Agency’s recent outlook that anticipates a growing supply surplus by 2026, driven by resilient US output and slowing demand in major economies. Despite geopolitical risk factors that typically buoy crude prices, both Brent and WTI benchmarks are now hovering near their lowest levels since early May. On Thursday, Brent settled 1.37 per cent lower, while WTI declined 1.39 per cent. Traders remain cautious as they await further clarity from the Trump-Putin talks. The market’s direction in the coming days is likely to hinge on how these diplomatic discussions unfold and whether they bring any concrete progress toward ending the Ukraine conflict.
Oil Prices Steady, on Track for Third Weekly Loss (DTN) -- Oil prices steadied Friday, Oct. 17, morning and were on track to their third consecutive weekly decline as oversupply woes outweighed geopolitical risks. Commercial U.S. crude oil inventories expanding to a five-week high added to bearish sentiment. The NYMEX WTI contract for November delivery rose $0.09 to $57.55 bbl, and ICE Brent for December delivery was up $0.06 to $61.12. November RBOB gasoline futures advanced $0.0167 to $1.8284 gallon, while front-month ULSD futures slipped $0.0005 to $2.1530 gallon. The U.S. Dollar Index edged higher by 0.098 points to 98.190 against a basket of foreign currencies. The U.S. Energy Information Administration on Thursday reported the third consecutive weekly build in commercial crude oil inventories for the week ending Oct. 10. At 423.8 million bbl, they were at their highest since early September, up 3.2 million bbl, or 0.8%, year-on-year. Total crude oil inventories including stocks in the Strategic Petroleum Reserve jumped to a four-month high, up 3.4% year-on-year. Gasoline inventories, meanwhile, declined by 300,000 bbl in the reviewed week, and distillate fuel oil stocks fell 4.5 million bbl, softening the blow of the reported crude oil build. Oil futures have slumped about 9% so far this month as oversupply concerns took center stage. On Tuesday, Oct. 14, the International Energy Agency released its latest oil market forecast, calling for a record 4 million bpd crude overhang in 2026, fueled by OPEC+ production hikes, non-OPEC supply growth and sluggish demand.
Oil set for weekly loss as global conflicts ease, signs of glut emerge (Reuters) - Oil prices managed small gains on Friday but were headed for a weekly loss of nearly 3% after the IEA forecast a growing glut and U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet again to discuss Ukraine. Brent crude futures settled at $61.29 a barrel, up 23 cents, or 0.38%. U.S. West Texas Intermediate futures finished at $57.54 a barrel, up 8 cents, or 0.14%. Trump and Putin agreed on Thursday to another summit on the war in Ukraine, to be held in the next two weeks in Hungary. That comes on top of a cease-fire agreement ending, at least temporarily, the fighting in Gaza between Israel and Hamas. was headed to the White House on Friday to push for more military support, including U.S.-made long-range Tomahawk missiles, while Washington pressured India and China to stop buying Russian oil. "We've had the once-in-a-generation peace deal in the Middle East, Iran is neutralized and now Ukraine; an unprecedented amount of risk has come out of the market," This week's decline was also partly due to rising trade tensions between the U.S. and China, which added to concerns about an economic slowdown and lower energy demand. "It just demolishes confidence," said Jorge Montepeque, managing director at Onyx Capital Group, who expects the U.S. economy will quickly be affected. On Friday, a fire overnight at BP Plc's Whiting, Indiana, refinery was expected to affect only the Midwest market, Patrick DeHaan, head of petroleum analysis for GasBuddy, said the market around the Great Lakes was expected to jump. "Great Lakes spot gasoline prices spiking on the BP refinery fire overnight, could lead to prices cycling soon," DeHaan posted on X. "For now, wholesale prices pointing to about a 20 cent a gallon rise." Limiting crude prices was the International Energy Agency's outlook for a growing supply glut in 2026. The U.S. Energy Information Administration said on Thursday that U.S. crude inventories increased by 3.5 million barrels last week, to 423.8 million barrels, compared with analysts' expectations in a Reuters poll for a 288,000-barrel rise. The bigger-than-expected build in crude inventory was largely due to lower refining utilization as refineries go into autumn turnarounds. The data also showed a rise in U.S. production to 13.636 million barrels per day, the highest on record.
BofA Sees Oil Price Floor 'Likely Forming at $55' | Rigzone - A BofA Global Research report sent to Rigzone by the BofA team recently noted that BofA sees “a[n] [oil price] floor likely forming at $55 per barrel”. That report also revealed that the company is maintaining its Brent forecast of $61 per barrel in the fourth quarter of 2025 and $64 per barrel in the first half of 2026. The report went on to warn, however, that “if U.S.-China trade tensions escalate in the midst of the OPEC+ production ramp up, Brent could drop below $50 per barrel”. In the report, BofA said market participants have been “sick worried about a crude oil glut for almost a year now” and pointed out that front month Brent and WTI crude oil prices have come down by about 50 percent from their respective peaks of $128 per barrel and $124 per barrel in 2022. “Of course, weaker oil prices this year have a lot to do with OPEC+ agreeing to increase quotas within the Group of 8 by about four million barrels per day over 18 months starting in April 2025,” the report noted. “Oil markets have already been on a surplus for some time, although inventories across the OECD remain low because most excess barrels have gone into Chinese strategic storage,” it added. “Rapid strategic oil stockpiling in China and a looming surplus in 1H26 have resulted in an odd term structure in Brent: tight in the front, loose in the back,” it continued. “Yet, oil prices have come down quickly in recent days as China reimposed some limits on rare earth elements (REE), the U.S. threatened China with fresh tariffs, and Iran threw down the gauntlet by turning on transponders to show the world where its oil is going,” the report went on to state. BofA noted in its report that the current long-term contango of nearly $4 per barrel and near-term oil backwardation structure is an outlier and will not last. “In our estimates, only five percent of months in the last 20 years have featured a backwardated near-term curve with a contangoed long-term curve,” the report stated. “Today’s long-term contango of nearly $4 per barrel is a significant outlier compared to levels of near-term backwardation like those we see now,” it added. BofA said in the report that one of the better corners of the market to look for guidance is the intermediate step between production and commercial oil inventories. “Historically, shipping rates have tended to increase as crude barrels flow into the water,” the report highlighted. “We estimate that a rise in shipping costs today shows up in increased oil-on-water around 4-6 weeks later, and there are some signs that the going daily rate for oil vessels is rising,” it added. “With oil-on-water increasing counter seasonally and at a fast rate too, we note that onshore inventories also tend to build, although this process could take around 3 to 4 months,” it said. “Still, macro cyclical conditions matter for demand and the data shows rangebound activity. So, it does not point to a clear up or downside breakout for oil prices,” it pointed out. The BofA report stated that, with more oil on the water, both shipping costs and macro cyclical conditions will likely provide an early indication of where prices are heading. “But much of the surplus is still building up in China, a situation we expect to continue,” BofA noted in the report. “Oil balances could look cleaner by 2H26 thanks to fiscal and monetary policy easing and a relatively weak USD,” it added. “Beyond macro factors and the possibility that OPEC+ changes course on scheduled production increases, we believe ample storage capacity, relatively firm demand, and declining U.S. output should all come together to support oil prices somewhat below the current levels,” it continued. “Looking into 2026, we see U.S. crude oil production flatlining, while demand could improve if America moves forward with trade deals over the coming months. If so, Brent crude is unlikely to collapse to $40 per barrel despite surplus volumes over the coming quarters,” the BofA report went on to state. In a report sent to Rigzone by the Skandinaviska Enskilda Banken AB (SEB) team on Tuesday, SEB Chief Commodities Analyst Bjarne Schieldrop said, “we think OPEC(+) will trim/cut production as needed into 2026 to prevent a huge build-up in global oil stocks and a crash in prices but for now we are still heading lower - into the $50ies per barrel”. Rigzone has contacted OPEC for comment on the BofA and SEB reports. Rigzone has also contacted the White House, the U.S. Department of Energy, the State Council of the People’s Republic of China and the International Press Center of China’s Ministry of Foreign Affairs, and the Iranian Ministry of Foreign Affairs for comment on the BofA report. At the time of writing, none of the above have responded to Rigzone. In a report sent to Rigzone last Friday by the Macquarie team, Macquarie strategists, including Vikas Dwivedi, highlighted that “most market participants have very bearish balances for 4Q25 and 1Q26”. “However, price remains range-bound and structure remains backwardated, and crude price is not yet reflecting the large, broadly anticipated surpluses,” the strategists added. A BMI report sent to Rigzone by the Fitch Group on the same day revealed that BMI was forecasting that the Brent crude price will average $68 per barrel in 2025 and $67 per barrel in 2026. A report sent to Rigzone by the Standard Chartered team on October 8 showed that Standard Chartered was projecting that the ICE Brent nearby future crude oil price will average $61 per barrel this year and $78 per barrel next year. In its latest short term energy outlook (STEO), which was released on October 7, the U.S. Energy Information Administration (EIA) projected that the Brent crude spot price will average $68.64 per barrel in 2025 and $52.16 per barrel in 2026.
Citi Makes a Case for $50 Oil --Citigroup’s latest call for Brent crude to tumble toward $50 on a Russia-Ukraine de-escalation feels more like an echo chamber than a fresh forecast. Senior commodities strategist Eric Lee told Bloomberg Friday that easing geopolitical tensions could “precipitate a faster move” toward the bank’s bear-case scenario — never mind that Brent is already down roughly 18% this year to near $61, thanks to what some call a slow-building supply glut. But Citi’s tone has swung wildly over the past ten months. Back in January, the bank actually raised its 2025 forecast to $67 Brent and $63 WTI, citing “heightened, sustained geopolitical risks in Iran/Russia-Ukraine.” A few months later and Citi is now warning of a possible $50 collapse should those same risks evaporate. That’s not a shift in sentiment — it’s a 25% haircut wrapped in a new narrative. Earlier this month, Citi had already sounded a bearish note, cautioning that market players were questioning whether $60 could hold as a price floor amid rising global inventories. Vortexa data showed 1.2 billion barrels of crude sloshing around the seas — the most since 2016 — though China’s steady stockpiling has kept that glut from crashing prices outright. So, does a ceasefire really doom oil to $50? History says maybe not. Every few quarters, Citi rolls out a fresh bear case — often tethered to whichever headline feels most urgent. In practice, OPEC+ restraint, steady Chinese demand, and Western SPR refilling have consistently kept Brent above the big-scary-five-oh. If anything, the real question is whether Riyadh will blink first. A $50 Brent would gut shale’s economics and hand OPEC+ the steering wheel again. And while Washington may welcome cheaper barrels heading into an election cycle, Saudi Arabia’s patience for subsidizing U.S. policy goals has always been… limited. In short: Citi’s $50 thesis makes for a dramatic headline. Reality, as usual, trades higher.
Hamas reasserts power in Gaza with retribution campaign, clouding peace deal’s prospects - Hamas is carrying out a wave of retribution executions and asserting its control in areas of the Gaza Strip where Israel has withdrawn, highlighting the challenge facing President Trump to get the group to give up its arms and power as part of his 20-point plan for peace. Hamas has killed at least 33 people since the ceasefire went into effect last week, according to reporting from Reuters, with at least seven men dragged into Gaza City square on Monday. The men, their hands bound were forced onto their knees and shot from behind in public view of dozens of people, Reuters stated. Ghaith al-Omari, a senior fellow with the Washington Institute for Near East Policy and a former Palestinian negotiator, said that Hamas has a head start on reestablishing its control in Gaza, absent an international security force and apolitical governing body. “The longer the time passes, and the more that they [Hamas] establish themselves on the ground now in the security sphere, we’ll soon start seeing them also doing in the civilian sphere – they will start removing rubble and building a couple of schools, offering health care, all that kind of stuff – the harder it becomes to kind of dislodge them,” he said. Hamas’s actions showcase a difficult trade-off in the ceasefire put into place. By not demanding that Hamas first disarm and step down from power, President Trump secured on Monday the release of the remaining 20 living hostages who were held by Hamas for over two years. Work is ongoing to locate and transfer to Israel the bodies of 24 other hostages Hamas kidnapped during its Oct. 7, 2023 terrorist attack. Trump said from the White House on Tuesday that if Hamas refuses to disarm, “we will disarm them.” His peace plan says that if Hamas refuses to surrender completely, Israel can restart military operations in Gaza. When clearing an area from Hamas control, the deal allows Israel to hand over an area to an International Security Force (ISF) – though such forces are still being planned and do not exist at this point. The release of living and dead hostages is the first phase of a two-phase negotiation in the 20-point peace plan. The second phase requires negotiations for Hamas to disarm, renounce violence or choose exile from Gaza. Majed al-Ansari, senior advisor to Qatar’s prime minister and spokesperson for the Ministry of Foreign Affairs, told Fox News that phase two negotiations have started and mediating teams are “working around the clock.” “The challenges ahead are not going to be easy,” he said. A senior U.S. official told reporters in a briefing call on Oct. 9 that decommissioning arms, how a technocratic government would come in and run Gaza and how the Israeli army would redeploy are just some of the issues that must be resolved. Hamas has ruled out many of these line items in public, though a second senior U.S. official said to ignore those pronouncements. “I wouldn’t pay too much attention to public statements from anyone in the Middle East, that kind of drives reporters crazy, but it’s more about what people are saying privately and what they’re actually going to do,” the official said.
Officials say food sites run by controversial US-Israeli-backed group in Gaza are being shut down (AP) — Food distribution sites run by the controversial U.S. and Israel backed Gaza Humanitarian Foundation are being shut down under the terms of the ceasefire deal, an Egyptian official and another official in the region told The Associated Press on Sunday. Multiple Palestinian witnesses said three of GHF’s distribution sites had been abandoned, in the southern area of Rafah and in the Netzarim area of central Gaza. Palestinians, aid workers and health officials have said the system forced aid-seekers to risk their lives to reach the sites by passing Israeli troops who opened fire to control crowds, killing hundreds. The Israeli military says it only fired warning shots. Hoda Goda, a Palestinian woman, said the site she often went to in Rafah was vacant and Palestinians tore down structures, taking wood and metal fences. Video circulating online showed people walking away with scrap metal from the site in the Netzarim area of central Gaza. Israeli troops pulled out of part of Netzarim on Friday under the terms of the ceasefire deal and are due to withdraw from parts of Rafah later. A third official, with knowledge of the situation, said the current plan was to rely on other aid agencies to supply Gaza. All three officials spoke on condition of anonymity because they were not authorized to discuss the deal’s provisions. A GHF spokesperson said there will be “tactical changes” to its operations and “temporary closures” of some sites over the next few days during the transfer of the hostages to Israel. “There is no change to our long-term plan,” the official said on condition of anonymity in accordance with the organization’s rules. The United Nations, which had opposed the GHF distribution, was gearing up to bring increased aid into the devastated territory after the ceasefire came into effect Friday. It said it has about 170,000 metric tons of food, medicine and other humanitarian aid ready to enter once Israel gives the green light. The Israeli military body in charge of humanitarian aid in Gaza, COGAT, said the amount of aid entering the Palestinian territory was expected to increase to around 600 trucks per day, as stipulated in the agreement. The U.N. humanitarian chief Tom Fletcher told the AP that trucks of aid began going into Gaza on Sunday, including cooking gas for the first time in months, but not yet at the scale they hope for in the days and weeks ahead. He said the U.N. has a plan for the next two months to restore basic medical and other services, bring in thousands of tons of food and nutritional supplies, fuel and remove rubble. “Much of Gaza is a wasteland,” Fletcher said. “But I’m absolutely determined that we will not fail. … We will strain every sinew to deliver for the people of Gaza.” He said the U.N. has the networks, the expertise and the experience to beat the famine that has taken hold in Gaza City.
Gaza Government: Israeli enemy destroyed 1,160 mosques during genocide -The Director of the Government Media Office in the Gaza Strip, Ismail Al-Thawabta, confirmed today, Friday, that the Israeli enemy army targeted around 1,160 mosques — either completely or partially destroyed — out of a total of 1,244 mosques in the Strip during two years of the genocidal war. In a post on the “X” platform, monitored by the Yemeni News Agency (SABA), Al-Thawabta explained that 909 mosques were completely destroyed, leveled to the ground, and turned into rubble. He pointed out that another 251 mosques suffered severe partial damage that rendered them unusable, directly affecting the performance of religious rituals and congregational prayers.
11 Palestinians from one family, mostly children, martyred in Israeli massacre in Gaza -- Eleven Palestinian civilians, most of them children from the same family, were martyred on Friday evening in a new massacre committed by the Israeli occupation army in the Zaytoun neighborhood of Gaza City, marking a fresh violation of the ceasefire agreement. According to the Gaza Civil Defense, as reported by Al Araby TV, 11 members of the Shaaban family were killed while attempting to return to their home in Zaytoun, when an Israeli tank directly targeted their civilian vehicle. The Civil Defense added that the vehicle targeted by Israeli forces was carrying seven children, three women, and their guardian.
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