highest natural gas closing price since April 3rd; record production of crude from US wells; US oil imports at a fifty-six month low; US gasoline supplies at an eleven month low after biggest draw in over a year
US oil prices finished lower for the fourth time in five weeks after the US and China reached an agreement on trade and on the expectation that OPEC+ would decide to again increase production in December….after rising 7.6% to $61.50 a barrel last week following new US sanctions against Russia’s two largest oil producers, and after across the board draws from US oil and product inventories, the contract price for the benchmark US light sweet crude for December delivery rose in early Asian trading on Monday after U.S. and Chinese officials outlined a trade-deal framework, easing global economic concerns about a damaging trade war, but then traded lower during the New York session amid some skepticism that U.S.-China trade deal framework would increase demand for oil, and on expectations that OPEC would again increase output at their meeting this weekend, and settled 19 cent lower at $61.31 a barrel as OPEC's plans to increase oil output once again outweighed hopes of a trade deal framework between the U.S. and China and renewed U.S. sanctions on Russia….oil prices slipped slightly on global markets on Tuesday as optimism around a potential trade breakthrough between the United States and China was offset by reports that OPEC+ would move to increase production later this year, then sold off sharply during the US session, as traders discounted the impact of the U.S. sanctions imposed against Russia’s Lukoil and Rosneft, while a potential OPEC+ plan to increase their output at their meeting this weekend weighed on sentiment, and settled $1.16 or 1.9% lower at $60.15 a barrel, as a Trump waiver for the German business of Russia's Rosneft gave markets the impression that there could be more wiggle room on the Russian sanctions, alleviating the immediate concerns that supplies would tighten dramatically… oil prices stabilized during Asian trading on Wednesday, as traders assessed the impact of Western sanctions on Russia’s major crude producers, amid mixed industry estimates on changes in U.S. inventories, and were also little changed on Wednesday morning in New York, as traders tried to assess the longer-term impact of the additional sanctions, which would be determined by the actual quantity of barrels removed from supply, and settled 33 cents higher at $60.48 a barrel, after EIA data showed U.S. crude and fuel inventories drew down more than expected last week, and as Trump's optimistic tone over upcoming talks with his Chinese counterpart helped ease economic jitters….oil prices retreated on global markets on Thursday as traders reacted to higher US crude output and expected additional supply from OPEC+ producers, even as the Fed reduced its benchmark interest rate, then opened lower on Thursday morning in New York after President Trump signaled he might resume nuclear weapons testing, raising geopolitical concerns just minutes before his scheduled meeting with Chinese President Xi Jinping, but recovered to settle 9 cents higher at $60.57 a barrel as traders assessed a US-China trade truce after U.S. President Trump lowered tariffs on China following a meeting with Chinese leader Xi Jinping in South Korea.…oil prices retreated on global markets on Friday as weak economic data from China, a firmer U.S. dollar, and expectations of rising global supply combined to dampen market sentiment, but spiked during the US session following reports that the U.S. military might launch airstrikes on Venezuela within hours, but pulled back to settle 41 cents higher at $60.98 a barrel after Trump issued a denial of the report on social media….that still left oil prices 0.8% lower for the week and down 2.2% for the month, a price decrease that includes the 1.0% drop prices saw last week with the switch from quoting the higher priced November contract to quoting the lower priced December contract…
meanwhile, natural gas prices rose for a second week, boosted in their case by a switch from quoting the lower priced November contract to quoting the higher priced December one… after rising 9.8% to $3.304 per mmBTU last week on near record LNG demand and on forecasts for much cooler weather in the eastern US by the end of the month, the price of the benchmark natural gas contract for November delivery opened 2.0 cents higher on Monday and climbed through the morning, as updated weather forecasts and continued LNG demand provided support , then seesawed around $3.430 through the afternoon and settled 13.8 cents higher at $3.442 per mmBTU on colder forecasts and record feedgas flows to LNG export plants…however, that November gas contract opened 10.5 cents lower on Tuesday, losing ground overnight due to warming forecasts and volatility ahead of its expiration, and swung in a wide range before settling down 9.7 cents at $3.345 per mmBTU on profit taking and on a milder weather outlook…November natural gas opened 10.2 cents lower on its last day of trading Wednesday, but rose throughout the day, as updated forecasts were calling for below average temperatures in the short term, and expired 3.1 cents higher at $3.376 per mmBTU on near-record LNG feedgas demand and a decrease in lower 48 gas output, while the more actively traded natural gas contract for December delivery settled 5.2 cents lower at $3.815 per mmBTU, as grave doubts about heating demand haunted natural gas futures…with markets now citing the price of the benchmark natural gas contract for December delivery, that contract opened 6.8 cents higher on Thursday, and traded near $3.890 in the hour leading up to the weekly storage publication, then shook off a historically bearish injection to cross $3.90 at midday, as weather forecasts provided support, and settled 14.1 cents higher at $3.956 per mmBTU following new cold-weather forecasts that increased expectations for winter heating demand across the central U.S….natural gas futures continued to climb in early Friday trading, as surging LNG demand and a possible cold start to December outweighed near-term weather weakness, and settled 16.8 cents higher at a six month high of $4.124 per mmBTU, on near-record flows to LNG export plants, as output dropped and forecasters expected more demand over the next two weeks than they did previously…natural gas prices thus finished the week 24.8% higher, largely on the midweek switch to quoting December prices, while the December contract itself, which has settled the prior week at $3.995, finished 3.2% higher…
The EIA’s natural gas storage report for the week ending October 24th indicated that the amount of working natural gas held in underground storage rose by 74 cubic feet to 3,882 billion cubic feet by the end of the week, which left our natural gas supplies 29 billion cubic feet, or 0.8% higher than the 3,853 billion cubic feet of gas that were in storage on October 24th of last year, and 171 billion cubic feet, or 4.6% more than the five-year average of 3,711 billion cubic feet of natural gas that had typically been in working storage as of the 24th of October over the most recent five years….the 74 billion cubic foot injection into US natural gas storage for the cited week matched the 74 billion cubic foot injection into storage that the markets were expecting ahead of the report, but was a bit less than the 79 billion cubic foot of gas that were added to natural gas storage during the corresponding week of 2024, while still higher than the average 67 billion cubic foot addition to natural gas storage that has been typical for the same mid 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 24th indicated that after a drop in our oil imports and an increase in our oil exports, we had to pull oil out of our stored crude supplies for the eighteenth time in thirty-eight weeks, and for the 31st time in sixty-eight weeks, in spite of record production from wells and a big decrease in our oil refining….Our imports of crude oil fell by an average of 867,000 barrels per day to a fifty-six month low of 5,051,000 barrels per day, after rising by an average of 393,000 barrels per day over the prior week, while our exports of crude oil rose by an average of 158,000 barrels per day to average 4,361,000 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 690,000 barrels of oil per day during the week ending October 24th, an average of 1,025,000 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 463,000 barrels per day, while during the same week, production of crude from US wells was 15,000 barrels per day higher than the prior week at a record 13,644,000 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 14,797,000 barrels per day during the October 24th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 15,219,000 barrels of crude per day during the week ending October 24th, an average of 511,000 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 904,000 barrels of oil per day were being pulled out of 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 storage, from net imports, from transfers, and from oilfield production during the week ending October 24th averaged a rounded 481,000 more barrels per day than what 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 [-481,000 ] 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 92,000 barrels per day of demand for oil could not be accounted for in the prior week’s EIA data, that means there was a 389,000 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 fairly 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 904,000 barrel per day average decrease in our overall crude oil inventories came as an average of 980,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while an average of 76,000 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 5,724,000 barrels per day last week, which was 5.3% less than the 6,043,000 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 15,000 barrels per day higher at a record 13,644,000 barrels per day as the EIA’s estimate of the output from wells in the lower 48 states was 4,000 barrels per day higher at 13,212,000 barrels per day, while Alaska’s oil production was 11,000 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 4.2% higher than that of our pre-pandemic production peak, and was also 40.7% 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 86.6% of their capacity while processing those 15,219,000 barrels of crude per day during the week ending October 24th, down from the 88.6% utilization rate of a week earlier, with most of that decrease probably due to routine Fall maintenance, despite recent fires at refineries in El Segundo California and Whiting Indiana…. the 15,219,000 barrels of oil per day that were refined that week were 5.2% less than the 16,053,000 barrels of crude that were being processed daily during the week ending October 25th of 2024, and were 4.9% less than the 15,998,000 barrels that were being refined during the prepandemic week ending October 25th, 2019, when our refinery utilization rate was at 87.7%, which was a little below the pre-pandemic normal range for this time of year, as refineries were then recovering from 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 4,000 barrels per day to 9,590,000 barrels per day during the week ending October 24th, after our refineries’ gasoline output had decreased by 235,000 barrels per day during the prior week.. This week’s gasoline production was 1.1% less than the 9,695,000 barrels of gasoline that were being produced daily over the week ending October 25th of last year, and 5.8% less than the gasoline production of 10,184,000 barrels per day seen during the prepandemic week ending October 25th, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 134,000 barrels per day to 4,498,000 barrels per day, after our distillates output had increased by 40,000 barrels per day during the prior week. After this week’s production decrease, our distillates output was 7.5% less than the 4,863,000 barrels of distillates that were being produced daily during the week ending October 25th of 2024, and 9.5% less than the 4,970,000 barrels of distillates that were being produced daily during the pre-pandemic week ending October 25th, 2019....
With this week’s modest decrease in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the 13th time in fifteen weeks and by the most since October 4th of last year, decreasing by 5,941,000 barrels to an eleven month low of 210,738,000 barrels during the week ending October 24th, after our gasoline inventories had decreased by 2,147,000 barrels during the prior week. Our gasoline supplies decreased by more this week because the amount of gasoline supplied to US users rose by 530,000 barrels per day to 8,924,000 barrels per day, and because our imports of gasoline fell by 39,000 barrels per day to 466,000 barrels per day, while our exports of gasoline fell by 363,000 barrels per day to 849,000 barrels per day.… Even after twenty-eight gasoline inventory withdrawals over the past thirty-eight weeks, our gasoline supplies were less than 0.1% less than last October 25th’s gasoline inventories of 210,868,000 barrels, and about 3% below the five year average of our gasoline supplies for this time of the year…
With the decrease in this week’s distillates production, our supplies of distillate fuels fell for the 24th time in 43 weeks, decreasing by 3,342,000 barrels to 112,189,000 barrels during the week ending October 24th, after our distillates supplies had decreased by 1,479,000 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 267,000 barrels to 3,580,000 barrels per day, because our exports of distillates rose by 435,000 barrels per day to 1,507,000 barrels per day, while our imports of distillates rose by 33,000 barrels per day to 109,000 barrels per day... With 53 withdrawals from inventories over the past 91 weeks, our distillates supplies at the end of the week were 0.6% less than the 112,862,000 barrels of distillates that we had in storage on October 25th of 2024, while about 8% below the five year average of our distillates inventories for this time of the year…
Finally, with the decrease in our oil imports and the increase in our oil exports, our commercial supplies of crude oil in storage fell for the 15th time in twenty-six weeks, and for the 24th time over the past year, decreasing by 6,858,000 barrels over the week, from 422,824,000 barrels on October 17th to 415,966,000 barrels on October 24th, after our commercial crude supplies had decreased by 961,000 barrels over the prior week… After this week’ s big decrease, our commercial crude oil inventories were 6% below the recent five-year average of commercial oil supplies for this time of year, while they were about 21.5% above the average of our available crude oil stocks as of the fourth 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 24th were 2.2% less than the 425,509,000 barrels of oil left in commercial storage on October 25th of 2024, and were 1.4% below the 421,893,000 barrels of oil that we had in storage on October 27th of 2023, while 4.8% less than the 436,830,000 barrels of oil we had left in commercial storage on October 28th of 2022…
This Week's Rig Count
The US rig count was down by four over the week ending October 24th, the largest decrease since July 3rd, as the number of rigs targeting oil was down by six, and miscellaneous rigs were down by two, while the count of rigs targeting natural gas was four higher…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 24th, the second column shows the change in the number of working rigs between last week’s count (October 17th) and this week’s (October 24th) count, the third column shows last week’s October 17th 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 25th of October, 2024…
++++++++++++++++++++++++++++++++++++++++++++++++++++++
Hilliard residents raise concern over fuel cell addition to data center - — Hilliard City Council and residents are opposing an energy project linked to the Amazon data center. The company plans to install over 200 fuel cells at its facility off Scioto Darby Creek Road. “I think if people sit back and don’t say anything, that’s not going to change anything,” resident Chris Ighnat said. “So, we’re looking to change what’s happening over there.”Chris Ighnat is behind a petition that’s already received over 600 signatures urging council to appoint special counsel and file an appeal to stop construction.At Monday night’s city council meeting they approved a motion to hire an outside law firm that specializes in environmental impact issues. They have until Nov. 8 to file their appeal. “We were pleased with the level of support from city council today but it’s a big fight,” resident Ted Cannelongo said.The city of Hilliard originally opposed the natural gas fuel cell power plant that Amazon Web Services and AEP Ohio plan to use to power multiple data centers in Hilliard near homes and schools but the state ultimately has the final say and approved it anyway. “The way that this got approved, the approvals did not follow suit, the notifications, the communication, and overall, the transparency was not there,” Ighnat said. Several residents spoke during public comment Monday night. They raised concerns surrounding long-term health impacts because the fuel cells will be powered by a large gas pipelines. Residents say there are too many unanswered questions about how this project could affect families living nearby. “The CO2 is probably the biggest one,” Ighnat said. “Fire safety. Right. Norwich Township has not received any plan from AEP or Amazon about how they’re going to handle whatever may happen over there. There’s health and respiratory concerns, diminishing home values.”In a statement, AEP Ohio said: “AEP Ohio appreciates the relationship we have with the Hilliard community. We remain committed to maintaining those relationships as we deliver innovative solutions for our customers that are safe and comply with all laws and regulations applicable to their operation — in this case, an onsite fuel cell system at a customer’s site. Fuel cells have proven to be a safe, clean solution for customers’ energy needs. Per regulatory approvals for this project, AEP Ohio will ensure that local first responders are trained on potential fuel cell emergencies. Fuel cells have low emissions characteristics, since they do not provide energy through combustion, and any emissions will be within the limits set by the Ohio EPA.” In a statement, Amazon said: “We work with local utilities to access the energy needed to meet the needs of our customers. This includes collaborating with a diverse set of stakeholders to deliver highly reliable electricity from local power grids along with enabling new carbon-free generation sources like solar and wind. In some instances, such as in Franklin County, the local utility will deploy fuel cells as an interim solution to power a small portion of our overall data center operations while we await completion of larger scale transmission and distribution upgrades in Ohio.” While this technology is touted as a green technology, it hasn’t really been deployed at this scale in North America and there also really aren’t requirements in place right now to perform the kind of impact studies, run the dispersion modeling, to understand exactly what the health impacts are,” Cannelongo said. Those same fears were shared by councilmembers who said they felt blindsided by the state’s decision to move the project forward without local approval.“We all understand the need for energy in the United States and across the world, actually,” Hilliard City Councilmember Les Carrier said. “But you can’t just be throwing up 1.5 million pounds of CO2 a day into the air next to a neighborhood to school without some kind of measurement of what that means.”AEP Ohio and AWS plan to begin construction on the fuel cell system in January, to be completed around September 2027. The project is slated to be temporary until AEP Ohio can catch up with demands on the grid.“This fight’s just warming up,” Carrier said. “We need to reach out, get to other communities and make sure that there’s some balance in this approach.”
DOE Pushes FERC to Adopt Rule to Quickly Connect AI Data Centers -- Marcellus Drilling News - The Trump administration wants to win the race for artificial intelligence (AI) with China. The administration is pulling out all the stops to ensure the U.S. is #1 in AI. That means building new data centers. Last Thursday, Secretary of the Department of Energy (DOE) Chris Wright took the unusual step of sending a directive to the Federal Energy Regulatory Commission (FERC), instructing the agency to initiate rulemaking procedures to rapidly accelerate the interconnection of large loads, including data centers. Wright even included his own proposed rule for FERC to adopt (spoon-fed)
Columbia Gas of Ohio faces capacity strain amid data center boom - Columbia Gas of Ohio sees on-site gas power plants for data centers as an emerging opportunity, but executives say system strain – much like the electric grid’s constraints – is making things more complicated. There are two types of gas pipelines – large interstate lines and smaller lines that transport gas to customers, including homes and commercial businesses.
Ohio's data centers will impact many Ohioans -Randi Pokladnik - Ohio is witnessing the construction of an unprecedented amount of data centers in the state. Columbus is ranked the 10th largest data center region in North America. However, some communities are pushing back against these enormous facilities. Jerome Township Trustees voted in September for a nine-month moratorium on “receipt, processing, issuance, or approval of any application for a zoning certificate” for data centers. Some of the concerns expressed by communities located close to data centers include: the noise, water usage, acres of land transformed into industrial centers, exposure to air pollution from power generation, high voltage transmission lines cutting through communities and farmlands, and probable increases in their utility bills due to the increases in power consumption. Data centers require an enormous amount of water for cooling purposes. “The Central Ohio Regional Water Study, an analysis of regional water needs by the Mid-Ohio Regional Planning Commission and relevant state agencies, similarly showed water and wastewater demand will be on the rise in the coming decades due to the surging number of data centers,” a report from Gongwer noted.Data centers can consume up to five million gallons per day; the equivalent of a town of 10,000 to 50,000 people. Columbus is one of many major cities across the nation that has been sinking due to water withdraws. Additionally, these data enters also use large quantities of PFAS-gas or f-gas chemicals. The compounds have been linked to cancer, birth defects, decreased immunity, high cholesterol, kidney disease, and a range of other serious health problems.They are dubbed “forever chemicals” because they do not naturally break down in the environment and they are also potent greenhouse gases.The compounds are used in the cooling phase and also to manufacture some semiconductors. Currently the Trump administration is moving to “fast-track” data centers by “expedited chemical review” for compounds used at data centers. The communities in central Ohio will certainly be affected by the explosion of data centers in the region, however, communities in SE Ohio will also be affected.Data centers require large amounts of electricity and 56 % of that energy will be from fossil fuels.According to a report from the Ohio River Valley Institute, “A 100 MW data center, assuming it operates at 70% max capacity over a year, will use 613,200 MWh of electricity. Producing that much electricity from natural gas will consume over 4.4 billion cubic feet of gas. This would emit roughly 300,000 tons of carbon dioxide, which is equivalent to the annual emissions of nearly 60,000 typical passenger cars.” It is estimated that U.S. data centers produced 105 million tons of carbon dioxide emissions in the past year. The natural gas (methane) needed to power these centers will come from fracked gas.Appalachian counties will be facing more health and environmental impacts from fracking. These include; air and water pollution, more Class II injection wells, and excessive surface water withdraws. One fracked well can require from 2 to 16 million gallons of water depending on the length of the lateral drilled.The Ohio Department of Natural Resources keeps data on the amount of surface and groundwater used by fracking companies in Ohio. Harrison County saw 853,000,000 gallons of surface water withdrawn for fracking in 2023. That represents seventy-eight percent of the total water usage in the county.Carroll County saw seventy percent of its total water usage in 2023 go towards fracked wells, and Jefferson County had 421,000,000 gallons of surface water used for fracking in 2023. Ironically these same counties experienced record-breaking droughts in 2024 as well as 2025.Harrison County was in the exceptional drought range for most of the summer of 2024, yet we witnessed water being withdrawn from woodland streams and pumped to fracking well pads all across the county. More fracking means more radioactive brine wastes being produced and injected into Class II wells.The Ohio Department of Natural Resources oversees everything related to fracking including issuing permits for Class II wells. ODNR is being questioned about their ability to regulate the over 200 Class II radioactive brine injection wells, most of which are located in Washington, Athens, Meigs, and other Appalachian counties.The wastes from these wells have been known to migrate into areas far beyond the injection site into oil production wells andgroundwater. The 2022 passage of HB 507 during a lame duck session opened up state lands to fracking.Ohioans have watched as their precious state parks are leased out to fracking companies.These data centers will only encourage more fracking resulting in more destruction of our parks.Wildlife sanctuaries like Jockey Hollow Wildlife Area and Salt Fork State Park will be sacrificed to power artificial intelligence.Ohio’s Appalachian region is no longer a bucolic setting of small rural communities; it is an industrial zone littered with wells pads and fracking infrastructure.Soon, communities in central Ohio will experience the same degradation as data centers transform their towns into industrial landscapes.
OH Rep. Wants to Formally Recognize NatGas, Nukes as Clean & Green -- Marcellus Drilling News - One of the ways the Democrat left continues to wage war against fossil energy is to redefine terms. The left claims clean and green *only* applies to unreliable renewable energy sources—sources that require child labor working in detestable conditions in mining camps in foreign countries, far from the eyes of the leftists that tout renewable energy. We who support fossil energy have a unique opportunity with control of the White House and Congress: let’s permanently, in law, define clean and green to include both natural gas and nuclear power. Ohio Congressman Troy Balderson has proposed a bill that will do just that.
OH Bill Would Force Siting Board to Favor NatGas Over Renewables -Marcellus Drilling News - Proposed Ohio legislation, Senate Bill (SB) 294, seeks to redefine “clean energy” to include natural gas, a fossil fuel, and, according to lefties, a major contributor to mythical global warming. At the same time, the bill would declare renewable sources like wind and solar “unreliable.” SB 294 would compel the Ohio Power Siting Board to favor energy projects it deems both clean and reliable, effectively prioritizing natural gas power plants. The bill’s sponsors argue this leverages Ohio’s substantial shale gas reserves and provides a cleaner alternative to coal.
Ohio GOP bill declares natural gas is 'clean energy' the state should favor - Natural gas – a fossil fuel that’s one of the biggest contributors to global climate change – would be considered “clean energy” that’s favored during Ohio’s permitting process, under new legislation proposed Tuesday. That same legislation would also declare that renewable energy sources like wind and solar power are not “reliable” because they depend on wind and sun, unlike coal or gas plants that can run nonstop. The legislation may be more than just wordplay – it would “force” the Ohio Power Siting Board, which considers permit applications for energy projects in the state, to favor projects that the bill deems are both clean and reliable, as sponsoring Sen. Mark Romanchuk, a Richland County Republican, described it in an interview. The term ‘clean energy’ in common conversation refers to sources of electricity or fuel that don’t release carbon dioxide, greenhouse gasses or other pollutants into the atmosphere. That’s mainly solar, wind or, depending on who you ask, nuclear power.House Bill 294 would turn the phrase on its head, at least legally. It would grant ‘clean energy’ status to natural gas, the common term for methane. When methane is burnt, it emits carbon dioxide into the atmosphere, the biggest driver of global warming. Methane also tends to leak when it’s extracted and transported, and is a far more potent greenhouse gas than carbon dioxide in the short run. The legislation is in its early stages and would need to win supporting votes in the Senate, House and from the governor to become law. The exact legal weight of the change proposed in HB294 is unclear. The legislation cites a section of state law that spells out the regulatory process for developers to apply for permits for energy siting projects like gas-fired power plants (the Lordstown Energy Center being one example). How the law plays out would be determined by state regulators at the Ohio Power Siting Board who are appointed by the governor, and the Ohio Supreme Court, which is under firm 6-1 Republican control.HB294 says it declares to be state policy that Ohio:
- “Employ affordable, reliable, and clean energy sources,” whose definitions are tailored around natural gas
- “Ensure … the state prioritizes domestic production”
- “Prioritiz[es] infrastructure necessary to deliver energy to Ohio customers,” presumably a reference to gas pipelines
The legislation is reminiscent of the so-called“chicken bill” of 2022, where Republican lawmakers loaded up a bill once focused on niche poultry policy with late-breaking amendments, including one that dubiouslydeclared natural gas a “green energy.” By the time Gov. Mike DeWine signed the legislation, it included other amendments that enabled the current practice of fracking for natural gas in state parks and established legal protections for the use of pesticides.Ohio produces more natural gas than all but six states, according to the U.S. Energy Information Administration. That’s thanks to the shale boom that started around 2010. The gas industry says itcontributes tens of billions of dollars to Ohio’s economy each year. Sen. George Lang, one of the Republican co-sponsors, said in committee that natural gas is a cleaner energy source than coal. And Ohio, which sits on massive shale fields underground, should leverage that advantage amid spiking power demands nationwide driven by artificial intelligence, cryptocurrency and an uptick in manufacturing. “We need a tremendous amount of energy to succeed in business,” he said to lawmakers on the Senate Energy Committee. In an interview, Romanchuk said Ohio law already considers natural gas to be “green” energy, and he said the new definition is “tied in” to the federal Clean Air Act, landmark environmental legislation that sets ambient air quality standards in the U.S. Since 2009, the U.S. The Environmental Protection Agency hasinvoked the Clean Air Act to limit carbon emissions in the U.S. Romanchuk also suggested that while wind and solar power don’t produce greenhouse gasses when they’re operational, the process of building and constructing those operations might. “Leading up to that, there’s always some sort of environmental impact,” he said. Euclid Democratic Sen. Kent Smith said in an interview it’s disingenuous to describe natural gas as “clean.” But if the bill is just about pro-gas political messaging, maybe he’ll support it. But if it’s tipping the scales further towards the gas industry when it comes to permitting decisions, the Democrats will likely oppose it.
Strs Ohio Buys 39,535 Shares of Cheniere Energy, Inc. $LNG - Strs Ohio (State Teachers Retirement System of Ohio) increased its position in Cheniere Energy, Inc. by 23.4% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 208,535 shares of the energy company's stock after buying an additional 39,535 shares during the period. Strs Ohio owned 0.09% of Cheniere Energy worth $50,782,000 at the end of the most recent quarter. Cheniere Energy (NYSE:LNG - Get Free Report) last announced its earnings results on Thursday, August 7th. The energy company reported $7.30 earnings per share for the quarter, topping the consensus estimate of $2.35 by $4.95. The firm had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.48 billion. Cheniere Energy had a net margin of 21.05% and a return on equity of 37.83%. The firm's revenue for the quarter was up 42.8% on a year-over-year basis. During the same period in the prior year, the firm earned $3.84 EPS. As a group, research analysts anticipate that Cheniere Energy, Inc. will post 11.69 earnings per share for the current year. The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 18th. Stockholders of record on Friday, November 7th will be issued a $0.555 dividend. The ex-dividend date of this dividend is Friday, November 7th. This is a positive change from Cheniere Energy's previous quarterly dividend of $0.50. This represents a $2.22 dividend on an annualized basis and a dividend yield of 1.1%. Cheniere Energy's dividend payout ratio is currently 11.68%. Cheniere Energy, Inc, an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines.
Vallourec Star gets tax break to bring 40 new jobs to Youngstown - WFMJ.com - The Ohio Tax Credit Authority on Monday approved a seven-year job creation tax credit for Youngstown manufacturer Vallourec Star, LP, a move expected to result in 40 new full-time positions. The credit, valued at 1.126 percent of new payroll, supports Vallourec Star's plan to expand its current operations to manufacture a new line of high-quality steel pipe. The new positions are projected to generate more than $2.3 million in new annual payroll for the Mahoning Valley region.Ohio Department of Development Director Lydia Mihalik announced the approval today as part of a package of 12 projects across the state. In total, the projects reviewed by the Tax Credit Authority and regional partner JobsOhio are expected to create 1,126 new jobs, retain 2,686 existing jobs, and result in more than $2 billion in total investment statewide. The Youngstown-Warren Regional Chamber (YWRC) sent the following statement on this expansion."Vallourec’s proposed expansion reflects continued confidence in the Valley’s workforce and business environment. This investment would strengthen our industrial foundation and grow the local supply chain at companies like Brilex Industries and City Machine Technologies. This also would further solidify the Valley as the supply chain capital of the Utica Shale."Vallourec Star supplies the Oil Country Tubular Goods market globally from its Youngstown base, which has a long history in steel production. The manufacturer’s facility in the city’s Brier Hill neighborhood utilizes an electric arc furnace for steelmaking, pipe rolling, heat treatment, and specialized threading processes.
Ohio Launches $100M Fund for Natural Gas, Nuclear Infrastructure --Marcellus Drilling News - Yesterday, Ohio Governor Mike DeWine and JobsOhio (a private nonprofit economic development corporation) launched the $100 million JobsOhio Energy Opportunity Initiative, a five-year fund to bolster economic development through energy production. The initiative will provide grants and low-interest loans to qualifying companies to offset costs related to natural gas, power generation, and nuclear power, specifically Small Modular Reactors (SMRs).
MPR Building New Sand Storage Along Ohio River in Belmont County -- Marcellus Drilling News - Here’s a neat company we haven’t written about in 4 1/2 years: MPR Supply Chain. It’s a family-owned and operated riverfront transloading facility located in Bellaire, Ohio, at mile markers 92.5 and 93.7 on the Ohio River. MPR’s facility is a Gateway Distribution Point, located minutes from major north-south and east-west transportation routes and within 24 hours of two-thirds of the population of both the United States and Canada, including some of the largest material-consuming regions in the country. MPR moves a LOT of frac sand for the Marcellus/Utica industry through its facility, and has been for 10 years. MPR just broke ground on an expansion.
Leaking Eureka Williamsport Plant Begins Hauling Wastewater to OH -- Marcellus Drilling News - On August 17, Eureka Resources’ Williamsport Second Street facility (one of the three plants previously operated by Eureka) leaked some of its stored untreated wastewater, which ended up in the nearby Susquehanna River via a storm drain (see ‘Black Goop’ Spills into Susquehanna River from Closed Eureka Plant). As of mid-September, the Pennsylvania Department of Environmental Protection (DEP) reported nearly all of the spill that could be gathered had been collected (see PA DEP: Spill Cleanup at Eureka Williamsport Plant Nearly Complete). With the cleanup now complete, it’s time to haul away the wastewater..
Gulfport eyes Q3 gains after plan to expand oil/gas drilling - Gulfport Energy, headquartered in Oklahoma City, will release its third-quarter earnings report Nov. 4, following an aggressive plan to expand drilling operations.The company allocated $75 million to $100 million after the second quarter to acquire additional acreage for oil and gas development. Investors are eager to see if those efforts delivered early results.Gulfport reported strong operational growth across its core regions in Q2.The company brought 14 gross wells online – eight targeting Ohio’s Utica shale, four in the Marcellus, and two in Oklahoma’s SCOOP play.Production climbed 8% from the first quarter, averaging 1,006.3 million cubic feet of gas equivalent per day. Liquid output increased 26% to 19,200 barrels daily, signaling rising efficiency and improved well performance.Financially, Gulfport posted $184.5 million in net income and $212.3 million in adjusted EBITDA, with $231.4 million in operating cash flow.President and CEO John Reinhart credited the company’s momentum for driving new investments.“We are pleased to announce our plans to allocate $75 million to $100 million toward targeted discretionary acreage acquisition opportunities in the coming months and anticipate this investment will expand our high-quality, low-breakeven inventory by more than two years. This represents the highest level of leasehold investment at Gulfport in more than six years, reinforcing our ongoing commitment to organically grow our inventory runway and increase development optionality.”While much of Gulfport’s drilling takes place in Ohio’s Utica and Marcellus formations, Oklahoma remains a key component of its portfolio. The company continues development in the SCOOP Woodford and SCOOP Springer formations, both known for consistent natural gas production and strong well economics.
Expand Energy 3Q Added 7,500 Acres to “Core Marcellus” in OH, WV -- Marcellus Drilling News - During the third quarter, Expand Energy, formed by the merger of Chesapeake Energy and Southwestern Energy in late 2024, significantly expanded its portfolio by acquiring 82,500 new acres across the Marcellus and Haynesville shale plays for approximately $235 million. The company added approximately 7,500 acres in the Marcellus in Ohio and West Virginia for $57 million, which can accommodate over 40 well locations. The larger acquisition involved 75,000 acres in the western Haynesville for $178 million, with the potential for over 200 locations. Expand, which produced 7.33 Bcfe/d (92% natural gas), reported strong financial results for the quarter, including nearly $3 billion in revenue and a profit of $547 million. The company produced 7.2 Bcfe/d in 2Q25. Expand is the largest natural gas producer in the country.
Appalachian Pure-play E&Ps Bolting on Acreage to Stay Ahead of Looming LNG, AI Demand --Appalachian natural gas producers are expanding their positions and again announcing plans to boost output ahead of a wave of expected demand growth being driven by LNG exports and power generation.
Line chart showing NGI’s Appalachia Regional Average Daily Natural Gas Prices from November 2024 to November 2025, with sharp price spikes above $12.00/MMBtu in early 2025 followed by a gradual decline and stable trading between $2.00 and $4.00/MMBtu later in the year. At A Glance:
CNX, Antero among producers adding acreage
Antero adding spot rig to test production speed
Most Appalachian operators targeting higher output
CNX Resources Corp., another Appalachian pure-play, said Thursday it has acquired 23,000 acres for $50 million to tap the Utica Shale resources below properties it acquired earlier this year from Apex Energy II LLC in southwestern Pennsylvania.
39 New Shale Well Permits Issued for PA-OH-WV Oct 20 – 26 --Marcellus Drilling News -- After the high number of new permits issued two weeks ago, we thought last week the new permit number would sink (fast) for sure. But no! For the week of October 20 – 26, the number of permits issued to drill new wells in the Marcellus/Utica *increased* from the previous week. There were 39 new permits issued across the three M-U states last week, up from the 37 issued two weeks ago. Pennsylvania issued 23 new permits last week, up from 19 the previous week. Ohio issued 11 permits, a slight decrease from 13 two weeks ago. And West Virginia issued 5 new permits, the same number as two weeks ago. Just, wow! ASCENT RESOURCES | BELMONT COUNTY | BRADFORD COUNTY | BUTLER COUNTY | EQT CORP | EXPAND ENERGY | GREENE COUNTY (PA) | GUERNSEY COUNTY | HARRISON COUNTY | LYCOMING COUNTY | MARSHALL COUNTY | PENNENERGY RESOURCES | PENNSYLVANIA GENERAL ENERGY | REPSOL | SENECA RESOURCES | TIOGA COUNTY (PA)
EnCap Secures $2 Billion to Advance PennEnergy’s Marcellus Gas Expansion - EnCap Investments has closed a $2 billion continuation vehicle for PennEnergy Resources. The fund will support development of PennEnergy’s Marcellus Shale assets, expand its natural gas inventory, and fund bolt-on growth opportunities in a favorable gas market. (P&GJ) — EnCap Investments L.P. has closed a $2 billion continuation vehicle to support the long-term development of PennEnergy Resources, LLC, marking the largest capital raise for a continuation structure in the upstream energy sector to date. The vehicle, managed by EnCap, allows existing and new investors to extend their participation in PennEnergy’s Marcellus Shale assets while providing fresh growth capital for future expansion and bolt-on opportunities. The fund is anchored by Andros Capital Partners and Goldman Sachs Alternatives’ Vintage Strategies, with additional commitments from EnCap Energy Capital Fund XII, the EnCap General Partner, and PennEnergy management. The new financing ensures that PennEnergy, a Pittsburgh-based independent focused on Marcellus Shale natural gas production, can continue to develop its high-quality, long-life resource inventory amid a constructive gas market. The structure provides investors with continued exposure to one of the largest and most productive dry gas basins in North America. Jason DeLorenzo, Managing Partner at EnCap, said the strong investor response underscores confidence in both PennEnergy’s assets and EnCap’s long-term investment approach. “This transaction highlights the high-quality nature of PennEnergy’s business and the strong partnerships we’ve built across our investor base.” The $2 billion continuation vehicle will also provide flexibility for strategic acquisitions and infrastructure optimization across PennEnergy’s operational footprint, positioning the company to capture growth in domestic and LNG-linked gas demand. EnCap, one of North America’s leading energy private equity firms, has raised more than $40 billion across its energy-focused funds since its founding in 1988. The firm continues to deploy capital into upstream and midstream ventures aligned with long-term natural gas and energy transition trends.
Minor Wastewater Spill of 340 Bbls at EQT Pad in Greene County, PA -- Marcellus Drilling News - EQT Corporation self-reported a wastewater spill at its Secretariat Well Site in Gilmore Township (Greene County), PA, on October 3. Multiple spots were found after the completions crew removed its containment apparatus from the pad. EQT immediately got to work remediating the site and has (so far) removed 340 barrels of wastewater (14,280 gallons) and 21.5 roll-off boxes of dirt. EQT reported the spill to the Pennsylvania Department of Environmental Protection (DEP) as soon as it was observed on October 3. A DEP inspector finally showed up on October 10.
Strong Supply, Softer Exports Drive Record U.S. Propane Inventories -- The EIA reported a 2.5 MMbbl build in total U.S. propane/propylene inventories for the week ended October 24 — the largest storage level since recordkeeping began in 2011 and well above industry expectations for an increase of 722 Mbbl and the average build of 283 Mbbl. Storage levels were 14% higher than the same period last year, which was the five-year high. Total U.S. propane/propylene stocks reached a record 105.7 MMbbl, about 4.2 MMbbl (4%) above the same week in 2024 and the five-year maximum. Inventories were also 12.7 MMbbl (14%) above the five-year average, underscoring continued strength in supply heading into winter. PADD 3 propane inventories increased by 1.7 MMbbl last week, lifting total stocks in the region to 62.6 MMbbl — the highest level since recordkeeping began in 2011. Inventories were 3.7 MMbbl (6%) above the same week in 2024 and above the five-year maximum. Stocks were also 10.4 MMbbl (20%) higher than the five-year average, highlighting sustained strength in Gulf Coast supply heading into the winter season. Weekly propane exports reported by the EIA averaged 1.65 MMb/d, down 243 Mb/d from the previous week. Exports were below the recent four-week average of 1.89 MMb/d but remained above the 1.58 MMb/d reported in the same week last year. The decline reflects slightly weaker near-term loadings, though overall export levels remain strong by historical standards. The pullback in exports likely contributed to the Gulf Coast’s inventory build, adding to already high storage levels heading into the winter season.
Radicals Sue FERC for Reissuing NESE “Zombie” Pipeline Certification -- Marcellus Drilling News - In May, pipeline giant Williams filed a 246-page request with the Federal Energy Regulatory Commission (FERC) to expedite the reissuance of a certificate for the Northeast Supply Enhancement (NESE) project, a billion-dollar-plus project designed to increase Transco pipeline capacity and flows of Marcellus gas heading into New York City and other northeastern markets (see Williams Files Request Asking FERC to Reissue NESE Cert in NY, NJ). In late August, FERC did just that (see FERC Reissues NESE Pipeline Project Certificate for NY, NJ). Radical anti-fossil fuel groups asked FERC for a “rehearing” to reconsider the decision. FERC didn’t agree to rehear its decision, resulting in a lawsuit.
All We Are Saying ... Is Give (NESE) a Chance – Can Williams Finally Build Its New York City Pipeline? - This past spring — 10 years after Williams Cos. first proposed the Northeast Supply Enhancement Project (NESE) and one year after it scrapped plans for it — the effort to add 400 MMcf/d of natural gas pipeline capacity into New York City and Long Island was revived, thanks largely to a changing political climate in Washington, DC. Since then, the Federal Energy Regulatory Commission (FERC) has re-approved the project and regulators in New York and New Jersey have been mulling over whether to issue water-quality permits for the $1-billion-plus plan. In today’s RBN blog, we discuss Williams’s renewed push to get NESE permitted and built — and the uncertainty still ahead.As we said in Fight Song, it took nine years, an act of Congress and a Supreme Court ruling — yes, really! — for the developers of Mountain Valley Pipeline (MVP) to take their 303-mile, 2-Bcf/d project from announcement to startup. Well, Williams’s plan to build NESE was, like the plan by EQT Midstream Partners and other developers of MVP, first unveiled way back in 2015, but unlike MVP it still isn’t up and running. Williams was successful in securing a Certificate of Public Convenience and Necessity (CPCN) for the project from FERC in 2019. However, the New York Department of Environmental Conservation (DEC) and the New Jersey Department of Environmental Protection (DEP) both rejected the midstreamer’s applications for Water Quality Certification under Section 401 of the federal Clean Water Act, citing (among other things) concern about the project’s impact on aquatic resources. Williams appealed those denials but walked away from it all in April 2024 when FERC’s CPCN was about to expire.Fast-forward to March of this year when, just before a planned White House meeting with New York Governor Kathy Hochul, President Trump tweeted that he would no longer allow New York to block important infrastructure projects like NESE and the Constitution Pipeline project in upstate New York, adding, “We will use federal approval!” In April, the Trump administration put more pressure on Hochul by issuing a stop-work order on the massive Empire Wind project off Long Island, which was fully permitted and under construction. But that move was rescinded in May when the governor promised that state agencies would give pipelines and other fossil-fuel-related projects a fair hearing.Williams announced soon thereafter that it had decided to revive the left-for-dead NESE project with new applications to FERC, DEC and DEP. At the same time, Williams said it would pursue a possible revival of the 125-mile, 650-MMcf/d Constitution Pipeline in upstate New York, but only if Northeastern governors invited it “with the red carpet rolled out,” in the words of Williams’s then-CEO (and now executive chairman) Alan Armstrong. [The Constitution project, which was approved by FERC in 2014 but denied a New York water-quality permit in 2016 and effectively canceled in 2020, would run from northeastern Pennsylvania to west of Albany, NY, where it would tie into the Tennessee Gas Pipeline (TGP) and Iroquois Pipeline systems to bring gas east and south to Massachusetts, Connecticut and Long Island. More on Constitution in a moment.]Before we delve further into NESE’s current status and prospects, we should describe what the project involves. First of all, it would be the latest in a series of enhancements that Williams has been making to its 10,000-mile-plus Transco system, which runs between South Texas and New York City. We’ve blogged extensively the past couple of years about Williams’s ongoing efforts to increase southbound capacity on Transco between New Jersey and the Southeast — see our recent Don’t Stop Believin’ for more — but the company had previously made a number of improvements to the uppermost reaches of the Transco system that feed the Big Apple.For example, back in 2013, Williams completed its Northeast Supply Link project, adding 250 MMcf/d of eastbound capacity on Transco’s mainline and Leidy systems. That project included 12 miles of 42-inch-diameter pipeline in new loops, or parallel lines, in Pennsylvania’s Lycoming and Monroe counties and in Hunterdon County, NJ, as well as 26 miles of pipeline upgrades and new or upgraded compression stations. Over the next four years, Williams also completed its Rockaway Delivery Lateral, Northeast Connector and New York Bay Expansion projects, each of which enabled more Marcellus-sourced gas to flow into New York City. The NESE project would give the region’s gas grid another boost. As in the original plan several years ago, the recently revived project would involve installing 10 miles of 42-inch-diameter pipeline looping (parallel piping) along Transco in Lancaster County, PA (red line labeled #1 to lower-left in Figure 1 above); a 3.4-mile, 26-inch-diameter onshore loop of the Lower New York Bay Lateral (LNYBL) in Middlesex County, NJ (red line labeled #2 within small box in upper-right and in inset map); and a 23-mile, 26-inch offshore loop of LNYBL itself (red line labeled #3 in upper-right and in inset map). That last segment would run to the offshore Rockaway Transfer Point, an existing interconnection between the LNYBL (long blue line under New York Harbor) and the Rockaway Delivery Lateral (short blue line from eastern end of #3 to long, narrow Rockaway Peninsula). The Rockaway lateral connects to National Grid’s distribution system in Brooklyn. Also planned are additional compression at a station in Chester County, PA, and a new 32,000-horsepower compressor station in Somerset County, NJ. The overall project, slated for completion in Q4 2027, would provide 400 MMcf/d of firm transportation capacity to gas utility National Grid’s service territory in three of New York City’s five boroughs (Staten Island, Brooklyn and Queens) and on Long Island’s Nassau and Suffolk counties. NESE is still two state water-quality permits shy of what it needs. In New York, DEC this summer held a 40-day comment period but — despite the objection of NESE’s opponents — no public hearings on Williams’s application. (Back in 2019, DEC held two such hearings.) The agency is expected to announce soon whether it will issue a water-quality certification this time around. In New Jersey, DEP in September held a virtual public hearing on the revived NESE application and a subsequent public comment period that is now closed. Like its counterpart in New York, DEP is expected to issue its decision regarding a water-quality permit sometime soon. Finally, regarding the possible resuscitation of the Constitution Pipeline (red line in Figure 2 above), Williams has so far made no commitment. Still, the company recently submitted permit applications to agencies in Pennsylvania and New York. Also, Williams’s website states that it plans to submit applications to FERC in 2025, with the expectation of receiving the commission’s approval in August 2026, starting construction in Q4 2026, and bringing the new pipeline online in April 2028.
MVP Asks FERC to Approve Expanded Capacity by Extra 600 MMcf/d --In July 2024, EQT announced a plan to expand capacity along the 303-mile Mountain Valley Pipeline (MVP) from 2.0 billion cubic feet per day (Bcf/d) to 2.5 Bcf/d (see EQT’s Game Plan Changed – Keep MVP & Expand Extra 0.5 Bcf/d). In July of this year, the company said it had concluded an open season (where new customers may claim the expanded capacity) and was already preordering equipment for the expansion, ahead of an official filing with the Federal Energy Regulatory Commission (see EQT Ordering Equipment to Expand MVP from 2.0 to 2.5 Bcf/d). Yesterday, EQT announced that it had finally submitted its official request to FERC. However, the company upped the requested capacity from 500 to 600 MMcf/d (or 0.6 Bcf/d). Cool!
MVP Boost Expected to be 0.6 Bcf/d -EQT announced that the MVP Boost expansion will be 0.6 Bcf/d, rather than the 0.5 Bcf/d previously announced, as the open season was oversubscribed. EQT announced during its quarterly earnings call on Wednesday that the open season on the expansion of Mountain Valley Pipeline (MVP) has been strong and oversubscribed. The expansion, which the company calls the “MVP boost,” is being upsized to 0.6 Bcf/d, higher than the previously announced 0.5 Bcf/d. All of the project’s volumes will be delivered to utilities in the Southeast under 20-year capacity reservation fee contracts. We have shown in the weekly NATGAS Appalachia report that while MVP flowed near capacity this past winter, utilization has averaged only 71% from April through the present as seen in the graph above due to downstream constraints on Transco South of Station 165. EQT’s Toby Rice stated that these bottlenecks “will be solved when the Transco southbound and northbound expansion projects are completed in 2027 and 2028." This refers to Transco’s Southeast Supply Enhancement and Northeast Supply Enhancement, which are expected to increase the line’s capacity. The MVP Southgate project will also help to debottleneck the area south of Station 165.
Columbia Gulf Transmission Natural Gas Prices Under Pressure amid Pipeline Work; LNG Feed Gas Flows Volatile - Key insights on the natural gas market provided by NGI's price and data analysts. Chart showing Columbia Gulf Mainline and South Louisiana regional average daily natural gas prices compared with Cameron LNG feed gas deliveries from August to October 2025, illustrating price stability amid variable LNG demand.
- Columbia Gulf Mainline spot prices jumped 14.0 cents to $3.14/MMBtu on Monday (Oct. 27) before dropping 1.5 cents on Tuesday and another 7.5 cents as of midday Wednesday. Columbia Gulf Mainline prices have averaged $2.86/MMBtu through the month, below both the South Louisiana Regional Avg. and benchmark Henry Hub, according to NGI’s Daily Historical Data.
- The softening in Columbia Gulf Mainline prices could be tied to planned maintenance at Columbia Gulf Transmission’s (CGT) Rayne Compressor Station, in Acadia Parish, LA, that began Tuesday. The work reduced delivery capacity at Cameron LNG to 650 MMcf/d, with CGT anticipating possible curtailments to interruptible, secondary firm and primary firm services through the end of the scheduled work on Friday. Cameron Interstate Pipeline (CIP) is expected to continue to provide a majority of the gas for production.
- Notably, net feed gas deliveries to Cameron LNG plunged to under 30 MMcf/d on Monday after averaging 2.06 Bcf/d over the last 30 days, according to Wood Mackenzie and pipeline electronic bulletin board data. Net flows from both CGT and CIP increased to 910,000 MMcf/d Wednesday even as maintenance continued.
- Meanwhile, CGT also began work farther upstream at the Grayson Compressor Station, reducing capacity through StanSEG, in Powell, KY, to between 1.93 Bcf/d and 1.98 Bcf/d, or by an estimated 17% of designed capacity. This work is expected to last through Nov. 7 and could potentially impact prices farther downstream, albeit to a lesser degree.
- With mostly mild weather still in play ahead of the winter, several U.S. LNG facilities are operating at reduced capacity. Over the past week, feed gas deliveries have fluctuated between 14.73 Bcf/d to as much as 16.72 Bcf/d, NGI’s LNG Export Flow Tracker shows.
U.S. Feedgas Demand Continues to Soar -All 18 Blocks at Venture Global’s Plaquemines now authorized to take feedgas, pushing U.S. LNG feedgas demand higher. - U.S. LNG feedgas demand continues to climb as terminals begin ramping up for peak winter production and commissioning volumes at Plaquemines rose. Last week, U.S. LNG feedgas demand averaged 16.6 Bcf/d (see blue-dotted line below), up 0.4 Bcf/d from the prior week, primarily driven by higher intake at Sabine Pass, along with increases at Corpus Christi and Plaquemines. Cove Point intake is consistent with previous winter peaks, while Sabine Pass and Cameron are higher than summer levels but not yet at full winter highs. Intake at Corpus Christi increased slightly last week, though it remains somewhat below typical levels. Calcasieu Pass and Freeport also continue to operate slightly below full contracted levels. Freeport Train 2 tripped offline on October 22 due to a compressor issue but was restarted quickly, with feedgas only impacted that day. Intake at the commissioning Plaquemines LNG terminal ticked up last week and was above 3.7 Bcf/d over the weekend, a new record high. Venture Global was given permission to introduce feedgas at Liquefaction Block 17. Now, all 18 blocks at the terminal are authorized to take feedgas and produce LNG.
FERC gives Louisiana gas export project 4-year extension - Developers of a natural gas export terminal planned in southwestern Louisiana now have four additional years to finish construction and place the project in service.In a decision Tuesday, the Federal Energy Regulatory Commission granted a time extension request for the Commonwealth LNG project — moving the deadline to complete the facility from November 2027 to the end of 2031.“Based on the facts presented in the request and the case record, Commonwealth is granted an extension of time,” said Olubukola Pope, a branch chief in FERC’s Office of Energy Projects.Commonwealth asked for the extra time earlier this month, saying that despite the company’s efforts, “development of the Project has been delayed due to extenuating circumstances outside of Commonwealth’s control.” In its letter, a lawyer for Commonwealth cited the 2024 remand of FERC’s authorization order and its “unprecedented, historic delay” in securing a license from the Department of Energy to export to countries that lack a free trade agreement with the U.S.
Golden Pass Ramping by Year’s End as ExxonMobil Builds Global LNG Portfolio -ExxonMobil remains firmly committed to expanding its LNG portfolio, with the Golden Pass export terminal in Texas on track to begin operations around the end of the year, according to CEO Darren Woods. At A Glance:
- LNG demand forecast to double by 2050
- Cornerstone of long-term strategy
- Finding new resources still key
Cheniere Accelerates Corpus Christi LNG Ramp-up, Breaks Daily Output Record --Cheniere Energy Inc.’s management team expects a fourth train at its Corpus Christi LNG (CCL) expansion project to come online a month ahead of schedule and be completed by the end of this year. Chart titled “North America LNG Export Flow Tracker” showing U.S. LNG export volumes through October 30, 2025. The chart tracks daily U.S. LNG deliveries in million Dth, with volumes fluctuating between roughly 15.5 and 17.6 million Dth from October 21–30. Facility-level data lists Corpus Christi, Sabine Pass, and Plaquemines, LA, as top exporters. A U.S. map highlights LNG export terminals and locations in Texas, Louisiana, Maryland, Canada, and Mexico. At A Glance:
Corpus Christi expansion ahead of schedule
Single-day LNG production record hit
Advancing over 100 Mt/y of expansion projects
You Need to Calm Down – Increasing Texas/Louisiana Production to Feed Ever-Growing List of LNG Plants - Several large-scale LNG export projects have reached a final investment decision (FID) this year along the U.S. Gulf Coast, with most expected to start up between 2029 and 2031. They will be supported by new pipeline capacity to deliver natural gas from producing areas, but how and where will production increase to meet this new demand? In today’s RBN blog, we detail the movement of gas throughout Texas and Louisiana and highlight the key findings in the newest edition of our Arrow Model Released monthly, the Arrow Model is a comprehensive analytical tool that explains shifting natural gas flows and market dynamics in Texas and Louisiana. Built for energy professionals, it delivers key insights and forecasts into pipeline capacity, price impacts, and directional trends — helping you understand what’s changing and why. The projects that have taken FID this year will add a combined 64.5 million tons per annum (MMtpa; equal to about 8.5 Bcf/d) of export capacity. They include:
- Venture Global’s CP2 (yellow diamond in Figure 1) in Louisiana, with a capacity of 15 MMtpa (1.95 Bcf/d) and a 2027 startup.
- Woodside’s Louisiana LNG (red diamond), with a Phase 1 capacity of 16.5 MMtpa (2.2 Bcf/d) and a 2029 online target.
- The Midscale expansion trains (Trains 8 and 9) at Cheniere’s Corpus Christi (orange diamond), with a combined capacity of 3 MMtpa (0.4 Bcf/d); they are expected to start up in 2029.
- Sempra’s Port Arthur 2 (green diamond) in Texas, with an initial capacity of 13 MMtpa (1.7 Bcf/d) and commercial operation slated for startup in 2030.
Last but not least, NextDecade’s Rio Grande project (purple diamond) will be getting bigger, expanding with Trains 4 and 5 with a capacity of 6 MMtpa each (0.8 Bcf/d). Train 4 is expected to start up in the second half of 2030, with Train 5 following in the first half of 2031.These projects are being supported by huge expansions of pipeline capacity, as a number of pipelines have either reached FID or announced expansions beyond their original intended capacity in 2025. The Traverse (dashed red-and-black line in Figure 2 below) and Pelican (dashed magenta-and-black line) pipelines, which were originally expected to have a capacity of 1.75 Bcf/d, each said more recently that their capacity would be 0.75 Bcf/d higher. Traverse is scheduled to start up in Q1 2027, with Pelican to follow in Q2 2027. The latter will help flow more gas to the Sabine River, LA, region, which has the largest concentration of LNG export facilities. The CP Express pipeline (dashed purple-and-black line) was announced the same day as Venture Global’s CP2 project, which will be directly linked to that line. The pipeline will have a capacity of 2.2 Bcf/d and come online in Q4 2027. The 1.5-Bcf/d Hugh Brinson Pipeline (dashed dark-green-and-black line; see Hugh Do You Love?), which is expected to begin service in 2026, will expand by another 0.7 Bcf/d in 2027. This will bring more gas out of the Permian, mitigating the kind of oversupply in that region that pushed cash prices to record negative lows recently.The 1.5-Bcf/d Trident Pipeline (dashed yellow-and-black line; see Over The Hump), which is expected to be online in Q1 2027, will also expand by 0.5 Bcf/d in 2028. Trident will move gas from west of Houston to the Texas side of the Sabine River, through what is now one of the most constrained areas in the gas market, helping to ensure that the new gas coming out of the Permian will be able to reach the region of increasing demand. More gas will also be moving east from the Permian, as the Eiger Express Pipeline (dashed orange-and-black line; see Climb Ev’ry Mountain) recently took FID and will have a capacity of 2.5 Bcf/d when it begins service in mid-2028. Finally, the Mustang Express pipeline is expected to start up in 2029 also with a capacity of 2.5 Bcf/d (dashed turquoise-and-black line; see Mustang Sally), relieving some of the same constraints as Trident. These pipeline expansions mean that 9.9 Bcf/d of incremental natural gas will be able to make its way around the Texas and Louisiana region toward LNG exports. The addition of the LNG projects created a big problem in our modeling. Specifically, there needed to be a lot more natural gas production to meet the incremental demand, but where would it come from? Our previous scenario had a base-price assumption of $3.75/MMBtu, but at that price we were not seeing nearly enough production. There have also been concerns that the flattening profile of Permian crude oil production would leave gas production flat as well. For this latest production outlook, we increased our base-price assumption to $4.25/MMBtu with an expectation that all of this LNG demand will necessitate a price bump of at least that much. Note that in this scenario, we show the LNG plants running at or near full capacity, with some adjustments to account for the seasonality of maintenance cycles, and assume that the global LNG market will be able to absorb the additional supply. [That scenario also assumes a modest outlook for demand growth tied to data centers and artificial intelligence (AI) applications.] But how does our revised base-price assumption change expected gas production in the Haynesville and Permian and where those volumes move? Haynesville production is forecast to grow by 7 Bcf/d between 2025 and 2032, an increase of 1 Bcf/d per year, or a 6% compound annual growth rate (CAGR). Production on the Louisiana and Texas sides of the Haynesville will continue to grow at about the same rate, although the absolute increase for the Louisiana side will be bigger (5 Bcf/d) as it starts from a higher base. This production is able to make its way to most of the LNG projects along the Texas and Louisiana coasts. It is very valuable production, being geographically close to so many of the export facilities starting up. Permian production, in turn, is forecast to rise by 9 Bcf/d between 2025 and 2032, an increase of 1.2 Bcf/d per year, or 4.2% CAGR. In Don’t Worry, Be Happy, we detailed how NGL and gas production can continue to increase even as crude production flattens out. In fact, the blog post highlights that due to the increasing gas-to-oil ratio (GOR), gas production could stay flat or increase — even if Permian oil production falls. This is because the wells in the Permian are getting gassier over time and producers are drilling in gassier areas.Other producing regions include the Barnett Shale, whose natural gas production is forecast to be flat. Gas production in the Eagle Ford is forecast to grow, but by a much smaller amount than in the Haynesville. Total production growth in South Texas (primarily Eagle Ford) will be about 1.9 Bcf/d between 2025 and 2032, about 4% CAGR, or about 270 MMcf/d per year.Egress out of the Permian has been a particular concern, but the pipeline announcements over the last 10½ months indicate that the new capacity will largely remove most of the constraints. Figure 3 below shows the flows along various egress corridors in the Permian and how they are expected to change over time. Each pipeline corridor, or Arrow, is labelled with a letter from A to G, and aggregates capacity and flows on all the pipes included in that Arrow.
US natgas prices jump 4% on colder forecasts, record LNG export feedgas — U.S. natural gas futures jumped about 4% on Monday on forecasts for colder weather and more demand over the next two weeks than previously expected, and near-record flows of gas to liquefied natural gas (LNG) export plants. Front-month gas futures for November delivery on the New York Mercantile Exchange rose 13.8 cents, or 4.2%, to settle at $3.442 per million British thermal units (mmBtu). Traders noted that a small output increase in recent days and ample amounts of fuel in storage weighed on prices earlier in the day. The U.S. National Hurricane Center projected Hurricane Melissa would batter Jamaica, Cuba, the Bahamas and Bermuda as it moves northeast from the Caribbean Sea into the Atlantic Ocean over the next week. The system is not currently expected to hit the U.S. mainland during that time. LSEG said average gas output in the Lower 48 states fell to 107.0 billion cubic feet per day (bcfd) so far in October, down from 107.5 bcfd in September and a record monthly high of 108.0 bcfd in August. On a daily basis, however, output has held near a three-week high of around 108.0 bcfd over the past four days. That compares with a daily record high of 109.2 bcfd on July 28. Record output earlier this year allowed energy companies to inject more gas into storage than usual. There is currently about 5% more gas in storage than normal for this time of year. Meteorologists forecast temperatures across the country will remain mostly near normal through November 11. With the weather turning seasonally colder, LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 108.7 bcfd this week to 109.4 bcfd next week. Those forecasts were higher than LSEG's outlook on Friday. The average amount of gas flowing to the eight big U.S. LNG export plants has risen to 16.6 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 hit an all-time high of 17.4 bcfd on Sunday, topping the prior record of 17.3 bcfd on Saturday, with flows to Venture Global LNG's 3.2-bcfd Plaquemines plant in Louisiana at a record 3.9 bcfd. LNG plants can pull in more gas than they can turn into LNG because they use some of the fuel to power equipment.
US natural gas prices fall over 2% on profit-taking, mild weather outlook — U.S. natural gas futures fell more than 2% on Tuesday in volatile trade ahead of the expiration of the November contract, pressured by profit-taking and shifting weather forecasts that pointed to softer heating demand. Front-month gas futures for November delivery on the New York Mercantile Exchange fell 9.7 cents, or 2.8%, to settle at $3.345 per million British thermal units (mmBtu). The contract expires on Wednesday. "With the options expiring, there's probably some battleground there that's causing some of that price volatility. ... We're just seeing some profit-taking ahead of the storage report," "This pullback is driven by short-term weather model changes, but with strong LNG demand and higher baseline consumption, there's still upside potential. We're bullish overall but need normal weather to support prices," Hurricane Melissa was expected to bring catastrophe as it makes landfall in Jamaica with storm surges, flash floods and landslides in the worst storm to hit the Caribbean island this century, a U.N. weather official said on Tuesday. The Category 5 storm, the strongest possible on the Saffir-Simpson scale, will bring wind gusts of over 300 km/h (186 mph) and widespread devastation to the island, where authorities have ordered mandatory evacuations. 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. "Although injections will likely be declining seasonally for a couple of weeks into next month, latest weather forecasts are now favoring only a modest reduction in the current 164 bcf surplus that could provide a significant cushion against colder-than-normal temps until December when the temperature factor will take on a greater importance," Global liquefied natural gas (LNG) demand is set to rebound as new supply entering the market is expected to push prices down and spur interest from price-sensitive buyers, trading executives at the Asia Gas Markets Conference said on Tuesday. U.S. natural gas prices are down more than 5% so far this year after surging 44.5% in 2024. The average amount of gas flowing to the eight big U.S. LNG export plants has risen to 16.6 bcfd so far in October, up from 15.7 bcfd in September and a monthly record high of 16.0 bcfd in April.
US Natural Gas Futures Soar to Six-Month High on LNG Export Surge - (Reuters) – U.S. natural gas futures jumped about 4% on Friday to a six-month high, on near-record flows to liquefied natural gas (LNG) export plants, as output dropped and forecasters expected more demand over the next two weeks than they did previously. Front-month gas futures for December delivery on the New York Mercantile Exchange rose 16.8 cents, or 4.2%, to $4.124 per million British thermal units (mmBtu), their highest close since April 3. For the first time in four weeks, the contract remained technically overbought for a second straight day. For the week, the front-month was up about 25%, its biggest weekly percentage gain since a record of around 33% in May 2024. Last week, the contract rose 10%. For the month, the contract was up about 25%, its biggest monthly percentage gain since February. It gained 10% last month. Crude futures have dropped 12% over the past three months, so the oil-to-gas ratio, the level where oil trades compared with gas, narrowed to 15-to-1, its lowest since December 2022. On an energy equivalent basis, oil should only trade six times over gas. So far in 2025, crude prices have averaged about 19 times over gas, down from 33 times over gas in 2024 and 21 times over gas during the prior five years (2019-2023). LSEG said average gas output in the Lower 48 states fell to 107.0 billion cubic feet per day (bcfd) so far in October, down from 107.5 bcfd in September and a record monthly high of 108.0 bcfd in August. Record output earlier this year allowed energy companies to inject more gas into storage than usual. There is about 4% more gas in storage than normal for this time of year. Meteorologists forecast temperatures across the country will remain mostly warmer than normal through November 15, which should limit heating demand. LSEG projected average gas demand in the Lower 48 states, including exports, would hold around 108.9 bcfd this week and next before rising to 109.8 bcfd in two weeks. The forecasts for this week and next were higher than LSEG’s outlook on Thursday. The average amount of gas flowing to the eight big U.S. LNG export plants rose to 16.6 bcfd so far in October from 15.7 bcfd in September and surpassing the monthly record high of 16.0 bcfd in April. On a daily basis, LNG feedgas was on track to rise to 17.9 bcfd on Friday, which would top the current record of 17.3 bcfd on October 25.
Trump administration halts plans for Atlantic oil drilling leases -- The US Government has scrapped plans to sell offshore oil and gas leases along the US East Coast following concerns raised by Republican leaders in the south-east, Bloomberg reported, citing people familiar with the matter. Previously, the administration had considered a broader strategy for offshore drilling rights, which included potential sales from the Gulf of Mexico to the Atlantic. However, the proposal sparked immediate criticism from environmental groups and Republican stakeholders, who feared its negative impact on tourism in the region. This concern mirrors the challenges faced during President Trump’s first term when a similar initiative to open the Atlantic for drilling was abandoned due to widespread opposition. The draft programme from the Interior Department may still undergo revisions before its public release, with officials expected to advance the proposal in a few weeks. This marks the initial step in a lengthy process to establish a new five-year schedule for offshore oil and gas leasing.
BP says fire extinguished at Indiana oil refinery; multiple units down (Reuters) - A fire ignited at BP's 440,000 barrel-per-day oil refinery in Whiting, Indiana, before it was extinguished on Friday morning, the company said. The blaze at the largest refinery in the U.S. Midwest caused gasoline prices to spike in parts of the region. The fire resulted from an operational incident, and there were no injuries, the company said in an emailed statement. It did not elaborate on the incident. Reuters earlier reported multiple units were offline, according to two market sources that were citing data from consultancy Wood Mackenzie. The refinery was actively flaring, the controlled burning of excess gas, early on Friday, one of the sources said, citing a Wood Mackenzie camera feed of the plant. Wood Mackenzie confirmed it had issued an alert to clients saying the 255,000-bpd crude distillation unit, associated 60,325-bpd vacuum distillation unit, 100,000-bpd cat feed hydrotreater, and 24,300-bpd hydrotreater were shut during the early morning. In addition, the 115,000-bpd fluid catalytic cracker was shut on Thursday evening, Wood Mackenzie said in the alert. The crude distillation unit could be down for at least a week, two sources said. BP said the community may have heard internal refinery sirens and noticed flaring, but the company did not immediately respond to questions about the plant's operational status. The refinery in mid-September began planned maintenance work on its units, including the 90,000-bpd crude processing unit and a 65,000-bpd fluid catalytic cracker, according to industry monitor IIR. The planned turnaround was expected to last for two months. In August, the refinery took multiple units offline for more than a week due to flooding caused by a severe thunderstorm overnight. The refinery produces a wide range of liquid fuels, including gasoline, diesel, and jet fuel. "Great Lakes spot gasoline prices spiking on the BP refinery fire overnight, could lead to prices cycling soon. For now, wholesale prices pointing to about a 20c/gal rise," Gasoline prices in Midwest spot markets had also jumped earlier this week due to tightening supplies, as multiple regional refineries have taken units offline for maintenance, traders said.
Water shortage threatens Texas refining hub - One of the largest petrochemical and refining hubs along the Gulf Coast is facing its most severe water shortage in history, raising concerns among industrial and residential consumers. Corpus Christi, Texas, has been under major drought restrictions since last December. And city water officials estimate they’ll reach a Level 1 water emergency late next year — a status triggered when the city has 180 days before water demand outstrips water supply. That could lead to water curtailments for industrial users, which could cause some plants to shut down operations for the length of the curtailment, said Bob Paulison, executive director of the Coastal Bend Industry Association. “Other plants that have more flexibility and can accept some curtailment for longer periods of time, they may shut down units and parts of the plant,” Paulison said. “It depends on which plants you’re talking about and how long and how much of a curtailment there is.” A water emergency in Corpus Christi would be the first of its kind for a refining and petrochemical focal point in the region along the Gulf of Mexico, which President Donald Trump renamed the Gulf of America. The water issues are now being watched by the fossil fuel industry, water managers and residents who live in industrial areas that are increasingly prone to drought. The Gulf Coast has the capacity to refine about 10 million barrels of crude a day, according to the U.S. Energy Information Administration — more than 900,000 barrels of which are processed in the Corpus Christi area as of Jan. 1. Most of the water used to refine that oil comes from the city of Corpus Christi’s water system, which also serves more than 500,000 customers across a seven-county region in South Texas. Large-volume water users, which mostly include petrochemical plants and refineries, used more than 1.1 billion gallons of water in September, according to the city. That was more water than residential and commercial customers used combined. The city has waffled on a massive desalination plant that, if built, could produce up to 30 million gallons a day of fresh water. City council members voted in September against moving forward with design plans for the plant because of ballooning costs. But this month, the council voted to spend millions of dollars to secure water from a potential desalination project that would be operated by another entity. As that plan remains in limbo, some environmental and civil groups say the growth of refining and petrochemical manufacturing in the area has imperiled drinking water supplies for people. Jake Hernandez, a Coastal Bend field organizer with the Texas Campaign for the Environment, said the burden of curbing water use thus far has fallen more on residents than on major industrial companies. He pointed to water use restrictions now under effect for residents — who are not allowed to wash their cars at home or water their lawns most days — versus the lack of restrictions faced by refiners and petrochemical plants. “Industrial users get to continue to use as much water as they please, right?” Hernandez said. “What I think is really upsetting is that people are recognizing that there’s mistreatment, that there’s a difference in how we as residents are viewed in regards to where the water should go.” Clean water is crucial to processing crude and creating petrochemicals, said Susan Bell, vice president of oil commodity markets with the Rystad Energy research firm. Refineries use steam as a heat transfer mechanism to provide varying levels of heat to different levels of the refining process, Bell said. It’s used as a coolant throughout crude refining and petrochemical manufacturing. It’s used as a feedstock for hydrogen production and is key for the process of steam-methane reforming, which creates hydrogen out of natural gas. Most infrastructure at refineries and chemical plants are unable to use seawater or briny water, as it could corrode pipes and machinery, Bell said. Typically, that means they draw their freshwater supplies from municipal sources or from rivers, like the Nueces River that feeds into Corpus Christi Bay, she said. That means water cutbacks would mean companies would have to scale back their operations, Bell said. “It’s very difficult to operate these facilities reliably if you’re under water curtailment,” Bell said. “You really do have to scale back your throughput.” The two storage facilities managed by Corpus Christi Water, the city’s water provider, sat at about 11.7 percent of capacity as of Thursday, according to an online posting. Hernandez said growth in manufacturing, which includes petrochemical production and refining, has contributed to the city’s current water crisis. “These large industrial water users are driving this drought forward and making this sort of a manufactured incident, because our water consumption from our industrial users is so high,” Hernandez said. But Paulison said the increases in industrial water use alone cannot explain the huge dip in output from the area’s water supply streams. When the city approved selling water to industrial users in recent years, he said, it looked like the water system could provide enough water to meet all the system’s needs. “The point everybody is missing is even with those increases in demand, we should be well within range that our system is reliably producing enough water, but it’s not,” Paulison said. “We think based on publicly available data that the lake system is underperforming.” Based on the current rate, city officials estimate there could be a full-blown water emergency by November 2026 — and that the city could empty its main storage facilities by April 2027.
The extent of an oil spill in Galveston is not yet known, Coast Guard says – Federal and state authorities are cleaning up an oil spill in the Port of Galveston after a ship collided with a pier late Tuesday night, according to the U.S. Coast Guard. A ship from ForestWave Navigation BV, a Dutch shipping company, allegedly struck Pier 32, the Coast Guard said. The oil spill was stopped, but authorities say they don't know how much oil went into the water before that. ForestWave did not immediately respond to a request for comment Thursday. No one was injured, according to a news release from the Coast Guard, which said it had not received any reports about impacts to wildlife. The Coast Guard as well as the Texas General Land Office are working with ForestWave to respond to the spill. The Coast Guard said the air and safety of the area are being monitored. Bob Stokes, the president of the Galveston Bay Foundation, told Houston Public Media he had limited concern about the extent of the spill, though he had not seen the scope of the damage firsthand. "It didn't look like a major spill to me at all," Stokes said. "One concern is that it was very windy [Wednesday], and it's hard to contain oil by booms when it's windy." In an effort to reduce the impact of the spill, the Galveston Ship Channel was closed from Gulf Copper to Pelican Island Bridge. That area includes where many cruise ships dock along Galveston Island.
Oil spill contained after vessel strikes pier in Galveston, Coast Guard says — The U.S. Coast Guard and the Texas General Land Office are responding to an oil discharge near Galveston after a vessel struck Pier 32 at the Port of Galveston on Tuesday night. Coast Guard Sector Houston-Galveston watchstanders received a report at approximately 9:50 p.m. of fuel oil spilling from a vessel following a collision with the pier. The source of the spill has been secured, though the exact amount of oil discharged remains under investigation. The Coast Guard, Texas General Land Office and the vessel's operator, Forestwave Navigation BV, deployed personnel and equipment to the scene. As a precautionary measure, the Galveston Ship Channel was closed from Gulf Copper to the Pelican Island Bridge to minimize the spill's impact. Responders are continuously monitoring air quality and assessing safety conditions in the affected area. No injuries or impacts to wildlife have been reported so far. The Coast Guard is asking mariners to report any oil sightings to the National Response Center at 800-424-8802. The cause of the incident is currently under investigation.
Diesel Prices Surge Amid U.S. Sanctions On Russian Oil Giants - Retail diesel prices in the United States have registered the third-largest weekly increase this year, according to the Department of Energy (DOE) and Energy Information Administration (EIA). The national average for diesel climbed to $3.718 per gallon, up 9.8 cents from the previous week—the largest jump since a 20.4-cent surge on June 23. This increase erased the modest gains of the prior two weeks and lifted the benchmark price above the level seen three weeks ago at $3.711 per gallon. The new figures, effective Monday and released Tuesday, reflect the immediate market reaction to recent U.S. sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil. The sanctions, announced by the Trump administration, have shifted sentiment in global oil markets. Market responses were swift. Ultra-low sulfur diesel on the CME commodity exchange jumped 4.38 cents per gallon to $2.2496 on Wednesday. The following day saw an even larger gain, with prices rising 15.34 cents to $2.24964 per gallon—a one-day increase unprecedented since December 22, 2022. While the raw cent increase was slightly smaller than that 2022 spike, the percentage gain was notably higher. By Monday, prices settled at $2.4361 per gallon, with early Tuesday trading showing a minor decline of less than one cent. Analysts say the sanctions’ impact is twofold. First, U.S. assets of Rosneft and Lukoil are effectively frozen, including any holdings exceeding 50% ownership. More consequential, however, are secondary sanctions. According to Treasury guidance, entities engaging in transactions with the designated Russian firms risk facing sanctions themselves. This provision signals a warning to countries purchasing Russian oil, such as India, and has driven up global prices as buyers look for alternative suppliers. The sanctions have also affected European markets. Diesel and gasoil—heavily supplied by Russia—have seen price increases amid supply concerns. Energy consulting firm Energy Aspects noted that the spread between first- and second-month gasoil contracts on the ICE commodity exchange widened, indicating inventory worries. However, the firm projected easing balances from December onward, forecasting global stockpiles in December 2025–January 2026 to exceed the five-year average by 22 million barrels, assuming workarounds for Russian diesel can be found. Rising OPEC+ crude production and strong refinery margins are also expected to bolster supply in the Atlantic basin. U.S. diesel inventories present a mixed picture. For the third week of October, non-jet distillate stocks—approximately 90% diesel—stood at 115 million barrels, higher than the same period over the past three years but below pre-pandemic levels, which ranged from 120 million barrels in 2019 to 152 million barrels in 2016.
Hawaii Signs Deal with Jera, Potentially Reviving LNG Import Option -Hawaii Gov. Josh Green has signed a strategic partnership agreement with Jera Co. Inc., one of the world’s largest LNG buyers.
Bar chart titled “Net Value of Hawaii’s Potential LNG Transition” showing estimated benefits and costs in billions of dollars. Benefits include $1.5 billion in fuel cost savings, $0.5 billion in avoided deferred hydrogen capital costs, and $0.1 billion in incremental O&M cost savings, totaling $2.1–$2.2 billion. Costs total $1.4 billion in capital costs.. At A Glance:
Hawaii explores LNG as bridge fuel
Japan’s Jera partners on energy shift
Study shows LNG may cut costs
Equinor Sees U.S. LNG Wave Easing Price Volatility, Warns of Political Ceiling on Exports --Equinor ASA is anticipating a wave of LNG supply, mostly from the United States, to cool global price volatility, but management warned not to overestimate the “political” limit rising Henry Hub prices could have on the rapid export expansion. Line chart titled “NGI’s Henry Hub Forward Fixed Price Curve” showing projected U.S. natural gas prices from late 2025 through 2027. The curve begins near $3.40/MMBtu, rises above $4.00/MMBtu in early 2026, peaks around $4.85/MMBtu in early 2027, then declines to near $3.40/MMBtu mid-2027 before modestly recovering. The chart illustrates expected volatility in Henry Hub gas futures over the two-year outlook. At A Glance:
Gas demand growth up 3%
Realized Euro gas price averaged $11.40
U.S. LNG capacity seen rising
More U.S. LNG Lands in Europe as Cargoes Divert to Capture Stronger Prices --Europe is heading into what could be its last high-stakes winter before a wave of new LNG supply loosens global natural gas markets and ushers in a calmer post-crisis era. Chart titled “Estimated Sabine Pass / Europe (Gate) 12-Month Forward LNG Arbitrage Curves” showing projected LNG arbitrage spreads between U.S. Henry Hub and Europe’s TTF through November 2026. The graph compares Variable Cost Only and Total Cost arbitrage curves, both fluctuating between roughly $5.5 and $6.5/MMBtu. The data table below lists monthly Henry Hub futures, shipping costs, landed costs, and corresponding arbitrage spreads, with highest spreads in early 2026. At A Glance:
Europe thought in the clear after winter
LNG supply expansion accelerating in 2026
Focus shifting toward Asia
Brazil Tops October Latin America LNG Imports as Prices Dip below Europe’s TTF -- Brazil was the main buyer of LNG in the Latin America and Caribbean region in October as the country continued a broad strategy to diversify its energy mix and increase supply security.Chart displaying Latin America DES LNG prices dated October 30, 2025, with delivery price data for Argentina’s Escobar, Brazil’s Pecem, Chile’s Quintero, Colombia, Mexico’s Altamira and Manzanillo, and Panama’s Costa Norte terminals, showing slight declines for December through February. At A Glance:
Latin America imports up month/month
U.S. supplies 72% of Brazil October LNG imports
Petrobras pursues South American gas links
Rising U.S. Exports Keeping a Lid on Global Natural Gas Prices — LNG Recap --European and Asian natural gas prices continued to trade in a narrow range on Monday amid stable fundamentals. Table showing U.S. Gulf Coast LNG netback prices comparing benchmark futures settlements, estimated shipping costs, and export margins to key global markets including Japan/Korea, Northwest Europe, and the Title Transfer Facility. The chart illustrates month-by-month LNG price relationships, freight rate assumptions, and Henry Hub margin differentials used to evaluate U.S. LNG export competitiveness. At A Glance:
TTF, JKM rangebound
U.S. feed gas deliveries at 17 Bcf/d
U.S. cargo loadings near all-time high
U.S. LNG to Supply One-third of Global Market by 2030, Tightening Price Spreads -- Asian and European LNG hub prices are expected to converge by the end of the decade, shrinking the profit margin of U.S. LNG amid a massive supply boom, according to the latest International Energy Agency (IEA) forecast. Chart showing North America’s operational and sanctioned LNG facility peak export capacity from 2016 to 2033, compiled by NGI using U.S. Department of Energy data. The stacked bar graph highlights U.S., Canadian, and Mexican LNG projects including Sabine Pass, Corpus Christi, Cameron, Freeport, Calcasieu Pass, Plaquemines, Golden Pass, LNG Canada, and Rio Grande LNG, illustrating steady capacity growth exceeding 40 Bcf/d by 2033. At A Glance:
IEA estimates 65 Bcm global LNG surplus
TTF, JKM five-year average seen dropping by 40%
U.S. export capacity set to grow 13.9 Bcf/d by 2029
How Trump Pressures the World Into Burning More Oil and Gas - As COP30 nears, the US’s pressure to keep fossil fuels relevant may empower petrostates, potentially giving them more leverage at the UN talks. The world was on the brink of a climate milestone: adopting a global carbon tax for the shipping industry. Countries had spent years crafting the plan, hoping to throttle planet-warming pollution from cargo vessels. They had every reason to think the measure would pass when the International Maritime Organization (IMO) met in mid-October. Enter Donald Trump. After returning to the White House for a second term, the president and his top officials undertook a monthslong campaign to defeat the initiative. The US threatened tariffs, levies and visa restrictions to get its way. A battery of American diplomats and cabinet secretaries met with various nations to twist arms, according to a senior US State Department official, who asked for anonymity to speak candidly. Nations were also warned of other potential consequences if they backed the tax on shipping emissions, including imposing sanctions on individuals and blocking ships from US ports. Under that Trump-led pressure—or intimidation, as some describe it—some countries started to waver. Ultimately, a bloc including the US, Saudi Arabia and Iran voted to adjourn the meeting for a year, killing any chance of the charge being adopted anytime soon. The US “bullied otherwise supportive or neutral countries into turning against” the net-zero plan for shipping, says Faïg Abbasov, a director at the European advocacy group Transport & Environment. With its intense lobbying at the IMO, the Trump administration was “waging war against multilateralism, UN diplomacy and climate diplomacy.” Since his return to Washington, Trump has used trade talks, tariff threats and verbal dressing-downs to encourage countries to jettison their renewable energy commitments (and buy more US oil and liquefied natural gas in the process). Just 10 months into his second term, the campaign is showing surprising success as key figures and countries increasingly buckle under the determined pressure. Oil and gas supporters champion the president’s ambition. They say he’s helped reset the global conversation around climate change and given a welcome political opening to banks, corporations and other governments that wanted to back away from some sustainability targets in the face of growing electricity demand. “President Trump is sort of providing the banks, the European Union and others cover for tempering their climate ambitions,” says Tom Pyle, president of the American Energy Alliance, an advocacy group. “He gives these countries the ability to say, ‘Hey, I’m just trying to go along with the United States here. That’s why I’m buying all this LNG.’” But in the eyes of environmental advocates and leaders who depend on multilateralism as a means for global climate action, Trump is unfairly asserting his will on a world that’s running out of time to rein in emissions and avert the worst consequences of global warming. “They’re clearly casting a much wider net to the climate destruction than they did the first time,” says Jake Schmidt, a senior strategic director for the Natural Resources Defense Council. “They have more people engaged in it, and they obviously had more time to plan for it.” The strong-arming is happening on multiple fronts. Among the biggest is trade, where Trump has already compelled Japan, South Korea and the EU to pledge to spend on American energy and energy infrastructure. Japan, for instance, agreed to invest $550 billion on US projects, and talks are underway to steer some of that funding to a $44 billion Alaska gas pipeline and export site. South Korea has pledged roughly $100 billion in US energy purchases. The EU, meanwhile, has vowed to spend some $750 billion buying American energy, including LNG, to secure lower tariffs on its exports to the US. Analysts have questioned whether those sales will fully materialize, since they’d require Europe to more than triple its annual energy imports from the US. But the public commitment by itself was a stunning move for a bloc that’s led the world in pushing policies to combat climate change—including by setting binding targets for slashing planet-warming pollution, establishing a “green deal” plan to shed fossil fuels and slapping a tariff on carbon-intensive imports. Trump administration officials have seized on the US-EU trade deal to urge other changes. For instance, Energy Secretary Chris Wright is pressuring the bloc to relax curbs on the methane footprint of imported gas. The EU is already easing corporate sustainability requirements so fewer companies are compelled to limit their environmental harms, a retrenchment that came after pressure from Germany and other European stakeholders as well as the White House. Meanwhile the US administration has been goading the International Energy Agency to shuffle its leadership and urged the IEA to reinstate forecasts that show a rosier outlook for fossil fuel demand. It has pressed multilateral development banks to prioritize fossil fuels over climate adaptation and clean energy projects when their financing of those green initiatives has become critical given widespread foreign aid cuts. And Trump himself has berated countries that aren’t falling in line. In a September speech to the United Nations General Assembly, he chided nations for setting policies around what he called the “hoax” and “con job” of climate change, warning that they can’t be “great again” without “traditional energy sources.” He’s also told UK Prime Minister Keir Starmer to reject wind turbines and embrace the North Sea’s oil riches. It’s a marked acceleration from term-one Trump. During his first four years in the White House, Trump’s “energy dominance” agenda amounted to rally cries of “drill, baby, drill” and slow steps to encourage more domestic oil and gas production. This time around, the president’s approach has global reach—and far fewer limits. And when it comes to international agreements relating to energy and climate, “the US has an interest in divide and rule, and thus breaking the potential for cooperation,” says Abby Innes, an associate professor in political economy at the London School of Economics. Whether or not US officials attend COP30 in November, the US president’s influence will loom large. “Countries like Saudi Arabia feel emboldened by Trump to promote fossil fuels,” says Linda Kalcher, founder of the Strategic Perspectives think tank and a veteran of the annual UN climate summits. One European diplomat said the main goal now at COP30 is just to avoid being bullied. To be sure, other countries haven’t followed the US exodus from the Paris Agreement, and the deployment of clean energy is still soaring globally. Even tax incentive phaseouts and project cancellations in the US are only slowing, not stopping, the country’s adoption of wind and solar power. And while multinational companies may be dialing down their green rhetoric, analysts say many are still quietly cleaning up their supply chains and operations to keep selling in California, Europe and other places demanding more sustainability. And in a perverse twist for a US president who’s decried the world’s reliance on China, other nations are increasingly linking arms with Beijing as they bid for zero-emission energy tech. “When it comes to dealing with China, whether it’s countries or companies, politicians and executives tell me: ‘Better the devil that you know,’” says Ioannis Ioannou, an associate professor at the London Business School whose research focuses on sustainability and corporate social responsibility. “It offers more stability than the Trump administration.”
Senate overturns Biden's Arctic drilling restrictions - The Senate on Thursday voted to overturn a Biden administration plan that would have restricted drilling in the Arctic. The vote was 52-45. Sen. John Fetterman (D-Pa.) joined Republicans in voting in favor. The 2022 Biden administration plan in question made about 52 percent of land available for drilling in an area known as the National Petroleum Reserve in Alaska. A previous Trump administration plan would have allowed drilling in 82 percent of the petroleum reserve. “This will benefit North Slope communities with jobs & economic growth, and support their tax base to improve access to essential services like water and sewer systems and clinics,” sponsor Sen. Dan Sullivan (R-Alaska) said in a post on the social platform X in September. If the House takes up the resolution, it’s likely to pass with the GOP majority and would also be expected to have President Trump’s support. The National Petroleum Reserve in Alaska was set aside in 1923 by former President Harding as an emergency oil reserve for the Navy. It is now managed by the Bureau of Land Management. The Biden administration argued that by shrinking the lands available for drilling, it was protecting areas of ecological significance. The vote was held under the Congressional Review Act, which allows the Senate to vote to overturn regulations with a simple majority, bypassing the filibuster. Add as preferred source on Google
Brazil Tops October Latin America LNG Imports as Prices Dip below Europe’s TTF -- Brazil was the main buyer of LNG in the Latin America and Caribbean region in October as the country continued a broad strategy to diversify its energy mix and increase supply security.Chart displaying Latin America DES LNG prices dated October 30, 2025, with delivery price data for Argentina’s Escobar, Brazil’s Pecem, Chile’s Quintero, Colombia, Mexico’s Altamira and Manzanillo, and Panama’s Costa Norte terminals, showing slight declines for December through February. At A Glance:
Latin America imports up month/month
U.S. supplies 72% of Brazil October LNG imports
Petrobras pursues South American gas links
Dow to Clarify Fate of Fort Saskatchewan Ethane Cracker Expansion in the New Year -- Dow, one of the world’s largest petrochemical companies, announced in its third quarter earnings conference call that it will provide clarity regarding an expansion of its ethane cracker located in Fort Saskatchewan, AB in early 2026. The expansion, dubbed the Path2Zero project (artist rendition below), originally sanctioned in November 2023, would more than double the existing cracker’s output of ethylene and other co-products would require a commensurate significant expansion in its consumption of ethane as feedstock (see Shock to the System for further details). The expansion would include additional emission abatement technologies to generate net zero Scope 1 and Scope 2 emissions with an estimated total cost of C$11 billion (US$8.1 billion). In April 2025, Dow announced an indefinite delay to the expansion citing uncertainties in global economic activity and whether it could time the expansion with growth in polyethylene demand. The company also noted that it remained committed to the expansion but did not provide any specifics as to a timeline that might determine the fate of the project (see Wish You Were Here for additional analysis). In its third quarter earnings conference call of October 23, Dow’s senior management stated that it will provide an update regarding the expansion in its fourth quarter earnings release on January 29. In addition, management again noted that the delay is not a cancellation and that it remains committed to the long-term strategic rationale that led to the initial sanctioning of the project in November 2023. Under the initial proposal, the Path2Zero project was planned as a two-stage expansion of the existing Dow ethane cracker that would result in a net increase in its ethane consumption from ~95 Mb/d in 2024 to ~205 Mb/d by 2029 (+110 Mb/d). This increase, when combined with small gains in ethane demand expected elsewhere in Alberta, should have increased the province’s total ethane consumption to ~385 Mb/d (+42%) by 2029 (red column in chart below). Given the delays, the exact timing and scope of any increase in ethane consumption remains uncertain, as well as the knock-on effects for other projects in Alberta that were directly or indirectly tied to the Dow expansion.
Shell Eyeing LNG Canada Export Edge to Asian Markets amid Gulf Coast FIDs -- North America remains central to Shell plc’s LNG growth strategy, but Canada offers a key shipping advantage to Asia as the Gulf Coast becomes overrun with export projects, CEO Wael Sawan Thursday. Line chart comparing daily natural gas prices at Henry Hub, NOVA/AECO C, and Westcoast Station 2 from October 2024 through October 2025, showing volatility early in 2025 and stabilizing trends into late 2025. At A Glance:
LNG Canada nears second train start
Groundbirch gas production flexible
Integrated gas income up 28%
ExxonMobil Fined £176,000 For Unplanned Flaring At Mossmorran Plant - ExxonMobil has been fined £176,000 after pleading guilty to breaching pollution control regulations at its Mossmorran chemical plant in Fife, Scotland, following a series of unplanned flaring incidents in April 2019. The Crown Office confirmed that the violations occurred between April 7 and April 26, 2019, and were heard at Kirkcaldy Sheriff Court on Tuesday. Prosecutors said the flaring was required for five days after an unexpected shutdown at the plant, which was triggered when a remaining boiler failed due to a faulty cable, causing a loss of steam balance. The Scottish Environment Protection Agency (Sepa) received more than 900 complaints from local residents regarding dark smoke and intense noise, with some describing it as similar to a jet engine. Many residents expressed fear of a potential explosion due to the prolonged flaring. While ExxonMobil had processes in place designed to prevent such incidents, prosecutors found these were not followed to a sufficient standard, resulting in breaches of environmental legislation. Iain Batho, leading environmental matters for the Crown Office and Procurator Fiscal Service (COPFS), emphasized the seriousness of the breaches: “The impact of the unplanned flaring from Mossmorran in April 2019 was both preventable and unacceptable, causing substantial stress and anxiety to nearby residents. Large global companies will ultimately be held accountable for breaches of environmental law in Scotland.” \ Flaring, the controlled burning of excess gas, is a necessary safety measure to prevent gas build-up within plants. In this case, several boilers and furnaces were taken offline for maintenance, and the shutdown of the final operational boiler necessitated continuous flaring for safety until operations could resume, a process that took approximately five days. “For nearly a week, communities around the Mossmorran site were impacted by unacceptable and preventable flaring. The volume of complaints, the highest ever received by Sepa for a single environmental event, illustrates the disruption and anxiety caused.” ExxonMobil has apologized for the incident and highlighted improvements made since 2019. The company has invested over £250 million to enhance operational reliability and reduce flaring, including the installation of an enclosed ground flare system, which operates without detectable smoke, noise, or vibration.
Oilfield Services Firm Petrofac Collapses - After years of restructuring and cost-cutting efforts, UK-listed oilfield services group Petrofac on Monday filed for administration, following the termination of its biggest contract. Petrofac’s directors have applied to the High Court of England and Wales to appoint administrators to Petrofac,said the company, which provides infrastructure and engineering services to the oil and gas, renewables, and power supply industries. When appointed, administrators will work alongside Executive Management to preserve value, operational capability and ongoing delivery across the Group’s operating and trading entities, Petrofac said today. The collapse was triggered by last week’s announcementof Dutch electricity grid operator TenneT that it had exercised its right to partial termination of a major contract related to the Petrofac scope. TenneT signed in March 2023 a framework cooperation agreement with a consortium consisting of Hitachi Energy and Petrofac for six 2 gigawatt (GW) projects out of the total of fourteen 2-GW grid connection systems that TenneT will realize via the 2GW Program.However, Petrofac, which has been undergoing a financial restructuring since 2024, has not been able to meet its contractual obligations, leading to TenneT terminating the Petrofac scope. “At the same time, a solution has been put in place involving a consortium of Hitachi Energy and a replacement contract,” TenneT said last week. Today, Petrofac noted that “Having carefully assessed its options, and the impact of TenneT’s decision to terminate Petrofac’s scope of work on the 2GW programme in the Netherlands, the Directors of Petrofac Limited (the Group’s ultimate holding company) have applied to the High Court of England and Wales to appoint administrators to Petrofac Limited.” More than 2,000 job are at risk in Scotland because of Petrofac’s collapse, Sky News reported on Monday. Yet, sources close to Petrofac told Sky News that they hope Petrofac’s North Sea operations could soon find a buyer. Petrofac’s collapse and potential job losses come as the UK government is being urged to avoid accelerating the decline of North Sea oil and gas production through policies, especially the windfall tax on operators.
Exclusive: US excludes Rosneft Germany from Russia sanctions, German minister says (Reuters) - The U.S. government has provided written assurances that the German business of Russia's Rosneft would be exempt from new energy sanctions because the assets are no longer under Russian control, Germany's economy minister said. Katherina Reiche said the United States issued a "Letter of Comfort" early on Tuesday, acknowledging that Rosneft's operations in Germany had been fully separated from the Russian parent company. Germany had sought clarity from Washington after President Donald Trump's administration introduced sanctions that bar Western banks and clients from engaging with listed Russian firms. "A letter of comfort to this effect has been in place since three o'clock this morning," Reiche told Reuters, adding that even though the exemption was not limited in time, further clarifications were pending. Reiche said the letter of comfort removed any uncertainty for customers as to whether they could be affected by U.S. sanctions when doing business with Rosneft's German subsidiaries. A spokesperson for the economy ministry, in a separate statement, said talks with the U.S. government continued to permanently stave off U.S. sanctions against Rosneft's German assets. Berlin had argued the refineries, under German state trusteeship since 2022, are "decoupled" from the parent group, while being essential for the nation's fuel supply. Among the assets is the PCK refinery in Schwedt, one of Germany's largest, accounting for over 12% of fuel processing capacity in the country. PCK Schwedt, in which Rosneft owns 54.17%, is also a major employer in Brandenburg, a region experiencing rising support for the far-right Alternative for Germany (AfD) party. Apart from the majority stake in PCK Schwedt, Rosneft's German activities also include a 24% stake in the MiRo and a 28.57% stake in the Bayernoil refineries.
Suez Canal blocked after sanctioned tanker carrying Russian oil grounded in key waterway | Upstream Twenty ships still held back after incident.
Satellite Data Reveals Surge in Oil and Gas Methane Emissions -Global satellite-detected methane emissions from the onshore upstream oil and gas sector increased in late 2024 and early 2025, reversing a steady decline since 2020, with a 40% year-on-year increase in carbon footprint from detected plumes. Regional differences are stark, with China's emissions surging by nearly one-third, the US seeing a 4% rise, and Russia experiencing a 5% drop due to lower production volumes; aging infrastructure in Central Asian and North African countries also contributes significantly to methane footprints. Despite policy uncertainties and rollbacks in some regions, methane reduction has become a top priority for producers due to its high warming potential, with countries like India stepping up management efforts, while seasonal patterns and detection factors influence measured emissions. Global satellite-detected methane emissions from the onshore upstream oil and gas sector ticked up late last year and into the first quarter of 2025, reversing a steady decline since 2020. Rystad Energy analysis, supported by satellite detection, highlights stark regional differences: China’s emissions surged nearly one-third year on year, while the US recorded a smaller rise of 4%. Russia, on the other hand, posted a 5% drop in the first quarter, largely due to the ongoing Russia-Ukraine conflict leading to lower production volumes. Detected methane plumes – clouds of concentrated methane (CH?) gas released into the atmosphere – revealed variations in emission density and rate for different regions. Roughly 45,000 plumes were detected in the first quarter of 2025, increasing by 14,000 from the same quarter in 2024. These plumes carried a combined carbon footprint of about 45 million tonnes of carbon dioxide equivalent (CO?e) – a 40% increase year on year. A large portion of detected plumes can be seen in areas such as the Middle East, North Africa, China , Russia and North America – and several countries within these regions have high production volumes, which result in low methane intensity despite high absolute methane emissions. Conversely, aging infrastructure at processing facilities, compressor stations and well operations could be contributing a disproportionately high methane footprint in several Central Asian and North African countries relative to their share of global hydrocarbon production. Upstream oil and gas production is a major source of emissions, responsible for about 20% of all human-caused methane leaks into the atmosphere. The biggest challenge is detection but, once found, most can be fixed, unlike carbon dioxide [CO?], which largely comes from combustion and is harder to avoid. That’s why methane reduction has become a top priority for producers. With a shorter atmospheric lifespan but far greater warming potential than CO?, companies need to shift from long-term strategies to immediate action, making methane abatement a near-term focus. A lot of large leak events are also not found in most exploration and production [E&P] company reporting, which needs to be addressed,
Oil prices climb as U.S.–China trade framework boosts market optimism - Oil prices rose in early Asian trading on Monday after U.S. and Chinese officials outlined a trade-deal framework, easing global economic concerns and boosting investor sentiment. The agreement between the world’s top two oil consumers is seen as a step toward reducing trade tensions that have weighed on global growth and energy demand. Brent crude futures gained 46 cents, or 0.7%, to $66.40 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 46 cents, or 0.75%, to $61.96 by 0027 GMT. The gains follow a strong week in which Brent surged 8.9% and WTI rose 7.7%, fueled by new U.S. and EU sanctions on Russia’s energy sector. According to Haitong Securities, market sentiment has improved as easing U.S.–China tensions and sanctions on Russia counterbalance earlier fears of crude oversupply. U.S. Treasury Secretary Scott Bessent said that both sides had reached a “very substantial framework” for a trade deal during talks in Kuala Lumpur, which will pave the way for meetings between President Donald Trump and President Xi Jinping later this week. Bessent confirmed the framework includes the avoidance of 100% U.S. tariffs on Chinese goods and the deferral of China’s rare-earth export controls. Trump also expressed optimism, saying he expects to finalize a deal during meetings in China and the United States. Analysts, however, cautioned that potential oversupply risks remain. “If sanctions on Russian energy prove less effective than anticipated, downward pressure on prices could return,” said Yang An of Haitong Securities. Still, optimism over trade diplomacy and sanctions-driven tightening continues to support oil prices in the near term.
Framework Agreed to Avoid 100% U.S. Tariffs on Chinese Goods - The oil market traded lower on Monday amid some skepticism that U.S.-China trade deal framework would increase demand for oil and expectations that OPEC+ will make another increase of about 157,000 bpd at its meeting this coming weekend. On Sunday, U.S. Treasury Secretary Scott Bessent said the U.S. and China agreed to a framework for a trade deal that could avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China’s rare-earth export controls in trade discussions this week. The oil market was more skeptical of a possible trade deal than the equities market, which rallied to new highs. The crude market opened higher and quickly traded to a high of $62.17. However, the market sold off to a low of $60.67 in overnight trading. The market later bounced off its low and retraced most of its losses as it traded back towards the $62.00 level by mid-day. The market later erased some of its gains and settled in a sideways trading range ahead of the close. The December WTI contract ended the session down 19 cents at $61.31 and the December Brent contract settled down 32 cents at $65.62. The product markets ended the session in mixed territory, with the heating oil market settling up 3.3 cents at $2.4361 and the RB market settling down 23 points at $1.9204. Sources stated that eight OPEC+ nations are leaning towards making another modest increase in oil output for December when they meet on Sunday as Saudi Arabia pushes to reclaim market share. Two sources said the group was likely to agree on Sunday to increase December output targets by another 137,000 bpd, while the other two sources gave no estimate. The producer group most recently decided to raise targets by 137,000 bpd for November. U.S. President Donald Trump said that Russian President Vladimir Putin should end the war in Ukraine instead of testing a nuclear-powered missile, adding that the U.S. had a nuclear submarine positioned off Russia’s coast. On Sunday, Russia’s President said that Russia had successfully tested its nuclear-powered Burevestnik cruise missile, a nuclear-capable weapon Moscow says can pierce any defense shield, and will move towards deploying the weapon. On Saturday, Reuters reported that the Trump administration has prepared additional sanctions it could use to target key areas of Russia’s economy if Putin continues to delay ending Moscow’s war in Ukraine. U.S. President Donald Trump said he hoped to add a trade deal with China to a number of pacts he has already struck during a visit to Asia this week. President Trump announced deals with four Southeast Asian countries during the first stop in Malaysia and will conclude his trip in a summit with Chinese President Xi Jinping on Thursday. U.S. officials said negotiators from the world’s top two economies agreed on a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls. IIR Energy reported that U.S. oil refiners are expected to shut in about 981,000 bpd of capacity in the week ending October 31st, increasing available refining capacity by 111,000 bpd.
Oil settles lower as OPEC plans to increase oil output (Reuters) - Oil prices settled marginally lower on Monday as OPEC's plans to increase oil output once again outweighed hopes of a trade deal framework between the U.S. and China and renewed U.S. sanctions on Russia. Brent crude futures were down about 32 cents, or nearly 0.5%, at $65.62 a barrel, while U.S. West Texas Intermediate crude futures closed 19 cents or 0.3% lower at $61.31. Both contracts fell around 1% in early trade. Eight OPEC+ nations are leaning towards making another modest increase in oil output for December when they meet on Sunday as Saudi Arabia pushes to reclaim market share, four sources familiar with the talks said. U.S. President Donald Trump and his Chinese counterpart Xi Jinping are due to meet on Thursday to decide on that could pause tougher U.S. tariffs and China's rare-earth export curbs, easing market jitters around a trade war. U.S. Treasury Secretary Scott Bessent said on Sunday that U.S. and Chinese officials had hashed out a "substantial framework" for a trade deal that could avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China's rare-earth export controls in trade discussions this week. "Crude futures are taking a breather from last week's steep rally as President Trump is meeting with Chinese President Xi and staff for trade negotiations on Thursday to hopefully finalize most differences," The United States hit Russia's major oil companies with sanctions on Wednesday, which could hurt Russia's oil exports if enforced and be a positive for crude prices, Kissler added. "While the futures market has added in additional trade with China and less crude exports from Russia, traders remain cautious as to how much this will actually affect global supplies," Concerns over lacklustre demand have weighed on the market, with Brent falling to its lowest since May earlier this month, but renewed sanctions on Russia from the U.S. along with stronger-than-expected U.S. demand have helped buoy prices. "The hope for bulls is that U.S. consumption continues to recover, otherwise it seems the drift lower seen so far today is likely to intensify," OPEC and its allies have changed course this year by reversing previous production cuts to regain market share, helping in part to keep a lid on oil prices. Iraq, the OPEC group's biggest overproducer, was in negotiations over the size of its quota within its available capacity of 5.5 million barrels per day, oil minister Hayan Abdel-Ghani said at an oil conference on Monday. The fire at Iraq's Zubair oilfield on Sunday did not impact exports from the country, he added. Last week, Brent and WTI rose 8.9% and 7.7%, respectively, on U.S. and EU sanctions on Russia. "There are likely some continued challenges for Russian oil to enter the market, but it depends on how sanctions will be enforced,"
Oil Prices Slip As OPEC+ Output Hike Plans Offset US-China Trade Deal Optimism -- Global oil prices slipped slightly on Tuesday as optimism around a potential trade breakthrough between the United States and China was offset by reports that OPEC+ may move to increase production later this year. Meanwhile, investors remained cautious, assessing the impact of fresh sanctions imposed on Russia. Brent crude futures edged down by 3 cents to settle at $65.59 a barrel around 9:30 AM, while US West Texas Intermediate (WTI) crude dropped by 5 cents to $61.26, reported Reuters. Analysts said traders were juggling multiple market signals, balancing renewed trade optimism against the prospect of rising supply. “Traders weighed up progress in US-China trade talks and the broader outlook for supply,” ANZ said in a morning note. Citing sources familiar with the matter, the news agency revealed that OPEC+, which includes members of the Organisation of the Petroleum Exporting Countries and allies such as Russia, is considering another modest output hike in December. The alliance had previously cut production for several years to stabilise prices, but began reversing those cuts in April. Market sentiment was also buoyed by the anticipation of a potential US-China trade agreement. The world’s two largest oil consumers are set to see their leaders, President Donald Trump and President Xi Jinping, meet in South Korea on Thursday. Chinese Foreign Minister Wang Yi, in a conversation with US Secretary of State Marco Rubio, said Beijing hoped Washington could “meet it halfway” to pave the way for constructive dialogue. The renewed diplomatic engagement between the two economic giants raised hopes of a demand recovery for crude oil, which had been weighed down by global economic uncertainty and trade tensions over the past year. Adding to the market’s mixed mood were new sanctions from Washington targeting Russian oil majors, including Lukoil and Rosneft, in response to the ongoing war in Ukraine. The sanctions marked the first major move against Russia’s energy sector during Trump’s second term. Following the move, Russia’s second-largest oil producer, Lukoil, announced plans to sell its international assets, a significant shift in the country’s corporate landscape. Despite the headlines, market analysts noted that the immediate impact of these sanctions on oil supply would likely be limited. Fatih Birol, Executive Director of the International Energy Agency (IEA), commented that while sanctions on key oil exporters could push up crude prices, the effect would be tempered by the industry’s surplus production capacity. Last week, Brent and WTI futures recorded their strongest weekly gains since June, spurred by geopolitical developments and tightening inventories. However, analysts at Haitong Securities noted that the new sanctions would have only a short-term effect, with oversupply expected to continue putting downward pressure on prices.
Oil falls 1% as investors assess Russia sanctions, OPEC+ output plans - Oil prices fell by more than 1% on Tuesday in a third day of declines as investors assess the effect of U.S. sanctions on Russia’s two biggest oil companies along with a potential OPEC+ plan to raise output. Brent crude futures were down 93 cents, or 1.4%, to $64.69 a barrel at 1137 GMT. U.S. West Texas Intermediate crude futures were down 84 cents, or 1.4%, at $60.47. “Traders weighed up progress in U.S.-China trade talks and the broader outlook for supply,” ANZ said in a morning note. Brent and WTI last week registered their biggest weekly gain since June, reacting to U.S. President Donald Trump’s decision to impose Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft. Investors continue to chew over how effective those sanctions on Russia might be. “The oil market is still debating whether the latest sanctions will impact Russian oil exports or not, with market players reducing somewhat the supply risk premium built in last week,” said UBS analyst Giovanni Staunovo. The effect of sanctions on oil-exporting countries will be limited because of surplus capacity, International Energy Agency Executive Director Fatih Birol said on Tuesday. Following the U.S. sanctions, Russia’s second-largest oil producer, Lukoil, said on Monday it would sell its international assets. This is the most consequential action so far by a Russian company in the wake of Western sanctions over Russia’s war in Ukraine, which started in February 2022. Meanwhile, Indian refiners have not placed new orders for Russian oil purchases since sanctions were imposed, as they await clarity from the government and suppliers, sources told Reuters on Tuesday. OPEC+, which groups the Organization of Petroleum Exporting Countries and allies including Russia, is leaning toward another modest output boost in December, four sources familiar with the talks told Reuters. Having curbed production for several years in a bid to support the oil market, the group started reversing those cuts in April. Investors will watch the prospect of a trade deal between the U.S. and China, the world’s two biggest oil consumers, with Trump and President Xi Jinping due to meet on Thursday in South Korea. Beijing hopes Washington can meet it halfway to “prepare for high-level interactions” between the two countries, Foreign Minister Wang Yi told U.S. Secretary of State Marco Rubio in a phone call on Monday.
Traders Discounted the Impact of the U.S. Sanctions Against Russia -- The crude market sold off 1.9% on Tuesday, posting its third consecutive down day, as traders discounted the impact of the U.S. sanctions imposed against Russia’s Lukoil and Rosneft, while a potential OPEC+ plan to increase their output at their meeting this weekend weighed on sentiment. The head of the IEA said the effect of sanctions on oil exporting countries will be limited because of surplus capacity. The oil market posted a high of $61.50 on the opening and continued to trend lower, posting a low of $59.76 by mid-day. The market later retraced some of its losses ahead of the close. The December WTI contract settled down $1.16 at $60.15 and the December Brent contract settled down $1.22 at $64.40. The product markets ended the session in mixed territory, with the heating oil market settling down 4.89 cents at $2.3872 and the RB market settling up 48 points at $1.9252. The International Energy Agency’s Executive Director, Fatih Birol, said sanctions on oil-exporting countries could push up crude prices but the effect will be limited because of surplus capacity. He said that while sanctions could push prices upward, the effect is limited with oil prices holding at around $60/barrel due to a huge amount of surplus capacity. He said “Today, despite so many political tensions around the world, Middle East, Russia, Ukraine, major economic, trade wars, oil prices are still $60, exactly what we said.” He added “The oil and gas markets will enter a very distinct period, which is in the absence of major geopolitical tensions, we are going to see lower oil and gas prices.” Many Indian refiners have paused new orders for Russian oil since U.S. sanctions were imposed on Russia’s Lukoil and Rosneft last week as they await clarity from the government and suppliers, with some turning to the spot market for alternatives. An Indian government source said Indian companies will not buy Rosneft or Lukoil crude oil supplied by traders after the two Russian producers were hit by U.S. sanctions. The source said it is difficult to predict when Indian companies will place new orders for Russian oil. However, state-run Indian Oil said it would not stop buying Russian oil as long as it is complying with sanctions. Ukrainian President, Volodymyr Zelenskiy, said Ukraine was ready for peace talks anywhere besides Russia and Belarus if those talks ended the war, but that its forces would “take no steps back” on the battlefield to cede territory. He also urged U.S. lawmakers to pass tougher sanctions on Russia, and said Ukraine would need stable financing from its European allies for another two or three years. The Kremlin said that Russia offered top quality energy at a good price and so its partners would decide for themselves whether or not to buy Russian energy after the United States imposed sanctions on Russia’s top oil companies. The CEO of Saudi Aramco, Amin Nasser, said crude oil demand was strong even before sanctions were imposed on Russia’s Rosneft and Lukoil and that Chinese demand was still healthy.
Crude Oil Futures Dip Despite Drop In US Inventories - Crude oil futures edged lower on Wednesday morning, even after industry data indicated a notable decline in US oil inventories. During the initial hour of trading on the Multi Commodity Exchange (MCX), November crude oil futures were quoted at 5,323 rupees, down 0.13% from Tuesday’s close of ₹5,330. December futures traded at 5,308 rupees, a decline of 0.11% from the previous session. Internationally, Brent crude for January delivery fell 0.11% to $63.76, while December West Texas Intermediate (WTI) crude slipped 0.10% to $60.09 by 9:57 AM IST. The drop in prices came despite data from the American Petroleum Institute (API) showing that US crude oil inventories fell by 4 million barrels in the week ending October 24, surpassing the previous week’s decline of 2.98 million barrels. The United States remains one of the world’s largest crude consumers. Market participants are awaiting official figures from the US Energy Information Administration (EIA), scheduled for release later on Wednesday. The report is expected to provide a more precise assessment of US crude stock levels. Investor attention is also focused on US Federal Reserve Chair Jerome Powell’s announcement regarding policy rates, with expectations of a 25-basis-point rate cut. Additionally, global markets are closely monitoring an upcoming meeting between the US and Chinese presidents, where trade tariff issues are likely to be discussed.
Oil Prices Slide As Sanctions, Oversupply Concerns Weigh On Market - International oil prices extended their decline for a third consecutive day on Wednesday, as investors weighed the potential impact of U.S. sanctions on Russia’s oil sector alongside ongoing concerns over global oversupply. During the Asian trading session, Brent crude fell below $65 per barrel, while U.S. West Texas Intermediate (WTI) crude hovered near $60 per barrel, marking a cumulative drop of more than 2% over recent days. In the United States, industry data revealed a roughly 4-million-barrel decrease in nationwide crude inventories, accompanied by reductions in gasoline and distillate stocks. However, Cushing, Oklahoma—the key oil storage hub—recorded a rise in inventories, highlighting regional disparities in supply and demand dynamics. Market sentiment remains cautious amid a prolonged period of declines, with oil prices falling for three straight months. Investors are closely watching OPEC+, which is scheduled to meet this weekend. Analysts widely expect the group to approve further production increases, potentially exacerbating oversupply concerns. Trade developments are also influencing market behavior. Ongoing negotiations between the United States and several Asian countries are being closely monitored for potential implications on crude flows and demand. “The current fundamentals of the oil market remain bearish: OPEC+ continues to increase supply, and the market is edging further into an oversupply situation,” said Warren Patterson, Head of Commodity Strategy at ING Group Singapore. “However, sanctions against Russia remain the biggest uncertainty, and we need more time to observe their actual impact.” Last week, the U.S. Treasury Department added Russian energy giants Rosneft and Lukoil to its sanctions list. Market participants are assessing how these measures may affect global crude distribution, while U.S. officials emphasize that the goal is to pressure Russia without causing a spike in global oil prices. In Asia, Indian state-owned refiners are evaluating the feasibility of continuing purchases of discounted Russian crude through channels not restricted by sanctions. Investor caution is further amplified by the approaching Federal Reserve policy meeting. Markets generally anticipate a 0.25 percentage point rate cut, which could influence risk appetite across commodities and other assets. On the European front, diesel futures have seen their premium over Brent crude climb to a near 20-month high, reflecting supply concerns driven by Russian sanctions and refinery outages. Analysts warn that this dynamic could tighten Europe’s refined product market in the near term. Technical indicators point to further pressure on crude. WTI crude has closed lower for three straight days, breaking below the $60.50 support level. The MACD shows increasing downward momentum, while the RSI hovers around 40, indicating that oil is not yet oversold and that additional declines are possible. Analysts suggest that if prices slip below $59.80, a new round of declines could target the $58 mark. Conversely, a recovery above $61.30 may prompt a short-term rebound, with resistance levels around $62.50 to $64. In summary, crude oil prices are currently biased toward weakness in the short term, with medium-term direction likely to hinge on the outcomes of the OPEC+ meeting and Federal Reserve interest rate policy.
WTI Selloff Stalls After Large Inventory Draws; US Crude Production Hit A New Record High -Oil prices held steady after a three-day drop as investors assessed the impact of Western sanctions against leading Russian crude producers, alongside a mixed industry estimate of US inventory changes. President Trump will follow through and enforce harsh new sanctions against Moscow to pressure Vladimir Putin into negotiations to end the war in Ukraine, according to Matthew Whitaker, the US ambassador to NATO. Indian state-owned refiners are considering whether they can continue to take some discounted Russian oil after the measures were imposed, though some processors will pause purchases for now. On Tuesday, Indian Oil Corp. said it is “absolutely not going to discontinue” purchases of Russian crude as long as it complies with international sanctions. “The market is now trying to assess the longer-term impact of the additional sanctions, which will be determined by the quantity of actual barrels removed from supply,” Standard Chartered analysts including Emily Ashford said in a note. Overnight prices stabilized after API showed across the board big inventory draws... API:
- Crude -4.0mm
- Cushing
- Gasoline -6.35mm
- Distillates -4.36mm
DOE
- Crude -6.86mm (-900k exp) - biggest draw in 7 weeks
- Cushing +1.334mm
- Gasoline -5.94mm - biggest draw since Oct 2024
- Distillates -3.36mm
The official inventory data confirmed the API's report with large drawdowns in inventories across crude and the products... Source: Bloomberg US Crude production rose to a new record high last week WTI rallied modestly on the big crude draw Oil is on track to notch a third monthly decline, with prices dragged lower by expectations of a global surplus as OPEC+ raises production. Key alliance nations are set to hold discussions this weekend, and may sign off on another supply increase. Traders are also tracking progress toward a US-China trade deal, with Trump and Chinese counterpart Xi Jinping due to meet on Thursday.
Oil settles higher on large drop in US stockpiles, trade optimism (Reuters) - Oil prices rose on Wednesday after data showed U.S. crude and fuel inventories drew down more than expected last week, and as U.S. President Donald Trump's optimistic tone over upcoming talks with his Chinese counterpart helped ease economic jitters. Brent crude futures rose 52 cents, or 0.8%, to settle at $64.92 a barrel, while U.S. West Texas Intermediate crude futures gained 33 cents, or 0.6%, to close at $60.48. U.S. crude oil, gasoline and distillate fuel stockpiles each fell more last week than analysts had expected, data from the U.S. Energy Information Administration showed on Wednesday. Crude oil stocks fell by nearly 7 million barrels, the data showed, far exceeding the 211,000-barrel drop that was forecast. The big decline forced a reassessment of expectations that the oil market is headed for a large surplus, with the OPEC+ group raising output and U.S. production at record levels. "Where's the glut?" Price Futures Group analyst Phil Flynn said after the report. "The longer the glut doesn't hit, the more we will question whether it exists," he said. The EIA data also showed strong implied oil demand, UBS analyst Giovanni Staunovo said. Combined with the decline in inventories, the EIA report was very positive for crude oil prices, he said. Trump predicted a good outcome from his talks with Chinese President Xi Jinping, which are scheduled to take place on Thursday at a summit in South Korea. Also at that summit, the U.S. and South Korea finalized details of a fraught trade deal. The optimistic note about U.S.-China talks and the deal with South Korea could help alleviate some concerns of a slump in economic activity from Trump's tariffs and trade wars, which have raised concerns around oil demand and weighed on commodity prices in recent months. Still, other concerns continue to plague the global economic outlook. A divided U.S. Federal Reserve on Wednesday cut interest rates by 25 basis points as expected, but Chair Jerome Powell's comments after the central bank meeting struck a note of caution on what lies ahead. Brent and WTI last week registered their biggest weekly gains since June after Trump imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting major oil companies Lukoil (LKOH.MM), opens new tab and Rosneft (ROSN.MM), opens new tab. However, doubts that sanctions would offset oversupply and talk of another OPEC+ output increase pressured prices; both benchmarks fell 1.9%, or more than $1, in the previous session. OPEC+, the world's largest group of oil-producing nations, is leaning towards a modest output boost in December, four sources familiar with the talks said, with two sources citing an additional 137,000 bpd.
Crude oil futures decline as Trump signals nuclear testing readiness - The HinduBusinessLine -Crude oil futures traded lower on Thursday morning as US President Donald Trump expressed his readiness to engage in nuclear weapons testing. Trump’s post on Truth Social came just minutes before his scheduled meeting with Chinese President Xi Jinping on Thursday. At 9.57 am on Thursday, January Brent oil futures were at $64.06, down by 0.40 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $60.19, down by 0.48 per cent. November crude oil futures were trading at 5342 rupees on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹5372, down by 0.56 per cent, and December futures were trading at ₹5330 rupees against the previous close of ₹5362, down by 0.60 per cent. In a post on social media platform Truth Social, Trump said: “The United States has more Nuclear Weapons than any other country. This was accomplished, including a complete update and renovation of existing weapons, during my First Term in office. Because of the tremendous destructive power, I HATED to do it, but had no choice! Russia is second, and China is a distant third, but will be even within 5 years. Because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis. That process will begin immediately.” The proposed meeting between Presidents of US and China is expected to focus on the tariff-related issues between these two nations. Trade tensions in the past few months had an impact on the price of commodities such as crude oil. Market players feel that a positive outcome from the meeting could help boost demand for energy-related commodities. Meanwhile, official data from the US EIA (Energy Information Administration) showed a decline in US crude oil inventories for the week ending October 24. According to EIA, US commercial crude oil inventories decreased by 6.9 million barrels for the week ending October 24. Total motor gasoline inventories decreased by 5.9 million barrels from last week, and distillate fuel inventories decreased by 3.4 million barrels last week. Total products supplied in the US over the last four-week period averaged 20.8 million barrels a day, down by 0.9 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.7 million barrels a day, down by 4.2 per cent from the same as the last year period. Distillate fuel product supplied averaged 4 million barrels a day over the past four weeks, down by 1.5 per cent from the same period last year. Jet fuel product supplied was up 7.6 per cent compared with the same four-week period last year. In their Commodities Feed for Thursday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the oil market had a choppy session on Wednesday, still trying to digest the impact of Russian sanctions amid an increasingly comfortable balance as markets head into 2026. However, a set of bullish numbers from the US EIA weekly inventory report ensured crude oil prices closed higher, with Brent settling 0.81 per cent higher on the day. US EIA reported that US crude oil inventories fell by 6.86 million barrels over the last week. It was driven by the Gulf Coast, where crude inventories declined by just shy of 10 million barrels. Lower imports were behind the inventory draw, with total crude imports falling 867,000 barrels a day week-on-week to the lowest level since February 2021, while Gulf Coast imports hit a record low, they said. The decline in gasoline inventories occurred despite exports falling 363,000 barrels a day. Stronger domestic demand provided support, with implied gasoline demand increasing 470,000 barrels a day week-on-week, while refiners also reduced their utilisation rates by 2 percentage points to 86.6 per cent, they said. November nickel futures were trading at ₹1277 on MCX during the initial hour of trading on Thursday against the previous close of ₹1327, down by 3.79 per cent. On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹13114 in the initial hour of trading on Thursday against the previous close of ₹12948, up by 1.28 per cent. December cottonseed oilcake futures were trading at ₹2939 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹2937, up by 0.07 per cent.
Tariff Cuts on China to Resume U.S. Soybean Purchases - Sprague Energy -The oil market ended the session slightly higher after it traded mostly sideways for much of the day as traders assessed the potential trade truce between the U.S. and China. President Donald Trump agreed to cut tariffs on China to 47% from 57% in a one-year deal in exchange for China resuming U.S. soybean purchases, keeping rare earths exports flowing and cracking down on the illicit fentanyl trade. The crude market continued to gradually trade lower in overnight trading and sold off to a low of $59.64 by mid-morning. However, the market bounced off its low and retraced its losses as it posted a high of $60.79 in afternoon trading as the market refocused on the larger than expected draws reported by the EIA on Wednesday. The oil market traded in sideways trading range ahead of the close. The December WTI contract settled up 9 cents at $60.57 and the December Brent contract settled up 8 cents at $65.00. The product markets ended the session higher, with the heating oil market settling up 3.57 cents at $2.46 and the RB market settling up 2.97 cents at $2.0034. U.S. President Donald Trump hailed a meeting with China’s Xi Jinping as “amazing” and “12” on a 10-point scale, but the agreement the two leaders reached appears to be no more than a fragile truce in a trade war with root causes still unresolved. The framework announced on Thursday includes China resuming soybean purchases, suspending its rare earth export curbs for a year and the U.S. lowering tariffs on China by 10% broadly rewinds ties to the status that existed before President Trump’s “Liberation Day” offensive triggered tit-for-tat escalation. President Trump said that tariffs on Chinese imports would be cut to 47% from around 57% by halving the rate of levies related to trade in fentanyl precursor chemicals to 10% from 20%. However, absent from the talks were the big issues cited by President Trump as he launched his tariffs in April, China’s industrial policies, manufacturing over-capacity, and its export-led growth model. China sees this as a stepping stone to a bigger meeting where they can stabilize the relationship. The two leaders agreed to two follow-up visits next year. During the meeting, China’s President Xi Jinping said China and the United States should not fall into a “vicious cycle of retaliation” against each other. U.S. Energy Secretary Wright said Thursday the U.S. is prepared to sell more oil and natural gas to China if China reduces its purchases from Russia. Meanwhile Trump posted to social media Thursday suggesting a “very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.” ANZ raised its three month crude oil price target to $70/barrel. It sees the U.S. move to sanction Russian oil companies presenting a significant increase in the risks to oil supply. It expects OPEC+ to approve another 137,000 bpd increase in supply for December given the increased risks to Russian supply. It expects any impact to Russian oil exports to be relatively short-lived, capping any further upside to oil prices.
Oil prices steady as investors assess US-China trade truce (Reuters) - Oil prices held steady on Thursday as investors assessed a potential trade truce between the United States and China after U.S. President Donald Trump lowered tariffs on China following a meeting with Chinese leader Xi Jinping in South Korea. Brent futures rose 8 cents, or 0.1%, to settle at $65.00 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 9 cents, or 0.1%, to settle at $60.57. Trump agreed to reduce tariffs on China to 47% from 57% in a one-year deal in exchange for Beijing resuming U.S. soybean purchases, keeping rare earths exports flowing and cracking down on the illicit fentanyl trade. PVM analyst Tamas Varga said investors see the announced agreement between China and the U.S. as more of a de-escalation of tension than a structural change in the relationship. Oil majors Shell and TotalEnergies posted quarterly profit falls of 10% and 2% respectively on Thursday, dragged down by lower oil prices, though Shell beat expectations, helped by better trading results in its huge gas division. Also helping to boost the economic outlook, the U.S. Federal Reserve lowered interest rates on Wednesday, in line with market expectations. However, it signalled that it might be the last cut of the year as the ongoing government shutdown threatens data availability. Lower interest rates reduce consumer borrowing costs and could boost economic growth and oil demand. "The Fed's decision underscores a broader turn in its policy cycle – one that favours gradual reflation and support over restraint, providing a tailwind to commodities sensitive to economic activity," Rystad Energy's chief economist Claudio Galimberti said in a note. In Europe and Asia, meanwhile, the European Central Bank and the Bank of Japan kept interest rates unchanged. The euro zone economy grew a touch more quickly than expected in the third quarter, lifted by buoyant growth in France and Spain that more than offset faltering exports and persistent struggles in Germany's oversized industrial sector. In Germany, however, gross domestic product stagnated in the third quarter, data showed on Thursday, highlighting the struggle Europe's biggest economy faces in regaining momentum as exports dwindle. Both crude benchmarks were on track to decline by around 3% in October, which would be their third consecutive month of losses following concerns about oversupply. In the U.S., crude output hit a weekly record high of around 13.6 million barrels per day (bpd) last week. Investors said they were looking ahead to an OPEC+ meeting scheduled for November 2, where the alliance will likely announce another 137,000 bpd supply hike for December. OPEC+ includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia. In a series of monthly increases, eight OPEC+ members had boosted output targets by a total of more than 2.7 million bpd - or about 2.5% of global supply. In Saudi Arabia, the world's top oil exporter, the budget deficit widened to 88.5 billion riyals ($23.60 billion) in the third quarter, a 160% rise from the previous quarter as spending increased and revenues fell, the finance ministry said on Thursday.
Oil Prices Dip As Global Markets React To China’s Weak Data And Strong U.S. Dollar -- Oil prices retreated on Friday as weak economic data from China, a firmer U.S. dollar, and expectations of rising global supply combined to dampen market sentiment. Traders anticipate that China’s imports could decline as manufacturing activity slows, while the OPEC alliance prepares to raise production levels. Brent crude slipped to $63.96 per barrel, representing a 0.07% decrease from Thursday’s close at $64.01. Similarly, West Texas Intermediate (WTI) futures eased by 0.11% to $60.06, down from the previous $60.13 per barrel. This comes after the U.S. Federal Reserve (Fed) reduced its benchmark interest rate by 25 basis points on Wednesday to a range between 3.75% and 4%. While the move was widely expected, Fed Chair Jerome Powell cautioned that another rate cut in December was not guaranteed, stating that the decision “is not a foregone conclusion.” Following Powell’s remarks, the U.S. dollar strengthened, adding downward pressure on oil prices as a stronger greenback makes crude more expensive for buyers using other currencies. Adding to the bearish tone, new data from China’s National Bureau of Statistics revealed that factory activity contracted for the seventh consecutive month in October. The official manufacturing Purchasing Managers’ Index (PMI) slipped to 49.0 from 49.8 in September—below the 50 threshold that separates expansion from contraction. The continued slump in China’s manufacturing sector underscores the fragility of its economic recovery, despite recent optimism following a temporary truce in the U.S.-China trade dispute. Meanwhile, U.S. commercial crude inventories dropped by 6.9 million barrels last week to 416 million barrels, significantly exceeding analysts’ expectations of a 900,000-barrel draw. Strategic petroleum reserves rose slightly by 500,000 barrels to 409.1 million, while gasoline stocks fell by 5.9 million barrels to 210.7 million. Market focus now shifts to the OPEC+ meeting scheduled for November 2, where the alliance is expected to announce an additional production increase of 137,000 barrels per day for December. Analysts believe that the combination of weak demand indicators and rising supply could keep oil prices under pressure in the short term, even as global economic recovery efforts continue.
Oil prices dip for third month - – Oil prices edged lower on Friday, marking a third consecutive monthly decline, as a stronger U.S. dollar curbed investor appetite for commodities and growing global supply offset the impact of Western sanctions on Russian exports. Brent crude futures slipped 33 cents, or 0.51%, to $64.67 a barrel by 0027 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 35 cents, or 0.58%, to $60.22. Analysts said the dollar’s strength, following Federal Reserve Chair Jerome Powell’s remarks that a December rate cut was “not guaranteed,” weighed heavily on oil and other commodities. Both Brent and WTI are on track to fall around 3% in October, pressured by expectations that production increases from OPEC and other major producers will outpace demand growth. Sources said OPEC+ is leaning towards a modest output boost in December, with members already having raised their combined targets by over 2.7 million barrels per day — about 2.5% of global supply — in recent months. Data also showed rising output from leading producers. Saudi Arabia’s crude exports hit a six-month high of 6.4 million barrels per day in August, while U.S. production reached a record 13.6 million bpd last week, according to the Energy Information Administration (EIA). Meanwhile, U.S. President Donald Trump announced that China had agreed to begin purchasing U.S. energy, potentially including oil and gas from Alaska. However, analysts expressed doubts about the scale of the impact, noting that Alaska accounts for just 3% of U.S. crude output and that any LNG purchases would likely be market-driven.
Oil ends slightly up, trade choppy on report, denial of US attack plan on Venezuela (Reuters) - Oil prices settled slightly higher after a wild trading session on Friday, popping up as media reports said U.S. air strikes on Venezuela could begin within hours and then retreating after U.S. President Donald Trump issued a denial on social media. Brent crude futures settled at $65.07 a barrel, up 7 cents, or 0.11. U.S. West Texas Intermediate crude finished at $60.98 a barrel, up 41 cents, or 0.68%. "Is this Donald Trump's trick or treat?" said Phil Flynn, senior analyst for Price Futures Group. He noted that earlier this year, Trump denied reports of a planned attack on Iran before carrying out airstrikes against the Islamic Republic. "There definitely was an impact on the market when the first report of a planned attack on Venezuela came out," Flynn said. "If there is an attack over the weekend, prices will spike on Monday." The U.S. has deployed a task force centered around the nation's largest aircraft carrier, Gerald Ford, off the coast of Venezuela, far beyond the needs of attacking drug traffickers on small boats, the focus of U.S. naval activity in the Caribbean in recent weeks. "It's pretty clear something is afoot there," "For oil traders, it's a classic situation of buy now and ask questions later." The U.S. dollar was near three-month highs against major currencies, making purchases of dollar-denominated commodities such as oil more expensive. Meanwhile, sources told Reuters that Saudi Arabia, the world's top oil exporter, may reduce its December crude price for Asian buyers to multi-month lows, sounding a bearish note. Oil slipped after an official survey showed China's factory activity shrank for a seventh month in October. Brent and WTI are set to fall 2.6% and 2%, respectively, in October with the Organization of the Petroleum Exporting Countries and major non-OPEC producers ramping up output. More supply will also cushion the impact of Western sanctions disrupting Russian oil exports to its top buyers China andIndia.A Reuters survey forecast Brent will average $67.99 per barrel in 2025, about 38 cents above last month's estimate. WTI is expected to average $64.83, slightly above September's estimate of $64.39. OPEC+ is leaning toward a modest output boost in December, people familiar with the talks said ahead of the group's meeting on Sunday.. Kilduff said most of the OPEC+ members except for Saudi Arabia were unable to add much to their production. "Pretty much there is nothing they can add that is going to be meaningful beyond what the Saudis can do," In August, Saudi Arabia's crude exports hit a six-month high of 6.407 million bpd, data from the Joint Organization Data Initiative showed. A U.S. Energy Information Administration report also showed record production of 13.6 million bpd last week. Trump said on Thursday that China has agreed to begin the process of purchasing U.S. energy and that a very large-scale transaction may take place involving the purchase of oil and gas from Alaska. However, analysts remained skeptical as to whether the U.S.-China trade deal will boost Chinese demand for U.S. energy.
IDF Chief on Gaza: 'The War Is Not Yet Over' - The head of the Israeli military said on Monday that Israel’s military campaign in Gaza isn’t over until all the bodies of deceased Israeli hostages are recovered and suggested the “campaign against Hamas” would continue after that.“The war is not yet over; we must complete our sacred mission of bringing the fallen hostages home and continue the campaign against Hamas,” IDF Chief of Staff Lt. Gen. Eyal Zamir said at a military conference, according to The Times of Israel.While there has been a de-escalation in Gaza, Israeli forces have continued launching attacks since the ceasefire deal was signed on October 10, killing at least 95 Palestinians in that time, according to numbers from Gaza’s Health Ministry, and the IDF currently controls about 58% of Gaza’s territory. Comments from President Trump have also made clear that Israeli officials are eager to restart the full-scale genocidal campaign, and would do so if he gave the word. Zamir’s comments came on the same day that Hamas returned another Israeli body, leaving a total of 12 deceased hostages under the rubble in Gaza. Israel has handed over at least 195 Palestinian bodies to Gaza in exchange, including many that could not be identified and were buried in a mass grave. It was clear when Israel signed the ceasefire deal that recovering all of the Israeli bodies would take time, but the Israeli government attempted to use Hamas’s lack of access to all of the hostage remains to blow up the deal, and continues to claim that the Palestinian group is delaying the process. But Hamas has continued to expand its efforts, and reportedly entered Israeli-controlled parts of Gaza with the International Committee of the Red Cross to search for remains on Monday. According to the Israeli news site Ynet, Hamas has conveyed that it has located the remains of seven to nine Israeli bodies and is working to excavate them. The report also said that Israel is asking the US for permission to expand its occupation of Gaza as a “sanction” against Hamas for the time it is taking to find the bodies.
Netanyahu Orders 'Immediate and Powerful' Attacks on Gaza, Over 100 Killed - Israeli Prime Minister Benjamin Netanyahu has ordered the Israeli military to “immediately carry out forceful strikes in the Gaza Strip,” his office said in a statement, signaling the Gaza ceasefire deal is about to collapse.Israel is claiming that its forces in Rafah came under attack by Hamas fighters, and Palestinians on the ground reported hearing gunfire and strikes in the south, but Hamas has said that it had “no relation to the shooting incident in Rafah and reaffirms its commitment to the cease-fire agreement.” Israel currently controls about 58% of Gaza’s territory, and Netanyahu has reportedly decided to take over more territory.After Netanyahu’s announcement, a series of airstrikes were reported in Gaza City and Khan Younis. According to Al Jazeera, witnesses said a “massive” strike hit near the Al-Shifa Hospital. At least 100 people have been killed, and pictures and videos show that at least 46 children are among the dead and wounded. Netanyahu’s statement also came after Israel accused Hamas of violating the ceasefire deal over claims that it was delaying and staging the recovery of the bodies of deceased Israeli hostages. Before the agreement was signed, Israeli officials acknowledged that the bodies would take time to find, andCNN cited officials who said some remains may never be found. Israel released a video on Tuesday that it said showed Hamas burying a body and then bringing in the Red Cross to recover it, but according to Israeli media, the US didn’t buy Israel’s claim that the footage showed that Hamas violated the ceasefire and objected to Israel launching airstrikes. Then, the alleged attack took place in Rafah, and Netanyahu renewed airstrikes. Israel has also impeded efforts to recover more bodies by refusing to allow Turkish and Qatari teams to enter the Strip and help locate and retrieve remains, according to two Arab officials speaking toThe Times of Israel. The initiative would have also involved representatives from Israel, the US, and Egypt aiding in the effort.
Israel Declares Gaza Ceasefire Back on After It Kills Over 100 Palestinians, Including 46 Children - The Israeli military announced on Wednesday that it was re-implementing the ceasefire in Gaza after unleashing heavy airstrikes across the Strip that, according to Gaza’s Health Ministry, killed at least 104 Palestinians, including 46 children, and 20 women, though it bombed the Strip again later in the day. The escalation came after Israel claimed that its troops in Rafah came under attack, which killed one Israeli soldier. Israel accused Hamas of being behind the attack, but according to Israeli media, the IDF doesn’t know if the attack was approved by Hamas leadership or if it was carried out independently by a cell of Palestinian fighters isolated in the Israeli-occupied area. For its part, Hamas denied involvement and said that it had “no relation to the shooting incident in Rafah and reaffirms its commitment to the cease-fire agreement.” Israel claimed that the bombardment that killed mostly women and children targeted 30 “terror commanders.” Israeli media reports said that Israel was ready to launch heavy airstrikes in Gaza before the incident and Rafah over claims that Hamas was violating the deal based on a video Israel said showed Hamas staging the discovery of an Israeli body. But the US said there was no evidence Hamas breached the deal and objected to the escalation. Israel has been violating the Gaza ceasefire deal since it went into effect on October 10 by not allowing the agreed-upon number of aid trucks to enter the Strip, and has also continued attacks in Gaza, killing about 100 before the major escalation on Tuesday. Later on Wednesday, Israel launched another airstrike in Beit Lahia, northern Gaza, killing at least two people. Despite the breaches, the US hasn’t offered any public criticism of Israel’s actions and has backed the massive bombardment. “They killed an Israeli soldier. So the Israelis hit back. And they should hit back,” President Trump said on Wednesday. Vice President JD Vance also downplayed the Israeli bombardment as a “little skirmish” but also appeared to acknowledge that the US wasn’t confident Hamas was behind the attack in Rafah that killed an Israeli soldier. “We know that Hamas or somebody else within Gaza attacked an IDF soldier. We expect the Israelis are going to respond — but I think the President’s peace is going to hold,” he said.
Israeli Minister Suggests the IDF Should Shoot Children Near the 'Yellow Line' in Gaza - Israeli Minister of National Security Itamar Ben Gvir suggested that the Israeli military should shoot Palestinian children in Gaza who approach the so-called “yellow line,” referring to the line Israeli troops withdrew to when the ceasefire went into effect.According to Israeli media, he made the comments during a recent security cabinet meeting. A military official who attended the meeting said that the IDF’s policy is to shoot any adults who cross the line and arrest a “child with a donkey.”In response, Ben Gvir said, “Why not shoot a child with a donkey?” Israel’s Channel 4 reported that he also urged the Israeli military to “shoot children and donkeys too,” saying that Israel must “stop being merciful.”Another Israeli official in the meeting then asked, “Who should be shot first—the child or the donkey?” Israeli Defense Minister Israel Katz concluded the conversation by saying, “Anyone who approaches the fence should know that they may be harmed.”Throughout its genocidal war in Gaza, the Israeli military has created kill zones by setting arbitrary lines that Palestinians on the ground are not aware of. An Israeli soldier recently detailed killing Palestinians, including children, who crossed one of the lines the IDF set in northern Gaza, where people were waiting for aid.The IDF has marked the yellow line by placing large concrete blocks 200 meters apart from each other, but when the ceasefire went into effect, it wasn’t marked at all, and the IDF killed dozens of Palestinians it claimed crossed the invisible boundary. In one incident, the IDF bombed a vehicle that allegedly crossed the line, killing 11 people, including seven young children.
Israel Is Backing Four Anti-Hamas Militias in IDF-Controlled Gaza - Israel is backing four militias that plan to fight against Hamas and are currently operating under the watch of the IDF in the Israeli-controlled part of Gaza, Sky News reported on Saturday. Hossam al-Astal, the leader of one of the groups based in southern Gaza, said that all four groups are part of a coordinated effort to take over Gaza. “We are all for the new Gaza. Soon, we will achieve full control of the Gaza Strip and will gather under one umbrella,” he told Sky News.The term “new Gaza” has previously been used by Jared Kushner, President Trump’s son-in-law, when discussing plans to allow reconstruction in Israeli-occupied Gaza and not in areas under the control of Hamas.“No reconstruction funds will be going into areas that Hamas still controls,” Kushner, who has been deeply involved in the Gaza negotiations, said during a visit to Israel last week. “There are considerations happening now in the area that the IDF controls, as long as that can be secured, to start the construction as a new Gaza in order to give the Palestinians living in Gaza a place to go, a place to get jobs, a place to live.”The largest group Israel is backing is a gang led by Yasser Abu Shabab, who admitted to looting aid trucks in 2024. Some members of his group, which is also based in southern Gaza, have ties to ISIS,according to Israeli media. The Sky News report said that a senior commander in the Abu Shabab gang said the group has between 500 and 700 fighters and that Israel has been allowing them to smuggle cash, weapons, and vehicles into Gaza.Al-Astal said that his militia has acquired a large number of Hamas weapons from the black market in Gaza and also receives supplies, including ammunition, from abroad. He said the group also receives a weekly delivery of everyday items to support civilians living in the camp. He claimed that the militias have backing from Western states and Arab countries.Al-Astal also suggested that the Palestinian Authority has been supporting the effort, though the PA has previously denied that it’s involved with the militias. “The Palestinian Authority cannot allow itself to admit to having a direct relationship with us. I have people within my group who are still, to this day, employees of the Palestinian Authority,” he said.
Netanyahu Says Israel Will Decide Which International Forces Will Be Deployed to Gaza -The Israeli leader also insisted Israel is 'sovereign' amid growing criticism of the US-Israel relationship Israeli Prime Minister Benjamin Netanyahu on Sunday said that Israel would determine which international forces would be deployed to Gaza under the ceasefire deal.The Israeli leader made the comments in the context of the growing criticism of the US-Israel relationship and questions within Israel about how much influence and control the US has over future plans for Gaza.“We control our own security and we have also made clear regarding international forces that Israel will determine which forces are unacceptable to us — that is how we act and will continue to act,” Netanyahu said at a cabinet meeting, according to The Times of Israel.The Gaza ceasefire proposal released by the White House calls for an “International Stabilization Force” that will take over territory controlled by the Israeli military, but many countries are hesitant to commit troops to join the force, as there are many unanswered questions about what role it will play.President Trump has claimed that US allies in the region are eager to send troops into Gaza to fight Hamas, but according to The New York Times, the opposite is true, and countries are reluctant to pledge soldiers to the cause due to the potential for clashes with Hamas. ountries that have been floated as potential members of the force include Egypt, Indonesia, Azerbaijan, and Pakistan. Turkey has also been floated as a possibility, but Netanyahu has strongly rejected the idea of Turkish troops being deployed to Gaza.
Netanyahu Says the Israeli Military Will 'Demilitarize' Gaza If Foreign Troops Don't - Israeli Prime Minister Benjamin Netanyahu said on Thursday that the Israeli military would disarm Hamas and “demilitarize” Gaza if foreign troops don’t. Netanyahu told the graduating class of Israeli military cadets that Israel has “more work” to do in Gaza. “At the end of the day, Hamas will be disarmed and Gaza will be demilitarized,” he said. “If foreign troops do it, great. If they don’t do it, we will.” Netanyahu and other Israeli officials have made clear that they’re eager to restart Israel’s full-blown genocidal military campaign in the Gaza Strip, and Israel has repeatedly violated the ceasefire deal by launching attacks in Gaza, which have killed over 200 Palestinians since the truce began. The Israeli leader’s comments come as the US is involved in negotiations for an international force to enter Gaza. The idea is for foreign troops to take the place of IDF soldiers inside Gaza. Israel has strongly objected to the idea of a Turkish presence in Gaza, but according to a report fromAxios, the US is pushing for Turkey to be involved. The report said Azerbaijan, Egypt, and Indonesia have shown a willingness to send troops, but there are concerns about the possibility of clashing with Hamas. The US plan also involves establishing a Palestinian police force trained and vetted by the US, Egypt, and Jordan. Hamas has agreed to give up governance in Gaza to an independent Palestinian committee, but the group’s public position on disarmament is that it’s not willing to give up its weapons until it can be replaced by the armed forces of a Palestinian state. While Netanyahu is vowing to “disarm” Hamas, he has failed to defeat the group despite Israel’s destruction of Gaza and slaughter of at least 68,000 Palestinians.
Israel Erects 1,000 New Barriers in West Bank Amid Gaza Genocide – Report - Israel has erected close to 1,000 new barriers in towns and cities across the occupied West Bank since it began its genocidal assault on Gaza two years ago, the Washington Post reported. The paper cited the Wall and Settlement Resistance Commission, a Palestinian governmental body, as saying that “916 gates, barriers and walls have been installed” since October 2023. At the same time, Israeli military raids have also increased, along with the killings of over 1,000 Palestinians, according to Palestinian figures. Since the start of the Gaza war on October 7, 2023, Israel has installed nearly 1,000 new barriers across cities and towns in the occupied West Bank, according to the Palestinian Colonization and Wall Resistance Commission. The 916 gates, walls, and checkpoints have further… pic.twitter.com/mUTZOlos4h In early September, the report stated, the United Nations said it had “documented the installation of 18 gates” in the West Bank, some of which block roads connecting the northern and southern parts of the occupied territory. This forces 3 million Palestinians “to take long detours, with a 20-minute journey now taking more than an hour.”In addition to the gates, other obstacles such as large earth mounds and concrete blocks are also placed in the middle of the roads, “preventing cars from going around them” as well as restricting freedom of movement for Palestinians and “access to healthcare and education.” Despite residents saying that the barriers have “detrimental” effects on their lives, the Israeli military claimed they are meant to “manage and monitor” rather than restrict people, the report stated.A gym owner from the village of Deir Dibwan said that “Under the current circumstances, everything has been cut off. Everything has stopped,” with people prevented from attending his gym. In the village of Aboud, residents told the paper that the entry gates “are closed between 6 a.m. and 9 a.m. every day, preventing students from going to university and people from going to work.” Mohammad Shalatweh, a taxi driver, said this was part of the “occupation’s strategy to destabilize the people’s sense of security.” While in the village of Sinjil, Eyad Jameel, a restaurant owner, expressed concern that every time his son leaves for the main city, he fears he might not return. He said the Israeli authorities “don’t always open them, they just close them and trap everyone.” Israeli occupation forces are stationed at barriers at times, with some gates also equipped with surveillance cameras.
Zelensky Says Ukraine Working To Expand Long-Range Strikes Inside Russia - Ukrainian President Volodymyr Zelensky said on Monday that Ukraine was working to expand long-range attacks inside Russia with a focus on targeting oil refineries.Zelensky said he held a meeting with arms manufacturers that produce long-range weapons. “We reviewed the effectiveness of our long-range strikes over a defined period and the results achieved,” he wrote on X.“Russian oil refining is already paying a tangible price for the war—and will pay even more. We set tasks to expand the geography for the use of our long-range capabilities,” the Ukrainian leader added. So far, the US has denied Zelensky’s request for Tomahawk missiles, which are nuclear-capable and have a range of over 1,000 miles. But according to media reports, the US has been helping Ukraine with strikes deep inside Russia, including its drone attacks on Russian energy infrastructure.Earlier this month, the Financial Times reported that the US has been providing intelligence for the drone attacks, and one source told the paper that Ukraine’s drone force is the “instrument” the US is using to achieve the goal of undermining the Russian economy and pushing Russian President Vladimir Putin toward a settlement to end the war. The US has also imposed new sanctions on Russian oil companies. President Trump recently denied a report that said the US approved Ukrainian missile strikes inside Russia, but Ukraine’s military recently claimed that it used British-provided Storm Shadow missiles, which require US targeting data, in a strike on a Russian chemical plant. While vowing to expand attacks inside Russia, Ukraine continues to lose territory in the battle in eastern Ukraine, where Russian forces have recently entered the city of Pokrovsk in the Donetsk Oblast. Russia’s demands for a peace deal include Ukraine ceding Donetsk and the sliver of territory it controls in Luhansk, an offer President Trump has reportedly told Zelensky to accept.
Zelensky Says He Needs European Support To Fight Russia For Another 2-3 Years - Ukrainian President Volodymyr Zelensky confirmed this week that he needs European financial support to fight Russia for another two or three years as the war continues to rage."I emphasized this again to all European leaders. I told them that we are not going to fight for decades, but you must show that for some time you will be able to provide stable financial support to Ukraine," Zelensky said, according to AFP."And that is why they have this program in mind – two to three years," he added, referring to an EU plan to fund Ukraine for a few years using frozen Russian assets. Zelensky said the funds would either be spent on reconstruction or on more weapons."If the war ends in a month, we will spend this money on recovery. If it does not end in a month, but after some time, then we will spend it on weapons. We simply have no other choice," the Ukrainian leader said.Under a new NATO scheme, known as the Prioritized Ukraine Requirements List initiative, America's European allies are committing to purchase American-made weapons for Ukraine, though military aid to the country has dropped significantly since the program was launched, according to a report from the Kiel Institute. Zelensky also acknowledged on Tuesday that Russian troops have entered the city of Pokrovsk in Ukraine’s eastern Donetsk Oblast, which Russian forces have been pushing towards for months. "Around 200 Russians are located there in various places – we see this from drones. Pokrovsk is currently the main target for the Russians," he said. A day earlier, Zelensky vowed that Ukraine would expand its attacks inside Russia with a focus on oil refineries. While the US hasn’t committed to providing Ukraine with Tomahawk missiles, it has recently expanded support for long-range strikes by providing intelligence for attacks inside Russia, according to media reports.
No comments:
Post a Comment