US oil prices rose for the third time in four weeks on an across the board draw from US oil and fuel supplies, and on stronger than expected data from China and the US…after ticking up 0.2% to $78.26 a barrel last week after the Saudis increased prices to Europe and Asia and US oil supplies unexpectedly fell, the contract price for the benchmark US light sweet crude for June delivery moved lower in overnight trading Sunday in a follow through of selling on Friday of last week, on expectations that the Fed would keep interest rates higher for longer, but advanced Monday on bullish expectations for holiday travel in the US after AAA projected a record number people would travel by car over the Memorial Day weekend, and settled 86 cents higher at $79.12 a barrel on signs of improving demand in both the U.S. and China, the top two oil consumers…oil prices were little changed in overseas trading early on Tuesday, as OPEC maintained its global oil demand forecasts and traders waited on US inflation data, then turned lower after US producer prices increased more than expected in April, indicating that inflation remained elevated, and settled down $1.10 at $78.02 a barrel, after that inflation data stoked concerns that interest rates would stay high, even as risks to supply from Mideast tensions and wildfires in Canada put a floor under prices…oil prices slipped further in overseas markets early on Wednesday after the International Energy Agency (IEA) forecast that demand in developed countries would slow this year as inflation remained persistent, but rebounded from an interday 11 week low as the market balanced somewhat bullish US economic and storage data against the 2024 forecast for weaker global oil demand growth from the EIA, then surged on apprehensions regarding potential disruptions to oil production regions stemming from wildfires ravaging parts of Canada, before settling 61 cents higher at $78.83 a barrel on a bigger-than-expected crude drawdown and on lukewarm consumer inflation data that fueled hope for a cut in interest rates later this year…oil prices rose early on Thursday in light of that slower than expected inflation report, which increased expectations that the Federal Reserve might start cutting interest rates in the fall, and settled 60 cents higher at $79.23 a barrel, extending gains on easing inflationary pressure and on the bullish inventory statistics released the prior day by the EIA…oil prices moved higher early Friday after traders got a strong reminder that geopolitical risks remained when Ukrainian drones set Russia’s Tuapse refinery on fire, and settled 83 cents higher at $80.06 a barrel, ending above $80 for first time this month and 2.3% higher than they were a week ago, folowing a week when economic indicators from the world's top two oil consumers - China and the U.S. - bolstered hopes for higher demand…
natural gas prices also finished higher, in their case for the fourth time in five weeks, and ended at a four month high, as the return of Freeport LNG added 2% to daily demand and inventories increased less than had been forecast....after rising 5.1% to $2.252 per mmBTU last week on lower production and on an inventory increase that was less than expected, the contract price for natural gas for June delivery opened two cents higher and rallied confidently throughout the day on Monday, as weather forecasts turned supportive and production remained subdued, and settled 12.9 cents or 6% higher at a 15-week high of $2.381 per mmBTU as gas flows to LNG export plants increased with the return of Freeport LNG's plant in Texas…however, natural gas prices started 6 cents lower on Tuesday, hit by updated fundamentals, maintenance limiting exports, and updated weather forecasts, and settled with a 3.7 cent loss at $2.344 per mmBTU as traders took profits and ongoing maintenance projects called into question the timing of a full rebound in export demand…the June contract opened four cents higher on Wednesday, supported by updated forecasts for cooling demand in the South and continued production cuts, and settled 7.2 cents higher at $2.416 per mmBTU as the promise of summer cooling demand atop tighter underlying fundamentals continued to stir bullish optimism…with support from subdued production and expectations for increased LNG exports, natural gas prices started Thursday 5 cents higher, then jumped to a near four-month intraday high of $2.575 following a bullish storage report, and settled 7.9 cents higher at $2.495 per mmBTU, as the reported increase was a miss against expectations and against historical averages…natural gas prices surged Friday, extending a rally that brought June the contract to near a four-month high, as fundamentals suggested a balancing market, and settled 13.1 cents higher at a 4 month high of 2.626 per mmBTU, supported by tight inventory balances ahead of peak summer months, thus ending 16.6% higher on the week..
The EIA’s natural gas storage report for the week ending May 10th indicated that the amount of working natural gas held in underground storage rose by 70 billion cubic feet to 2,633 billion cubic feet by the end of the week, which left our natural gas supplies 421 billion cubic feet, or 19.0% above the 2,212 billion cubic feet that were in storage on May 10th of last year, and 620 billion cubic feet, or 30.8% more than the five-year average of 2,013 billion cubic feet of natural gas that had typically been in working storage as of the 10th of May over the most recent five years…the 70 billion cubic foot addition to US natural gas working storage for the cited week was less than the 76 billion cubic foot addition to storage that traders were expecting just ahead of the report, and less than the 93 billion cubic feet that were added to natural gas storage during the corresponding 2nd week of May 2023, and also less than the average 90 billion cubic foot injection into natural gas storage that has been typical for the same spring week over the past 5 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 May 10th indicated that after a modest decrease in our oil exports offset an increase in our refinery throughput, lower imports meant we again needed to pull oil out of our stored commercial crude supplies for the fifth time in sixteen weeks and for the 11th time in the past 30 weeks, as demand for oil that the EIA could not account for was again a minor factor….Our imports of crude oil fell by an average of 226,000 barrels per day to an average of 6,744,000 barrels per day, after rising by an average of 198,000 barrels per day over the prior week, while our exports of crude oil fell by 333,000 barrels per day to 4,135,000 barrels per day, which when used to offset our imports, meant that the net of our trade in oil worked out to a net import average of 2,609,000 barrels of oil per day during the week ending May 10th, 107,000 more barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supply from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 473,000 barrels per day, while during the same week, production of crude from US wells was unchanged at 13,100,000 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 rounded total of 16,182,000 barrels per day during the May 10th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 16,255,000 barrels of crude per day during the week ending May 10th, an average of 307,000 more 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 an average of 274,000 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 for the week ending May 10th appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production was 201 barrels per day more than what our 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 [-201,000 ] 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 the week’s oil supply & demand figures that we have just transcribed...However, since most oil traders react to these weekly EIA reports as if they were accurate, and since these weekly figures therefore often drive oil pricing (as is obvious to anyone who watches oil prices), 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, see this EIA explainer….and there is also an aging twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had hoped to do about it)
This week’s average 274,000 barrel per day decrease in our overall crude oil inventories came as an average of 358,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while an average of 85,000 barrels per day were being added to our Strategic Petroleum Reserve, the twenty-third SPR increase in thirty weeks, following nearly continuous withdrawals from the SPR over the prior 39 months… Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports fell to 6,503,000 barrels per day last week, which was 2.1% more than the 6,370,000 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 unchanged at 13,100,000 barrels per day because the EIA’s rounded estimate of the output from wells in the lower 48 states was unchanged at 12,700,000 barrels per day, while Alaska’s oil production was 4,000 barrels per day lower at 417,000 barrels per day, but still added the same 400,000 barrels per day to the EIA’s rounded national total as it did last week…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 just matches that of our pre-pandemic production peak, while it's also 35.1% 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 90.4% of their capacity while processing those 16,255,000 barrels of crude per day during the week ending May 10th, up from their 88.5% utilization rate of a week earlier, and finally a near normal operating rate for early May, as US refineries have lagged normal operating rates since arctic cold penetrated to the Gulf Coast in mid January and froze off some operations… the 16,255,000 barrels of oil per day that were refined this week were 1.7% more than the 15,990,000 barrels of crude that were being processed daily during week ending May 12th of 2023, but 2.5% less than the 16,676,000 barrels that were being refined during the prepandemic week ending May 10th, 2019, when our refinery utilization rate was also at a near normal 90.5%...
With the increase in the amount of oil being refined this week, gasoline output from our refineries was also higher, increasing by 203,000 barrels per day to 9,698,000 barrels per day during the week ending May 10th, after our refineries’ gasoline output had increased by 99,000 barrels per day during the prior week. This week’s gasoline production was 2.3% more than the 9,482,000 barrels of gasoline that were being produced daily over week ending May 12th of last year, but 2.2% less than the gasoline production of 9,912,000 barrels per day during the prepandemic week ending May 10th, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 22,000 barrels per day to 4,804,000 barrels per day, after our distillates output had increased by 275,000 barrels per day during the prior week. After nine production increases in the past thirteen weeks, our distillates output was still 1.1% less than the 4,856,000 barrels of distillates that were being produced daily during the week ending May 12th of 2023, and 8.7% less than the 5,264,000 barrels of distillates that were being produced daily during the week ending May 10th, 2019…
Even with this week’s increase in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the eleventh time in fifteen weeks, decreasing by 235,000 barrels to 227,767,000 barrels during the week ending May 10th, after our gasoline inventories had increased by 915,000 barrels during the prior week. Our gasoline supplies fell this week because the amount of gasoline supplied to US users rose by 78,000 barrels per day to 8,875,000 barrels per day, and because our exports of gasoline rose by 90,000 barrels per day to 897,000 barrels per day while our imports of gasoline rose by 7,000 barrels per day to 726,000 barrels per day.…Even after thirty-five gasoline inventory withdrawals over the past fifty-six weeks, our gasoline supplies were still 3.8% above last May 12th’s gasoline inventories of 219,711,000 barrels, but were about 1% below the five year average of our gasoline supplies for this time of the year…
Likewise, even with this week’s increase in our distillates production, our supplies of distillate fuels fell for the twelfth time in seventeen weeks, following eight consecutive prior increases, decreasing by 45,000 barrels to 116,365,000 barrels over the week ending May 10th, after our distillates supplies had increased by 560,000 barrels during the prior week. Our distillates supplies ended lower this week because the amount of distillates supplied to US markets, an indicator of our domestic demand, rose by 342,000 barrels per day to 3,831,000 barrels per day, while our exports of distillates fell by 257,000 barrels per day to 1,069,000 barrels per day, and while our imports of distillates rose by 22,000 barrels per day to 89,000 barrels per day.…Even with 31 inventory decreases over the past fifty-five weeks, our distillates supplies at the end of the week were 9.5% above the 106,233,000 barrels of distillates that we had in storage on May 12th of 2023, but were still about 7% below the five year average of our distillates inventories for this time of the year…
Finally, after the increase in our refinery throughput, our commercial supplies of crude oil in storage fell for the 9th time in twenty-six weeks and for the 30th time in the past year, decreasing by 2,508,000 barrels over the week, from 459,528,000 barrels on May 3rd to 457,020,000 barrels on May 10th, after our commercial crude supplies had decreased by 1.362,000 barrels over the prior week… With this week’s decrease, our commercial crude oil inventories slipped to about 4% below the most recent five-year average of commercial oil supplies for this time of year, but they were still about 29% above the average of our available crude oil stocks as of the second weekend of May 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 of the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell due to higher exports relating to the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze offs, our commercial crude supplies as of this May 10th were 2.3% less than the 467,624,000 barrels of oil left in commercial storage on May 12th of 2023, but were 8.6% more than the 420,820,000 barrels of oil that we still had in storage on May 13th of 2022, while still 6.0% less than the 486,011,000 barrels of oil we had in commercial storage on May 14th of 2021, after refinery damage from winter storm Uri left even more crude oil remaining after 2020’s pandemic precautions had left a glut of oil unused…
This Week’s Rig Count
In lieu of a detailed report on the rig count, we are again just including a screenshot of the rig count summary from Baker Hughes…in the table below, the first column shows the active rig count as of May 17th, the second column shows the change in the number of working rigs between last week’s count (May10th) and this week’s (May 17th) count, the third column shows last Friday’s May 10th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 19th of May, 2023…
DUC well report for March
Monday of the past week saw the release of the EIA’s Drilling Productivity Report for May, which included the EIA’s April data on drilled but uncompleted (DUC) oil and gas wells in the 7 most productive shale regions (click tab 3)….that data showed an increase in uncompleted wells nationally for the second time in 14 months and for just the 5th time out of the past 45 months, even as drilling of new wells decreased while completions of drilled wells increased in April, and even as both still remained well below the average pre-pandemic levels….for the 7 sedimentary regions covered by this report, the total count of DUC wells increased by 6 wells, rising from a revised 4,504 DUC wells in March to 4,510 DUC wells in April, which was also 16.3% fewer DUCs than the 5,323 wells that had been drilled but remained uncompleted as of the end of April of a year ago…this month’s DUC increase occurred as 864 wells were drilled in the seven regions that this report covers (representing 87% of all U.S. onshore drilling operations) during April, down by 3 from the 867 wells that were drilled in March, while 858 wells were completed and brought into production by fracking them, up from the 857 well completions seen in March, but down from the 1,050 completions seen during April of last year….at the April completion rate, the 4,510 drilled but uncompleted wells remaining at the end of the month represents a 5.3 month backlog of wells that have been drilled but are not yet fracked, same as the DUC well backlog of a month ago, but up from the eight year low of 4.6 months of January 2023, on a completion rate that is still more than 20% below 2019’s pre-pandemic average…
the drilled but uncompleted well count in the Appalachian region, which includes the Utica shale, was up by 7 from a month earlier, rising from 813 DUC wells at the end of March to 820 DUC wells at the end of April, as 83 new wells were drilled into the Marcellus and Utica shales during the month, while 76 of the already drilled wells in the region were fracked...
++++++++++++++++++++++++++++++++++++++++
Forced Pooling (Unitization) in Ohio Sees Big Jump Last 3 Years - Marcellus Drilling News -- Forced pooling is the practice of forcing landowners (rights owners) who don’t want to allow drilling under (not on top of) their land from blocking such drilling for their neighbors. Underground horizontal drilling used in shale wells often crosses borders into neighboring land. There’s no way around it. There is no surface disturbance for those who don’t want to lease. In Ohio, the practice of forced pooling is called “unitization.” At least 65% of landowners in a proposed unit must be leased in order to force the others in the unit to accept drilling under their land.
Ohio enforces stricter measures on oil and gas drilling rights on private properties – EHN In short:
- Ohio has increased the number of unitization orders, allowing oil and gas companies to drill on private lands without full owner consent.
- The state law mandates 65% owner agreement before companies can proceed, yet recent changes have eased this process significantly.
- Critics argue these legal adjustments favor the petroleum industry overwhelmingly, sidelining landowner rights and environmental concerns.
Why this matters: The increasing frequency of these orders raises concerns about the balance of industry benefits against individual property rights and environmental impacts. This controversial approach has raised significant environmental and health concerns among residents. Many fear that the intrusion of drilling operations could lead to water contamination, air pollution, and other risks associated with fracking and traditional drilling methods. These apprehensions are compounded by reports from other regions that experienced similar expansions in drilling activity, where increases in health issues like respiratory problems and waterborne diseases were observed.
Recent changes in Ohio make it easier to force landowners to allow oil and gas drilling --Meanwhile, state continues clamp down on clean energy. Ohio has seen a big jump in the number of agency orders forcing property owners to allow oil and gas development on their land, whether they want it or not.The number of so-called “unitization” orders issued by the Ohio Department of Natural Resources has surged in recent years, peaking at 112 in 2022 and continuing at nearly 100 last year, according to data obtained from the agency by the Energy News Network.The practice is common, with rules varying by state. In Ohio, lawmakers began working to streamline the process for oil and gas companies in 2019, coinciding with a decline in the state’s gas production after a seven-year fracking boom.Those changes run contrary to other efforts in Ohio to restrict energy development in the name of neighbors’ private property rights, including strict wind farm setbacks passed in 2014 and a 2021 law allowing counties to block new wind and solar projects. Under Ohio law, companies must meet several conditions before initiating unitization, including a showing that at least 65% of property owners in a project area consent to drilling. Critics say the process was already tilted in the companies’ favor, and that the recent changes will make it even harder to block drilling or negotiate concessions.“All the cards are stacked against us,” said Patrick Hunkler. In 2018, ODNR issued an unitization order for property he and his wife, Jean Backs, own in Belmont County, which is one of the state’s top-producing counties for oil and gas. The developer later canceled the project, so the order was revoked. More recently, Ascent Resources had tried to lease their land before backing out.The legal process known as unitization has been available to Ohio oil and gas companies since 1965 but was rarely used until about a decade ago, after advances in drilling technology made it profitable to tap into harder-to-develop pockets of petroleum.“The unitization process exists to protect the rights of those … who want to lease their minerals for development,” said Rob Brundrett, president of the Ohio Oil and Gas Association, “so that a small minority of owners … cannot stop everyone else from realizing the full potential of their property and minerals.”For petroleum companies, the process has also promoted efficient oil and gas extraction. Otherwise, reduced pressure from too many wells could reduce the total recovery from an area.Companies must show they have consent from owners of 65% of the area above a common oil and gas deposit before they can seek a unitization order. Companies also must show they tried to reach an agreement with holdouts, and that drilling under those properties is necessary to substantially increase the amount of oil and gas recovered. Any added value must also exceed the related costs.“Our experience at the unitization hearing was that oil and gas runs the show,” Backs said.Hearings don’t consider environmental impacts or other reasons landowners might not want drilling and fracking. “It’s just not part of the evaluation,” said Heidi Robertson, a Cleveland State University law professor who has written about unitization. Rather, she said, the basic question is: “Will adding this land to the unit make it easier for the developer to more efficiently and more profitably get the oil and gas out of the ground?”The answer is almost always yes. The Ohio Department of Natural Resources has denied only one unitization application since 2012, according to spokesperson Andy Chow. Meanwhile, it has approved more than 500 applications, with more than half the orders issued after 2020. The agency hired an additional employee in 2021 to deal with an increase in applications, Chow said.
Martins Ferry Not Getting Answers on Frack Waste Facility Cleanup --Marcellus Drilling News -- Austin Master Services (AMS) is a radiological waste management solutions company operating in Martins Ferry (Belmont County), OH, close to the Ohio River. Media accounts report that AMS has stored at least 10,000 tons of fracking waste (drill cuttings with low radioactivity) at the facility. The facility is rated and permitted to hold 600 tons. In March, Ohio Attorney General Dave Yost asked the Belmont County Common Pleas Court to block AMS from receiving more waste and order it to clean up and comply with its rating. The court granted both requests with a deadline of April 17 to comply (see Court Orders Austin Master to Clean Up Martins Ferry Frack Waste). The deadline came and went without compliance. Martins Ferry officials want answers from the Ohio Dept. of Natural Resources (ODNR), which permitted and is supposed to oversee the facility, about when it will be cleaned up.
Ascent Resources 1Q: Production Up 2%, Net Income Down 92% | Marcellus Drilling News --Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its first quarter 2024 update yesterday. The company boasts that 70% of the Ohio Utica’s top 40 wells (by production, converted to equivalents) were drilled by Ascent. A statement by CEO Jeff Fisher in the update says the company remains focused on “costs, efficiencies and margins” in 2024 in order to drive free cash flow.
Beaver County residents say Shell's ethane cracker plant has become a 'shockingly bad' neighbor - -- Pollution from the plant has been far more disruptive than most people expected. In May 2023, Shell was fined $10 million for air quality violations. Though it had only been operational for about six months, the plant had exceeded its 12-month emission limits for volatile organic compounds (VOCs), carbon monoxide, nitrogen oxides and hazardous air pollutants.The same month, the Environmental Integrity Project and Clean Air Council filed a citizen suit against Shell over the Monaca plant to “redress and prevent repeated and ongoing violations of the Clean Air Act and the Pennsylvania Air Pollution Control Act.” In February 2024, a Beaver resident named John Flynn filed another lawsuit against Shell, seeking class-action status and alleging that Shell had “wrongfully and tortiously released substantial and unreasonable noxious odors, fugitive dust and light emissions” that “invaded” nearby properties and caused damages. The lawsuit defines its class of plaintiffs as anyone who lives within two miles of the facility. The plant takes ethane, a liquid hydrocarbon separated from fracked natural gas, and heats it to extremely high temperatures, “cracking” the molecular bonds holding it together to form ethylene and polyethylene pellets called nurdles. A plastics feedstock, the nurdles are then melted down to make everything from plastic bottles to car parts.”The Shell plant was expected to emit carbon monoxide, nitrogen oxides, PM2.5 fine particles, sulfur dioxide, VOCs and hazardous air pollutants. Both sulfur dioxide and nitrogen oxide are associated with respiratory health effects like shortness of breath, asthma and wheezing, and nitrogen oxide has been shown to have a “more serious” impact on children than on adults. Short-term exposure to a VOC like benzene, a known human carcinogen, can cause drowsiness, vomiting, convulsions and headaches; chronic exposure can lead to blood disorders and cancer. There are at least three elementary schools within a five-mile radius of the plant.Nearly a decade ago, politicians and local officials hailed the Shell plant as a “once in a generation investment” that would create 6,000 temporary construction jobs and 600 permanent jobs and spur economic growth in a region that had yet to fully recover from the decline of the American steel industry. Then Democratic governor Tom Wolf said he was “elated” by the news and called the Shell project “a game changer.” To convince the company to commit to Pennsylvania, the state granted Shell $1.65 billion in subsidies in 2012.But Shell’s presence in southwestern Pennsylvania has been marred by years of violation notices, malfunctions and lawsuits. Since 2017, DEP has issued 27 notices of violation to the plant, mainly for air quality. Most of the violations were issued after the plant began operations in the fall of 2022; the most recent is from earlier this month.Set along the banks of the Ohio, the plant is close to several neighborhoods and towns, including Beaver, the charming county seat, where Hallmark has filmed exterior shots to use as a stand-in for “the quaint setting for some fictional northern town” in its Christmas movies.The now-complete petrochemical facility cuts a striking contrast to this quiet backdrop. “It’s like the eye of Sauron. It’s like hell opened up a portal above Beaver,” said Mark Dixon, an activist and filmmaker who lives in Pittsburgh and is leading a community air monitoring effort around the plant. He has also photographed the site. His photos show the sprawling plant emitting huge plumes of smoke, lit orange against the night sky.
Shapiro Admin Uses Shell Cracker Money for Quid Pro Quo --- Marcellus Drilling News -- Although Shell maintains flaring and accidental emissions from its multi-billion-dollar ethane cracker in Beaver County, PA, have not violated state and federal air standards, the Pennsylvania Dept. of Environmental Protection (DEP) says they have — on numerous occasions. Shell didn’t argue the point, and in May 2023, the company agreed to pay nearly $10 million in fines and “contributions” to benefit the local community (see Shell Cracker Agrees to $10M Shakedown from PA, Restarting Now). Last July, the Shapiro DEP announced that it had appointed a 17-member committee to figure out how to dole out $5 million to fund local community projects near the cracker (see PA DEP Forms Ctte to Dole Out $5M in Shell Cracker Shakedown Cash). Many (not all) of the committee members are radical leftists who irrationally hate fossil energy. Translation: This is quid pro quo money given to radical left supporters of Shapiro to thank them for voting for him. The DEP released the list of grant recipients on Wednesday, including $631,534 (over a half million dollars!) going to the rabid anti-shale group Beaver County Marcellus Awareness Community. Talk about a slap in Shell’s face.
10 New Shale Well Permits Issued for PA-OH-WV May 6 – 12 - Marcellus Drilling News - Two weeks ago, during the week of April 29 – May 5, there were 16 new permits issued to drill in the Marcellus/Utica (and 26 the week before that). Last week, for May 6 – 12, there were just ten new permits issued. The trend has been going down for the past few weeks. Ascent Resources scored the most new permits last week, with six scattered between two well pads in Guernsey and Jefferson counties in Ohio. Coterra Energy received two new permits in Susquehanna County, PA. Antero Resources also received two permits, in Wetzel County, WV. ANTERO RESOURCES | ASCENT RESOURCES | COTERRA ENERGY (CABOT O&G) | GUERNSEY COUNTY | JEFFERSON COUNTY (OH) |SUSQUEHANNA COUNTY | WEEKLY PERMITS | WEST VIRGINIA | WETZEL COUNTY
EIA May DPR: Shale Gas Production to Hit 5-Mo Low, Oil 6-Mo High Marcellus Drilling News - The latest monthly U.S. Energy Information Administration (EIA) Drilling Productivity Report (DPR) for May, issued Monday (below), shows EIA believes shale gas production across the seven major plays tracked in the monthly DPR for June will decrease production from the prior month of May. This is the eleventh month in a row that EIA has predicted shale gas production will decrease for the combined seven plays and (according to Reuters) will hit the lowest production level in five months. However, gas production won’t decrease everywhere. Gas-focused plays like the Marcellus/Utica and the Haynesville will see the most significant drop in production (a combined loss of 443 MMcf/d). In contrast, the oily Permian play will see a massive boost in the production of “associated” natural gas — the gas that comes out of the ground along with oil — up 143 MMcf/d. The Permian also adds another 18,000 barrels per day of oil production in June.
Radical Left Turns Up Heat on Gov. Hochul to Sign CO2 Frack Ban Bill -- Isn’t this interesting? Two days ago, MDN published a post pointing out that a bill passed by both houses of the New York State legislature to ban so-called carbon dioxide (CO2) fracking had still not been signed into law by Gov. Kathy Hochul (see 2 Mo. After NY Legislature Passed CO2 Frack Ban, Gov Hasn’t Signed). We published that post not having seen a single article or reference online anywhere (news or otherwise) about the situation. And the very next day, a group of radicalized Democrat lawmakers that sponsored and voted for the bills, along with a press release by the vicious Food & Water Watch organization, criticized Gov. Hochul for “jetting” and “cavorting” to Europe to “grandstand on climate leadership” while not having signed this bill into law. These Dems are not nice people. They sometimes eat their own.
Producing shale gas through the injection of CO2 - Using water for shale gas fracking operations is banned in New York State, USA. However, that has not stopped companies from looking for alternatives to get the gas out of the prospective Marcellus and Utica shales in the Southern Tier, the western part of the state.If the people living in New York’s Southern Tier thought that shale gas production is not going happen in their backyard because of the ban on using water for fracking, they could be wrong. Last year, a new company was formed under the name Southern Tier Solutions, and its main goal is to use CO2 as a medium to frac wells in the area instead of water. But how feasible is this? First of all, the CO2 required to frac wells is not readily available, as the company admits on their FAQ page. However, with legislation towards limiting industrial emissions becoming tighter in the near future, the company states that they offer a solution to the storage part of the problem. Making money through producing gas will obviously help the business case. The question then remains how the production of methane and its subsequent use will offset the benefit of storing CO2 in the reservoir. Secondly, how suitable is CO2 as a fraccing medium? The Southern Tier website contains a fair amount of information to suggest that injecting CO2 is a feasible way to extract the methane, even though shale gas reservoirs have never been used for carbon storage. It is mainly academic work from China that suggests that the absorption affinity of CO2 is greater than CH4, which is what is required to produce the methane. The company states that the Marcellus shale in the Southern Tier alone could accommodate more than 17,000 million tons of CO2. It would still be interesting to see how much of the injected CO2 is expected to be produced back – it seems unlikely that everything will be absorbed straight away in exchange for the previously absorbed methane. Another point of interest is the question of who owns the pore space. American landowners are by law the owners of the underground mineral resources on their property. However, there is a grey area when it comes to the question of who owns the space between the grains. As Southern Tier Solutions write on their website, most US states apply the “American rule”, which means that the land owner also holds the rights to the pore space. However, it also dictates that the land owner must first deplete the mineral resources before the pore space can be leased. In the case of fracking with CO2 and the simultaneous production of methane, the question of course is whether this can be seen as “depleting the mineral resource” first, given that it is taking place at the same time.
Mouthy Antis Force Iroquois Compressor Meeting to Adjourn Early - Marcellus Drilling News -Here’s a truism you can the to the bank. Anti-fossil fuel nutters need (crave) a public forum where they can prance around like peacocks making a spectacle of themselves. Deny them that forum, and they get grumpy — fast. Such was the case at an information session held Tuesday at the Athens (NY) Elementary School. A company hired to work on upgrading a compressor station in Athens for the Iroquois Gas Transmission pipeline tried to share important information about the project. However, protesters made it impossible, and the session was dismissed early due to the bad behavior of the petulant protesters.
WV Gets Federal Check for $30M to Plug Orphaned Wells --Marcellus Drilling News * In the fall of 2021, President Biden signed into law the so-called Infrastructure bill, some $1.2 trillion in pork barrel spending, passed with the help of turncoat Republicans (see Biden So-Called $1.2T Infrastructure Bill Passes Thanks to RINOs). Only about 9% of the $1.2 trillion goes to actual infrastructure projects like roads and bridges. One of the line items in the bill (so small it’s a rounding error) is money to plug orphaned and abandoned oil and gas wells. After two years of waiting and a lot of squeezing on the public teat, some of the money to plug old wells finally began to drib and drab out last July — $660 million in total, of which $163 million (or 25%) went to Ohio, Pennsylvania, and West Virginia (seeBidenistas Dispense $163 Million to Plug Old O&G Wells in OH-PA-WV). Another drib and drab has just leaked out — $29.2 million for West Virginia.
MVP Responds to ‘Misinformation’ Around Failed Pipeline Hydrostatic Test - Pushing back against concerns raised by project opponents, Mountain Valley Pipeline LLC (MVP) said its handling of a recent failed pressure test demonstrates that safety protocols are working as intended. In a letter filed with FERC late last week, Todd L. Normane, senior vice president for MVP backer Equitrans Midstream Corp. and legal counsel for the pipeline, said the company felt compelled to respond to “the recent spate of public misinformation” surrounding a May 1 rupture that occurred during hydrostatic testing. Following years of delays, MVP resumed construction on the 303-mile, 2 million Dth/d Appalachia-to-Southeast natural gas pipeline last summer after Congress intervened to rescue the project from regulatory limbo. The developer had previously told the Federal...
4th Circus Clowns Punish MVP One Last Time via Eminent Domain Case - Marcellus Drilling News - It’s clearly a case of sour grapes for the same three judges from the U.S. Court of Appeals for the Fourth Circuit (4th Circus clowns) who tried to block the 303-mile Mountain Valley Pipeline (MVP) by rendering arbitrary decisions that caused years of delays for the pipeline. We’re talking about Judge Stephanie Thacker, appointed by Barack Hussein Obama (she likes to quote from Dr. Seuss books in her opinions); Judge James Wynn, appointed by Barack Hussein Obama; and Chief Judge Roger Gregory, appointed by William Jefferson Clinton. All three are (in our opinion) corrupt and should immediately be impeached and removed from the bench. Congress finally had enough of their judicial malpractice in blocking MVP and passed a law overriding the clowns, signed into law by Joementia last June (see Equitrans Announces Mountain Valley Pipe to Get Completed in 2023). Now that MVP is on the cusp of starting operations, the three clowns took one last swipe at the pipeline they had tried to block. The judges re-inflated a jury award against MVP for an eminent domain “taking” case in the Bent Mountain, Virginia, area. Sour grapes.
Another Freak Show – Protesters Block MVP Construction Yard -- Marcellus Drilling News -- We’re just a few weeks away from the 303-mile Mountain Valley Pipeline (MVP) going online, flowing 2 billion cubic feet per day (Bcf/d) of yummy FRACKED natural gas from the Marcellus/Utica to southern Virginia and beyond. And that fact is driving the insane, unhinged left even more insane and unhinged. Yesterday, a man (who refused to identify himself as a man) tied himself to two barrels full of concrete in the middle of the road in the Bent Mountain (Roanoke County), VA, area, blocking access to an MVP work yard. The protester was spewing anti-Israel statements (a bigot and anti-Semite), along with nonsensical statements about the oil and gas industry. Truly unhinged. State police arrived to deal with the situation.
When MVP Spigot Opens, Natural Gas Flows to Begin as Trickle, Putting Focus on SE Price Spreads - When the long-delayed Mountain Valley Pipeline LLC (MVP) starts up in the coming weeks, the natural gas flowing south into downstream markets is not expected to be anywhere near the pipeline’s full 2 Bcf/d capacity. That’s because past the southern terminus of the 303-mile pipeline, the Transcontinental Gas Pipe Line Co. (Transco) system faces bottlenecks during peak demand periods into the Mid-Atlantic and Southeast regions. Transco’s capacity is heavily constrained to the north, south and east from its Compressor Station 165 in south central Virginia. Additional capacity to the line won’t arrive until late 2027.
Natural Gas Output from Appalachia, Haynesville Seen Falling Further into Early Summer - Combined natural gas production from seven key Lower 48 plays is expected to ease lower in June, with declines from gas-weighted plays continuing to offset increasing associated output from the Permian Basin, according to updated projections from the U.S. Energy Information Administration (EIA). In its latest Drilling Productivity Report (DPR), published Monday, EIA said it expects combined June natural gas production of around 99.2 Bcf/d from the seven regions tracked in the monthly dataset. That would represent a 330 MMcf/d sequential decline from modeled output of around 99.5 Bcf/d for May, the DPR data show. Alongside the Permian, the DPR tracks drilling and productivity trends in the Anadarko and Appalachian basins, as well as the Bakken, Eagle Ford, Haynesville and the Niobrara...
Enbridge Touts Natural Gas Projects Adding Permian Egress and Supporting LNG, Data Center Demand - Enbridge Inc. management touted a plethora of projects strategically focused on LNG exports and natural gas that are expanding and optimizing the Calgary-based midstream giants’ operations. CEO Greg Ebel recently held an earnings call and reviewed the company’s first quarter results. With “sustainability at the core, Enbridge is “committed to meeting the needs of our customers,” Ebel said.
Freeport LNG Signals Return of Production at All Three Trains - Freeport LNG has confirmed that all three trains at the Texas export facility are back online after months of maintenance that limited natural gas flows to the facility. Since earlier in the month, the market has been tracking an uptick in feed gas volumes to Freeport that could indicate a restart of production at the 2 Bcf/d capacity terminal. Flows to the liquefied natural gas export facility had previously been near zero for more than a week after multiple reported trips of Train 3 added to a cut in nominations from ongoing repairs on the other liquefaction units, according to regulatory and Wood Mackenzie pipeline data. A Freeport spokesperson told NGI Wednesday all trains returned to service.
Freeport LNG Restart Marks 1.5 MMty Production Boost as Debottlenecking Project Wraps Up - Freeport LNG Development LP is gearing up to expand its output of cargoes to the spot market after completing an expansion project during extended maintenance. Freeport management recently confirmed that all three trains at the Texas facility are back online after a series of mechanical issues and damage from a winter storm earlier in the year. The return of the production at the terminal near its 15 million metric tons/year (mmty) design capacity has helped ease global supply pressure and stoked domestic prices with added feed gas demand. However, crews working at the facility since maintenance began in January have also been completing another project simultaneously. In March, Freeport CEO Michael Smith told NGI that a debottlenecking project had begun to push overall capacity...
Republican US lawmakers urge regulators to process LNG project applications (Reuters) - Two influential U.S. Republican lawmakers have urged the head of the federal energy regulator to process applications for liquefied natural gas, or LNG, projects, saying any delays could force allies and partners to turn to countries like Qatar and Iran for the fuel. President Joe Biden, a Democrat, in January announced a pause on Department of Energy approvals of LNG exports to countries in Asia and Europe in order to study environmental, climate and economic impacts of the booming business. The Federal Energy Regulatory Commission, an independent panel, approves other aspects of LNG projects including construction. Venture Global's Calcasieu Pass 2 LNG project got FERC's environmental approval in July last year, but FERC has not so far voted on its construction. Senator John Barrasso, the ranking member of the Senate energy committee, and Representative Cathy McMorris Rodgers, the head of the House of Representatives energy committee, both Republicans, urged FERC Chairman Willie Phillips in a letter dated April 30 to process applications for LNG projects in a timely and fair manner. The U.S. last year became the world's largest exporter of LNG, which is natural gas supercooled to a liquid before being shipped. Supporters say it can help some economies quit using coal. But many environmentalists say LNG locks consumers into fossil fuel dependence for decades and that LNG once regassified can leak methane, a potent greenhouse gas, from pipelines. It shows Biden's pause is becoming more politically charged as it is the first official pressure Barrasso has put on FERC on the matter. This month, nearly 75 Democratic lawmakers sent a letter to Biden expressing support for the pause. Besides CP2, four other LNG projects are waiting approvals from FERC. "The Commission must not compromise its independence from the White House and the Department of Energy by 'pausing' or otherwise delaying its review of any application, the approval of which is necessary for the siting, construction, expansion, or operation of an LNG facility," the lawmakers said in their letter. "Injecting any further delay to FERC’s review process would hurt the United States and our allies and would be unfair to project proponents." FERC will reveal on Thursday whether it will consider CP2 or other LNG projects at its open meeting on May 23. A FERC spokesperson said Phillips will respond to the lawmakers "in due course."
US natgas prices jump 6% to 15-week high on rising LNG feedgas — (Reuters) -U.S. natural gas futures jumped about 6% to a 15-week high on Monday on lifted demand forecasts for next week as gas flows increased to liquefied natural gas (LNG) export plants with the return of Freeport LNG's plant in Texas. Still, there is a big oversupply of gas in storage and output rose over the past several days. Analysts forecast the amount of gas in storage was around 31% above normal levels for this time of year. Front-month gas futures NGc1 for June delivery on the New York Mercantile Exchange rose 12.9 cents, or 5.7%, to settle at $2.381 per million British thermal units (mmBtu), their highest close since Jan. 29. The contract remained in technically overbought territory for a seventh day in a row for the first time since April 2022. With gas prices up about 40% over the past two weeks, speculators last week switched their futures and options positions on the New York Mercantile and Intercontinental Exchanges from net short to net long for the first time since mid-January, according to the U.S. Commodity Futures Trading Commission's Commitments of Traders report. Financial firm LSEG said gas output in the Lower 48 U.S. states fell to an average of 97.2 billion cubic feet per day (bcfd) so far in May, down from 98.1 bcfd in April. That compares with a monthly record high of 105.5 bcfd in December 2023. On a daily basis, output rose about 1.9 bcfd over the past five days to a four-week high of 98.0 bcfd on Sunday with the return from maintenance of some gas pipes in Texas from a 15-week low of 96.1 bcfd on May 7. Despite rising output over the weekend, U.S. gas production remained down about 8% so far in 2024 after several energy firms, including EQT and Chesapeake Energy, delayed well completions and cut back on other drilling activities after prices fell to 3-1/2-year lows in February and March. Meteorologists projected weather across the Lower 48 states would remain mostly near normal through May 28, except for some warmer-than-normal days from May 18-22. LSEG forecast gas demand in the Lower 48, including exports, would rise from 92.1 bcfd this week to 92.9 bcfd next week. The forecast for next week was higher than LSEG's outlook on Friday. Gas flows to the seven big U.S. LNG export plants rose from an average of 11.9 bcfd in April to 12.7 bcfd so far in May with the return of the 2.1-bcfd Freeport plant in Texas. That compares with a monthly record high of 14.7 bcfd in December. The U.S. became the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar, as much higher global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's war in Ukraine. Gas was trading around $9 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe and $10 at the Japan Korea Marker (JKM) benchmark in Asia
US natgas prices climb 3% to 15-week high on output drop, demand rise (Reuters) -U.S. natural gas futures climbed about 3% to a 15-week high on Wednesday on a drop in output, a rise in feedgas to liquefied natural gas (LNG) export plants since Freeport LNG returned to full service, and forecasts for warmer weather over the next two weeks than previously expected. The warmer weather should boost the amount of gas power generators burn to produce electricity to keep air conditioners humming. Traders said the futures price increase was kept in check by the tremendous oversupply of gas still in storage. Analysts forecast gas stockpiles were about 31% above normal levels for this time of year. Front-month gas futures NGc1 for June delivery on the New York Mercantile Exchange rose 7.2 cents, or 3.1%, to settle at $2.416 per million British thermal units (mmBtu), their highest close since Jan. 29. That kept the front-month in technically overbought territory for a ninth day in a row for the first time since April 2022. Financial firm LSEG said gas output in the Lower 48 U.S. states fell to an average of 97.1 billion cubic feet per day (bcfd) so far in May, down from 98.2 bcfd in April. That compares with a monthly record high of 105.5 bcfd in December 2023. On a daily basis, output dropped by around 3.0 bcfd over the past three days to a preliminary 17-week low of 95.2 bcfd on Wednesday. Meteorologists projected weather across the Lower 48 states would turn from near normal now to warmer than normal levels from May 18-30. LSEG forecast gas demand in the Lower 48, including exports, would rise from 92.4 bcfd this week to 92.7 bcfd next week. The forecast for this week was higher than LSEG's outlook on Tuesday. Gas flows to the seven big U.S. LNG export plants rose from an average of 11.9 bcfd in April to 12.6 bcfd so far in May with the return to full service of Freeport LNG's 2.1-bcfd export plant in Texas. That compares with a monthly record high of 14.7 bcfd in December. But on a daily basis, LNG feedgas was on track to hold at 12.4 bcfd for a second day on Wednesday as flows to Freeport remain at an 11-month high of 2.1 bcfd for a third day because flows to Cheniere Energy's Sabine Pass in Louisiana fell to a seven-month low of 3.8 bcfd.
Natural Gas, WTI Oil, Brent Oil Forecasts – EIA Natural Gas Storage Build Of +70 Bcf Misses Estimates -- On May 16, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 70 Bcf from the previous week, compared to analyst consensus of +76 Bcf. At current levels, stocks are 421 Bcf higher than last year at this time and 620 Bcf above the five-year average. Natural gas prices gained ground after the release of the EIA report. The storage build fell short of analyst expectations, which may serve as an additional bullish catalyst for the market. Natural gas prices have been moving higher since early May. The significant oversupply remains an important catalyst for natural gas, as storage levels exceed last year’s levels and the five-year average for this time of the year. However, traders bet that rising LNG exports, the previously announced production cuts, and the potentially hot summer would boost demand for natural gas, pushing the prices towards new highs. From the technical point of view, natural gas is trying to settle above the resistance at $2.45 – $2.50. In case this attempt is successful, natural gas will head towards the next resistance level, which is located in the $2.80 – $2.85 range. RSI remains in the moderate territory, so there is enough room to gain momentum in the near term.
Crescent Energy Building Eagle Ford Natural Gas, Oil Portfolio in Friendly Merger with SilverBow - Houston-based Crescent Energy Co. has agreed to tie-up with cross-town rival SilverBow Resources Inc. to create one of the largest exploration and production companies in the Eagle Ford Shale of Texas, loaded with natural gas, liquids and oil opportunities. The estimated $2.1 billion transaction, announced Thursday, comes about a month after activist investor Kimmeridge Energy Management Co. LLC withdrew its contested takeover of SilverBow. The combination among like-minded explorers would elevate Crescent to the top tier of Eagle Ford producers, second only to EOG Resources Inc. Pro forma output for 2024 is estimated at roughly 250,000 boe/d, weighted 44% to natural gas, 39% to oil and 17% to natural gas liquids.
Republican resolution targets Interior drilling rule - Senate Republicans are seeking to overturn a recent Biden administration energy rule that significantly raises costs for oil companies to drill on public lands.On Tuesday, Sen. Steve Daines (R-Mont.) introduced a Congressional Review Act resolution, S.J. Res. 78, that would kill the Interior Department’s proposal using the CRA.Under the rule bonds for new oil and gas leases would go from today’s $10,000 to a minimum of $150,000. “[President] Joe Biden set out on an anti-American energy war path on Day One, and ever since Montana’s small oil and gas producers have been a target,” said Daines, who leads the Senate’s campaign arm.
- Shale fracture surfaces showed more pitting and greater roughness after exposure to pH 4 versus pH 9.5 brine.
- Shale fracture surfaces exposed to pH 4 brine showed more pitting and greater roughness in areas that received the highest brine flows.
- The fracture toughness of shale fracture surfaces decreased more after exposure to pH 4 versus pH 9.5 brine, and more in areas of highest flow with the pH 4 brine.
- Acidified brine flow caused significant physical and geomechanical alteration of an irregular shale fracture surface, and these effects were greater in preferential flow regions.
Abstract: The efficacy of geological carbon sequestration is reliant on the integrity of the caprock and its resistance to physical and chemical alteration. Caprocks with high abundance of reactive carbonates like calcite are susceptible to acid-promoted dissolution and can result in structural weakening. This work investigates the effect of acidified brine flow through an artificially fractured, high-carbonate (30 % by XRD) shale under differential compressive stress. Cylindrical samples were cut in half vertically and milled to create an artificial fracture with interlocking asperities and open channels. Samples were sheared with a single applied stress in a custom flow cell housed within an industrial CT scanner. Either acidic (pH 4) or reservoir-simulated (pH 9.5) brine was flowed through the artificial fracture for 7–8 days under reservoir pressure and room temperature. Model simulations indicate flow mainly occurred in open channels, with limited flow between overlapping asperities. Analysis of fracture surfaces by optical and scanning electron microscopy show increased surface alteration and roughness after exposure to pH 4 versus pH 9.5 brine indicating mineral dissolution/loss, and this effect is greater in areas that receive the highest brine flows. Similarly, surface analysis by scratch testing shows fracture toughness decreases more after exposure to acidic versus reservoir-simulated brine, with the greatest alteration in areas of highest acidic brine flows. Despite weakening, no shear slip occurred. Overall, the results indicate that acidified brine can result in significant physical and geomechanical alteration of irregular fracture surfaces in shale caprock, with greatest effects in preferential flow regions.
Barge causes oil spill when it hits bridge in Galveston, Texas -- A barge caused an oil spill after slamming into a bridge in Galveston, Texas on Wednesday, according to local officials.The Pelican Island Bridge has been closed to all traffic since about 10 a.m. local time, according to the city of Galveston’s website. The city reported that there were no injuries from the incident.The city said that the collision resulted in an oil spill in Galveston Bay, which the U.S. Coast Guard is responding to. The city added that the Coast Guard “will determine the extent of the spill, as well as initiate the containment and cleanup processes.” Emergency management officials from Galveston, the state and Texas A&M University’s Galveston campus are also responding to the incident, as well as the local fire and police departments and the Texas Department of Transportation, according to the city.Engineers from the Texas Department of Transportation will be inspecting the roadway to determine whether there is damage, it added.Texas A&M University at Galveston said in an online statement that the bridge “is closed to all traffic at this time due to a barge strike.”“Power has been restored to campus. However, the bridge remains out and is closed to all vehicular traffic. The Galveston Campus Incident Command Team has been established, and we are working with city, county, and state officials to determine impacts to campus,” the alertsaid.Ronnie Varela, who works with Galveston’s Office of Emergency Management, said the barge struck the bridge at around 9:30 a.m. local time, according to The Associated Press.The collision comes more than a month after a shipping vessel slammed into the Baltimore Key Bridge in late March, causing the entire structure to collapse. Six of the eight construction workers on the bridge that night were killed in the collapse.The House Committee on Transportation and Infrastructure held a hearing Wednesday morning to hear from federal officials regarding the Baltimore bridge collapse.
Galveston: Barge hits bridge connecting Pelican Island, causing oil spill (AP) — A barge slammed into a bridge pillar in Galveston, Texas, on Wednesday, spilling oil into waters near busy shipping channels and closing the only road to a small neighboring island. No injuries were reported. The impact sent pieces of the bridge, which connects Galveston to Pelican Island, tumbling on top of the barge and shut down a stretch of waterway so crews could clean up the spill. The accident knocked one man off the vessel and into the water, but he was quickly recovered and was not injured, said Galveston County Sheriff’s Office Maj. Ray Nolen. Ports along the Texas coast are hubs of international trade, but experts said the collision was unlikely to result in serious economic disruptions since it occurred in a lesser-used waterway. The island is on the opposite side of Galveston Island’s beaches that draw millions of tourists each year. The accident happened shortly before 10 a.m. after a tugboat operator pushing two barges lost control of them, said David Flores, a bridge superintendent with the Galveston County Navigation District. “The current was very bad, and the tide was high,” Flores said. “He lost it.” Pelican Island is only a few miles wide and is home to Texas A&M University at Galveston, a large shipyard and industrial facilities. Fewer than 200 people were on the campus when the collision happened, and all were eventually allowed to drive on the bridge to leave. The marine and maritime research institute said it plans to remain closed until at least Friday. Students who live on campus were allowed to remain there, but university officials warned those who live on campus and leave “should be prepared to remain off campus for an unknown period of time.” The tugboat in Texas was pushing bunker barges, which are fuel barges for ships, Flores said. The barge, which is owned by Martin Petroleum, has a 30,000-gallon capacity, but it’s not clear how much leaked into the bay, said Galveston County spokesperson Spencer Lewis. He said about 6.5 miles (10.5 kilometers) of the waterway were shut down because of the spill. The affected area is miles away from the Gulf Intracoastal Waterway, which sees frequent barge traffic, and the Houston Ship Channel, a large shipping channel for ocean-going vessels. Aside from the environmental impact of the spill, the region is unlikely to see large economic disruption as a result of the accident, said Marcia Burns, a maritime transportation expert at the University of Houston “Because Pelican Island is a smaller location, which is not in the heart of commercial events, then the impact is not as devastating,” Burns said. “It’s a relatively smaller impact.” At the bridge, a large piece of broken concrete and debris from the railroad hung over the side and on top of the barge that rammed into the passageway. Flores said the rail line only serves as protection for the structure and has never been used. Opened in 1960, the Pelican Island Causeway Bridge was rated as “Poor” according to the Federal Highway Administration’s 2023 National Bridge Inventory released last June. The overall rating of a bridge is based on whether the condition of any of its individual components — the deck, superstructure, substructure or culvert, if present — is rated poor or below. In the case of the Pelican Island Causeway Bridge, inspectors rated the deck in “Satisfactory Condition,” the substructure in “Fair Condition” and the superstructure — or the component that absorbs the live traffic load — in “Poor Condition.” The Texas Department of Transportation had been scheduled in the summer of 2025 to begin construction on a project to replace the bridge with a new one. The project was estimated to cost $194 million. In documents provided during a virtual public meeting last year, the department said the bridge has “reached the end of its design lifespan, and needs to be replaced.” The agency said it has spent over $12 million performing maintenance and repairs on the bridge in the past decade. The bridge has one main steel span that measures 164 feet (50 meters), and federal data shows it was last inspected in December 2021. It’s unclear from the data if a state inspection took place after the Federal Highway Administration compiled the data.
Up To 2,000 Gallons Oil May Spill Into Gulf Of Mexico As Barge Hits US BridgeThe 321-foot barge was carrying 23,000 barrels, which amounts to nearly 9,66,000 gallons, when it slammed into a pillar of the Pelican Island Causeway bridge.Up to 2,000 gallons of oil may have spilt into the Gulf of Mexico after a bunker barge struck a bridge in the island city of Galveston, eastern Texas, the US Coast Guard estimated. The source of the leakage from the barge has been contained after the accident, said the US Coast Guard, reports Xinhua news agency. The Coast Guard said it deployed planes and drones to evaluate the extent of the oil spill on Thursday while closing about 6.5 miles (10.5 km) along the Gulf Intracoastal Waterway, a busy shipping channel for the region. Galveston is about 50 miles (80.5 km) away from downtown Houston, the largest city in Texas. "We're pretty confident there was much less oil introduced to the water than we initially estimated," Coast Guard Captain Keith Donohue told a news conference. "We've recovered over 605 gallons of oily water mixture from the environment, as well as an additional 5,640 gallons of oil product from the top of the barge that did not go into the water," Donohue said. The 321-foot barge, which has the capacity to hold 30,000 barrels of oil, was carrying 23,000 barrels, which amounts to nearly 9,66,000 gallons, when it slammed into a pillar of the Pelican Island Causeway bridge on Wednesday, Rick Freed, vice president of barge operator Martin Marine, told the news conference. A tugboat lost control of two barges "due to a break in the coupling" connecting them. One of the barges slammed into the bridge, the Coast Guard said. Freed said an investigation is still underway. The crash led to the partial collapse of the bridge, forcing the only land connection from Galveston to Pelican Island to shut down. No injuries were reported. "The harmful consequences of oil are once again impacting our coastal communities, wildlife, and waters," Joseph Gordon with an ocean conservation group named Oceana said in a statement. The spill will probably have minimal long-term consequences, considering the volume of oil on board the barge, Danny Reible, a Texas Tech University professor, told ABC News on Thursday. Listen to the latest songs, only on JioSaavn.com The accident came weeks after a cargo ship slammed into a support column of the Francis Key Bridge in Baltimore on March 26, claiming six lives.
Source of oil leak into Galveston Bay following barge collision has been contained, say officials - Officials are monitoring an oil spill in Texas waterways after the partial collapse of a bridge that was struck by a barge, but the source of the spill itself has been contained, according to the U.S. Coast Guard. The 321-foot barge, named MMLP 321, struck a pillar on the railroad portion of the Pelican Island Causeway on Wednesday morning, causing oil aboard the vessel to leak into Galveston Bay, according to officials. The span is the only bridge that leads from the island city of Galveston, on the Texas Gulf Coast, to nearby Pelican Island. Engineers from the Texas Department of Transportation will inspect the roadway and determine if it also is damaged, officials said. No injuries were reported. The barge was carrying 30,000 barrels of vacuum gas oil, the U.S. Coast Guard said in a statement on Wednesday. It is unclear how much oil leaked into the bay. The U.S. Coast Guard is leading the response to assess the oil spill and will determine its extent and the cleanup process. The source of the leak from the barge has been contained, the Coast Guard said in a statement on Thursday. Sheen from the oil on the water could be seen in aerial footage of the bay. A Coast Guard plane as well as drones were deployed Thursday morning to evaluate the extent of the oil spill, the Coast Guard said. The Coast Guard also closed 6.5 miles along the Gulf Intracoastal Waterway, a busy shipping channel for the region. "The harmful consequences of oil are once again impacting our coastal communities, wildlife, and waters," Joseph Gordon, campaign director for Oceana, an ocean conservation nonprofit, said in a statement regarding the spill. "...Whether it's spills at platforms like the Deepwater Horizon disaster, or spills due to accidents during transport, oil and gas drilling plays a destructive role in fueling the climate crisis."
Enbridge Plans to Increase Permian Oil Pipeline's Capacity | Hart Energy The Gray Oak Pipeline company began a binding open season on May 9 for a proposed capacity expansion of 120,000 bbl/d of crude. The open season for the Texas pipeline ends at 5 p.m. on June 28. Enbridge (ENB) operates the line, which it owns in a joint venture with Phillips 66 (PSX), Marathon Petroleum (MPC) and Diamondback Energy (FANG). The Gray Oak Pipeline is an 850-mile intrastate system extending from the Permian to destinations in Corpus Christi, Ingleside and Freeport. Enbridge’s Ingleside Energy Center is the largest crude oil storage facility and export terminal in the U.S. The 120,000 bbl/d is a reduction from Enbridge’s original plan to expand capacity by 200,000 bbl/d, which was announced to investors in March. The crude pipelines that serve Corpus Christi are operating at capacity, according to an analysis by RBN Energy’s Sheela Tobben, published on May 8. The port city’s recently enlarged shipping channels make it an attractive loading spot for exports. In Enbridge’s first-quarter earnings report, the company detailed an active period of growth over the first three months of 2024. In March, Enbridge finalized its acquisition of the East Ohio Gas Co., which it acquired from Dominion Energy (D) for $6.6 billion. Also in March, the company announced a definitive agreement with Whitewater and MPLX to combine the Rio Bravo and Whistler natural gas pipeline assets into a new JV, dedicated to moving natural gas out of the Permian. The company also sanctioned the $1.1 billion Tennessee Ridgeline Expansion, a pipeline that will ship natural gas to a gas-fired generator in Kingston, Tenn., to be built by the Tennessee Valley Authority.
Public hearing planned over proposed oil, gas wells near Aurora Reservoir - On Thursday, residents in southeast Aurora will have a chance to voice their concerns at a public hearing over proposed gas and oil wells near the Aurora Reservoir.The Colorado Energy and Carbon Management Commission is holding a public hearing over the proposed Lowry Ranch Comprehensive Area Plan. The meeting will take place Thursday at the Arapahoe County Fairgrounds and Event Center.The Lowry Ranch Comprehensive Area Plan was proposed in 2022 by Civitas Oil and Gas and is a 32,000-acre, 10-surface location, 166-well comprehensive area plan in unincorporated Arapahoe County.Part of the 32,000 acres includes putting wells near the Aurora Reservoir, and some community members are concerned about the impacts this proposed plan will have on the land.The reservoir is not only a popular recreation area but is a stored drinking water source for the community.The group “Save the Aurora Reservoir” has told state officials that they oppose the fracking project, saying the project poses a threat to drinking water stored in the reservoir.The group demanded a public hearing be made available before the state makes its final decision in late June.That public hearing was granted and will happen on Thursday. Doors are set to open at 4 p.m., and the hearing is scheduled to last three hours.Those interested in the hearing can sign up here.If the plan is ultimately approved, the wells will be drilled beginning in the second quarter of 2024 and lasting through 2029.
U.S. LNG Through Panama Canal Continues to Drop Despite Rising Asian Demand - hile shippers await a possible easing of congestion at the Panama Canal in the coming weeks, the volume of U.S. LNG heading through the key route has fallen to a record low. Under normal conditions, the canal provides the fastest roundtrip voyage from the Gulf Coast to Japan at roughly 49 days. However, persistent drought conditions in the region since last summer have pushed the Panama Canal Authority (PCA) to restrict passages, spiking wait times and auction prices for passage slots. “Faced with low water levels at the Canal’s reservoirs, which are essential to its operations, we were forced to start restricting transits for the first time ever,” PCA’s Ilya Espino de Marotta, deputy administrator said in a recent operations summary. “This decision was crucial to...
Canadian Natural Sees LNG Demand Boosting Natural Gas Prices Next Year - Alberta’s Canadian Natural Resources Ltd. is taking a glass-half-full view of the current natural gas price slump, according to CEO Scott Stauth. Stauth hosted a conference call to discuss first quarter earnings for Calgary-based Canadian Natural, one of the country’s largest independent natural gas producers. The company’s gas-focused operations target the Montney Shale and Alberta Deep Basin, among other plays. Canadian Natural also is a substantial producer of heavy crude oil as well as synthetic crude oil derived from bitumen extracted from Canadian oilsands. Because of the energy intensive nature of bitumen upgrading, “we are a large consumer of natural gas in our oilsands operations,” said Stauth. The company markets about one-third of its gas production to the United States...
Western Canada’s 1 Bcf/d Yellowhead Natural Gas Pipe to Move Supply to Dow Cracker – and Beyond - A 124-mile-long Western Canadian natural gas pipeline system that would deliver about 1 Bcf/d from west-central Alberta to northeastern Edmonton is in the works by a unit of Atco Ltd. The Yellowhead Mainline project, announced by Calgary-based Canadian Utilities Ltd., would cost more than C$2 billion (C$1.00/US 73 cents), according to preliminary estimates. The system from Peers, AB, to Edmonton is scheduled for completion by late 2027. A “more precise” cost estimate and “further refinement” of the “scope, route and detailed engineering” is to come, Atco Energy Systems CEO Wayne Stensby said.
Wildfire evacuation notice issued for major Canada oil town Fort McMurray (Reuters) - An evacuation alert has been issued for Fort McMurray, Alberta, as an out-of-control fire rages southwest of the major Canadian oil town, making it among the first actions ahead of the wildfire season. In a notice late on Friday, the Alberta government said the wildfire danger is "extreme" in the Fort McMurray Forest Area and out of control at 1,000 hectares (2,471 acres) in size. It said strong winds are expected on Saturday, as a cold front continues to pass over the region. Helicopter pilots using night vision equipment surveilled the wildfire area overnight. In 2016, a huge wildfire in Fort McMurray forced the evacuation of 90,000 residents and shut in more than a million barrels per day of oil output. Residents in Saprea Creek Estates are also placed on alert from the municipality of Wood Buffalo. In British Columbia, the Northern Rockies Regional Municipality issued an evacuation order for the town of Fort Nelson. The federal government has warned Canada faces another "catastrophic" wildfire season as it forecasted higher-than-normal spring and summer temperatures across much of the country, boosted by El Nino weather conditions. Meeting with fire chiefs in West Kelowna, one of several B.C. communities that were forced to evacuate thousands of people last summer, Prime Minister Justin Trudeau said on Friday that it was likely to be "a very bad forest fire season." "People are worried about what the summer might bring. People are worried what the future might hold," he said. Last year Canada endured its worst-ever fire season, with more than 6,600 blazes burning 15 million hectares, an area roughly seven times the annual average. Eight firefighters died and 230,000 people were evacuated from their homes.
Calls mount for detailed evacuation plan in case of Trans Mountain oil spill -- Health and climate advocates are urging British Columbia to develop a credible evacuation plan in case of an oil spill in Vancouver’s Burrard Inlet as the Trans Mountain pipeline expansion project opens for business.In a letter dated May 8 and addressed to British Columbia’s Environment and Climate Change Strategy Minister George Heyman, environmental advocacy organizations, along with city councillors from Vancouver, Burnaby, New Westminster, Port Moody, Green Party of Canada co-leader Elizabeth May and prominent environmentalist David Suzuki warn that safety measures to protect lives and human health in the event of an oil spill are not in place.Trans Mountain has published emergency response plans for its pipeline and terminals, but because a spill in Burrard Inlet would involve multiple jurisdictions, a “Greater Vancouver Integrated Response Plan” has been developed. That plan spells out how initial assessments of marine spills would be conducted, reported and communicated. But according to the letter's signatories, it’s up to the B.C. government to clarify responsibilities specifically. “The human health assessment, accepted by the BC Environmental Assessment Office (BC EAO), states that local health authorities will co-ordinate with other agencies to perform all necessary emergency response tasks, including evacuations,” the letter reads. “Yet clarification of responsibilities and processes for these life-saving tasks, what resources are required and who has the capacity for the work, has not been established. “The authority for protecting the public from a marine spill in these waters rests with the BC EAO.”The $34-billion pipeline expansion project nearly triples the amount of oil that flows from Alberta to the B.C. coast, where it is then loaded onto ships for global markets. Trans Mountain says its Westridge Marine Terminal can handle 37 Aframax class tankers per month. Those tankers will load up in Burnaby and travel past Vancouver before leaving Burrard Inlet.Using estimates from Transport Canada’s emergency response guidebook, the signatories write that if an Aframax tanker, which can carry up to 600,000 barrels of oil, spilled two-thirds of its load with only 0.5 per cent reaching the shores, it would require the evacuation of 25,000 people. If the oil ignited, that number leaps to over 100,000 people needing to be evacuated. “Fire- and smoke-related mass casualties would be expected, along with hospitalizations from cardio-respiratory conditions and skin exposures to carcinogens for those who join in [the cleanup] and contact the spilled diluted bitumen,” the letter reads. “Damages, including mental health impacts, would be potentially present for years to come.” The letter says that a “human health assessment” conducted for the Trans Mountain expansion project states local health authorities will co-ordinate to carry out necessary emergency responses, including evacuations. But to date, there’s no clarity about who is responsible for what, potentially creating a jurisdictional mess that puts people in jeopardy. The letter also urges the B.C. government to tell the federal government not to allow any Trans Mountain tankers through the Vancouver narrows until a credible plan to protect people from oil spills is in place.Heyman's office did not return a request for comment by deadline.
Brosna oil spill being investigated, says WCC -- Westmeath County Council's environment section says that it is investigating the source of an oil spill into the River Brosna in Mullingar in recent days. The oil spill is believed to have started over the weekend, leaving many locals worried about the impact that it will have on the riverside flora and fauna. Locals also reported, what one resident described as a "heavy smell of fuel" coming from the river on Sunday and yesterday. In a statement issued to the Westmeath Examiner, Westmeath County Council said: "The Oil Spill Response team have been activated. Bunds have been placed across the Brosna to trap contaminants and Pollution Absorbent Pads put in place. "The Environment team are currently investigating the source of the spill."
Algeria Signs Series of Deals to Strengthen Role as Top European Natural Gas Supplier - Algeria’s Sonatrach has signed several agreements this year with foreign investors to help boost the state-owned company’s oil and natural gas output under a plan introduced last year. The company has entered several memorandums of understanding (MOU) this year, including with Eni SpA and Equinor ASA to further explore the In Salah and In Amenas region in Algeria’s southwest. Additionally, Sonatrach and TotalEnergies SE signed an MOU to develop gas resources in Algeria’s northeast Timimoun region. TotalEnergies also extended its existing 2 million metric tons/year (mmty) supply agreement with Sonatrach through 2025 to deliver LNG to the Fos Cavaou terminal near Marseille, France.
Global Natural Gas Prices Mixed on Stable Fundamentals – LNG Recap - Global natural gas prices were stable Monday as the market weighed easing supply constraints against forecasts for hotter weather in parts of the northern hemisphere and continued geopolitical tensions. In Europe, the Title Transfer Facility declined again, with the prompt contract giving up another 1.5% on Monday after it lost 6% last week. Flows at Freeport LNG on the upper Texas coast were back near capacity at 2 Bcf/d last week. They were nominated at 1.96 Bcf/d on Monday, according to NGI data. That’s a reversal from downtime at the facility most of this year after freezing temperatures caused damage at the plant in January.
Petronas Identified Cause of Power Outage at Malaysia LNG - Petronas is working to restore operations at its massive Bintulu LNG complex in Malaysia after a power outage late last week. The company said in a statement it is working to startup the facility after it identified the cause of the power loss, which it said occurred late on May 10. No timeline was given for a restart. The company added that it is working with customers to “mitigate the impact of the incident and fulfill its contractual commitments.”
Saudi Aramco in Search of LNG Offtake Contracts to Gain Foothold in Global Trade - State-owned Saudi Arabian Oil Co., better known as Aramco, is working to secure LNG supply contracts for global trading as it continues to build on a strategy aimed at moving into the world’s natural gas market. Offtake contracts and a trading portfolio, CFO Ziad Al-Mushed said during the first quarter earnings call, would create a valuable opportunity for the company. Aramco is owned by the Saudi royal family and is one of the world’s largest integrated energy companies. In recent years, it has been working to boost natural gas output and extend its reach beyond oil into low-emissions fuels, partly by acquiring interests in companies across the world.
Shell must be held accountable for human rights harms related to its Niger Delta business - Reacting to news that Nigeria’s oil industry regulator is prepared to offer a fast-track sales approvals process for oil companies wanting to sell their businesses in the country, Isa Sanusi, Amnesty International Nigeria Director, said: “With Shell currently seeking regulatory approval for the sale of its business in the Niger Delta, it is essential that it is held fully to account for decades of grievous human rights abuses related to oil spillswhich have polluted the environment, contaminated drinking water and poisoned agricultural land, fisheries and people.“An offer made by Nigeria’s industry regulator to fast-track approvals of sales by oil companies which accept responsibility for pollution must not be an easy option that allows Shell to cut and run from the suffering related to its operations in the Niger Delta, or which exposes local communities to more human rights harms.“We are concerned the proposed fast-track option potentially gives large oil companies the upper hand in negotiations around sales approvals and will exclude affected local communities from the decision-making process. It is also essential that any approval is contingent on the buyers having the operational expertise and financial stability to manage the operations acquired safely and effectively to ensure local communities are not exposed to enduring harms.“Amnesty International continues to recommend that any sales approval process related to Shell’s business in Nigeria must be full and thorough and involve safeguards to protect human rights, including an environmental study to assess clean-up requirements, an inventory of the physical assets being sold, and an evaluation to ensure sufficient funds are set aside for potential decommissioning of oil infrastructure.“Shell’s sale must not be allowed to add to the fossil fuel industry’s long and woeful record of pollution by leaving more harm in its wake. Amnesty International is campaigning for a fast phase out of fossil fuelsand a fair transition to renewables.” Shell announced in January that it had agreed to sell the Shell Petroleum Development Company of Nigeria (SPDC) to the Renaissance consortium, which comprises four exploration and production companies based in Nigeria and an international energy group, in a deal worth up to US$2.4 billion, financed partly with a loan to the buyers from Shell. The head of the Nigerian Upstream Petroleum Regulatory Commission outlined the fast-track approvals option at a meeting with representatives of major oil companies, including Shell and Exxon Mobil, in Abuja last week.
Expectations That the Federal Reserve Will Keep Rates Higher for Longer Due to Persistent Inflationary Pressures - The crude market on Monday traded higher after the market continued to trade lower in overnight trading in follow through selling seen on Friday on expectations that the Federal Reserve will keep rates higher for longer due to persistent inflationary pressures. The market breached its previous high of $78.14 and sold off to a low of $77.78 in overnight trading. However, the market bounced off its low and retraced some of its previous losses as it posted a high of $79.49 by mid-morning on signs of improving demand in China. Economic data from China showed consumer prices increasing for a third consecutive month in April while producer prices extended their declines. The crude market was also well supported by potential oil supply disruptions due to wildfires in Western Canada. The market later settled in a sideways trading range during the remainder of the session. The June WTI contract settled up 86 cents at $79.12 and the July Brent contract settled up 57 cents at $83.36. The product markets ended the session higher, with the heating oil market settling up 24 points at $2.4368 and the RB market settling up 1.08 cents at $2.5105. In its monthly Drilling Productivity Report, the EIA said U.S. oil output from top shale-producing regions will increase in June to its highest level in six months. Production in the top basins will reach 9.85 million bpd, its highest level since December. Output in the Permian is expected to increase by 17,970 bpd to 6.19 million bpd, while production in Eagle Ford is forecast to increase to 1.11 million bpd, the highest level since December. In the Bakken, output is expected to increase by 52 bpd to 1.31 million bpd, also the strongest level since December. The EIA report also showed that shale explorers drilled more crude wells than they fracked for the second straight month in April. As of the end of April, the fracklog increased by six to 4,510.Iraq's Oil Minister, Hayan Abdul Ghani, said any voluntary oil output cut "is subject to agreement between OPEC countries and any negotiable proposals may be presented at the time."IIR Energy said U.S. oil refiners are expected to shut in about 649,000 bpd of capacity in the week ending May 17th, increasing available refining capacity by 151,000 bpd. Offline capacity is expected to fall to 292,000 bpd in the week ending May 24th.Colonial Pipeline Co announced a freeze on the main distillate line 2, north of Collins for cycles 27, 28 and 29.Enbridge said operations continue as normal amid western Canada wildfires.
Projected Gain in US Holiday Travel Boosts Oil Futures -- Nearest delivered oil futures advanced Monday on bullish expectations for holiday travel in the United States over the Memorial Day weekend in an otherwise uninspired range-bound trade. AAA projects 38.4 million people will travel by car over May 23-27, which would be a record high for the U.S. holiday frequently identified as the kickoff to the summer driving season. If realized, it would mark a 4% increase year-on-year while 1.9% above the pre-COVID 2019 Memorial Day weekend. The travel group expects 43.8 million Americans will travel 50 miles or more from home over the holiday. The current record was reached in 2005 with 44 million travelers. AAA Travel senior vice president Paula Twidale said increasing travel for the Memorial Day weekend "signals a very busy summer travel season ahead." Oil futures have come under pressure in May as growth in oil demand has been lackluster. Gasoline supplied to the U.S. market during the four weeks ended May 3 was 4% below the comparable year-ago period, and cumulatively so far this year down 1.6%, according to data from the Energy Information Administration. Distillate fuel supplied to the U.S. market in 2024 is down 4.9% against the same timeline in 2023, with the decline accelerating to 6.6% against a year ago during the four weeks ended May 3. The upbeat projection runs contrary to falling consumer sentiment, with the University of Michigan on May 10 reporting the index fell to a six-month low in early May as consumers worried about inflation, interest rates and unemployment. The Bureau of Labor Statistics on Wednesday will release the Consumer Price Index, with the inflation gauge expected to have ticked down in April. June RBOB futures settled $0.0108 higher at $2.5105 gallon, holding above May's $2.4826 10-week low on a spot continuous basis with a $2.4913 intrasession low. June ULSD futures inched up $0.0024 with a $ 2.4368-gallon settlement, trading between key support at the $2.3783 trendline for the downtrend from the April 2022 high and retracement resistance at $2.4973 gallon. June West Texas Intermediate futures gained $0.86 with a $79.12-a-barrel (bbl) settlement, trading between $77.62 and $79.54, 61.8% and 50% Fibonacci retracement points for the February-April uptrend, respectively. July Brent ended the session just above the $83.34 100-day moving average at $83.36 bbl, up $0.57.
Oil prices settle up on demand optimism, US inflation in focus (Reuters) - Oil prices rose on Monday, as signs of improving demand in the U.S. and China, the top two oil consumers, aided the bounce from the previous session's $1 a barrel slide. U.S. West Texas Intermediate crude futures rose 86 cents, or 1.1%, to settle at $79.12 a barrel. Brent crude futures gained 57 cents, or 0.7%, to settle at $83.36 a barrel. Prices drew support from expectations of strong U.S. gasoline demand, as motorist group AAA forecast this year's Memorial Day travel activity will be the highest since 2005, with road trips at a record since 2000. U.S. crude oil stockpiles likely declined last week, according to a preliminary Reuters poll of analysts. Declining stocks are typically a sign of improving demand. Chinese data at the weekend showed consumer prices rising for a third straight month in April while producer prices extended declines, signaling improved domestic demand. The country also plans to raise 1 trillion yuan ($138.26 billion) for economic stimulus. On the supply front, investors are watching for potential oil supply disruptions in Western Canada due to wildfires the country's government has warned could be "catastrophic". "Canadian oil sands production currently has a 3.3 million barrel daily capacity, which is very likely to be affected moving into the summer," Oil prices have also found support from enduring expectations that OPEC+, the Organization of the Petroleum Exporting Countries and its allies, will extend supply cuts into the second half. No. 2 OPEC producer Iraq is committed to oil production cuts agreed by the group, its oil minister told the state news agency on Sunday. Those comments followed his suggestion on Saturday that Iraq would not agree to any additional cuts proposed by the wider group at its meeting on June 1. Traders said they are more cautious about the Middle East as hopes have been dashed for a ceasefire in Gaza. Israel on Sunday pushed back into North Gaza, while the death toll in Israel's military operation has passed 35,000 Palestinians, according to Gaza's health ministry. Investors will watch the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates. Analysts expect the U.S. central bank to keep its policy rate on hold for longer, supporting the dollar and making dollar-denominated oil more expensive for buyers holding other currencies.
Oil dips as US data suggests inflation stickier than expected - Oil prices edged lower on Tuesday, after US data suggested inflation remains sticky, while OPEC maintained its demand forecast for the year. Brent crude futures fell 55 cents to $82.81 a barrel at 1339 GMT, while US West Texas Intermediate (WTI) crude futures lost 67 cents to $78.45 a barrel. On Tuesday, US producer prices increased more than expected in April amid strong gains in the costs of services and goods, indicating that inflation remained elevated early in the second quarter. Borrowing costs in the United States have been stuck at high levels since last July in an effort to curb sticky inflation. Still, US consumer price data, expected on Wednesday, will have a sharper impact on the timing of the much-awaited rate cut, which could spur economic growth and therefore oil demand. “Oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming US inflation data keeping some reservations in place,” Meanwhile, earlier on Tuesday, OPEC - the Organization of the Petroleum Exporting Countries - stuck to its forecast for relatively strong growth in global oil demand in 2024 and said there was a chance the world economy could do better than expected this year. The OPEC monthly report said world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. Eyes are also on wildfires in remote western Canada that could disrupt the country’s oil supply. Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country’s oil sands industry. “Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production,” said Goldman Sachs analysts in a note. Although no operational disruptions have been reported, Alex Hodes, an analyst at energy brokerage StoneX, said Canada’s 3.3 million barrel per day (bpd) production capacity was “very likely to be affected”.
Oil settles lower as inflation data gives way to market jitters – CNA -Oil prices settled lower on Tuesday, after U.S. data stoked concerns that interest rates may stay high, but potential risks to supply from Mideast tensions and wildfires in Canada put a floor under prices. Brent crude futures settled down 98 cents, or 1.18 per cent at $82.38 a barrel. U.S. West Texas Intermediate crude futures (WTI) settled down $1.10, or 1.39 per cent at $78.02 a barrel. U.S. producer prices increased more than expected in April, feeding fears the Federal Reserve may keep borrowing costs elevated to fight inflation. Fed Chair Jerome Powell said he expects U.S. inflation to keep declining through 2024 but warned he is less confident now, since prices rose more quickly than expected through the first quarter. "The inflation story is not under control that is pulling demand back a bit and the thing that rubbed a little salt in the wound was Powell's comments", U.S. consumer price data is expected on Wednesday and will affect timing of rate cuts that could spur economic growth and oil demand. Another stronger-than-expected inflation reading could feed worries that a too-hot economy will force the Fed to raise rates again, which could hinder growth. Meanwhile on Tuesday, the Organization of the Petroleum Exporting Countries stuck to its forecast for relatively strong growth in global oil demand in 2024 and said there was a chance the world economy could do better than expected this year. OPEC's monthly report said world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. Energy markets were also watching wildfires in remote western Canada that could buoy prices by disrupting oil supplies. Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country's oil sands industry. Canada has a 3.3 million barrel per day (bpd) production capacity, and is a key supplier of heavier crude. "Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production," said Goldman Sachs analysts in a note. Meanwhile, conflict in the Middle East could be lending a floor to prices. Israeli tanks pushed deeper into eastern Rafah, reaching some residential districts of the southern border city where more than a million people had been sheltering. "Uncertainty over Rafah and the blowback from that is keeping the market on edge as well," s U.S. crude oil and gasoline inventories fell last week while distillate stocks rose, according to market sources citing American Petroleum Institute figures on Tuesday. Official inventory data from the U.S. government is due on Wednesday. The API figures showed crude stocks were down by 3.104 million barrels in the week ended May 10, the sources said on condition of anonymity. Gasoline inventories fell by 1.269 million barrels, and distillates rose by 673,000 barrels. Brent crude futures edged down 62 cents, or 0.74 per cent to$82.74 a barrel by 1640 ET shortly after API data was published, and U.S. West Texas Intermediate crude futures (WTI) fell by 68 cents, or 0.86 per cent to $78.44 a barrel.
Oil prices slide 1% to 11-week low on weaker IEA 2024 demand forecast - Crude prices slid about 1% to an 11-week low on Wednesday after data from the International Energy Agency (IEA) showed oil demand in developed countries likely would flag this year.Brent futures fell 62 cents, or 0.8%, to $81.76 a barrel by 10:59 a.m. EDT (1459 GMT), while U.S. West Texas Intermediate (WTI) crude fell 60 cents, or 0.8%, to $77.42. That pushed both crude benchmarks into technically oversold territory and put both on track for their lowest closes since Feb. 23.The IEA trimmed its forecast for 2024 oil demand growth by 140,000 barrels per day (bpd) to 1.1 million bpd, largely citing weak demand in Organization for Economic Co-operation and Development (OECD) nations. OECD is a group of mostly wealthy countries.Oil demand in those countries contracted in the first quarter of this year, the IEA added.That futures price decline came despite a bigger-than-expected withdrawal of crude from U.S. storage last week and U.S. inflation data that supported analysts' expectations for a couple of U.S. Federal Reserve (Fed) interest rate cuts later this year.U.S. consumer prices increased less than expected in April, suggesting inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations that the Fed will cut interest rates in September.Those expectations were further bolstered by other U.S. data showing retail sales were unexpectedly flat last month as inflation-weary consumers cut back spending at online retailers and auto dealerships.Lower interest rates would reduce borrowing costs for businesses and consumers and could spur economic growth and demand for oil. Also in the United States, the Energy Information Administration (EIA) said energy firms pulled a bigger-than-expected 2.5 million barrels of crude from stockpiles during the week ended May 10.That compares with the 0.5-million barrel withdrawal analysts forecast in a Reuters poll and the 3.1-million barrel decline shown in data from the American Petroleum Institute (API), an industry group. In another development, the Organization of the Petroleum Exporting Countries (OPEC) and its allies like Russia, a group known as OPEC+, is likely to hold its June 1 oil policy meeting online, four OPEC+ sources said, rather than in Vienna as currently scheduled."After (the second quarter), we expect oil will become bearish as a result of non-OPEC supply growth, decreasing OPEC+ space capacity and softer-than-anticipated demand due to persistent inflation,"
Oil Futures End Higher after Testing Support on Slowdown -- Oil futures nearest delivery on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange settled higher on Wednesday after plumbing fresh and new multiweek lows in morning trade in reaction to macroeconomic data showing a slowdown in the U.S. economy in April. The Bureau of Labor Statistics (BLS) on Wednesday morning reported a downtick in the Consumer Price Index in kicking off the second quarter, which increased 0.3% month-on-month and 3.4% annually in April which was in line with market expectations. BLS also reported real average hourly earnings for all employees eased 0.2% in April, signaling wage inflation slowed last month. The inflation data strengthened the likelihood of two 25-basis point reductions in the federal funds rate from the current 5.25% to 5.5% target range later this year. CME FedWatch Tool identifies September and December as the likely timing for the Federal Open Market Committee to reduce their policy rate. The inflation reading was buttressed by retail sales data which was flat with March in April according to the U.S. Census Bureau. The slowdown in consumer spending was identified by a survey by The Conference Board in April showing consumers planned to reduce discretionary spending and hold off on buying big-ticket items, such as appliances, in response to concern over inflation and high interest rates. For the goods sector of the U.S. economy, the Federal Reserve Bank of New York released its Empire State Manufacturing Survey showing manufacturing activity in New York remained in recession. On Tuesday, the shipping component of Cass Freight Index by freight invoice provider Cass Information Systems Inc. declined in April, with the U.S. freight market remaining mired in a two-year downtrend. Data from the Energy Information Administration (EIA) released Wednesday morning corroborates the weakness in consumer spending and commercial activity, with gasoline supplied to the U.S. market during the four weeks ended May 10 down 407,000 barrels per day (bpd) or 4.5% against the comparable year-ago period. Distillate fuel supplied to the U.S. market during the same period is down 206,000 bpd or 5.3% year-on-year. Across-the-board drawdowns from commercial crude, gasoline and distillate fuel, with the decline in distillates of a modest 45,000 barrels (bbl), reported by EIA lent tepid support for oil futures after the contracts tested key technical support points. June ULSD futures edged up a fractional $0.0031 with a $ 2.4231-gallon settlement, reversing off a fresh 10-1/2 month low on a spot continuous basis at $2.3764 gallon in front of key support at the $2.3647 trendline for the downtrend from the April 2022 high. June RBOB futures rallied $0.0372 with a $ 2.4968-gallon settlement a little more than a week ahead of the Memorial Day weekend after testing support at the $2.4439 200-day moving average with a $2.4427 fresh 11-week low on a spot continuous basis. AAA projects record road travel over the holiday weekend, frequently referred to as the unofficial kickoff to the summer driving season. June West Texas Intermediate futures settled $0.61 higher at $78.63 bbl, reversing off a $76.70 bbl 11-week low on the spot continuous chart after finding support at the $76.04 trendline for the downtrend from the March 2022 high. July Brent futures gained $0.37 in the session with a $82.75 bbl settlement, reversing off an 11-week low on the spot continuous chart of $81.05 bbl. Key support for the international crude benchmark is marked at the $79.45 200-day moving average on the weekly chart.
Oil rebounds, gains 1% after US crude draw, lukewarm inflation data (Reuters) - Oil prices rose nearly 1% on Wednesday from a two-month low in the prior session as the market balanced bullish U.S. economic and crude storage data against the International Energy Agency's (IEA) forecast for weaker global oil demand growth. Brent futures rose 37 cents, or 0.5%, to settle at $82.75 a barrel, while U.S. West Texas Intermediate crude (WTI) gained 61 cents, or 0.8%, to end at $78.63. That cut the premium of Brent over WTI to its lowest since March 28. A narrower premium makes it less profitable for energy companies to send vessels to the U.S. to pick up crude cargoes for export. Earlier in the session, the bearish IEA report helped push both benchmarks into technically oversold territory with prices at their lowest since February. On Tuesday, both benchmarks closed at their lowest since March 12. Prices reversed direction after U.S. data showed a bigger-than-expected crude drawdown and lukewarm inflation that fueled expectations of a cut in interest rates later this year. U.S. crude inventories last week fell 2.5 million barrels, the Energy Information Administration (EIA) said, much more than the 500,000-barrel draw forecast in a Reuters poll. "The crude oil draw is mostly from the increase in the refinery utilization rate ... Refiners finally got serious about that, finally cranked it up a bit," U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations the U.S. Federal Reserve (Fed) will cut interest rates in September. Lower interest rates would reduce borrowing costs for businesses and consumers and could spur economic growth and demand for oil. With the Fed expected to cut interest rates later this year, the U.S. dollar fell to a five-week low against a basket of other currencies. A weaker dollar can boost demand as the greenback-denominated commodity becomes less expensive to buy in other currencies. The IEA trimmed its forecast for 2024 oil demand growth, widening the gap with producer group OPEC in terms of expectations for this year's global demand outlook. The Organization of the Petroleum Exporting Countries and its allies like Russia, a group known as OPEC+, is likely to hold its June 1 oil policy meeting online, four OPEC+ sources said, rather than in Vienna as currently scheduled. In Canada, meanwhile, favorable winds are expected to push a major wildfire away from the oil sands city of Fort McMurray, officials said, less than a day after 6,000 people were ordered to leave. Fort McMurray is the hub for Canada's oil sands output. A huge wildfire in 2016 forced the evacuation of 90,000 residents and shut in more than 1 million barrels per day of output.
Increased Expectations that the Federal Reserve May Start Cutting Interest Rates in the Fall -- The oil market traded higher on Thursday in follow through strength seen on Wednesday in light of slower than expected inflation data, which increased expectations that the Federal Reserve may start cutting interest rates in the fall. The market was further supported by a stabilizing U.S. job market. The market retraced some of its previous gains early in the morning ahead of the release of the jobless claims report. However, the crude market rallied higher to a high of $79.85 after the jobless claims report showed underlying strength. The market later erased some of its gains and settled in a sideways trading range during the remainder of the session. The June WTI contract settled up 60 cents at $79.23 and the July Brent contract settled up 52 cents at $83.27. The product markets ended the session in positive territory, with the heating oil market settled up 2.06 cents at $2.4437 and the RB market settled up 41 points at $2.5378.S&P Global Commodity Insights released its updated global oil forecast and it is calling for global oil demand to likely shrink faster than expected after 2030 as growing policy support for electric vehicles accelerates the displacement of oil-based transport fuels. Demand for crude and condensate is expected to fall to 73 million by 2050 after peaking around 86 million b/d in 2027 under a base case scenario. The 2050 demand level is some 3 million b/d lower than the previous outlook from a year ago. By 2030, S&P Global Commodity Insights expects the global fleet of passenger and plug-in hybrid cars to displace some 3.3 million b/d of gasoline and diesel fuel.ANZ said that should OPEC choose to remove its output cuts at its June 1st meeting, its fair value models suggest prices could fall as low as $75/barrel. However, ANZ said an OPEC cut extension could produce deficits and push oil prices to $100/barrel. It said it sees the oil market moving into a deficit, with the future call on OPEC production well above the current output. It added that this is the basis for its forecast of $90/barrel in the second half of the year.Yemen’s Houthis said any ships from any company headed to Israeli ports will be targeted by the group in any area their capabilities could reach, not only limited to the Red Sea region.Platts reported that according to several market sources there are growing tensions within OPEC+ over quota compliance. Platts estimated OPEC+ production in April averaged some 249,000 b/d above the group’s quota, led by over production from Iraq, Russia, and Kazakhstan and to a lesser degree by the UAE, Gabon and Kuwait.Colonial Pipeline Co is allocating space for Cycle 30 shipments on Line 20, which carries distillates from Atlanta, Georgia to Nashville, Tennessee.The number of Americans filing new claims for unemployment benefits fell last week, pointing to underlying strength in the labor market. The Labor Department said initial claims for state unemployment benefits fell by 10,000 to a seasonally adjusted 222,000 for the week ending May 11th.
Oil up after US economic data strengthens rate cut expectations (Reuters) - Crude prices edged up on Thursday after data showed a stabilizing U.S. job market, fueling expectations that the Federal Reserve could begin to cut interest rates in autumn, which should stimulate the economy and boost oil demand. Brent crude futures settled 52 cents, or 0.6%, higher at $83.27 a barrel, while U.S. West Texas Intermediate crude (WTI) ended at $79.23, up 60 cents, or 0.8%. The number of Americans filing new claims for unemployment benefits fell last week, pointing to an underlying strength in the labor market. "Even though the jobless claims were low, the report was weak enough that it's going to allow the Fed to get in and cut," "The strong employment trends do portend strong gasoline demand as we look out, even though it has been lackluster." Wednesday's slower-than-expected U.S. inflation data for April also fed market expectations for a September cut in interest rates, which could temper dollar strength and make greenback-denominated oil more affordable for holders of other currencies. Equities, which tend to move in tandem with oil prices, rose on the rate cut hopes, with the Dow (.DJI), opens new tab reaching an all-time high of 40,000 for the first time. Brent had touched an intra-day low of $81.05 on Wednesday - the lowest the front-month futures contract has traded since Feb. 26. It then rebounded after the inflation data and a government report showing a drawdown in U.S. crude, gasoline and distillate inventories last week due to a rise in both refining activity and fuel demand. U.S. gasoline demand, however, continued to land under 9 million barrels per day for a sixth straight week, below what is typical heading into the summer driving season, which officially kicks off on the Memorial Day weekend at the end of the month. "This increase in the runs that will likely persist into early next month will be going head-to-head with continued weak product demand that is showing no sign of improvement," In the Middle East, Israel's tanks pushed into the heart of Jabalia in northern Gaza on Thursday while, in the south, its forces pounded Rafah without advancing, Palestinian residents and militants said. Ceasefire talks mediated by Qatar and Egypt are at a stalemate, with Hamas demanding an end to attacks and Israel refusing until the group is annihilated.
Oil gains 1% on hopes of firmer demand | (Reuters) - Oil prices settled about 1% higher on Friday, with global benchmark Brent crude recording its first weekly gain in three weeks, after economic indicators from the world's top two oil consumers - China and the U.S. - bolstered hopes for higher demand.Brent settled 71 cents higher, or 0.9%, at $83.98 a barrel. U.S. West Texas Intermediate crude (WTI) gained 83 cents, or 1.1%, to $80.06.For the week, Brent gained about 1%, while WTI rose 2%.China's industrial output rose 6.7% year-on-year in April as a recovery in its manufacturing sector gathered pace, pointing to possibly stronger demand to come. China also announced major steps to stabilise its crisis-hit property sector.The Chinese figures showed potential for demand construction and supported oil prices, . However, government data showing a drop in China's annual refined output may have offset that support.Declines in oil and refined product inventories at global trading hubs have also created optimism about demand, reversing a trend of rising stockpiles that had weighed heavily on crude oil prices in previous weeks.The U.S. oil rig count rose by one this week to 497, the first increase in four weeks, energy services firm Baker Hughes said.Recent U.S. economic indicators have fed into the optimism over global demand for oil. U.S. consumer prices rose less than expected in April, data showed on Wednesday, boosting expectations of lower interest rates."Consumer prices were not as bad as expected," s "It gave the U.S. a little bit of a boost."Lower U.S. interest rates could help soften the dollar, which would make greenback-denominated oil cheaper for buyers holding other currencies.Meanwhile, a fire started at Russia's Tuapse oil refinery overnight after a wave of Ukrainian drone attacks. The extent of the damage was unclear.On the supply side, investors were mostly looking for direction from the upcoming OPEC+ meeting on June 1. "With the price of Brent crude hovering below $90, a level quietly being targeted by Saudi Arabia and others, the upcoming OPEC+ meeting is likely to result in a rollover of current production cuts," Money managers raised their net long U.S. crude futures and options positions in the week to May 14, the U.S. Commodity Futures Trading Commission (CFTC) said.
Oil scores weekly gains, with U.S. prices ending above $80 for first time this month Oil futures climbed on Friday, contributing to gains for the week and prompting U.S. benchmark prices to settle above $80 a barrel for the first time this month, as some economic data from the U.S. and China raised hopes for stronger crude demand. Oil prices found additional support following a decline in the U.S. dollar this week, and back-to-back weekly declines in domestic crude supplies. West Texas Intermediate crude for June delivery CL.1 CLM24 rose 83 cents, or 1.1%, to settle at $80.06 a barrel on the New York Mercantile Exchange, ending at the highest since April 30 and up 2.3% for the week. The most active contract, July WTI CLN24, rose 84 cents, or 2.2%, to $79.58 a barrel.July Brent crude BRN00 BRNN24, the global benchmark, climbed 71 cents, or 0.9%, at $83.98 a barrel on ICE Futures Europe, for a weekly rise of 1.4%. It also settled at its highest since April 30.June gasoline RBM24 climbed 1.4% to $2.57 a gallon, tacking on 3% for the week, while June heating oil HOM24 edged up 1.7% to $2.49 a gallon, for a weekly rise of 2.1%.Natural gas for June delivery NGM24 rose nearly 5.3%, to $2.63 per million British thermal units - up 16.6% for the week. Oil prices ended the week with modest gains, and U.S. benchmark prices finished at their highest level of the month. "Between the rebound in gasoline demand to back above its recent trend in the [Energy Information Administration] data, looming uncertainty surrounding the OPEC+ policy decision, and simmering geopolitical tensions in the Middle East and Eastern Europe, risks are skewed to the upside now after the sharp pullback that began in late April," Whether or not OPEC+, which is made up of the Organization of the Petroleum Exporting Countries and its allies, extends policy through the end of the year. And "any unforeseen caveats to the group's outlook or production stance in the wake of their June meeting will be an upside threat to prices," said Richey. A renewed downturn in gasoline demand, meanwhile, "would be a downside threat, especially with recession fears on the rise recently." Meanwhile, signs of slowing U.S. inflation whacked the dollar on Wednesday, sending the greenback to its weakest level in over a month. The U.S. CPI number released this week showing a slowdown in the inflation rate has "brought some hopes back among traders who think that a drop in oil prices could boost economic activity - and that should support oil prices," said . The ICE U.S. Dollar Index DXY, a gauge of the dollar's value against a basket of rivals, was off 0.8% this week, providing support for dollar-denominated oil prices. The data showing a slowdown in consumer price rises "strengthened the case for the Federal Reserve to begin cutting rates in the near future, resulting in a dollar devaluation against other major currencies." Nevertheless, the biggest question mark for oil traders, and potentially the main price driver in the medium term, still rests on the forecasts for crude demand. Crude found support this week from data showing that U.S. commercial crude inventories declined for a second week in a row, with the Energy Information Administration reporting on Wednesday a fall of 2.5 million barrels for the week that ended May 10. "U.S. inventories came up shorter than predicted, raising hopes of greater crude demand, but the upside created by this news was capped by uncertainty over the Chinese economy," Evangelista said. "Such doubts grew after the imposition of fresh U.S. import tariffs on Chinese goods, feeding apprehension over demand from the world's leading crude importer." China's industrial production rose by 6.7% in April from a year ago, beating expectations for 5.5% growth, but retail sales unexpectedly slowed to 2.3% from 3.1% in the prior month, the National Bureau of Statistics said on Friday. The data "reinforce the scene of division in the Chinese economy, but the demand for crude may continue to grow, which may lead to the sustainability of the recovery in crude prices," . Natural-gas futures, meanwhile, climbed Friday and ended sharply higher for the week. Prices have been supported by "tight inventory balances ahead of peak summer months," "However, concerns persist regarding continued weaknesses and the potential return of production as pipeline maintenance issues are resolved, posing a near-term bearish risk."
10 Killed in Clashes Between Saudi-Backed Forces and Houthis in Central Yemen - An hour of heavy fighting in Marib Governate, south of the city of Marib, has left at least 10 fighters dead and another 9 wounded, as pro-government Saudi-backed fighters clashed with the Shi’ite Houthi movement.Marib is valuable because of oil and gas, and because it provides a route into oil-rich Shabwa, an area, it is speculated, the Houthis are keen to take. Should they succeed, this would split South Yemen in two.With the Saudi military intervention in 2015, pro-government forces took the southern city of Aden and tried to bull through Marib toward the capital city of Sanaa. Since then, Marib has been contested more or less constantly.The pro-government fighters in the Sunday conflict were from the Giants Brigade. Four were killed in the clash, as well as six Houthi fighters.An explosion of an unidentified projectile from the Houthis was also reported east of the city of Marib. This was independent of the conflict, and no casualties were reported.With pro-Saudi forces unwilling to consider the de facto split of Yemen into north and south as the new normal, fighting between the two sides has become ongoing in the area. The conflict is interrupted only by occasional fighting among various southern forces, including secessionists.
US Spy Balloon Crashes In Northeast Syria --A sizable surveillance aerostat owned by the US military crashed on Wednesday near the town of Rmelan in Syria's northeastern Al-Hasakah province.Footage on social media showed the aerostat descending from the sky and, subsequently, its debris on the ground close to Rmelan, which was also near a US base. Allegedly, US fighter jets were seen flying over the vicinity during the event.The US maintains several illegal bases in Syria, including the one in Rmelan, primarily in the northeastern provinces of Al-Hasakah and Deir Ezzor, as well as Al-Tanf in the southeast, purportedly to combat ISIS remnants. Several local sources said the spy balloon crashed due to a technical malfunction, while others indicate that unidentified culprits shot down the aerostat. The Pentagon has yet to comment.The US initially introduced aerostats to its Syrian bases years ago, although they were considerably smaller than the one that crashed near Rmelan.The significant size of this aerostat indicates it likely carried sophisticated surveillance equipment, potentially including aerial radar systems.
The US Empire Deliberately Stokes Hatred And Violence In The Middle East - by Caitlin Johnstone -- I sometimes see people expressing bafflement that the US would back a genocide in the middle east knowing that it will radicalize the region against them, mistakenly thinking this goes against US strategic goals. And I always want to say to them, uh, have you been asleep the last quarter century? Have you not seen how the US empire uses the radicalism caused by its military violence in the middle east to justify more military expansionism in the region, leading to more military violence? That’s what the so-called “war on terror” has been about since 9/11. The data unmistakably shows that US-led military interventionism in the middle east in the name of fighting “terrorism” actually leads more people to join US-designated terrorist organizations and commit more terrorist attacks, because nothing will radicalize you against the US and its allies like watching them murder and displace your loved ones right in front of you. But the interventionism continues anyway. Why? Because the resource-rich middle east is a crucial geostrategic region for planetary domination, and the US empire wants to have an expanded military presence there. It’s actually a brilliant self-reinforcing scam. It works like this:
- Step 1: Murder people in the middle east in the name of fighting “terrorism”.
- Step 2: This causes people to hate you and your allies and to want to retaliate with violence.
- Step 3: Designate these people “terrorists”.
- Step 4: Send more war machinery to the region to go fight “terrorism”.
- Step 5: Murder more people in the middle east in the name of fighting “terrorism”.
Do you see how this cycle would repeat over and over again, leading to more and more US military expansionism in the middle east? That’s exactly what we’ve been seeing, and it’s exactly what the US empire wants.Why do you think the US empire spends so much energy propping up dictatorships throughout the middle east, despite claiming to support democracy? It’s so that they can impose their will on the region without any meaningful consequences in terms of geostrategic control. They can freely rain military explosives upon west Asia without losing allies and partners, and all that will happen is a bunch of radicalized hatred throughout the general public, which they desire anyway.If the oil-rich nations in the middle east ever had democratic rule, their governments would quickly move away from their official and unofficial alliances and partnerships with the United States and Israel, and would in all likelihood form their own powerful bloc in support of their own interests. Because the empire helps suppress the will of the people in that region by installing and supporting dictators instead, the only recourse some people feel they have to see their will enacted in that direction is the non-state violence known as “terrorism”.
UN Says About 300,000 Palestinians Have Fled Rafah as Israeli Forces Push Further Into the City -The UN’s Palestinian relief agency has said about 300,000 Palestinians have fled Rafah as Israeli forces continue to push further into the city.Rafah was sheltering an estimated 1.4 million Palestinians before Israel launched an operation to capture the border crossing last Monday. The Israeli military ordered more Palestinians to evacuate parts of southeast Rafah on Saturday, and it continues to escalate in the city despite warnings from the US against a full-scale invasion.UNRWA wrote on X that the “forced and inhumane displacement of Palestinians continues” and stressed that there is “nowhere safe to go.” Israel has suggested Palestinians go to the al-Mawasi refugee camp on Gaza’s coast, but aid groups say it doesn’t have the resources for so many people.Israel’s closure of the Rafah border crossing has cut off vital aid deliveries, adding to the starvation blockade, and for five days, no fuel entered Gaza. Israel has allowed some to enter the nearby Kerem Shalom crossing, although not nearly as much as aid groups say is needed.According to The New York Times, Rafah had three major hospitals that were partially functioning before Israel launched its operation to capture the crossing. As a result of the Israeli attack, one has shut down completely.Israel is also escalating in northern Gaza and has launched a ground operation in the Jabalia refugee camp. Israel sent tanks into Jabalia after launching heavy artillery and airstrikes on the city, killing 19 people,according to Reuters. Al-Qassam Bridages, the armed wing of Hamas, announced its fighters were engaging with Israeli troops on the ground in Jabalia.Gaza’s Health Ministry on Sunday reported a total of 63 deaths across Gaza in the previous 24-hour period and said the total number of Palestinians killed by Israel’s onslaught since October 7 has surpassed 35,000.
Half a million Palestinians forced to flee latest Israeli military attacks - More than half a million Palestinians have been forced to flee the southern city of Rafah and areas of northern Gaza over the past week, according to the UN, as the Israeli military dramatically escalates its war of extermination. The UN relief agency for Palestinians (UNRWA) reported that around 450,000 people have been driven out of Rafah—a city whose population had been swollen to 1.3 million by a huge influx of people escaping the Israeli military onslaught elsewhere in Gaza. In a Twitter/X post yesterday, the UNRWA underscored the desperate situation facing men, women, and children who have been pushed from one war zone to another. “People face constant exhaustion, hunger, and fear. Nowhere is safe. An immediate #ceasefire is the only hope,” it declared. Israeli forces have seized control of the Rafah border crossing with Egypt and blocked the nearby Kerem Shalom crossing with Israel, effectively cutting off aid convoys into southern Gaza. No food has entered via these crossings over the past week, and only a trickle is coming into Gaza via newly opened crossings in the north. According to the UN, some 1.1 million Palestinians face catastrophic levels of hunger—that is, they are on the brink of starvation. Last week, the head of the UN World Food Program (WFP) Cindy McCain confirmed that northern Gaza had already entered a full-blown famine as judged by an extreme lack of food, acute malnutrition among children, and daily deaths from hunger. Now the Israeli military has issued evacuation orders for northern Gaza, where it has renewed operations in areas that it had previously claimed to have cleared. UN deputy spokesman Farhan Haq told reporters Monday that at least 100,000 people have been forced to leave so far. In other words, in the last week alone, more than half a million people, nearly a quarter of Gaza’s population of 2.3 million, have been displaced. In a statement released yesterday, Secretary-General António Guterres said he was “appalled by the escalation of military activity in and around Rafah by the Israel Defense Forces,” adding that it was impeding aid supplies and worsening “an already dire situation.” He called for an immediate humanitarian ceasefire and the reopening of the Rafah border crossing.
Israeli tanks push deeper into Rafah; battles rage in northern Gaza (Reuters) - Israeli tanks pushed deeper into Rafah on Tuesday, reaching some residential areas of the southern Gazan border city where more than a million people had sought shelter, and its forces pounded the enclave's north in some of the fiercest attacks in months. Israel's international allies and aid groups have repeatedly warned against a ground incursion into Rafah, where many Palestinians fled and Israel says four Hamas battalions are holed up. Israel says it must root out the remaining fighters. The White House said U.S. national security adviser Jake Sullivan will visit Israel and Saudi Arabia this weekend. The Biden administration declined to comment on a report by Axios that Israel agreed not to expand its Rafah operation significantly before Sullivan's visit. A U.S. official who declined to be identified told Reuters that Israel promised not to make a major move in Rafah without advising Washington. Israeli spokesperson Rear Admiral Daniel Hagari said in a briefing that Israeli forces had killed about 100 militant fighters, located 10 tunnel routes and found many weapons in Rafah since the start of the operation a week ago. Fighting has intensified elsewhere across the Gaza Strip in recent days, including in the north, with the Israeli military returning to areas where it had claimed to have already dismantled Hamas. The clashes on Tuesday were the fiercest in months, residents and militant sources said. "We are operating with determination in all three parts of the Gaza Strip. Forces from the air, land and sea are simultaneously striking terrorist targets," Hagari said, referring to the enclave's north, centre and south. The Palestinian death toll in the war has now surpassed 35,000, according to Gaza health officials, whose figures do not differentiate between civilians and fighters. They said that 82 Palestinians had been killed in the past 24 hours, the highest death toll in a single day in many weeks. Fierce gun battles raged late on Tuesday in northern Gaza's Jabalia, a sprawling refugee camp built for displaced Palestinians 75 years ago. "Many people are being trapped in their houses," Nasser, 57, a father of six, said by phone. Israel killed about 80 militant fighters and destroyed rocket launchers and weapons manufacturing facilities in the heart of Jabalia on Tuesday, Hagari said. He said 13 Israeli soldiers were injured on Tuesday, four seriously. In Gaza City, also in the enclave's north, an Israeli air strike on a house in the Sheikh Radwan neighbourhood killed four people and wounded several others late on Tuesday, medics said. In the Zeitoun neighbourhood of Gaza City, Israeli bulldozers demolished houses to make a new road for tanks. The Israeli military said it had eliminated about 150 fighters and destroyed 80 structures used by Hamas there. With fighting intensifying, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani said ceasefire talks between Israel and Hamas, mediated by his country and Egypt, were at a stalemate.
Talks Over Gaza Ceasefire at Stalemate After Rafah Operation, Qatar PM Says (Reuters) -Talks over a ceasefire in Gaza have reached a stalemate due to Israel's operations in the southern border city of Rafah, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani said on Tuesday. Israeli operations in Rafah, which started this month, have closed a main crossing point for aid from the border with Egypt, a move humanitarian groups say has worsened an already dire situation. "Especially in the past few weeks, we have seen some momentum building but unfortunately, things didn't move in the right direction and right now we are in a status of almost a stalemate. Of course, what happened with Rafah sent us backward," Sheikh Mohammed said at an economic forum in Doha. Israeli tanks forged deeper into eastern Rafah, reaching some residential districts, on Tuesday, stepping up an offensive in the city where more than a million people had been sheltering after being displaced in seven months of war. Palestinians are mourning by the bodies of relatives who were killed in an Israeli bombardment, at the al-Aqsa hospital in Deir Balah in the central Gaza Strip, on April 28, 2024, amid the ongoing conflict between Israel and the militant group Hamas. (Photo by Majdi Fathi/NurPhoto via Getty Images) View All 247 Images Sheikh Mohammed, whose country has mediated heavily between Palestinian Islamist group Hamas and Israel throughout the seven-month conflict, said Qatar would keep working to resolve the situation. "We make it very clear for everyone: our job is limited to our mediation," he said. "That's what we will do, that what we will continue to do." Sheikh Mohammed said the fundamental difference between the two parties was over the release of hostages and ending the war. More than 35,000 Palestinians have been killed in Israel’s assault on the Gaza Strip, say health officials in the Hamas-ruled enclave. The war began when Hamas militants attacked Israel on Oct. 7, killing 1,200 people and abducting 252, of whom 133 are believed to remain in captivity in Gaza, according to Israeli tallies.
Israel expands Rafah slaughter - Israel’s Defence Minister Yoav Gallant announced Thursday that the bloody onslaught on Gaza will be expanded. With over 600,000 people having fled Gaza’s southernmost city since the ground operation began on 6 May, the Israel Defence Forces (IDF) is taking its genocide of the Palestinians to a new stage of brutality with the full backing of the US and European imperialist powers. Smoke rises following an Israeli airstrike on buildings near the separating wall between Egypt and Rafah, southern Gaza Strip, Monday, May 6, 2024. (AP Photo/Ramez Habboub) “This operation will intensify and Hamas is not an organisation that can regenerate itself now,” Gallant declared in a statement released by his office after a visit to the Gaza border near Rafah Wednesday. “It has no reserves, it has no ability to manufacture weapons, it has no supplies, it has no munitions, it has no ability to properly treat terrorists who are injured, and this means we are wearing it down.” Prime Minister Benjamin Netanyahu struck a similar tone, describing the “battle” of Rafah as “critical.” He commented, “It’s not just the rest of their battalions, it’s also like an oxygen line for them for escape and resupply. Its completion advances us a huge distance to defeating the enemy.” Coming from a government for which “terrorists” and “the enemy” are synonymous with the entire population of Gaza, these remarks are chilling. They underscore that the IDF is preparing to butcher a defenceless civilian population and drive the survivors into other areas of Gaza that have been reduced to rubble by over seven months of constant Israeli bombardment. These areas will by no means be exempted from ongoing IDF attacks. Major military operations continued in the north Thursday, where an air strike hit an ambulance in the Jabalia refugee camp, killing two paramedics; a pregnant woman was among four fatalities when an Israeli missile struck a house. Gallant’s ability to declare an expansion of the slaughter in Rafah is due above all to the green light given by the imperialists in Washington, Berlin, and elsewhere to the Netanyahu government. Late Tuesday, the Biden administration confirmed that it plans to dispatch over $1 billion of weaponry and other military equipment to Israel.
NewsNation sends letter demanding access to Gaza for journalists - Cable news channel NewsNation is demanding Israel allow journalists to report from Gaza amid the ongoing war between the country’s forces and Hamas in the region. The network said it sent a letter to the Embassy of Israel in Washington, D.C., requesting permission for reporters to work from inside the Gaza region. Prime-time anchor Chris Cuomo mentioned the letter on his show earlier this week. “Many of you have asked about my recent criticism that Israel should allow media to be on the ground in Gaza. NewsNation agrees and has sent a letter demanding access,” he said, encouraging viewers to, “Let it be known that you want to see more coverage of the actual realities, the players pay attention to social media, your voice will be heard.” He argued that a conflict of this magnitude needs shouldn’t go on “without a fair appraisal from the ground.” “And I have to be honest, I understand why the IDF, why Israeli politicians would be concerned about people seeing what they’re doing, but that’s only more reason to have people see what they’re doing,” he said. “And also, they’re worried that they may injure journalists as they have in the past. But that is not their choice to make. That is the choice of a free media. And that is a choice that we freely make.” The fighting inside Gaza has killed thousands in the months since the Oct. 7 terrorist attack carried out by Hamas in Israel. The ongoing violence has sparked massive protests in the United States and around the world and led for some Democrats to urge the White House and Congress to cut off funding to Israel.thehill.
I've spent decades overseeing relief operations around the world, and here's what's going wrong in Gaza - Amid persistent calls from the United States and other countries that Israel needs to make it easier for life-saving aid to reach Palestinians in the Gaza Strip, the Israeli military closed two of the region's few operating border crossings in Rafah, a southern Gazan city, on May 7, 2024.Responding to political pressure and alarm, Israel then reopened a different border crossing into Gaza, called Kerem Shalom, on May 8.These border crossings are crucial for aid workers and deliveries of food, fuel and other supplies, especially as commercial imports have stopped entering Gaza. The amount of aid going into Gaza each day has varied since Hamas' Oct. 7, 2023, attack on Israel, and Israel's subsequent invasion of Gaza. But the overall number of aid trucks flowing through the Rafah and Kerem Shalom crossings is down 75% from before the war, according to the United Nations. Aid workers say they are unable to meet Palestinians' needs in Gaza, even with the aid air drops and boat shipments that the U.S. and other countries are doing.I spent 20 years as the president of Oxfam America, an international humanitarian organization, and have overseen humanitarian responses to some of the biggest crises of the past three decades, from the war in Kosovo to the conflicts in Iraq and Afghanistan. I know from experience that the major aid organizations know how to run large, well-integrated operational responses to emergencies like Gaza. However, this is not happening, in part because Israel is not giving aid groups what they need to do so.There are several reasons why enough aid deliveries are not quickly entering Gaza. First, Israel controls all of the border crossings into Gaza and does intensive searches of trucks for security reasons, slowing down the deliveries. Even if aid does cross into Gaza, it does not mean the goods will reach people in need. There have also been reports of people dying and being injured when trying to collect aid packages that are air-dropped, as well as Hamas and other groupsintercepting aid deliveries and either hoarding the items or selling them at high prices on the black market.In early May, northern Gaza passed a critical threshold and is now entering into a "full blown famine," according to the United Nations.Bombings in Gaza have destroyed water and energy systems, leaving 95% of the population without access to clean water.There's a fairly standard playbook for how aid organizations respond tohumanitarian crises like the one playing out in Gaza. In most cases, the Office for the Coordination of Humanitarian Affairs, a designated U.N. office that focuses on humanitarian affairs and is typically called OCHA, takes the lead in defining what exactly different U.N. agencies should do to help people in a crisis. The World Health Organization, World Food Program and other U.N. agencies all have their own specialties—be it health, housing, hunger, education or other issues. The U.N. agencies coordinate their work, while OCHA also assigns an international nonprofit organization to help each U.N. agency share their workload with other international and local nonprofits. However, Gaza does not align with this typical system of aid work.In Gaza and the West Bank, the U.N. Relief and Works Agency for Palestinian Refugees in the Near East, or simply UNRWA, has been the main U.N. agency that has been focused only on providing a full suite of services to Palestinians since the late 1940s, when Israel was created and many Palestinians were pushed out into what are now the Palestinian territories of Gaza and the West Bank.Over the years, UNRWA's role has evolved from meeting Palestinians' basic needs for food and water, for example, to also providing health care and education. While other U.N. agencies like the World Health Organization work in Gaza, UNRWA is by far the largest aid organization there—and after Hamas isthe second-largest employer in Gaza.While the UNRWA was accustomed to operating a large humanitarian operation in Gaza before the war, the agency is not equipped or staffed to help provide housing for the more than 1.7 million people in Gaza who have had to flee their homes. Additionally, Israel and the UNRWA have a long, complicated relationship that came to a peak in March 2024, when Israel said that it would stop working with the agency altogether because of allegations—which have not been independently verified—that UNRWA staff participated in the Oct. 7 attacks and held hostages captive.Israel no longer working with the UNRWA creates new logistical challenges that prevent a coherent, organized humanitarian response in Gaza.
US military anchors pier to Gaza; aid expected within days The U.S. military has finally anchored its new pier to the coast of Gaza, and officials are expected to soon begin delivery of crucial humanitarian aid to the besieged region. The pier was completed earlier this month, but its anchoring was delayed by bad weather. Officials are expected to begin delivering around 500 tons of humanitarian aid in the coming days, offering much-needed relief for Palestinian civilians who lack access to basic necessities including food and water as Israel carries on a war against militant group Hamas in Gaza. In a press call, Vice Adm. Brad Cooper, deputy commander of U.S. Central Command, said the pier was successfully anchored to a beach in Gaza in the early morning hours on Thursday. Cooper said there are “hundreds of tons of humanitarian assistance” immediately ready for distribution in the coming days. “We’ve got thousands of tons in the pipeline,” he added. Sonali Korde, assistant to the administrator at the United States Agency for International Development’s Bureau for Humanitarian Assistance, said the pier would help address a “gap” in humanitarian assistance for the people of Gaza. “We’re at a point in time when we can’t spare any effort,” she said. Aid distribution will begin at the island nation of Cyprus, where barges will bring in tons of assistance to a floating dock miles off the coast of Gaza. The aid will then be ferried to the pier on ships before being unloaded off the shore for distribution. Around 1,000 U.S. troops are taking part in the humanitarian aid mission, but Washington has been firm there will be no boots on the ground. Instead, they will work closely with the Israel Defense Forces (IDF), the United Nations and humanitarian aid groups to get the aid to Palestinian civilians in Gaza. Some Republicans have raised concerns about how the U.S. military can stay out of harm’s way, especially after the area near the port on the shore was attacked last month. But Cooper said the U.S. military has worked closely with the IDF to come up with a security plan, and that Israel has been a supportive partner in the process.
Hezbollah Leader Threatens To "Open The Sea" To Flood Europe With Migrants -Hezbollah leader Hassan Nasrallah urged Lebanese authorities to ‘open the sea’ in order to flood Europe with a new wave of migrants.Nasrallah made the remarks during a televised address at a rally marking the eighth anniversary of the assassination of late Hezbollah Resistance military commander Mustafa Badreddine.The militant leader called for “a national decision that says: we have opened the sea… whoever wants to leave for Europe, for Cyprus, the sea is in front of you. Take a boat and board it.”The comments are part of an effort to put pressure on the European Union, which announced earlier this month $1 billion in aid to Lebanon to pay for the country to keep Syrian migrants within its borders.However, there is rising anti-Syrian sentiment within Lebanon, which is currently home to 2 million Syrians, the world’s highest number of refugees per capita. Natives angry at their presence have staged riots.Lebanon’s economy collapsed in 2019, prompting many of the migrants living there to attempt to head to Europe illegally on small boats.Nasrallah pointed out that under Lebanon’s agreement with the EU, migrants “are prohibited (from leaving), and so they turn to smuggling and to rubber boats, and there are drownings in the sea, because the Lebanese army is implementing a political decision to stop them from migrating.”Many Lebanese are angry that the EU money amounts to a bribe to keep displaced Syrians from heading to Europe.
Hezbollah Launches Deepest Drone Strike in Israel Since War Began - Israel and Hezbollah carried out tit-for-tat airstrikes throughout Wednesday. Scores of Hezbollah missiles were fired at northern Israel and a drone strike against a military site near Golani Junction hit some 21 miles from the border.Israeli military reported damage but no injuries from the explosives-laden drone, but more noteworthy is the fact this is the deepest strike into Israeli territory since the current war began in October.Most Hezbollah strikes against Israel have been to within 9.3 miles of the border. Showing a capacity to strike this much deeper into Israel means many sites, previously thought relatively safe, are within range of attack.Israel responded to the drone strike with several strikes into northeastern Lebanon, hitting the towns of Nabi Chit and Brital in the Bekaa Valley. This too was a very deep strike, some 51 miles from the border itself.Israel commonly attacks targets in and around the city of Baalbek in the northeast. The area, not far from the Syria-Lebanon border, is seen as having an active Hezbollah presence with an eye toward smuggling arms into the country.The attacks come a day after an overnight Israel strike against a target in Tyre, destroying a vehicle and killing two Hezbollah members, including a commander named Hussain Ibrahim Meki.Hezbollah’s strikes were seen as retaliation for the deaths of their members, and Israel’s strikes against Lebanon were retaliation for the unusually deep drone strike.
Israel Will 'Set Sights' On Turkey If Hamas Defeated, Erdogan Claims --Turkish President Recep Tayyip Erdogan warned on 15 May that Israel would "target" Turkey if victorious against the Hamas and other Palestinian militants in the Gaza Strip."Israel will not stop in Gaza, and if not stopped, this rogue state will eventually target Anatolia with its delusions of a promised land," Erdogan said during a parliamentary group meeting in Ankara. "We will continue to stand by Hamas, which fights for the independence of its own land and which defends Anatolia," the Turkish president stressed."On Nakba, the Day of Catastrophe, we once again declare with all our being and resources that we stand by Palestine and the Palestinian cause … We will also ensure that the perpetrators of genocide face justice," Erdogan added.For the past several months, the Turkish president has harshly criticized Israeli authorities, accusing them of overseeing ongoing genocide in Gaza. However, his actions trailed far behind his words, as it took over six months for Ankara to end its highly lucrative trade ties with Israel.Days after announcing a trade freeze, the Turkish government partially walked back its decision by issuing temporary approval for the supply of construction materials to Israel. Ankara has also refrained from obstructing the flow of oil from neighboring Azerbaijan to Israel.For its part, Tel Aviv has been quietly returning diplomats to Turkey in recent weeks after withdrawing them months ago over "security concerns."Nevertheless, Turkish officials continue to send mixed signals, as earlier this week, Foreign Minister Hakan Fidan said his country decided to submit its declaration of official intervention in South Africa's genocide case against Israel at the International Court of Justice (ICJ)."Israel systematically killing thousands of innocent Palestinians and rendering a whole residential area uninhabitable is a crime against humanity, attempted genocide, and the manifestation of genocide," Fidan told reporters.
Following the refinery attack in Russia's Kaluga region, there was an oil spill --After a drone attack on the First Plant refinery in the Kaluga region (Russia) on Friday, May 10, an oil leak occurred.This was reported by the ASTRA Telegram channel.As ASTRA found out, one of the drones hit the oil processing equipment of the First Plant refinery, and three fuel tanks also caught fire."In addition, as a result of the fire, an oil pipeline was damaged, leading to a spill of 5 tons of oil," the message says.The attack on the First Plant refinery in the settlement of Polotnyany Zavod in the Kaluga region of the Russian Federation took place on the night of May 9-10.According to local residents, a fire broke out after the attack on the refinery. The governor of the Russian region confirmed the attack but did not specify which particular enterprise was involved. However, local authorities have already reported no casualties.It should be noted that later, the General Staff of the Armed Forces of Ukraine reported that drones attacked the First Plant refinery as part of a respective operation.
Russian Forces Make Significant Gains in Northeastern Ukraine - Russia has launched a new offensive in northeastern Ukraine in a border region of the Kharkiv oblast, and the Russian Defense Ministry has reported that its forces have captured nine villages since Friday, according to Russia’s TASS news agency.Ukrainian Commander-in-Chief Oleksandr Syrskii has not confirmed the extent of the Russian gains but said his forces were facing an increasingly difficult situation. “This week, the situation in the Kharkiv region has significantly worsened,” he wrote on Telegram on Sunday.“There are ongoing battles in the border areas along the state border with the Russian Federation … Ukrainian defense forces are doing everything they can to hold defensive lines and positions,” Syrskii added.Local Ukrainian officials say that at least 4,000 civilians have fled the Kharkiv region since Russia launched the offensive on Friday. Much of the fighting is now centered around Vovchansk, the largest village in the area, which is only about three miles from the Russian border.Russia’s surprise offensive in the northeast has forced Ukraine to rush reinforcements to the area, straining its defenses in other places where its defensive lines are already at risk of collapsing. The $61 billion in new US spending on the proxy war is not expected to help Ukraine’s chances of victory on the battlefield and will only prolong the war.
"The Russians Just Walked In": Ukraine Border Defense Funds Diverted To Fake Companies In Massive "Betrayal" Head of the Mezha Anti-Corruption Center, Martyna Bohuslavets, has written a report in Pravda asking "Where are the fortifications?" She reports that millions of dollars that were intended for the construction of fortifications inUkraine were instead "transferred to Kharkiv OVA to front companies of avatars." Bohuslavets said the Ukrainian Kharkiv Regional Military Administration (Kharkiv OVA) paid out funds to fictitious companies during the construction and fortification of the Kharkiv region. The report comes as Russian forces have broken into the northern region of Ukraine and the US continues funding the war. According to Ukranian Pravda reports, the Russian military has begun to advance in the northern region of Ukraine where funding that was set for fortification was transferred to fake companies. The offensive from the Russian military launched on Monday with attacks on towns and villages, the Kyiv Post reports. A total of 7 billion hryvnias was spent there by Ukraine, according to the report. This comes as the BBC reports that a regional Ukrainian commander in Kharkiv has said that the first line of defense was missing in a massive "betrayal" in the northern region of the country. Denys Yaroslavskyi, a commander in the region in charge of the Ukrainian Special Reconnaissance Unit, told the outlet, “There was no first line of defence. We saw it.The Russians just walked in. They just walked in, without any mined fields." He told the BBC that government officials claimed to have built up the mines as the first line of defense at a huge cost. He told reporters, “Either it was an act of negligence, or corruption. It wasn’t a failure. It was a betrayal." He then added, “When we were fighting back for this territory in 2022, we lost thousands of people. We risked our lives." "And now because someone didn’t build fortifications, we’re losing people again," he stated.
Ukrainian Shelling Kills 11 Civilians in Russia's Belgorod Oblast - At least 11 civilians were killed by Ukrainian shelling in Russia’s Belgorod Oblast, including eight who were killed in a missile strike on an apartment building, according to the region’s governor.“As a result of massive Ukrainian shelling, 11 civilians have been killed in Belgorod today. Eight bodies were pulled from the rubble of a collapsed building and three people were killed in a shelling attack that occurred [on Sunday] evening — a girl aged 17, a woman, and a man died of injuries instantly,” Belgorod Governor Vyacheslav Gladkov wrote on Telegram.According to the Russian news agency TASS, Tochka-U missiles, Olkha multiple rocket launchers, and Czech-made RM-70 Vampire systems were used in the attacks. The Ukrainian strikes on the Russian border region came after Russia launched a new offensive into northeastern Ukraine’s Kharkiv oblast from Belgorod.Belgorod has come under frequent Ukrainian shelling throughout the war, and attacks have increased in the last few months. Last month, Gladkov said 120 civilians, including 11 children, have been killed by Ukrainian attacks since Russia launched its invasion in February 2022.In November 2023, the UN estimated that over 10,000 civilians had been killed in Ukraine since Russia invaded, including more than 560 children.
US chairman of the Joint Chiefs of Staff says NATO will deploy troops to Ukraine - In a major escalation of the US-NATO war with Russia in Ukraine, US Chairman of the Joint Chiefs of Staff Charles Q. Brown told the New York Times Thursday that the NATO military alliance will “eventually” send significant numbers of active-duty NATO troops to Ukraine, which the newspaper said meant the deployment was “inevitable.” In asserting that NATO sending troops is “inevitable,” the Times means the decision has already been made, and all that is being awaited is the determination on how best to announce the escalation to the public. Brown’s statement that NATO will send troops to Ukraine, after US President Joe Biden categorically ruled out such a move because it would lead to “World War III,” continues the pattern: Every time the White House has said it would not do something in Ukraine, it has subsequently done it. It is high time for President Joe Biden to go on national television and inform the American people that a decision has been made to send US and NATO troops to fight Russia in Ukraine, that this is a massive escalation of the war, that there is a high probability that this will lead to a nuclear war, and that hundreds of millions of people will be killed if that happens. Biden should also explain how the US government, or whatever is left of it, would deal with the obliteration of a large portion of the country. He should also explain clearly why the admission of Ukraine into NATO justifies risking such an outcome. The claim that the troops being sent would merely be “training” Ukrainian forces, rather than serving as frontline troops, is meaningless. Once inside Ukraine, they would come under fire from Russian forces, leading to direct retaliation against Russian aircraft and air-to-ground sites by NATO forces. The Times makes this clear: “As a part of NATO, the United States would be obligated under the alliance’s treaty to aid in the defense of any attack on the trainers, potentially dragging America into the war.” Brown’s claim that the decision will be made “eventually” and “over time” is purely to obfuscate the fact that the US’s leading military official has publicly announced an action that Russian officials have said would lead to direct attacks on US troops. In fact, if there is anything the NATO war effort lacks, it is time. The Times article admits this, declaring, “Ukraine’s manpower shortage has reached a critical point, and its position on the battlefield in recent weeks has seriously worsened as Russia has accelerated its advances.” In other words, the US’s strategy of “fighting Russia to the last Ukrainian” has played itself out, and there are no longer enough Ukrainian troops left to hold the front. Any effort to rescue the Ukrainian position will require the rapid deployment not just of NATO “trainers” but of active-duty combat forces to fight on the front line.
No comments:
Post a Comment