biggest gasoline inventory increase in 23 weeks on drop in demand for fuel

US oil prices rose for a third straight week after falling 3 ​consecutive weeks before that, as concerns over increasing attacks on Russia and in the Middle East more than offset signs of weak US demand…after rising 3.4% to $80.73 a barrel last week on increasing geopolitical risks to oil supplies and on an across the board draw from US oil & product inventories, the contract price for the benchmark US light sweet crude for August delivery increased slightly in Asian trading on Monday over supply worries due to the growing tensions in the Middle East, then edged higher that morning in New York, as the U.S. dollar slipped while speculators positioned themselves ahead of a series of macroeconomic indicators set to be released this week, which would help gauge the Fed's interest rate policy, and settled 90 cents higher at $81.63 a barrel, spurred by the prospect of strong summer driving demand​,​ while tensions in the Middle East and drone attacks on Russian refineries led to concerns about supply…crude contracts traded marginally higher in Asia on Tuesday morning, following Ukrainian strikes on Russian oil and Israeli strikes on Gaza and West Asia, but then moved lower as traders fretted about China's economic recovery after a lackluster midyear online shopping festival, and ended the US session 80 cents lower at $89.83 a barrel as weak U.S. consumer confidence data increased concerns about the economic outlook…oil prices slid overnight after the American Petroleum Institute reported that U.S. crude and gasoline inventories had unexpectedly increased, then fell further Wednesday morning after the EIA reported an even larger oil and gasoline build, but bounced off the day's low and retraced the earlier losses ahead of the close, and settled up 7 cents at $80.90 a barrel​, as traders worried that a potential expansion of the Gaza war could disrupt crude supplies from the Middle East. offsetting US demand concerns…oil prices moved a bit higher in choppy trading early Thursday, as heightened geopolitical tensions in the Middle East offset official data showing a surprise inventory build, then rallied to a high of $82.04 after an upward revision to US GDP and comments by a Fed official that inflation appeared to be narrowing, which would allow the Fed to cut interest rates later this year, and settled with an 84 cent gain to $81.74 a barrel as worries about global crude supply disruptions due to conflict in the Middle East and Europe outweighed the impact of ample US crude stocks…with the market gripped by turmoil in the Middle East and political uncertainty in some of the world’s biggest economies, oil prices rose to a new two month​ intraday high of $82.72 early Friday, then steadied after key U.S. inflation data for May was largely in line with expectations, and slid to settle 20 cents lower at $81.52 a barrel as traders weighed weak U.S. fuel demand and took some money off the table ahead of the quarter's end, but still ended 1.0% higher on the week…

natural gas prices, on the other hand, finished lower for a third consecutive week and for the fifth time in six weeks, even after a switch to quoting the higher priced August contract, as rising production and interrupted LNG demand offset higher air-conditioning demand…after falling $2.705 per mmBTU last week as Appalachian production rose to meet demand while utilities shifted to coal for power generation, the price of natural gas contracts for July delivery opened lower on Monday, but swiftly moved higher, as elevated cooling demand was expected to cover key demand areas of the country, and settled 10.6 cents, or 3.9% higher at $2.811 per mmBTU...​.however, the July contract opened four cents lower lower on Tuesday, then trended lower, mostly due to healthy production and expiration settlement uncertainty, and settled 5.5 cents lower at $2.756 per mmBTU, on a slow increase in output and on forecasts for less demand over the next two weeks than was previously expected, in spite of a brutal heat wave blanketing much of the country…the July contract opened seven cents lower lower on its last day of trading Wednesday, despite persistent above average forecasted temperatures, as analysts weighed current supply levels and future LNG demand, and expired 12.8 cents lower at $2.628 per mmBTU, while the more actively traded August gas contract settled 11.8 cents lower at $2.745 mmBTU on signs that producers were slowly boosting output to meet rising summer demand, even as the amount of gas in storage remain​ed well above normal levels….with markets now quoting the contact price of natural gas for August delivery, prices rallied to an intraday high of $2.763 in the minutes after the publication of the storage report, but pulled back throughout the afternoon due to multiple technical factors, and settled 6.0 cents lower at $2.685 per mmBTU as supply/demand imbalance concerns festered even though the reported storage build was smaller than usual for this time of year for a seventh week in a row…natural gas prices were higher in early trading on Friday as the market focused on demand-side fundamentals and considered the bullish implications of the latest inventory data, but the brief rally fizzled and prices settled 8.4 cents lower at $2.601 per mmBTU, as export volumes were questioned and production held at strong levels…natural gas price quotes thus ended 3.8% lower for the week, while the August gas contract, which had settled the prior week at $2.836 per mmBTU, ​f​inished 8.3% lower..

The EIA’s natural gas storage report for the week ending June 21st indicated that the amount of working natural gas held in underground storage rose by 52 billion cubic feet to 3,097 billion cubic feet by the end of the week, which left our natural gas supplies 314 billion cubic feet, or 11.3% above the 2,783 billion cubic feet that were in storage on June 21st of last year, and 528 billion cubic feet, or 20.6% more than the five-year average of 2,569 billion cubic feet of natural gas that had typically been in working storage as of the 21st of June over the most recent five years…the 52 billion cubic foot addition to US natural gas working storage for the cited week was in line with the 51 billion cubic foot addition to storage that was forecast by analysts in a Reuters poll, but was less than the 81 billion cubic feet that were added to natural gas storage during the corresponding second week of June 2023, and also less than the average 85 billion cubic foot injection into natural gas storage that has been typical for the same late 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 June 21st indicated that after a decrease in our oil exports was offset by a decrease in our oil imports, we had surplus oil to add to our stored commercial crude supplies for the fifteenth time in twenty-two weeks and for the 23rd time in the past 36 weeks, mostly due to an increase in oil supply that the EIA could not account for….Our imports of crude oil fell by an average of 443,000 barrels per day to 6,611,000 barrels per day, after falling by an average of 1,250,000 barrels per day over the prior week, while our exports of crude oil fell by 508,000 barrels per day to 3,910,000 barrels per day, which when used to offset our imports, meant that the net of our trade of oil worked out to a net import average of 2,701,000 barrels of oil per day during the week ending June 21st, 65,000 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 377,000 barrels per day, while during the same week, production of crude from US wells was unchanged at 13,200,000 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 16,278,000 barrels per day during the June 21st reporting week…

Meanwhile, US oil refineries reported they were processing an average of 16,532,000 barrels of crude per day during the week ending June 21st, an average of 234,000 fewer barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period the EIA’s surveys indicated that a net average of 697,000 barrels of oil per day were being added to the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA for the week ending June 21st appear to indicate that our total working supply of oil from net imports, from transfers, and from oilfield production was 949,000 barrels per day less than what was added to storage plus what our oil refineries reported they used during the weekTo account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ +949,000 ] 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...Moreover, since 244,000 barrels per day of oil supply could not be accounted for in the prior week’s EIA data, that means there was a 706,000 barrel per day difference between this week's oil balance sheet error and the EIA's crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week's report are off by that much, rendering the week over week changes we have just cited useless.... 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….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 697,000 barrel per day increase in our overall crude oil inventories came as a rounded average of 513,000 barrels per day were added to our commercially available stocks of crude oil, while an average of 184,000 barrels per day were being added to our Strategic Petroleum Reserve, the twenty-ninth SPR increase in thirty-six 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 7,257,000 barrels per day last week, which was still 13.7% more than the 6,381,000 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 13,200,000 barrels per day because the EIA’s rounded estimate of the output from wells in the lower 48 states was unchanged at 12,800,000 barrels per day, while Alaska’s oil production was 4,000 barrels per day lower at 410,000 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 was 0.8% higher than that of our pre-pandemic production peak, and it's also 36.1% 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 92.2% of their capacity while processing those 16,532,000 barrels of crude per day during the week ending June 21st, down from their 93.5% utilization rate of a week earlier, but still a near normal operating rate for mid-June, after US refineries had lagged normal operating rates for four months after arctic cold in mid January had froze off some operations… the 16,532,000 barrels of oil per day that were refined this week were 1.7% more than the 16,254,000 barrels of crude that were being processed daily during week ending June 23rd of 2023, but 4.6% less than the 17,264,000 barrels that were being refined during the prepandemic week ending June 21st, 2019, when our refinery utilization rate was also at a close to normal 94.2% for mid June...

With the decrease in the amount of oil being refined this week, gasoline output from our refineries were also lower, decreasing by 289,000 barrels per day to 9,881,000 barrels per day during the week ending June 21st, after our refineries’ gasoline output had increased by 84,000 barrels per day during the prior week.. This week’s gasoline production was 2.3% less than the 10,117,000 barrels of gasoline that were being produced daily over week ending June 23rd of last year, and 6.0% less than the gasoline production of 10,512,000 barrels per day during the prepandemic week ending June 21st, 2019….on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 142,000 barrels per day to 4,902,000 barrels per day, after our distillates output had decreased by 272,000 barrels per day during the prior week. After twelve production increases in the past eighteen weeks, our distillates output was 4.1% more than the 4,709,000 barrels of distillates that were being produced daily during the week ending June 23rd of 2023, but w​a​s 7.6% less than the 5,305,000 barrels of distillates that were being produced daily during the week ending June 21st, 2019…

Even with this week’s decrease in our gasoline production, our supplies of gasoline in storage at the end of the week rose for the eighth time in twenty-one weeks and by the most in twenty-three weeks, increasing by 2,654,000 barrels to 233,886,000 barrels during the week ending June 21st, after our gasoline inventories had decreased by 2,280,000 barrels during the prior week. Our gasoline supplies rose this week because the amount of gasoline supplied to US users fell by 417,000 barrels per day to 8,969,000 barrels per day, and because our exports of gasoline fell by 134,000 barrels per day to 876,000 barrels per day, while our imports of gasoline fell by 238,000 barrels per day to 762,000 barrels per day .…But even after thirteen gasoline inventory withdrawals over the past twenty-one weeks, our gasoline supplies were still 5.4% above last June 23rd’s gasoline inventories of 222,005,000 barrels, and are close to the five year average of our gasoline supplies for this time of the year…

Even with this week’s increase in our distillates production, our supplies of distillate fuels fell for the fourteenth time in twenty-three weeks, decreasing by 377,000 barrels to 121,263,000 barrels over the week ending June 21st, after our distillates supplies had decreased by 1,726,000 barrels during the prior week. Our distillates supplies decreased by less this week because the amount of distillates supplied to US markets, an indicator of our domestic demand, fell by 441,000 barrels per day to 3,536,000 barrels per day, while our exports of distillates rose by 373,000 barrels per day to 1,553,000 barrels per day and our imports of distillates fell by 17,000 barrels per day to 150,000 barrels per day, .…Even with 14 inventory decreases over the past 23 weeks, our distillates supplies at the end of the week were 6.0% above the 114,411,000 barrels of distillates that we had in storage on June 23rd of 2023, but were still about 8% below the five year average of our distillates inventories for this time of the year…

Finally, as the decrease in our oil exports offsetting the decrease in our oil imports while our refining slowed, our commercial supplies of crude oil in storage rose for the 13th time in twenty-six weeks, and for the 25th time in the past year, increasing by 3,591,000 barrels over the week, from 457,105,000 barrels on June 14th to 460,696,000 barrels on June 21st, after our commercial crude supplies had decreased by 2,547,000 barrels over the prior week… With this week’s increase, our commercial crude oil inventories were about 2% below the most recent five-year average of commercial oil supplies for this time of year, while they were still roughly 30% above the average of our available crude oil stocks as of the middle of June 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 June 21st were 1.5% more than the 453,690,000 barrels of oil left in commercial storage on June 23rd of 2023, and 10.6% more than the 418,328,000 barrels of oil that we had in storage on June 24th of 2022, and 1.8% more than the 452,342,000 barrels of oil we had left in commercial storage on June 18th of 2021…

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 June 28th, the second column shows the change in the number of working rigs between last week’s count (June 21st) and this week’s (June 28th) count, the third column shows last Friday’s June 21st 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 30th of June, 2023...

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Tax cuts, interest-free loans for natural gas pipelines pass Ohio House - cleveland.com – The Ohio House voted Wednesday to create a program providing state-funded, interest-free loans and a robust tax cut to subsidize development of natural gas pipelines in areas deemed to have insufficient gas infrastructure. The bill now goes to the Senate for consideration. Should it become law, local governments could tap into the $20 million fund for zero-interest loans to buy easements for land that will eventually host a pipeline. And that pipeline’s developer could exempt between 25% to 75% of the pipeline’s value from its property tax bill, producing savings on the scale of millions.

Ohio House Passes Bill to Encourage New NatGas Pipes w/$20M Fund - Marcellus Drilling News -- A bill proposed by two Republican state lawmakers in Ohio, House Bill (HB) 349, makes it easier to site and build natural gas pipelines to areas of the state where pipelines currently don’t exist (see Ohio Bill Encourages New NatGas Pipelines to Spread Across State). The bill will create new jobs by running pipelines to industrial parks and businesses not currently serviced by natgas. The aim is to stimulate new jobs and opportunities in Buckeye State, a smart strategy. Good news: HR 349 was just passed by the full Ohio House and now moves on to the Senate.

OH Injection Well Owner Wins Case Against ODNR, Potential Restart - Marcellus Drilling News - We’re picking up the thread of a story we last reported on in 2021. In July 2019, MDN told you about New Jersey-based Omni Energy Group and their application to build two new injection wells near St. Clairsville (see Belmont County Injection Well Plan Stirs Opposition from Coal Co.). Omni eventually built the wells, and at least one went into service. However, the Ohio Dept. of Natural Resources (ODNR) lowered the injection pressure allowed at the well AFTER approving a higher pressure, effectively shutting it down. Two days ago Omni won an important court victory in this long-running saga.

Ohio Fracking Waste Well Operator Gets Chance to Resume Service -- Bloomberg Law

• Appeals court says judge applied wrong standard to case
• Suit concerns official’s decision on injection well pressure

A Ohio judge must take another crack at her ruling that upheld a state official’s decision to effectively shut down a fracking waste injection well, as a state appeals court panel ruled that she used the wrong legal standard. The ruling from the Ohio Court of Appeals, 10th District gives plaintiff Omni Energy Group LLC another chance to argue that state Department of Natural Resources’ Division of Oil and Gas Resources Management head Eric Vendel was wrong to lower the pressure under which the well could operate. Franklin County Common Pleas Judge Julie M. Lynch had to determine that the ...

Boys & Girls Club in Youngstown evacuated after gas line hit - The Vindicator — The Boys & Girls Club of Youngstown and residents at some nearby homes were evacuated Wednesday after city workers digging holes in the ground at the club hit a PVC pipe carrying natural gas. Youngstown Fire Department Battalion Chief Jim Drummond said when the Parks and Recreation Department workers hit the line, it made a hissing sound and created a white cloud, alerting them to the gas release. A 911 call about 10:30 a.m. brought firefighters to the club on Oak Hill Avenue on the South Side, and the leak was stopped after about 20 to 25 minutes, Drummond said. The workers were using a post hole digger to prepare for planting trees to beautify the area, Drummond said. The club has a producing gas well behind its building. The gas travels to a tank near the club, but gas also is piped into the building, Drummond said. The gas well is one of about a dozen in the city. Such wells are sometimes called Clinton wells because of the name of the rock formation from which the gas is collected. The fire department evacuated the club because of the escaping gas, and the participants in the club’s summer camp were sent home early, Drummond said. Some nearby homes also were evacuated. Enbridge Gas Ohio, the area’s natural gas company, checked the building and gave it an “all clear” by about 11:30 a.m., Drummond said. The hole that hit the line was close to an oil storage tank. The fire department also was called to the club earlier Wednesday morning for a smoke smell. Drummond said that seemed to be caused by a belt that overheated on an air handler that is part of a heating, ventilation and air conditioning system. A company was called out to repair it, he said.

CST Buys Horiz. Directional Drilling Co. Precise Boring of Ohio - Marcellus Drilling News - Precise Boring of Ohio, founded 25 years ago, specializes in Horizontal Directional Drilling (HDD) — drilling sideways underground and installing pipelines through the holes it drills. Specifically, Precise (headquartered in Fairfield County, OH) works on installing shale and other types of pipelines, including water and sewer pipes. Precise is actively working for the Marcellus/Utica industry in Ohio. This morning, CST Utilities, an Ohio-based infrastructure service company providing a range of excavation, underground, and maintenance services to public utilities (electric, natural gas, water), telecom providers, and other businesses, announced it has bought Precise and will operate it as a standalone subsidiary.

Magnum Hunter Resources Provides Operational Update on Its Marcellus and Utica Shale Plays -Over the next 30 days, the Magnum Hunter Resources anticipates production flowing to sales from 8 gross (7 net) wells in the Marcellus and Utica Shale Plays via the Company's majority owned Eureka Hunter Pipeline System. Of these wells, the Company anticipates the three WVDNR Pad wells located in Wetzel County, West Virginia, in which the Company owns a 100% working interest, will begin flowing to production sales over the next 17-20 days. The Stalder Pad wells, the Stalder #2MH and Stalder #3UH, will be turned into production over the next 10-12 days following the finalization of fracture stimulation of the Stalder Marcellus well which is nearing completion. In addition, the pipeline segment at the Ormet Pad is in the final stages of installation, and the Company anticipates the three wells on this pad to flow to production over the next 45 days. Following the completion of the WVDNR Pad wells, Stone Energy (under its joint venture with the Company) will then commence the completion of 4 gross (2 net to the Company) wells, already drilled and cased, located in Wetzel County, West Virginia, over the next couple of weeks with production flowing to sales anticipated in the next 60 days. The Company anticipates incremental production from the WVDNR, Stalder and Ormet Pad locations will be in the range of 6,000 - 8,000 barrels of oil equivalent per day net to the Company. On the WVDNR Pad located in Wetzel County, West Virginia, the Company has drilled and completed the fracture stimulation of the three 100% owned Marcellus Shale wells, the WVDNR #1207, #1208 and #1209. The wells were drilled and cased to an average vertical depth of 7,500 feet with a 4,000 foot average horizontal lateral. The Company is currently cleaning up the location and anticipates production from the wells to begin flowing to sales over the next 17-20 days.As previously reported, the Company drilled and completed three ~100% owned wells located on the Ormet Pad in Monroe County, Ohio. The wells were drilled and cased to an average vertical depth of 5,900 feet with a 3,900 foot average horizontal lateral. The Ormet wells tested at a combined rate of 11,669 Mcf of natural gas and 1,788 Bbl of condensate per day or 3,733 barrels of oil equivalent per day. Eureka Hunter is finalizing the connection of its pipeline segment from the Ormet Pad to its mainline, and the Company anticipates production from these wells to flow to sales over the next 45 days.The Company's first Marcellus Shale well drilled on the Stalder Pad, the Stalder #2MH, has been drilled and cased, and the Company is currently fracture stimulating the remaining four stages of the well, which the Company expects to complete in the next couple of days. The Stalder #2MH was drilled and cased to a true vertical depth of 6,070 feet with a 5,474 foot horizontal lateral. The Company's first dry gas Utica Shale well, the Stalder #3UH, also located on the Stalder Pad in Monroe County, Ohio, is currently shut-in due to the fracture stimulation of the Stalder #2MH (the Marcellus well). Production from both Stalder wells will begin flowing to sales into the Eureka Hunter Pipeline over the next 10-12 days.On the Farley Pad (100% owned wells) located in Washington County, Ohio, the Company has drilled and cased the Farley #1306H well in the Utica Shale to a true vertical depth of 7,850 feet with a 6,313 foot horizontal lateral. The Company has also completed the drilling of another Utica Shale well on the Farley Pad, the Farley #1304H, and is currently at total measured depth of 14,250 feet and expects to begin run casing in the next 3-5 days. The Farley #1304H was drilled to a true vertical depth of 7,914 feet with a 5,400 foot horizontal lateral. Following the drilling of the Farley #1304H, the Company will begin fracture stimulation of these two new Farley Utica wells later this month and expects to report initial production test rates in early-summer 2014 following an approximate 30-day resting period. The Company is in the advanced stages of completing a new take-away capacity agreement with a third-party midstream company and expects to be ready to flow production of all three wells on the Farley Pad to sales via a temporary sales line in August 2014.On the Stewart Winland Pad located in Tyler County, West Virginia, the Company has drilled and cased two Marcellus Shale wells, the Stewart Winland #1301 and #1302. The wells were drilled and cased to an average true vertical depth of 6,155 feet with a 5,750 foot average horizontal lateral. The Company is currently drilling the lateral portion of the third Marcellus Shale well, the Stewart Winland #1303, to a true vertical depth of 6,155 feet with a 5,800 foot horizontal lateral. Following the completion of this third Marcellus well, the Company will walk the robotic drilling rig over to the next location and drill the first horizontal Utica Shale well ever drilled in the State of West Virginia. The Company expects to report initial production test rates from these four new 100% owned wells on the Stewart Winland Pad during mid-summer 2014.Production results from the group of wells described above are anticipated to almost double the Company's current overall daily production volumes.

Shell Files Application for Fed Title V Air Permit for PA Cracker - Marcellus Drilling News - In March, MDN told you that the Pennsylvania Dept. of Environmental Protection (DEP) told Shell to file for a Title V air permit for its ethane cracker in Monaca no later than June 21 of this year or risk being shut down (see Shell PA Cracker Must File for Full Title V Air Permit, or Else). Just coming to light now is that Shell did file its Title V application with the DEP on June 19 (two days to spare!). The DEP is currently reviewing the application for completeness to ensure nothing important is missing. After the application has been determined to be administratively complete, the DEP will post it on its Southwest Regional Community Information webpage for the facility.

Gas Producers Increasingly Dominating in New Shale Top Operators List | Hart Energy -Seven of the top 10 privately held shale producers in the country are primarily focused on natural gas, demonstrating the increasing dominance of gas players in the world of private operators.As more private oil producers are gobbled up by giant publics, such as Exxon Mobil and Chevron, the gas players are moving up the ranks of the top operators, according to the list of the top 100 private producers compiled by Enverus in an exclusive partnership with Oil and Gas Investor (OGI). Aethon Energy and Ascent Resources are neck-and-neck as the top privately held natural gas producers in the U.S. They lead both the alphabet and the gas world as the top private producers in their respective basins.Haynesville Shale-focused Aethon leads the way at 2.52 Bcf/d followed closely by Utica Shale-centric Ascent at 2.43 Bcf/d.Continental Resources, which dominates the private production list overall thanks to its heavy crude volumes, still ranks third in natural gas at 2.12 Bcf/d.Then comes Jeffery Hildebrand’s Hilcorp Energy at 1.55 Bcf/d. Rounding out the top five is Tokyo Gas’ TG Natural Resources, which recently grew in the Haynesville through the acquisition of Rockcliff Energy. Other top players include the Utica’s Encino Energy, which also cracked the top 20 for crude oil; the Delaware Basin’s Mewbourne Oil, which produces lots of associated gas; Trinity Operating, which operates in the Eagle Ford, Haynesville and Midcontinent; Barnett Shale leader BKV Corp.; and the Eagle Ford’s Lewis Energy Group, which rounds out the top 10.

4 M-U Drillers in Top 10 (of Top 100) Private Oil & Gas Producers | Marcellus Drilling News - Who doesn’t love a good Top 10 (or, in this case, Top 100) list? Yesterday, Hart Energy published a list of the Top 100 private oil and gas producers in the Lower 48 states. The list is based on information provided by Enverus and Oil and Gas Investor. The article’s point was to call attention to the dramatic change in the list given the consolidation (mergers and acquisitions) over the past 18 months — changes which are “reshaping the landscape,” according to Hart Energy. When perusing the list, the first thing we noticed is that four of the Top 10 in the list of Top 100 are major gas and oil producers operating in the Marcellus/Utica. Ascent Resources | Banpu | Encino Energy | Hilcorp Energy

Report: Mountain Valley Pipeline testing released water again - The Allegheny Front - Testing equipment on the Mountain Valley Pipeline (MVP) experienced a rupture in southwest Virginia this month, days before it asked for and received permission to begin carrying natural gas.The June 4 rupture involved an 8-inch connecting hose. According to a report Equitrans filed to Virginia’s DEQ, the release lasted for 15 minutes until a valve was closed, shutting it off.The rupture happened during hydrostatic testing of the pipeline, where water is pumped through it at high pressure to demonstrate its integrity. The hose was used to release water from the pipeline section under inspection, following the testing, when the hose failed. Equitrans Midstream, the pipeline’s builder, reported the incident to the Virginia Department of Environmental Quality (DEQ), the Virginia Department of Emergency Management and the Virginia Department of Health’s Office of Drinking Water.Residents and community groups have been concerned about the project’s safety since a May 1 rupture released a large volume of water and badly damaged a section of the 42-inch main pipe.They also have expressed anger that Equitrans Midstream didn’t let them know when the pressure testing took place or about the unintentional releases of water, which in some cases caused property damage. A landowner in Bent Mountain, Virginia, reported the May 1 incident. The June 4 rupture, at Elliston, Virginia, took place 10 days before the pipeline began operating. Neither the company nor its regulators have shared the details of a laboratory analysis of the pipe that was damaged on May 1. They also did not elaborate on what happened on June 4 and how much water was released.The DEQ report categorizes the incident as an “unauthorized discharge of pollutant(s)” and identifies the pollutant as non-potable water. The incident may have affected water quality in the Roanoke River, which supplies drinking water to three municipalities in the area.

With Mountain Valley Pipeline complete, focus turns to Southgate project | WV News | wvnews.com — From its origin point in Wetzel County, West Virginia, natural gas is now being transported through the Mountain Valley Pipeline to markets in the Mid- and South Atlantic regions.Another project in the works from the developers of the Mountain Valley Pipeline aims to take the state’s energy exports even farther south, via an additional auxiliary pipeline called MVP Southgate.

An extension of the Mountain Valley Pipeline might be the next big energy fight - The Allegheny Front - The Mountain Valley Pipeline may be finished, but the debate continues on what could power the southeast for decades to come. One of the pipeline’s biggest potential customers is Duke Energy, which plans to build five natural gas power plants in North and South Carolina over the next 10 years, replacing coal plants that are growing old. That requires an additional pipeline called MVP Southgate, which would run from the Mountain Valley Pipeline terminus in southern Virginia into North Carolina. The pipeline transports gas from northern West Virginia, including gas from southwestern Pennsylvania.“New natural gas electric generation is required in the Carolinas to keep the companies on track to achieve carbon neutrality by 2050,” wrote Nelson Peeler, Duke Energy Carolinas senior vice president for transmission and fuel supply and policy, in a July 2022 letter to the Federal Energy Regulatory Commission. “Specifically, new natural gas generation is consistent with least cost and reliability objectives to support the retirement of aging coal facilities.”Virginia and North Carolina have not granted the necessary permits. Federal regulators allowed the pipeline’s builder an extra three years to complete it.The groups and landowners who opposed the Mountain Valley Pipeline have said they’ll shift their focus to MVP Southgate.“Appalachian Voices will continue to support the communities along the route in any way that we can including monitoring, advocating for emergency management funding and holding the company and agencies accountable,” said Jessica Sims, Virginia field coordinator for Appalachian Voices.Duke’s gas plants may have difficulty complying with new federal rules on power plant emissions, should those survive legal challenges.Notably, the West Virginia Coal Association opposed the Mountain Valley Pipeline because of its potential to displace coal at Duke Energy plants.In a statement last week marking the completion of the pipeline, builder Equitrans Midstream noted the reduction in carbon emissions.“When used as a replacement fuel for coal-fired electricity generation, natural gas provides reliable power while also reducing carbon emissions by nearly half, helping to meet national and state economic and environmental goals,” the company said.Duke’s commitment to gas, however, remains controversial because of the potential of the gas plants to operate for decades and the release of methane in the production and transportation of gas. Methane is a far more potent heat-trapping gas than carbon dioxide.Environmental groups and many Democrats have said Duke should rely less on gas and more on solar, wind and battery storage.Congressional legislation that fast-tracked the completion of the Mountain Valley Pipeline last year also does not do the same thing for the MVP Southgate project.And one of the pipeline’s biggest supporters, West Virginia Sen. Joe Manchin, is leaving the Senate at the end of the year.

Radical Left Signals New Focus to Block MVP Southgate Project- Marcellus Drilling News -They lost, and we won for the 303-mile Mountain Valley Pipeline (MVP) project. “They” means the radical environmental left (nutters who irrationally hate all fossil energy, including natural gas), and “us” means those who support the common sense use of fossil energy and projects like MVP. According to the left, the next battleground is to block the construction of an extension of MVP called Southgate. The left will always tell you what they are planning. You only have to listen and have the courage to believe them.

A proposed gas buildout in North Carolina puts our communities and land at risk! > Appalachian Voices -- Corporations like Duke Energy, Dominion Energy, Mountain Valley Pipeline and Williams Companies want to build massive and expensive methane gas pipelines and gas-fired power plants for profit at the expense of our land and environment. Across North and South Carolina, Duke Energy has proposed building nearly 9 gigawatts of new gas power plants by 2035. Experts say this is one of the largest planned expansions of new gas plants in the country. Ironically, Duke has proposed this investment in new gas plants as part of this year’s Carbon Plan — a plan that is intended to reduce the state’s carbon emissions.This buildout of methane gas would mean Duke entirely failing to meet the timeline for cutting pollution set by bipartisan state law. Duke is moving in the wrong direction— 9 gigawatts is almost three times as much gas as it proposed in its last Carbon Plan. In addition to Duke’s plans, Williams Companies wants to build a 54-mile pipeline and associated compressor stations through North Carolina along its Transco system. This pipeline will carry a massive amount of fracked gas — the emissions from this pipeline would be equal to adding 6.5 million cars to our roads!

• Coal plant replacement to methane gas plant (Duke Energy): Conversion of a coal-fired power plant on Hyco Lake in Person County, known as the Roxboro Steam Station, to an expensive methane gas power plant that will be paid for by customers.
• MVP Southgate (Equitrans Midstream Partners): An extension of Mountain Valley Pipeline to bring gas from Virginia into North Carolina. Equitrans cannot begin construction until it receives permits that it is missing. PSNC Energy (a Dominion Energy subsidiary) and Duke Energy would buy the pipeline’s gas.
• T15 Reliability Project (Dominion Energy): A 45-mile pipeline from Eden (the terminus of the proposed MVP Southgate) to Hyco Lake. Would be used to transport gas to the proposed Hyco Lake methane gas power plant.
• Moriah Energy Center (Dominion Energy): A liquified natural gas storage facility on 480 acres of land in southeastern Person County previously zoned as a rural conservation district.
• Transco’s Southeast Supply Enhancement Project (Williams Companies): A nearly 55-mile pipeline through Virginia and North Carolina with additional compressor units to expand existing capacity. This would be the largest pipeline proposed in this area in the last 10 years.

Everyone in North Carolina would bear the burden of financing Duke’s proposed gas projects through higher utility bills. Expensive methane gas has been a driver of high electricity bills in recent years. In fact, increases in fuel prices, such as methane gas, account for 67% of the increase in residential electricity rates in Duke Energy Carolinas territory since 2017. Fuel prices are passed on to customers, so new gas plants put customers at risk for high energy bills driven by spikes in gas prices. Duke’s latest projections indicate rate increases that are 74% higher than previously forecasted for Duke Energy Carolinas’ network, and 39% more for Duke Energy Progress’ network by 2033. This is on top of a14.6% rate hike across three years that the North Carolina Utilities Commission approved in late 2023. Duke’s methane gas expansion plans will hit residents hard — especially low-income households that tend to spend a higher portion of their income on energy bills. The costs of this gas buildout are especially unnecessary considering how affordable renewable energy sources have become. One study shows that clean, renewable energy sources are cheaper than other proposed gas plants when taking full advantage of the tax credits in the Inflation Reduction Act. Another report found that Duke could save hundreds of millions of dollars by 2030 if it focused more on solar and battery storage.

• Gas reliability concerns: Across the Eastern U.S., methane gas plant failures accounted for 63% of lost power during Winter Storm Elliot, while solar and wind were responsible for only 1% and 4%, respectively. This is not an anomaly — during five recent extreme winter weather events across the past 12 years, gas plants accounted for the majority of failed capacity.
• Community health concerns: Generating electricity from methane gas produces pollutants called nitrogen oxides. Exposure to high concentrations of nitrogen oxides cancause asthma, respiratory infections and heart damage. Additionally, nitrogen oxides react with other airborne chemicals to form particulate matter and ozone. Ozone exposure can cause various respiratory complications, while particulate matter affects the lungs and the heart, potentially leading to heart attacks, impaired lung function and premature death.
• Pipelines and gas infrastructure: Methane gas power plants also require pipelines and compressor stations to transport the gas, which introduce various public health hazards, including the contamination of local drinking water, air pollution, degradation of soil quality resulting in reduced crop yields, and the threat of pipeline explosions and fires. Additionally, hydraulic fracturing, or fracking, is used to extract methane gas from underground. This process also causes air pollution and water contamination, leading to negative health effects. Counties across the U.S. with higher concentrations of socially vulnerable communities (such as Native communities, people of color, rural communities and people with low incomes) have significantly higher pipeline densitiesthan counties with fewer socially vulnerable residents.

Gas Flows to Sabine Pass LNG Export Plant Drop to 11-Month Low - Marcellus Drilling News -The Sabine Pass LNG terminal, owned and operated by Cheniere Energy, is spread over an 853-acre site in Cameron Parish, Louisiana. The facility is the largest LNG terminal in the world, with a total send-out capacity of 4.1 Bcf/d (billion cubic feet per day) and a storage capacity of 16.8 Bcf. The facility’s “nameplate” capacity, with six trains operating, is roughly 30 mtpa (million tons per annum). Around 330 MMcf/d (million cubic feet per day) of M-U molecules flow to the Sabine Pass facility, getting there by various interstate pipelines. Last Friday, flows to the facility dropped to 3.4 Bcf/d.

Natural Gas Markets Await End of Sabine Pass LNG Terminal Maintenance --Cheniere Energy Inc. could wrap up a maintenance blitz at its Sabine Pass LNG export terminal next week. The work went on longer than initially expected but was still on pace to shed far fewer volumes than last year. Sabine Pass LNG export volumes (graphic). The 4.6 Bcf/d Louisiana facility has conducted extensive maintenance in June for the last several years. The terminal accounts for a third of U.S. liquefied natural gas exports.This year, Cheniere management said it aimed to minimize the impacts of the work with a planned shorter June maintenance schedule than last year. Work at the LNG terminal kicked off on June 3 and was scheduled to run until June 16, but analysts were forced to readjust estimates after a mid-month jump in feed gas volumes turned out to be false hope.

Venture Global’s 20 MMty CP2 LNG Export in Louisiana Project Finally Gains FERC Approval -Venture Global LNG Inc.’s CP2 export facility has received the final federal approval, ending a more than 10-month wait for authorization. NGI's chart of US and Mexico LNG export facilities. In a 2-1 decision, FERC on Thursday approved the Virginia-based developer’s plans to build a 20 million metric tons/year (mmty) terminal in Cameron Parish, LA. The project, which is sited near Venture Global’s Calcasieu Pass liquefied natural gas facility, gained the status as the longest pending project before the Federal Energy Regulatory Commission as the potential environmental impacts were scrutinized.

Argent LNG Selects Worley for Port Fourchon LNG Export Project Design – Argent LNG LLC is moving forward with the FERC pre-filing process for its 20 million metric tons/year proposed LNG export facility in Louisiana after selecting an engineering, procurement and construction firm. Argent LNG tapped Australia-based Worley to handle early design and engineering work for a liquefied natural gas terminal at the Port of Fourchon southwest of New Orleans. The firm also disclosed it has signed a long-term lease for a 144-acre project site at the port. Chiyoda Corp. disclosed it has revised down its estimates for income from the Golden Pass LNG project as a result of Zachry Industrial Inc.’s bankruptcy. The Japanese firm informed shareholders it has been working on a restructured contract with Golden Pass and its other joint venture partners since April, but it won’t fully update its financial results until after Zachry leaves the partnership. A unit of Shell plc and units of Energy Transfer LP have delivered their proposed orders to the administrative court handling a case to determine how information about Venture Global LNG Inc.’s Calcasieu Pass (CP) project will be shared. The Federal Energy Regulatory Commission referred the case to an administrative judge earlier in the month after CP contract holders requested non-public information about the project. Shell’s lawyers said the company has been working with counsel for Venture Global and other participants in the case, but it “has not yet been able to sufficiently clarify all points in the different proposed protective agreements” from each party. FERC previously agreed that the CP offtakers and other interveners required more information to respond to Venture Global’s request for an extension of the project’s commissioning timeline.

Plaquemines Export Project Receives Feed Gas as Testing Continues – Chiyoda Corp. has asked a federal bankruptcy court to restart construction on the Golden Pass LNG export project in Texas, which has come to a near standstill since lead contractor Zachry Holdings Inc. filed for bankruptcy last month. NGI's North American LNG Export Flow Tracker/ Chiyoda, along with McDermott International Inc. affiliate CB&I LLC, want to exercise their rights to resume work under a joint venture they have with Zachry, which laid off 4,400 people at the site. Zachry cited cost overruns at the 18 million metric tons/year Golden Pass project in its bankruptcy filing. As the lead contractor in charge of staffing construction activities, Zachry’s financial issues and ongoing bankruptcy proceedings have prevented the remaining contractors from resuming large-scale construction. Golden Pass has also asked the bankruptcy court to reject Zachry's interest in the engineering, procurement and construction contract, noting that it threatens the construction progress.

Kimmeridge Taking Reins of Louisiana’s Commonwealth LNG Export Project with 90% Ownership --A 90% interest in Commonwealth LNG, which is developing a proposed 9.3 million metric ton/year (mmty) natural gas export project in Louisiana, has been acquired by a unit of Kimmeridge Energy Management Co. Image of Commonwealth LNG export facility Expand Eagle Ford Shale-focused Kimmeridge Texas Gas LLC (KTG), the infrastructure fund’s natural gas production firm, is boosting its equity ownership and will take the reins. The project partners expect to reach a final investment decision (FID) by the middle of 2025. "We are excited to take a controlling interest in Commonwealth LNG as we integrate our business from wellhead to water,” and help to complete the liquefied natural gas export facility, Kimmeridge Managing Partner Ben Dell said.

Aramco Poised to Expand U.S. LNG Assets With Deal for Stake in Port Arthur Export Project --State-owned Saudi Arabian Oil Co., better known as Aramco, confirmed Wednesday that it’s working to finalize an agreement to take a 25% equity stake in the second phase of Sempra Infrastructure’s Port Arthur LNG export project in Southeast Texas. Aramco, which has been working to expand its assets in the global natural gas market, said it signed a non-binding agreement for the equity stake and the purchase of 5 million metric tons/year (mmty) of liquefied natural gas from the Port Arthur LNG expansion project for a term of 20 years. “As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world's growing need for lower-carbon sources of energy,” said Aramco Upstream President Nasir K. Al-Naimi. “This agreement is a major step in Aramco's strategy to become a leading global LNG player."

US natgas prices climb 4% on forecasts for more heat, demand this week (Reuters) -U.S. natural gas futures climbed about 4% on Monday on forecasts for more hot weather and cooling demand. The price increase came despite a slow increase in output and forecasts for less hot weather and lower cooling demand next week than previously expected. Front-month gas futures for July delivery on the New York Mercantile Exchange rose 10.6 cents, or 3.9%, to settle at $2.811 per million British thermal units (mmBtu). On Friday, the contract closed at its lowest level since June 4 for a second day in a row. Recent declines in the July contract boosted the premium of futures for August over July to a record high - currently about 14 cents per mmBtu - for a second day in a row. Financial firm LSEG said gas output in the Lower 48 U.S. states rose to an average of 98.4 billion cubic feet per day (bcfd) so far in June, up from a 25-month low of 98.1 bcfd in May. That compares with a monthly record high of 105.5 bcfd in December 2023. Analysts said the production increase, which started in late May, was a sign that some drillers were slowly boosting output after a 47% jump in futures prices in April and May. Prices were also up about 5% so far in June. On a daily basis, output hit a 10-week high of 99.6 bcfd on Sunday. So far in June, CEOs at EQT and Chesapeake Energy said their companies have started to boost output. Overall, however, U.S. gas production was still down around 7% so far in 2024 after several energy firms, including EQT and Chesapeake, delayed well completions and cut 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 hotter than normal through at least July 9 - just not as hot as previously forecast. LSEG forecast that heat would boost the amount of gas power generators burn to keep air conditioners humming. With less heat expected next week, LSEG forecast average gas demand in the Lower 48, including exports, will slide from 104.5 bcfd this week to 102.3 bcfd next week. The forecast for this week was higher than LSEG's outlook on Friday, while its forecast for next week was lower.

US natgas prices fall over 5% on rising output, high storage levels (Reuters) -U.S. natural gas futures fell over 5% to a three-week low on Wednesday on signs producers were slowly boosting output to meet rising summer demand and as the amount of gas in storage remains well above normal levels. Analysts forecast there was about 20% more gas in storage than normal at this time of year. The futures decline came despite forecasts for a brutal heat wave to keep baking much of the country through at least mid July, forcing power generators to keep burning lots of gas to keep air conditioners humming. On their last day as the front-month, gas futures NGc1 for July delivery on the New York Mercantile Exchange were down 13.9 cents, or 4.6%, to settle at $2.628 per million British thermal units (mmBtu). Futures for August NGQ24, which will soon be the front-month, were down over 4% and settled at $2.745 per mmBtu. In Texas, the power grid operator for most of the state projected peak demand would break the record for the month of June on Thursday as homes and businesses crank up their air conditioners to escape the heat. Spot power and gas prices in Texas also soared, but only to levels that were the highest in weeks and months. Financial firm LSEG said gas output in the Lower 48 U.S. states had risen to an average 98.5 billion cubic feet per day (bcfd) so far in June, up from a 25-month low of 98.1 bcfd in May. That compares with a monthly record high of 105.5 bcfd in December 2023. On a daily basis, however, output was on track to drop by about 2.8 bcfd over the past two days to a preliminary two-week low of 97.6 bcfd on Wednesday, down from an 11-week high of 100.4 bcfd on Monday. Analysts said the production increase which started in late May was a sign that some drillers were slowly boosting output after a 47% jump in futures prices in April and May. Prices were also up about 4% so far in June. So far this month, CEOs at EQT and Chesapeake Energy have said their companies have started to boost output. Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least July 11. But with less heat forecast next week, LSEG forecast average gas demand in the Lower 48, including exports, will slide from 103.0 bcfd this week to 100.2 bcfd next week. Those forecasts were similar to LSEG's outlook on Tuesday. Gas flows to the seven big U.S. LNG export plants have eased to 12.8 bcfd so far in June, down from 12.9 bcfd in May and a monthly record high of 14.7 bcfd in December 2023. On a daily basis, LNG feedgas was on track to rise to 11.9 bcfd on Wednesday, up from a nine-week low of 11.7 bcfd on Tuesday. That is due to plant and pipeline maintenance at several facilities, including Freeport LNG and Cheniere Energy's LNG.N Corpus Christi in Texas and Cameron LNG, Cheniere's Sabine Pass and Venture Global's Calcasieu Pass in Louisiana.

US natgas prices slip 2% on rising output, lower demand (Reuters) -U.S. natural gas futures slid about 2% on Thursday on arise in output and forecasts for less demand next week than previously expected. That price decline came even though last week's storage build was smaller than usual for this time of year for a seventh week in a row and the heat wave blanketing much of the countrywill likely remain in place through at least mid-July. That heat should force power generators to continue burning lots of gas to keep air conditioners humming. Traders said recent storage builds have been smaller than usual because several producers cut output earlier in the year after futures prices dropped to 3-1/2-year lows in February and March. Higher prices in recent weeks, however, have prompted some producers, including EQT and Chesapeake Energy, to return to the well pad. The U.S. Energy Information Administration (EIA) said utilities added 52 billion cubic feet (bcf) of gas into storage during the week ended June 21. That was close to the 51-bcf build analysts forecast in a Reuters poll and compares with an increase of 81 bcf in the same week last year and a five-year (2019-2023) average rise of 85 bcf for this time of year. Even though storage builds have been smaller than average in recent weeks, the amount of gas in storage was still around 21% higher than usual for this time of year. On their first day as the front-month, gas futures for August delivery on the New York Mercantile Exchange fell 6.0 cents, or 2.2%, to settle at $2.685 per million British thermal units (mmBtu). In Texas, the power grid operator for most of the state projected peak demand would break the record for the month of June on Thursday as homes and businesses crank up their air conditioners to escape the heat. Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least July 12. But with less heat forecast next week, LSEG forecast average gas demand in the Lower 48, including exports, will slide from 102.9 bcfd this week to 99.9 bcfd next week. The forecast for next week was lower than LSEG's outlook on Wednesday. Gas flows to the seven big U.S. LNG export plants eased to 12.8 bcfd so far in June, down from 12.9 bcfd in May and a monthly record high of 14.7 bcfd in December 2023. Feedgas to the 2.1-bcfd Freeport, one of the most watched U.S. LNG plants because it has a history of swaying global gas prices when it shuts, was on track to rise to 1.9 bcfd on Thursday after dropping to a seven-week low of 1.5 bcfd on Tuesday. Freeport told Texas environmental regulators that the second of three liquefaction trains tripped on Tuesday due to an issue with a power feed. In other LNG news, Venture Global's Plaquemines export plant under construction in Louisiana started to take in pipeline gas on Wednesday, signaling the plant was on track to produce its first LNG later this year as expected. Separately, U.S. energy regulators approved Venture Global's request to build the CP2 LNG export plant in Louisiana.

No-contact recommendation for Flint River continues after oil spill - -- The search for the source of a small oil spill into the Flint River continued on Wednesday, June 26, and the Genesee County Health Department continued to recommend staying away from the river in the area. Lt. Nicholas Preece of the Genesee County Sheriff’s Department said investigators believe the leak into the river, which occurred at an outfall on James P. Cole Boulevard between Merrill and East Wood streets, appears to be no longer flowing.

Martin Midstream Partners recovers 1,250 barrels of oil from Arkansas spill (Reuters) -Martin Midstream Partners MMLP.O said on Monday it had recovered around 1,250 barrels of crude oil following a pipeline spill that occurred earlier this month.The company became aware of the spill on June 15 and is working with the Environmental Protection Agency and several state agencies to respond to the spill, Martin said in a statement.The spill, which totaled some 2,000 barrels of oil, originated from a transfer pipeline that connects Martin Midstream's Sandyland Terminal to the 7,500 barrels per day naphthenic lube refinery in Smackover, Arkansas.The spill traveled around two miles from the pipeline, according to the EPA, and clean-up efforts involve removing oil from two creeks to prevent the sheen from leaking into Ouachita River.

Biodiversity loss from 2010 oil spill worse than predicted -- A new peer-reviewed study from researchers at The University of Texas at Arlington; the University of Nevada, Reno; Mokwon University in Daejeon, Korea; and Texas A&M University at Corpus Christi shows the Deepwater Horizon (DWH) oil spill of 2010 affected wildlife and their habitat much more than previously understood. The work is published in the journal Marine Pollution Bulletin. "Overall, we found the area of deep-sea floor affected by the DWH spill was significantly larger than previously thought," said Masoud Rostami, an author of the study and assistant professor of instruction in UTA's Division of Data Science. In recent decades, deep-water ecosystems in lakes, oceans, and seas around the world have faced pressures from offshore oil and gas production, including frequent contamination from oil and other pollutants. The DWH oil spill in the Gulf of Mexico that started on April 20, 2010, was the largest marine oil spill in U.S. history, releasing nearly 5 million barrels of crude oil and hydrocarbon gases over 87 days, with 3.2 million barrels of oil remaining in the water after cleanup efforts. This spill greatly exceeded the amount of natural discharge of oil that seeps in the Gulf each year, and up to 35% of the pollutants were trapped below the surface, severely impacting the lives and habitats of the plants, animals, and microorganisms (like bacteria and fungi) that live deep in the ocean. For this study, the researchers focused on the harpacticoid copepods, a type of crustacean that lives near the bottom of the ocean, to better understand the DWH spill's effects on the deep-sea ecosystem in the Gulf of Mexico. Copepods are good for this type of study because they live in several different deep-sea habitats and are known to be sensitive to pollution. Researchers found that the spill affected biodiversity over an area of 1,100 square miles—a area nearly nine times larger than earlier studies on DWH. Using advanced methodologies, including remote sensing, multivariate statistical analysis, and machine-learning approaches, the team detected subtle changes in the deep-sea copepod community composition. "This study demonstrates that harpacticoid copepod diversity dramatically declined because of DWH oil pollution," said Rostami.

US offer $850m funding to curb oil sector methane emissions - The US Department of Energy (DOE) and Environmental Protection Agency (EPA) are seeking applications for $850m in funding aimed at reducing methane emissions in the oil and gas sectors.The funding, which aims to help measure, monitor, quantify and reduce methane emissions from the country’s oil and gas sectors, forms part of President Biden’s Investing in America agenda and aligns with the administration’s efforts to significantly cut methane emissions.Due to be made available through the administration’s climate law, the Inflation Reduction Act (IRA), the funding seeks to address air pollution, generate employment, and enhance the efficiency of oil and gas operations.These efforts contribute to the nation’s pursuit of President Biden’s climate and clean air objectives.The grants are particularly designed to assist small oil and gas operators in adopting innovative technologies for methane emission reduction. Additionally, they aim to foster partnerships that improve emissions measurement and provide transparent data to communities affected by these emissions. The funding also helps small operators curb methane leaks, expedite repairs on low-producing wells, and enhance access to empirical data and monitoring participation.Eligible applicants include industry stakeholders, academic institutions, non-governmental organisations, Native American tribes, and state and local governments.The deadline for grant applications is 26 August 2024.US Secretary of Energy Jennifer M Granholm said: “As we continue to accelerate the nation’s clean energy transition, we are taking steps now to drastically reduce harmful emissions from America’s largest source of industrial methane – the oil and gas sector.”

Bidenistas at DOE, EPA Announce $850 Million in Methane Bribes -- Last Friday, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) announced that applications are open for $850 million in federal funding “for projects that will help monitor, measure, quantify and reduce methane emissions from the oil and gas sectors as part of President Biden’s Investing in America agenda.” The funding, to be taken from the misnamed Inflation Reduction Act (IRA), aims to force small operators to significantly reduce methane emissions from oil and natural gas operations. Essentially, it is a massive bribe to vote for Biden in November. Companies that get in on the gravy train will vote for (and donate to) the Democrat Party. That’s how it works in the disgusting swamp called D.C.
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Democrat probes 18 oil companies after FTC collusion accusations -Sen. Sheldon Whitehouse (D-R.I.) is probing 18 oil and gas companies after the Federal Trade Commission (FTC) accused the former CEO of firm Pioneer Natural Resources of colluding with foreign oil producers last month. Whitehouse, who chairs the Senate Budget Committee, asked the companies for copies of any communications with the foreign oil powers, known collectively as OPEC, related to oil production or prices. The senator particularly cited FTC’s accusation that Pioneer’s Scott Sheffield “sought to align oil production across the Permian Basin in West Texas and New Mexico” with that of OPEC and its allies. Pioneer was not among the firms he reached out to, but ExxonMobil, with which Pioneer is slated to merge, was. “In view of the findings against Sheffield, I seek to understand whether other oil producers operating in the United States may also have been coordinating with OPEC and OPEC+ representatives,” Whitehouse wrote. Lawyers for Sheffield say he was “unjustly smeared” by the antitrust agency. Democrats have repeatedly accused fossil fuel companies of price gouging, which the industry has denied. This latest line of inquiry from Whitehouse comes after he recently accused major oil firms and lobby groups of promoting disinformation about climate change.

Private Oil Producers Dwindle Amid Consolidation in New Top Operators List | Hart Energy (table) The species of the large, privately-held crude oil producer in the U.S. is rapidly becoming endangered, but they’re not extinct just yet. Harold Hamm’s Continental Resources and Delaware Basin leader Mewbourne Oil lead the way as the top two private crude producers in the shale industry, but the next two are largely being bought up.After that, there are several fast-growing producers that have surged into the top 10—including Surge Energy—according to the list of the top 100 private producers compiled by Enverus in an exclusive partnership with Oil and Gas Investor (OGI). Continental went private in late 2022 and now dominates the statistics for private producers. Meanwhile, the Permian’s Mewbourne Oil has continued to rapidly grow in recent years to take advantage of prime Permian acreage and healthy crude pricing.But Diamondback Energy is acquiring the third-ranked crude producer, Endeavor Energy Resources, for $26 billion to turn Diamondback into the industry’s top pure-play producer in the Permian. The deal is expected to close in the fourth quarter.Likewise, Occidental Petroleum is scooping up CrownQuest Operating’s CrownRock for $12 billion to further solidify its massive Permian position.Now ranked fifth and poised to jump higher is Grayson Mill Operating with 93,414 bbl/d, which is still well behind the 220,403 bbl/d of Mewbourne. Grayson Mill has focused on growing into a major Bakken Shale player.The rest of the top 10 includes California’s Aera Energy, Permian-centric Birch Resources, Oklahoma’s GBK Corp. and its Kaiser-Francis Oil Co., the Midland Basin’s Surge Energy, and the Eagle Ford Shale’s Verdun Oil.The rest of the top 20 count more producers from the Permian, but also the Uinta Basin’s XCL Resources and the Utica Shale’s Encino Energy. While the Utica is mostly gassy, Encino also is developing a liquids-rich oil play within the formation.

Industry Consolidation Reshapes List of Top 100 Private Producers in the Lower 48 -- (tables) The historic consolidation trend across the U.S. E&P sector during the last 18 months is reshaping the landscape beyond the nameplate megamergers such as Exxon Mobil’s acquisition of Pioneer Natural Resources. Private family companies founded by original wildcatters such as Endeavor Energy Resources and CrownQuest are coming off the market to join the likes of Diamondback Energy and Occidental Petroleum. Among the net effects of $200 billion in M&A, a number of private companies have fallen off the list of Top 100 private companies compiled by Enverus in an exclusive partnership with Oil and Gas Investor (OGI). A slew of newcomers to the Top 100 have taken their places.

Texas, California cities threatened by worsening fires amid oil wells --More frequent and destructive fires are combining with booming oil production to put towns across the American West at risk, a new study has found.These trends are made more dangerous by both rising temperatures and the sprawl of Western towns — driven by rising populations — into the increasingly fire-prone wildlands that surround them, the study in the journal One Earth found.As more than 350,000 houses have been built each year in this wildland-urban interface (WUI), these outlying areas have also become the sites of tens of thousands of new oil and gas wells — sites that both contribute to, and are put at risk by, a new age of destructive fire.The study found that about 3 million people currently live within about a half mile (1 km) of highly wildfire-threatened wells, and more than 10 million people live near wells that face moderate risk — a disproportionate number of whom are lower-income and people of color. Oil and gas pollution already causes significant health risks to nearby communities — andparticularly children. But the One Earth researchers warned that fires risks are making these situations worse and that it adds to the potential for explosions and wildfire-fueling leaks.One principal center of this collision is Texas, a site of record oil production that was hit in February by the largest wildfire in state history.Another is California, where 1,200 people just evacuated from fires in Los Angeles, a city still dotted by thousands of wells, including new ones.Despite that new drilling, California’s oil industry is in a period of lengthy decline, which helps counter the rising risk from sprawling towns and the worsening wildfires. About 100,000 wells in the state were at high risk from wildfire in 2017, a number that researchers projected would hold steady throughout the rest of the century.But in other parts of the country, the picture is marked by increasing risk: Researchers found that the number of wells at risk of destructive fire would nearly double by the end of the century, from just under 120,000 today to about 205,000 by the end of the 2080s.That rise is driven by Utah and Texas.The Lone Star State, the nation’s biggest oil and gas producer, had about 10,000 wells at high risk for fire in 2017 — a number that is expected to boom to 76,000 by the end of the century.In Utah, while fewer than 2,000 wells are currently at risk from fire, that number is expected to rise to 12,000 by the mid part of this century and to 18,000 by the end of it.The fact that a fire happens around oil and gas development doesn’t necessarily mean the wells will catch fire. After the record February fire in Texas, several oil companies told industry news site Rigzone that their operations had suffered no disruptions.That is something the Railroad Commission of Texas, the state’s oil and gas regulator, credited to careful preparation on the front end. After the fires, the agency sent out a picture depicting a blackened prairie surrounding an untouched Carson County well pad — an argument for “mowing grass and treating weeds to keep fuels for fires” away from drilling sites.But the February fires had been big enough to cut off access for worker or fire crews to many wells, said Ed Longanecker, the head of the Texas Independent Producers and Royalty Owners Association, a state trade association.“Given the sheer magnitude of the wildfires, some disruptions will likely occur,” Longanecker told Rigzone. In the case of those fires, the oil industry was a cause as well as a potential victim: A Texas legislative committee found that the Panhandle fires had been caused in part by faulty electric equipment installed by an oil company. Witnesses told the committee that “irresponsible oil and natural gas operators … were among the most common culprits contributing to wildfires.” Because pumpjacks run on electricity, they require a network of transmission lines that, if improperly maintained, can spark fires. And as wells decline — and fracked wells decline fast — and are ultimately abandoned, witnesses said that operators often lost economic incentives to maintain that infrastructure or to remove and shut off that wiring. One Texas Railroad Commission inspector told the Legislature that 32,000 such orphaned wells existed in the Panhandle alone, in what the report described as “a minefield of potential fire ignition sources.” These abandoned wells can also be persistent sources of plumes of flammable — and planet-heating — methane, the One Earth researchers found.

Oil industry group drops ballot initiative to drill near California homes - — An oil industry group is withdrawing its ballot challenge to a California law that bans drilling within 3,200 feet of homes, businesses and schools, the group announced Wednesday. The California Independent Petroleum Association said it would remove the measure from the ballot by Thursday’s deadline to submit or withdraw initiatives. The organization said it plans to sue over the law instead. “While CIPA is confident in its ability to be successful at the ballot box, we also recognize the likelihood of the Legislature simply introducing other similar bills,” the group said in an announcement. “Therefore, judicial intervention is necessary to truly resolve this matter.” The decision means the 2022 law — which was on pause pending a keep-or-overturn decision from the state’s voters — will take effect after the initiative is withdrawn.

Will California’s Largest Oil Well Owner Get a Pass on Paying to Clean Up Its Mess? = In recent years, California has passed new laws to tackle the enormously expensive remediation of old oil wells, which pose hazards for human health and the climate. But as two of the state’s largest oil well operators race toward a corporate merger, the challenge of holding companies accountable for their mess is coming into view. Gov. Gavin Newsom signed one of the state’s toughest regulations last fall: a law requiring companies that buy or acquire another operator’s oil wells to put up the money to plug them once they run dry. But California Resources Corporation — which plans to acquire Aera Energy — is refusing to say whether it has complied, or will comply. California Resources Corporation did not respond to inquiries for this story. In emails with the regulator, the company stated there would be “no change in the organizational structure” of Aera, which operates the wells California Resources Corporation wants to acquire. The law states that the acquisition cannot be completed until the state calculates the size of the bond that the operator must secure. The law is also clear that operators such as California Resources Corporation must ask the state to begin calculating the size of the bond, which the company does not appear to have done, said Ann Alexander, director of Energy Solutions, Nature at the Natural Resources Defense Council, which advocated for the law. Given that the proposed merger is set for a June 26 shareholders vote — one of the main conditions for the transaction — it is “quite unlikely” California Resources Corporation has requested bond estimates from the state, Alexander said. “There are a really large number of wells here,” Alexander said. Estimating the bond amounts for the thousands of wells is “a process that’s going to take a significant amount of time” — likely a few months. Meanwhile, the California Geologic Energy Management Division, the state agency that oversees the 100,000 or so active and idle wells that dot California’s landscape, declined to say whether the company requested a bond amount or communicated about the bonding requirements at all. Insufficient bonds could ultimately cost taxpayers billions when it comes time to plug the roughly 37,000 wells that will be in the company’s portfolio after the planned merger. The bonding requirement law mandates that before any acquisition of wells, a company must put up enough money to ensure that low-producing oil wells are plugged. Plugging the wells is necessary to prevent climate-warming methane gas from escaping into the atmosphere. Fossil fuels such as methane are the main driver of the ongoing climate crisis. Aera Energy equipment in the Belridge Oil Field in Kern County. In filings with the Securities and Exchange Commission, California Resources Corporation estimated that after acquiring Aera, its long-term financial obligations for plugging its old wells and decommissioning related equipment would amount to $1 billion. But that’s likely billions less than it will actually cost. The Sierra Club last year estimated that the cost to clean up just the portion of California Resources Corporation’s and Aera’s wells that are no longer in production would cost $3.5 billion. If the active wells were included too, the cost would be billions more. “It’s quite frustrating to those of us who have worked very hard to try and help California dig out of the colossal mess that it is in” with unplugged wells, said Alexander. The law arrived last year as Assembly Bill 1167, introduced by Assemblymember Wendy Carrillo (D-Los Angeles), who saw it as a way to put the financial burden of ending the lives of old oil wells on the operators, not the taxpayers.

Interior nixes Trump’s Alaska land orders, mine road - The Biden administration is dealing Alaska and its congressional delegation a significant blow, rejecting a pivotal mining road and proposing to revoke Trump-era orders that would have opened up 28 million acres of federal land to energy development and mining. The Bureau of Land Management is set Friday to issue a final environmental impact statement that recommends Interior Secretary Deb Haaland nix five public land orders issued in the closing weeks of Donald Trump’s presidency that would have lifted a mining and drilling ban on the 28 million acres that has been in place more than five decades. “Today, my administration is stopping a 211-mile road from carving up a pristine area that Alaska Native communities rely on, in addition to steps we are taking to maintain protections on 28 million acres in Alaska from mining and drilling,” President Joe Biden said in a statement. “These natural wonders demand our protection.” The move continues Biden’s efforts to undo Trump administration efforts and broaden protection of public lands, particularly in Alaska. Both decisions are expected to spark a wave of lawsuits and pushback from Alaska’s congressional delegation. Haaland, who has the option to approve or reject — in full or in part — the public land orders signed in January 2021 by then-Interior Secretary David Bernhardt, indicated in a statement Friday she’ll leave the protections in place. Meanwhile, the Interior Department released a record of decision Friday that bars the Alaska Industrial Development and Export Authority from securing a right of way to cross federally managed lands to build. Proponents have argued the road is crucial for tapping into large reserves of critical minerals in the remote Ambler mining district. But the administration has emphasized there are no mines in the area and no proposals pending, echoing the findings in its analysis of the road in April that found it would cause irreversible damage to permafrost and habitat for already-declining Western Arctic caribou herd and cut through lands and waters critical to subsistence hunting and fishing in north-central Alaska. The moves pleased Alaska Native tribes that have long argued that building the road and lifting the land protections would threaten productive hunting and fishing grounds critical to their subsistence way of life. “These lands currently sustain our communities and have supported our people for generations,” said Eugene Paul, who chairs the Bering Sea Interior Tribal Commission, in a statement. “It is our obligation to do what is in our power to protect them.” That’s particularly true of the 28 million acres, which cover an enormous area of the state that includes portions of the Bay, Bering Sea-Western Interior, East Alaska, Kobuk-Seward Peninsula and Ring of Fire planning areas. “The Department of the Interior takes seriously our obligations to manage America’s public lands for the benefit of all people. In Alaska, that includes ensuring that we consider the impacts of proposed actions on Alaska Native and rural subsistence users,” Haaland said in a statement. “Guided by feedback from Tribal Nations, Native Corporations and the best-available science, the steps we are taking today ensure these important areas remain intact for generations to come.” But it angered Alaska Republican Sen. Lisa Murkowski, who has pressed Haaland for more than two years to advance the Trump-era public land orders and finalize approval of the Ambler Road. “Nine years in federal permitting. Access to critical and strategic minerals that are essential for everything from clean energy to national security. A rare opportunity for development in rural Alaska under the highest standards, so we don’t have to import from unstable nations that have no protections for people or the environment,” Murkowski said in a statement. “Somehow, none of that mattered to the Biden administration on the Ambler project. They have ignored federal law, our national vulnerabilities, and Alaska’s strong record of responsible development, all in the name of election year politics.”

Western Canada’s Asian Natural Gas Exports to Expand as Cedar LNG Sanctions BC Project -In a long awaited announcement Tuesday, the Haisla Nation and Pembina Pipeline Corp. agreed to move forward with Cedar LNG Partners LP’s 3.3 million metric ton/year (mmty) export project on Canada’s west coast. Map showing Cedar LNG. Late 2028 is the target to begin natural gas exports from the floating liquefied natural gas (FLNG) project in British Columbia (BC). Built on Haisla territory, Cedar would be powered with renewable electricity provided by BC Hydro. As designed, it would be one of the lowest emitting LNG projects in the world. The Haisla Nation, with 50.1% ownership, and Pembina, with a 49.9% stake, “have made history as the world’s first Indigenous community to develop an LNG facility as majority owners," Haisla Chief Councillor Crystal Smith said.

Biden LNG Permit Pause Clouding Outlook for Mexico Export Projects -- The Biden administration’s pause on new approvals for LNG exports to non-free trade agreement (FTA) countries is casting doubt over the future of liquefaction projects in Mexico that would rely on U.S. feed gas. NGI's Sur de Texas Tuxpan natural gas pipeline. The prospect of bypassing the Panama canal and shipping U.S. sourced natural gas to the Asia-Pacific market by way of Mexico’s Pacific Coast has triggered proposals for a dozen or so liquefaction projects in Mexico in recent years. These include Sempra’s 3.25 million metric tons/year (mmty) Energía Costa Azul (ECA) Phase 1 project, which is under construction and set to begin exporting cargoes in summer 2025. Other advanced projects include New Fortress Energy Inc.’s (NFE) Altamira Fast LNG (FLNG) 1, which the company said will begin commercial operations in July.

Pemex refinery still not ready for commercial production, say sources - Pemex’s Olmeca oil refinery is unlikely to produce commercial quantities of fuels by the end of this year, despite the project being a showpiece development for current Mexican President Andrés Manuel López Obrador.The newest facility for Petróleos Mexicanos, the Mexican state-owned petroleum company, has already suffered a series of delays, and a doubling of construction costs, as the country moves towards energy independence.According to Reuters, citing unnamed sources familiar with operations, it would now not be impossible for the refinery to meet previously stated targets, namely reaching full production capacity in the coming weeks.Reuters stated that neither Pemex nor the president’s office responded to requests for comment.The sources said several engineers were working on individual parts of the refinery, which still need to be fully linked and integrated.Another source said that operationally “the refinery is fine so far, but the problem is the expectations that have been created”.Another source said that even if all goes to plan, the first of two production lines would be ready between October and November, at the earliest.The cost of the refinery is now estimated at close to $17bn (308.18bn pesos).President Obrador inaugurated the 340,000-barrel-per-day (bpd) refinery in July 2022, stating at the time that it was a crucial step towards Mexico’s energy independence. When fully operational, it will increase the country’s refining capacity by almost 20%.

Petrobras and Ecopetrol begin drilling at Uchuva-2 well offshore Colombia --Petrobras, in partnership with Ecopetrol, has initiated the drilling of the Uchuva-2 appraisal well in the Tayrona block offshore Colombia.This operation aims to assess the extent of the natural gas discovery made in the Uchuva-1 exploration well in July 2022.The Uchuva-1 exploratory well, situated in deep waters at 837m, lies approximately 32km from the coastline and 76km from the city of Santa Marta.Brazilian state-controlled oil company Petrobras holds a 44.4% operatorship stake in the Tayrona block while Colombian petroleum company Ecopetrol owns the majority 55.6% interest.Ecopetrol’s projections indicate that the Tayrona block could commence gas production by 2026.

UK court says oil project must take account of full environmental impact - A British local council must consider the full impact of developing new drilling wells, in what could become a landmark case. The case was brought against Surrey County Council, southern England, by local resident Sarah Finch, on behalf of campaigners. She challenged an earlier Court of Appeal ruling dismissing her case, and emerged victorious on Friday.According to several local news sources, the UK’s Supreme Court concluded that the environmental impact of emissions from burning fossil fuels must be considered in planning applications for new projects.This a departure from previous guidance, which required an assessment of the impacts of the emissions produced in extracting fossil fuels, such as building wells and related infrastructure.The assumption has always been that only the impacts from constructing the wells should be considered.The case, which has taken several years to resolve, hinged around an oil drilling project at Horse Hill, Surrey, granted planning permission by the council in 2019.The council said it believed it had followed planning law and had done nothing wrong.Also, the court did not rule that the council should reject the proposal for new oil wells.However, the judges – voting three to two in favour of allowing her appeal – argued the council should have considered the downstream emissions.The implications of the ruling will now have to be considered by companies looking to develop new energy projects.Finch said she was “absolutely over the moon to have won this important case”, while speaking to reporters in London.Horse Hill oil well in Surrey was given planning permission to expand its operations in 2019, a decision that was challenged by Finch, on behalf of Weald Action Group, an umbrella organisation campaigning against all forms of extreme extraction from the Weald and the Isle of Wight.The Surrey Weald lies to the south of London, stretching into neighbouring counties East Sussex, West Sussex, Kent, and Hampshire, and already has a small but long-standing history of oil and gas production.According to a UK Government assessment from 2013, there could be shale oil resources of up to 4.4 billion barrels of oil in the region.Summing up the case, Lord Leggatt said it was “inevitable” that oil from the site will be burned, and the resulting greenhouse emissions were “straightforwardly results of the project”, which should be considered.The six wells at Horse Hill are expected to produce more than three million tonnes of crude oil over the next 20 years.In response, Stephen Sanderson, head of UK Oil and Gas, the company behind Horse Hill, said the ruling was “perplexing”, while adding that the company’s focus over the past few years “has shifted away from oil and gas and firmly towards hydrogen storage”. UK Oil and Gas PLC said it will now work with the council to amend its planning application.

Egyptian Energy Crisis Seen Diverting More Israeli Natural Gas from Global LNG Market - Egypt’s plans to become a regional natural gas export hub are on hold as dwindling domestic production and extreme heat increase its dependance on Israeli pipeline and LNG cargoes to meet surging power demand. Egypt LNG natural gas exports graph. Rolling power cuts in Cairo have occurred since April as the government moves to conserve fuel while searing summer temperatures bake the capital. In some regions of the country, temperatures exceeded 116 degrees, the highest on record in 18 years according to the Egyptian Meteorological Authority. Egypt last imported liquefied natural gas in 2018, before rising Israeli production helped feed the country’s plans to increase utilization at its terminals and become a net gas exporter. However, after Egypt helped supply much needed cargoes to Europe in 2022, exports were halted during last summer.

TTF, JKM Steady Amid Hot Weather, Mixed Supply Outlook — Global natural gas prices continued to trade sideways on Monday as ample supplies were available and forecasts were largely unchanged. European and Asian benchmarks were trading in a narrow range. The Title Transfer Facility (TTF) in Europe rebounded on Monday, but picked up little and finished near $11/MMBtu. In Asia, Japan-Korea Marker (JKM) prices were stable at around $12. In the United States, Henry Hub continued to hover below the $3 mark.

Next Wave of LNG Supply Squeezing Long-Term Contract Prices -Global natural gas buyers are still signing long-term LNG contracts despite cooling market volatility and lower prices. Bar chart showing global LNG imports by contract type in 2023. But, with liquefied natural gas exporters still looking to ink deals for the massive capacity additions they’re developing through the end of the decade, the terms of contracts this year could portend a continued market shift to affordability over security. “It’s central to everything right now, as price expectations in the market are moving from what were historically closer to oil parity compared to LNG to pricing that’s closer to coal plus carbon parity,” Columbia University’s Ira Joseph, a global fellow at the Center on Global Energy Policy, told NGI.

LNG Sellers Counting on Asian Buyers to Soak Up Excess Supplies This Decade and Beyond Asia’s emerging economies and growing population are expected to sustain growth in the global LNG market and help absorb excess supplies hitting the water later this decade as new export projects come online. NGI chart showing global natural gas futures settles. Europe is on a trajectory to cut natural gas demand as industrial consumption falls and more renewables are expected to come online, leaving suppliers to focus on fulfilling nascent demand in Asia in the coming decades. The Gas Exporting Countries Forum (GECF) expects the Asia-Pacific region to account for more than 52% of the 700 billion cubic meter (Bcm) increase in global natural gas demand expected by 2050. India, China and Southeast Asia are expected to underpin growth in the region.

Heat Waves Challenge Asian Power Grids and Price Sensitive Buyers Searching for LNG -Spiking natural gas consumption across South and Southeast Asia continues as dwindling domestic production and increasing power demand continue to drive global LNG market interest. Asia Spot market natural gas and LNG prices. The region has experienced extreme hot weather since April, with temperatures nearing or surpassing record highs in Bangladesh, India, Pakistan, the Philippines, Thailand and Vietnam. The heat wave, along with a two-week outage at the Wheatstone liquefied natural gas export plant in Australia that was resolved over the weekend, has pushed prices for Asian spot cargoes above $12/MMBtu this month. However, EnergyAspects expects prices to fall next month as the weather cools.

Record High Temperatures Keep Indian Power Demand, LNG Imports Elevated -- A sustained heat wave over India since mid-spring has created a surge in natural gas-fired power generation, pushing LNG imports in May to the highest level in almost four years. Graph of India's natural gas production and imports. Liquified natural gas imports to India reached 2.46 million metric tons (mmt) in May, according to Kpler, as India’s gas inventories fell and buyers rushed to secure the super-chilled fuel. Lower global spot prices in May combined with high temperatures just as India’s government triggered policies to mitigate power outages across the country, Institute for Energy Economics and Financial Analysis Analyst Purva Jain told NGI.

India’s ONGG to build LNG plant in Madhya Pradesh with Indian Oil - State-owned Oil and Natural Gas Corporation (ONGC) and the Indian Oil Corporation Limited (IOCL) have signed a deal to establish a small-scale LNG plant near the Hatta gas field, “significantly reducing carbon emissions and aligning with India’s climate change mitigation goals”.The memorandum of understanding agreement was signed on 17 June. Speaking in a published statement, ONGC, which is currently exploring for hydrocarbons across India, said the discovery at Hatta “represents the culmination of five decades of sustained exploration efforts”. The company has has already submitted a field development plan to the Directorate General of Hydrocarbons, “to monetise its assets in the Hatta area”, it added. India has sedimentary basins spanning 3.4 million square kilometres, categorised into three groups. Sites under Category I are already involved in the extraction of hydrocarbons, while those under Category II possess resources but have not yet commenced commercial production. Category III comprises sites with potential resources awaiting discovery, local media agency Mint News reported. The new agreement aims to increase domestic LNG production and lower its dependence on imports. India’s LNG imports amounted to $13.4bn (Rs1.12trn) in fiscal year 2024 (FY2024). According to the news agency, India has imported LNG worth $2.2bn during the current fiscal year (April 2024–May 2025), down from $3.2bn in the same period in FY2023. ONGC claims the Hatta LNG plant will change the Vindhyan Basin’s standing, moving it from Category II to Category I. “The plant will utilise cutting-edge technology to produce LNG, a cleaner alternative to traditional fossil fuels, significantly reducing carbon emissions and aligning with India’s climate change mitigation goals,” the company added in the statement. For FY2024, ONGC estimates its largest-ever combined net income of Rs57,101 crore. The publicly owned energy company saw a 2.4% rise in its crude oil output in the January-March quarter of FY2024 compared with the previous quarter, while gas production decreased by 3%. The company produces more than 1.26 million barrels of oil equivalent per day (boepd), according to its website, contributing around 71% of India’s domestic production and has around 15% of India’s total refining capacity.

Siemens to build two gas-fired power plants in Saudi Arabia -- Siemens Energy has entered a long-term maintenance contract for two gas-fired power plants in Saudi Arabia, worth $1.5bn (SR5.63bn).The contract will last for 25 years, with Siemens also supplying power plant technologies that will provide almost 4GW to the country, said a statement released on Tuesday. The power plants, known as Taiba 2 and Qassim 2, will be built in the western and central regions of Saudi Arabia over the next few years.Siemens Energy’s gas turbines will be installed, generating 2GW of electricity at each site, with each of the plants set to be connected to the grid in simple cycle mode in 2026 and permanently operated as combined cycle power plants one year later.In the statement, Siemens said the gas-fired power plants will help to replace some of Saudi Arabia’s ageing power plant fleet, much of which relies on oil as an energy source.Siemens Energy, a German publicly traded energy corporation formed through the spin-off of the former Gas and Power division of Siemens, claims the new power plants will save up to 60% of CO₂compared with oil-fuelled power plants.

Growing FSRU Demand Expected to Help Balance LNG Surplus Later This Decade -A wave of new LNG supply that’s expected to push global natural gas prices lower later this decade is likely to spur additional investments in floating storage and regasification units (FSRU) that could ultimately help to balance any glut. FSRUs are faster to deploy than building larger onshore terminals to import liquefied natural gas and come at a far lower cost. The scramble to secure energy supplies since Russia invaded Ukraine in 2022 and upended global gas flows has increased utilization of the vessels, prompted orders for new ones and created long wait times for those in operation. “It is evident that these vessels have been developed and deployed at a faster rate than in the past,” said RWE AG freight analyst Rupesh Mulwani. “The urgency brought on by recent geopolitical events has driven this accelerated pace.” Related Tags

Russian Oil and Gas Revenues Surge by 50% in June -- In a significant rebound, Russia's oil and gas revenues for June are projected to increase by over 50% year-on-year, reaching $9.4 billion, according to new Reuters calculations. This surge comes after a reduction in refinery subsidies, highlighting Russia's resilience in the face of Western sanctions aimed at its energy sector. The redirection of oil exports to India and China has played a crucial role in maintaining financial inflows, essential for a budget under pressure from increased defense spending. Despite the ongoing conflict in Ukraine and subsequent economic sanctions, Russia's ability to adapt its export strategies has been pivotal. The projected increase in June revenues, up from 794 billion rubles in May and 529 billion rubles in June 2023, underscores the robustness of Russia's energy sector. The Finance Ministry's anticipated report on July 3 will provide detailed insights into these financial trends. The 2024 federal budget anticipates oil and gas revenues to rise by 21% from 2023, following a year marked by lower oil prices and reduced gas exports. Despite the economic strains, Russia has continued to sustain its defense expenditures, resulting in consecutive annual budget deficits of over 3 trillion rubles, approximately 2% of GDP. These deficits have been managed through internal borrowing and the National Wealth Fund. President Vladimir Putin has emphasized the country's economic growth, which stood at 3.6% in 2023 after a 1.2% contraction in 2022. However, local economists caution that this growth is driven largely by increased production in the defense sector, which offers limited benefits to the broader population. As Russia navigates its economic challenges, the resilience of its oil and gas sector remains a critical factor in its financial stability.

Chinese company Wison New Energies ceases all Russian operations - Wison New Energies has announced the cessation of all ongoing projects in Russia, effective immediately, following thorough evaluation.The Chinese engineering company’s decision will affect the Arctic LNG 2 project, which is spearheaded by Russia’s Novatek, reported Reuters. In a LinkedIn post, the company said: “We appreciate the good relations we have built with our Russian partners in the past and value the work we have done together. However, in view of the strategic future of the company, we have to make this difficult decision.”Previously, Novatek disclosed plans to build a gas turbine power station for the liquefied natural gas (LNG) plant, utilising equipment from Wison and Harbin Guanghan Gas Turbine.Novatek aimed to establish the Arctic LNG 2 plant on the Gydan Peninsula as the country’s most significant LNG facility.Initial commercial deliveries were scheduled for the first quarter of this year, following the commencement of production at the first train in December.However, the project faced setbacks last year when it became a target of Western sanctions due to Russia’s engagement in Ukraine. This led to foreign shareholders freezing their participation and Novatek declaring force majeure.As a result, Novatek had to suspend production owing to the sanctions and a lack of available gas tankers. Furthermore, Wison New Energies has decided to divest its entire stake in Zhoushan Wison Offshore & Marine.

Crack in platform leg halts oil production at Wassana offshore Thailand — Valeura Energy has suspended production from the Wassana Field in the Gulf of Thailand due to a safety issue.A scheduled underwater inspection of the MOPU Ingenium revealed a crack within one of the steel jackup legs, which could pose a risk to the platform’s structural integrity.Operations will remain offline while further inspection and analysis take place. Valeura is working with its own and external specialist to determine appropriate action.

Singapore says dredger that hit tanker reported sudden loss of control, Sentosa oil spill cleanup ongoing - Singapore authorities said Monday a dredger boat reported a sudden loss in engine and steering control that led it to hit a stationary cargo tanker, causing an oil spill that has blackened part of the city-island's southern shores. The Netherlands-flagged dredger Vox Maxima struck the Singaporean fuel supply ship Marine Honor on Friday. It ruptured one of the cargo tanks on the Marine Honor, which leaked low-sulfur oil into the sea. Although the leak has been contained, tides washed the spilled oil that had been treated with dispersants further along the shoreline, including to the popular resort island of Sentosa. Singapore's Maritime and Port Authority, in a joint statement with the National Environment Agency, the National Parks Board and Sentosa Development Corp., said the master and crew members of Vox Maxima are assisting in the ongoing investigations. Advertisement Part of the beachfront at a public park, beaches at three southern islands and a nature reserve have been closed to facilitate cleanup efforts. Sentosa beaches remain open to the public but sea activities and swimming are prohibited. Oil Spill Response Limited, an industry-funded cooperative that responds to spills, will deploy floating containment and recovery devices to corral the oil on the water surface, where two skimmer craft will then lift the oil into storage tanks, the statement said. Over 250 workers are involved in the cleanup. Close to 1.5 kilometers (.9 miles) of containment booms have been set up to trap the oil and another 1.6 kilometers (1 mile) of the temporary barriers will be laid over the next few days to prevent further spread of oil onto the shore, the statement said. The National Parks Board also deployed oil-absorbing booms to protect mangroves at another park that hasn't been affected so far. Members of the public who volunteered to help have been assigned to patrol the park for early signs of oil slicks. Conservationists and biologists are monitoring the full extent of the damage on marine and wildlife.

Oil spill clean-up at Singapore's Sentosa will take three months: official - Singaporean Minister for Sustainability and the Environment Grace Fu said earlier this week that it will take three months to complete the oil spill clean-up in the Tanjong and Palawan beaches at Singapore's Sentosa resort. According to the Maritime and Port Authority of Singapore, public and private organizations have deployed over 700 personnel for the clean-up operation. They have collected 550 tonnes of oil-soaked sand and debris from affected beaches. Fu said the clean-up response in the next phase will focus on removing oil remnants trapped in some areas that are not easily accessible, such as breakwaters and rock bunds. She noted the authority is monitoring longer-term impacts at biodiversity-sensitive sites. The oil spill happened on June 14 after a collision between a Netherlands-flagged dredger and a Singapore-flagged bunker vessel. The oil spread to Singapore's southern coast areas, including Sentosa, beaches and parks across Singapore, affecting entertainment activities there. The incident also affected people's lives when some people in Sentosa Cove were forced to leave their homes on June 15 due to an unpleasant smell. Cruise businesses have suffered losses as tourists are disappointed by the pollution.

Malaysia beaches hit by Singapore oil spill - An oil spill off Singapore has spread to beaches in southern Malaysia, a government official said Friday, with clean-up operations underway. Around 25 people were involved in the clean-up of two beaches spanning one kilometer (0.6 miles) in southern Johor state, local government official Ling Tian Soon told AFP. "Work began today and we hope to complete the task tomorrow. From our observation, marine life or fishermen activities have not been affected," he said. The oil spill resulted from an accident on Friday at Singapore's Pasir Panjang terminal between a Netherlands-flagged dredger and a stationary Singapore-flagged bunker vessel, Singapore's Maritime and Port Authority (MPA) said. Photos posted on Ling's Facebook showed men in white protective gear picking up black sludge from a beach and placing it into plastic bags. Ling added that Malaysia's maritime officials were monitoring to see if the oil spill spread to other parts of the coast.

Malaysia cleans up beaches hit by oil spill from Singapore --A Malaysian official said on Friday that clean-up operations are underway after an oil spill off Singapore has spread to beaches in southern Malaysia. The oil spill off Singapore has spread to beaches in southern Malaysia. Photo courtesy of Vietnam News Agency. The oil spill off Singapore has spread to beaches in southern Malaysia. Photo courtesy of Vietnam News Agency. Ling Tian Soon, an official from southern Joho state, said around 25 people were involved in the clean-up of two beaches spanning 1km. Marine life or fishermen activities have not been affected, he said. Singapore's Maritime and Port Authority said the incident resulted from an accident at Pasir Panjang terminal between a Netherlands-flagged dredger and a stationary Singapore-flagged bunker vessel. Ling added that Malaysia's maritime officials were monitoring to see if the oil spill spreads to other parts of the coast.

Singapore seeks compensation for oil spill - Port Technology International The Maritime and Port Authority of Singapore (MPA) is seeking compensation from the shipowner of the vessel involved in last week’s oil spill. According to Reuters, the MPA told local media that the shipowner of the Singapore-flagged Marine Honour, which was struck by the Netherlands-flagged dredger Vox Maxima, is liable for the costs of containing and cleaning the oil spill and repairing infrastructural damage.The MPA announced on 14 June that oil had spilt into the water from the damaged cargo tank of the bunker vessel, adding that the affected tank had been isolated and the spill contained.The dredger Vox Maxima reportedly lost engine and steering control before colliding with the Marine Honour at the terminal, causing the rupture of an oil cargo tank and thus the subsequent spillage of oil into the sea.The oil spread to nearby beaches and parks around Singapore alongside the island of Sentosa, effectively leading to the closure of beaches at Tanjong, Palawan, and Siloso for cleaning, with swimming and sea activities prohibited.An intense clean-up effort followed, involving the deployment of 3,400 metres of booms and oil recovery operations at sea. These efforts relied on predictive modelling of tidal and wind conditions, alongside drone and satellite imagery, reported Reuters. Transport Minister Chee Hong Tat reported that the port authority quickly ensured there were no further leaks from the vessel and sprayed dispersant to treat the spilt oil after the accident, according to Reuters. He further added that the incident was not a result of port congestion. Last month, the port authority completed propulsion and manoeuvrability trials of an ammonia-powered vessel at the Port of Singapore

Pengerang oil spill cleanup to complete on Saturday - Selangor Journal— Cleaning work of the oil spill in the waters of Pengerang, Johor, which started yesterday morning is scheduled to be completed on Saturday (June 29), said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad. Phase One of the cleaning work, involving collecting oily waste by an appointed contractor, had reached 95 per cent, while Phase Two, involving spraying rocky areas and cleaning pebblestones, was 20 per cent completed. “Other cleaning works such as the collection of tarballs on the surface of the beach and the containment of oily water using absorbent booms to prevent it from flowing towards the sea are also being actively carried out. “It involves the Sungai Rengit beach area, which is behind SK Sungai Rengit and the Sungai Rengit Fisherman’s Jetty,” he told the press after opening a carnival at Taman Tasik Titiwangsa today. Nazmi said the oil slick was also detected in the waters of Pulau Cik Kamat, and cleaning will be carried out after the situation in the area is assessed. As of today, the status of other locations, including the rocky area behind the Sungai Rengit Police Station, has not been cleared, while monitoring continues at the Teluk Ramunia Beach near the mosque area. “The Malaysian Maritime Enforcement Agency has also mobilised its assets to monitor waters of Pengerang up to the Abu Bakar Maritime Base, and so far, no oil slicks have been detected in the area involved,” he said. According to media reports, the Netherlands-flagged dredger Vox Maxima struck a Singaporean fuel supply ship, Marine Honor, on Friday (June 21). The impact damaged the cargo tank, causing about 400 tonnes of oil to leak into the waters off the Singapore coast and spread into Malaysian waters. Meanwhile, when asked about the discovery of 40 bags suspected of containing scheduled waste in an open area near Kulim, Kedah yesterday, Nazmi said the Department of Environment is still investigating the matter. “The ministry has also suggested to the state government to install closed-circuit television cameras in hotspots dumping areas as well as strategic locations to deal with the problem,” he said.

Coast Guard probes oil spill in Oriental Mindoro The Coast Guard is investigating an oil spill spotted along the shores of Barangays Buhay na Tubig and Bacawan in Pola, Oriental Mindoro. Residents also noticed a strong, unpleasant odor coming from the sea. The Coast Guard Oriental Mindoro conducted cleanup operations in the areas affected and collected at least three sacks of oil-contaminated debris. The Marine Environmental Protection of the Philippine Coast Guard has taken samples for laboratory testing. Officials suspect that a ship or boat might have discharged or accidentally spilled oil while passing through the area. The Coast Guard clarified that the spill did not originate from the sunken oil tanker, MT Princess Empress, as all its oil had already been removed.

Dangote Claims Oil Majors Are Trying to Sabotage Africa's Biggest Refinery -The international oil companies operating in Nigeria are seeking to undermine the operations and profit margins of Africa’s largest refinery, Dangote, by asking for high premiums for domestically produced crude, a senior official at the Dangote refinery has told local media.The Dangote Refinery in Nigeria, Africa’s biggest, began the production of fuels in January 2024, marking the start-up of the refinery that has seen years of delays. Now a senior official accuses the multinational companies operating in the country of “plotting” to bankrupt the refinery.“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude,” Devakumar Edwin, Vice President, Oil and Gas at Dangote Industries Limited (DIL), told Nigerian media this weekend.“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available,” Nigeria’s newspapers quoted Edwin as saying.The refinery had to pay $6 per barrel above the market price at one point, the official added.“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products,” Edwin was also quoted as saying.The Dangote refinery, which has a processing capacity of 650,000 barrels per day (bpd), is expected to meet 100% of Nigeria’s demand for all refined petroleum products and have a surplus of each of the products for export.

Oil prices up as focus remains on Middle East conflict -- Oil prices slightly increased on Monday over the supply worries due to the growing tensions in the Middle East. International benchmark Brent crude traded at $84.53 per barrel at 11.18 a.m. local time (0818 GMT), a rise of 0.24% from the closing price of $84.33 per barrel in the previous trading session. The American benchmark West Texas Intermediate (WTI) traded at $80.90 per barrel at the same time, a 0.21% increase from the previous session that closed at $80.73 per barrel. The escalating geopolitical tensions continue to put global energy supply routes at risk and drive up oil prices. In recent weeks, the Israeli-Lebanese border has seen significant escalation, prompting repeated calls from the US to contain the situation. According to sources cited by Channel 12, Israel has alerted the US it could use weapons never deployed before in the event of an all-out war with Hezbollah in Lebanon. "Tel Aviv conveyed a message to the White House stating its intent to employ unspecified new weapons systems to swiftly deal with any potential conflict with Hezbollah and avoid a prolonged war," the Israeli television channel said. Tensions have soared along Lebanon's border with Israel amid cross-border attacks between the Lebanese Hezbollah group and Israeli forces as Tel Aviv presses ahead with its deadly offensive on the Gaza Strip, which has killed more than 37,500 Palestinians since last October. Yemen's Houthi group has also continued targeting cargo ships in the Red Sea, owned or operated by Israeli companies or transporting goods to and from Israel in solidarity with the Gaza Strip. The Red Sea is one of the world's most frequently used sea routes for oil and fuel shipments. However, ongoing uncertainties over the timing of the US Federal Reserve's (Fed) interest rate cut continue to raise demand concerns, limiting upward price pressures. The Fed announced its monetary policy decisions and economic projections on June 12. The bank did not change the policy rate in line with expectations and kept it constant at 5.25–5.50%, the highest level in 23 years. Experts believe that keeping interest rates at high levels for a sustained period may pose risks to the oil demand outlook.

The Market Remained Supported by Tensions in the Middle East and An Easing of the U.S. Dollar - The crude market traded higher on Monday as the market remained supported by tensions in the Middle East and an easing of the U.S. dollar, which had rallied to a seven week high on Friday. The market opened lower in overnight trading and posted a low of $80.23 as the market continued to trade lower following Friday’s late selling. However, the oil market bounced off its low and rallied higher amid the continuing geopolitical risks in the Middle East and an increase in Ukrainian drone attacks on Russian refineries. The crude market traded to a high of $81.78 ahead of the close, still holding resistance at its previous high of $81.79. The August WTI contract settled up 90 cents at $81.63 and the August Brent contract settled up 77 cents at $86.01. The product markets ended the session mixed, with the heating oil market settling up 2.99 cents at $2.5214 and the RB market settling down 22 points at $2.5115. European foreign policy chief, Josep Borrell, said that the Middle East was close to seeing the conflict expanding into Lebanon just days after Iran-backed Hezbollah threatened EU member Cyprus. He said “The risk of this war affecting the south of Lebanon and spilling over is every day bigger.” Iran-backed Hezbollah began attacking Israel shortly after Hamas’ Oct. 7 assault sparked the war in Gaza. Hezbollah has said it would not stop until there is a ceasefire in Gaza. Last week, Hezbollah chief Sayyed Hassan Nasrallah said that nowhere in Israel would be safe if a full-fledged war breaks out between the two foes, and also threatened EU member Cyprus for the first time and other parts of the Mediterranean. Ukraine’s President Volodymyr Zelenskiy, said that Ukraine has hit more than 30 Russian oil refineries, terminals and oil depots. Ukraine has stepped up attacks on Russian oil facilities this year, seeking to disrupt oil supplies to the Russian army and cut Russia’s revenues to finance its war against Ukraine. Chevron said it expects upstream turnarounds and downtime to impact 65,000 bpd of oil equivalent in production in the second quarter mostly driven by Tengizchevroil in Kazakhstan and several Gulf of Mexico assets. It said it expects downstream turnarounds to impact earnings by $300 million to $400 million mainly due to maintenance at the El Segundo and Richmond refineries in California. IIR Energy said U.S. oil refiners are expected to shut in about 85,000 bpd of capacity in the week ending June 28th, increasing available refining capacity by 68,000 bpd. Offline capacity is expected to fall to 79,000 bpd in the week ending July 5th. The United Kingdom Maritime Trade Operations said a merchant vessel in the Arabian Sea reported an explosion in close proximity to it on Monday. It said the crew was reported safe and the vessel was proceeding to its next port of call.

Oil prices rise on fuel demand expectations, easing US dollar (Reuters) - Oil prices rose about 1% on Monday, spurred by the prospect of strong summer driving demand and as tensions in the Middle East and drone attacks on Russian refineries led to concerns about supply.An easing U.S. dollar added to the crude price strength.Brent futures for August delivery settled at $86.01 a barrel, gaining 77 cents, or 0.9%. U.S. crude settled at $81.63 a barrel, gaining 90 cents, or 1.1%Both benchmarks advanced about 3% last week for their second consecutive weekly upswing."The chief underlying reason behind the price strength ... is the growing confidence that global oil inventories will inevitably plunge during the summer in the northern hemisphere," After last week's big decline in U.S. crude and gasoline inventories, , traders are waiting to see whether the report due on Wednesday will provide further evidence of sustained strong gasoline demand, ."It has to sustain for this positive narrative to continue in the market," said Yawger, adding that the growing electric vehicle market is eroding gasoline's share of the transportation market.The gasoline-led rally could taper off in the coming weeks as inflation eats into summer travel spending, . "We still expect a significant falloff in demand next month especially with the recent uplift in retail pricing further curtailing vacation plans,".Geopolitical risks in the Middle East and an increase in Ukrainian drone attacks on Russian refineries also underpinned oil prices.EU countries on Monday agreed on a new package of sanctions against Russia over its war in Ukraine, including a ban on reloading Russian liquefied natural gas (LNG) in the EU for further shipment to third countries.An easing U.S. currency made dollar-denominated commodities such as oil more attractive to buyers using other currencies.The dollar weakened from a near eight-week high as traders went back on alert for intervention to support the yen after the Japanese currency danced with the 160 per dollar level.The dollar index, measuring performance against six major currencies, had climbed on Friday and was up slightly on Monday after data showed U.S. business activity at a 26-month high in June.In Ecuador, state oil company Petroecuador has declared force majeure on deliveries of Napo heavy crude for export after the shutdown of a pipeline and oil wells owing to heavy rain, sources said on Friday.

Oil prices fall about 1% as traders watch Israel-Lebanon tensions, summer demand - Crude oil futures fell about 1% Tuesday as the recent rally took a breather, with traders watching for summer fuel demand and tensions on the Israel-Lebanon border.U.S. crude oil and global benchmark Brent are ahead by 4.9% and 4.1%, respectively, for the month as prices have bounced back from May doldrums on a more optimistic outlook for summer fuel demand.But the oil market slipped Tuesday as prices failed to maintain upside momentum, with funds liquidating recently acquired long positions, Prices fell as consumer confidence slightly weakened in June, and the Richmond Federal Reserve's manufacturing index fell to -10 this month, down from zero in May. Here are Tuesday's closing energy prices:

• West Texas Intermediate August contract: $80.83 per barrel, down 80 cents, or 0.98%. Year to date, U.S. oil has gained 12.8%
• Brent August contract: $85.01 per barrel, down $1, or 1.16%. Year to date, the global benchmark is ahead by 10.3%.
• RBOB Gasoline July contract: $2.51 per gallon, little changed. Year to date, gasoline is up 19.6%.
• Natural Gas July contract: $2.75 per thousand cubic feet, down 1.96%. Year to date, gas is up 9.6%.

Though the rally has taken a breather, geopolitical tensions should prevent another rout in oil prices, as tensions between Israel and Lebanon raise the risk of a disruption to crude supplies.Israel and the Iran-backed militia Hezbollah have threatened war in recent days after trading fire across the Lebanon border for months. Air Force General Charles Q. Brown, the top U.S. military officer, warned Sunday that OPEC member Iran "would be more inclined to support Hezbollah" if Israel launched an offensive in Lebanon."A renewed increase in our energy supply risk indicator can support price action in the near term, but ultimately we still argue the upside is likely capped by increasing global supply and potential OPEC+ increases, which puts 2025 balances in question," Oil prices hit annual highs in April as Israel and Iran teetered on the brink of war, stoking fears that a wider conflict could engulf the Middle East and disrupt crude supplies. Prices subsequently pulled back as tensions eased."Oil markets have so far been immune to the fallout of the Gaza invasion," "However, at a time when there is an expectation of higher-to-be numbers in oil prices, such a sweeping under the carpet of the wider considerations of the conflict is starting to run out of space,".Brent prices above $85 per barrel could be the start of more upward pressure on prices as geopolitical risk and bullish fundamentals converge, said Claudio Galimberti, director of global market analysis at Rystad Energy.U.S. crude oil, gasoline and distillate stockpiles all fell during the week ending June 14 in a sign of strengthening demand. Analysts expect there was an even bigger crude oil draw of 3 million barrels last week, according to a Reuters poll. The Energy Information Administration releases official data Wednesday. JPMorgan forecasts Brent will hit $90 per barrel by August or September.

The Oil Market on Tuesday Ended the Session Lower Ahead of the Release of the Weekly Petroleum Stocks Reports -- The oil market on Tuesday ended the session lower ahead of the release of the weekly petroleum stocks reports later in the afternoon and on Wednesday morning. The market’s recent gains, which were attributed to the geopolitical tension in the Middle East, were also limited by weak U.S. consumer confidence data increasing concerns about the economic outlook. The crude market opened slightly higher and posted a high of $81.90 before it started to erase some of its previous gains in overnight trading. The market, however, erased its gains and sold off to a low of $80.76 ahead of the close. The August WTI contract settled down 80 cents at $80.83 and continued to sell off, posting a low of $80.69 in the post settlement period. The August Brent contract settled down $1.00 at $85.01. The product markets ended the session in mixed territory, with the heating oil market settling down 1.2 cents at $2.5094 and the RB market settling up 32 points at $2.5147. Colonial Pipeline Co is allocating space for Cycle 38 shipments on Line 20, which carries distillates from Atlanta, Georgia to Nashville, Tennessee. Iran’s oil minister claimed that as a result of investments of more than $34 billion over the past three years in 155 energy projects, Iran’s crude oil production has grown by more than 70% and reached 3.6 million b/d. Nigerian oil and gas producer Aiteo Eastern Exploration reported earlier this week it has resumed production at its OML 29 license, ending a seven day shutdown following the discovery of a leak at the Nembe Creek facility back on June 17th. Some 50,000 b/d of production had been impacted. Mexican regulators reported that crude oil production by Pemex remained below 1.5 million b/d for the second month in a row in May, while gas production was at its lowest level since 2020. Crude oil production in May was reported at 1.48 million b/d, almost 100,000 b/d below May 2023 levels. Meanwhile gross natural gas production was 4.3 bcf/d, with approximately 1 bcf/d of production coming from just two fields. Reuters reported Tuesday that according to its calculations Russia’s oil and gas revenues in June are set to rise by more than 50% year on year to $9.4 billion, after a decrease in subsidies to refineries as well as Russia’s ability to limit the impact of sanctions. U.S. consumer confidence fell slightly in June amid worries about the economic outlook. The Conference Board said that its consumer confidence index fell to 100.4 in June from a downwardly revised 101.3 in May. Consumers’ 12-month inflation expectations fell to 5.3% from 5.4% in May. The Federal Reserve Bank of Richmond’s monthly manufacturing index in June fell to -10 from 0 in May.

WTI Drops On Large Gasoline Build, Oil Demand Slump -- Crude prices have roller-coastered over the last 12 hours or so as last night's API (large gasoline build) sparked selling, then buying waves hit during the late-Asia/early-Europe session, then selling returned with a vengance during the early US session as Kanda's comments sparked dollar strength and sent commodities lower. The dismal home sales print sparked dollar weakness and sent oil prices back up into the green ahead of the official inventory data. API

• Crude +914k (-200k exp)
• Cushing -350k
• Gasoline +3.84mm (-900k exp) - biggest build since Jan 2024
• Distillates -1.18mm

DOE

• Crude +3.59mm (-200k exp, whis +800k)
• Cushing -226k
• Gasoline +2.65mm - biggest build since Jan 2024
• Distillates -377k

Confirming API's report, the official data shows a considerable crude inventory build and the largest rise in gasoline stocks since January...Graphics Source: BloombergThe Biden admin added a shockingly large 1.285mm barrels to the SPR last week - the largest since June 2020. Overall this was the biggest weekly increase in stocks in two months...

Oil settles slightly up as global supply risks offset US demand concerns (Reuters) - Oil prices settled slightly higher on Wednesday despite a surprise jump in U.S. gasoline supplies, as investors worried that a potential expansion of the Gaza war could disrupt crude supplies from the Middle East.Brent crude futures rose 24 cents, or 0.3%, to settle at $85.25 per barrel. U.S. West Texas Intermediate crude futures settled 7 cents higher at $80.90 a barrel.Cross-border strains between Israel and Lebanon's Hezbollah have been escalating in recent weeks, stoking fears of an all-out Israel-Hezbollah war that could draw in other regional powers, including major oil producer Iran."The geopolitical risk premium has been coming back to the market as a war between Israel and Lebanon is likely to see direct involvement of Iran, that would be a concern," Turkish President Tayyip Erdogan said his country stood in solidarity with Lebanon and called on regional countries' support.Houthi attacks on shipping in the Red Sea have supported oil prices. The group said it targeted a ship in Israel's Haifa port with a number of drones in a joint military operation with the Islamic Resistance in Iraq.Early in the session, oil prices fell after the U.S. Energy Information Administration (EIA) reported a 3.6 million barrel jump in the country's crude oil stocks last week, surprising analysts polled by Reuters who had expected a drawdown.U.S. stockpiles are rising while inventories elsewhere are declining, UBS analyst Giovanni Staunovo noted. “I would call the oil market a tale of different stories," Staunovo said. "We saw oil inventory draws in Japan and Europe last week. So it seems the market is tightening, just not yet in the U.S."UBS expects oil prices to rise in coming weeks.Oil traders have worried about weak U.S. gasoline consumption during the country's peak summer driving season.U.S. gasoline use represents around 10% of total world oil consumption, and gasoline demand in the country last week was down 3.6% from a year ago to around 8.9 million barrels a day. Stocks of the fuel rose unexpectedly even as refiners cut back output."These statistics are certainly going to disappoint the gasoline bulls," Lipow said. "Absent a hurricane, we have adequate supplies for the summer driving season with July 4th right around the corner."

Oil eases as stock build raises spectre of slower US demand - Oil prices dipped on Thursday as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world's top oil consumer, though declines were capped by worries a potential expansion of the Gaza war may disrupt Middle East supplies. Brent crude oil futures fell 28 cents, or 0.3%, to $84.97 a barrel by 0310 GMT. U.S. West Texas Intermediate crude futures dropped 31 cents, or 0.4%, to $80.59 per barrel. Both benchmarks had settled slightly higher on Wednesday. "An expected increase in U.S. inventories of crude oil and gasoline are weighing on the market due to fears of weakening demand," "But the market is in a tug-of-war situation, underpinned by the prospect that an escalation in the battle between Israel and Hezbollah may hinder supply," The U.S. Energy Information Administration (EIA) reported a 3.6 million barrel jump in the country's crude oil stocks last week, surprising analysts polled by Reuters who had expected a 2.9 million-barrel drawdown. U.S. gasoline stocks also rose by 2.7 million barrels, compared with analysts' expectations for a 1 million-barrel draw. Product supplied for motor gasoline, a proxy for demand, fell by about 417,000 barrels per day last week, to 8.97 million bpd. The four-week average for demand is about 2% under last year's levels. "We believe the market's upside is limited by weak U.S. gasoline demand despite the peak summer driving season kicking in," Gasoline margins, reflected by the crack spread between gasoline to Brent and WTI, have trended lower after peaking in March at the $30s-per-barrel range, Jamil said. "This weakness is further compounded by sluggish diesel demand both in Europe and the U.S., with margins falling since last August," he added. Meanwhile, worries of the Gaza war spreading to Lebanon limited price declines. In the Middle East, cross-border strains between Israel and Lebanon's Hezbollah have been escalating in recent weeks, stoking fears of an all-out Israel-Hezbollah war that could draw in other regional powers, including major oil producer Iran. Turkish President Tayyip Erdogan said his country stood in solidarity with Lebanon and called on regional countries' support. Israeli forces pounded several areas across Gaza on Wednesday, and residents reported fierce fighting overnight in Rafah in the south of the Palestinian enclave.

The Market Remained Supported by Concerns Over Geopolitical Tension in the Middle East - The oil market traded higher on Thursday as the market remained supported by concerns over the geopolitical tension in the Middle East. However, its gains were limited by the unexpected builds reported in crude and gasoline stocks in the EIA report on Wednesday. The market traded mostly sideways in overnight trading, posting a low of $80.51, before it breached its previous highs and rallied to a high of $82.04 amid some supportive economic data and comments made by a Fed official stating that inflation appeared to be narrowing, which would allow the Fed to cut interest rates later this year. The market later erased some of its gains and settled a sideways trading range during the remainder of the session. The August WTI contract settled up 84 cents at $81.74 and the August Brent contract settled up $1.14 at $86.39. The product markets ended the session higher, with the heating oil market settling up 1.01 cents at $2.5476 and the RB market settling up 10 points $2.5456. According to a survey by The Wall Street Journal, oil prices are forecast to remain around current levels in the second half and progressively soften early next year. Brent crude is estimated at $86.32 and $85.92/barrel in the third and fourth quarters of 2024, respectively. In the first two quarters of next year, Brent crude is expected to fall to $84.50/barrel and $82.46/barrel, respectively. WTI crude is seen at $81.81/barrel and $81.76/barrel in the third and fourth quarter of this year, respectively and at $80.33 and $78.25/barrel in the first and second quarters of 2025. The U.S. Senate budget committee launched an investigation of 18 domestic oil producers, including Exxon Mobil Corp, BP Plc and Chevron, about any efforts to illegally coordinate with OPEC on oil output and crude oil prices. This followed allegations that the former head of Pioneer Natural Resources Co colluded with the cartel. Budget Committee Chairman Sheldon Whitehouse has requested documents from the oil companies on grounds that evidence suggests the oil and gas industry may be trying to depress production. A spokesman for Yemen’s Houthis, Yahya Saree, said the military group targeted a vessel in the Red Sea with a drone boat and a number of missiles and drones. The U.S. Supreme Court blocked an Environmental Protection Agency regulation aimed at reducing ozone emissions that may increase air pollution in neighboring states. The 5-4 decision granted requests by Ohio, Indiana and West Virginia as well as U.S. Steel Corp pipeline operator Kinder Morgan and industry groups to halt enforcement of the EPA’s “Good Neighbor” plan restricting ozone pollution from upwind states, while they contest the rule’s legality in a lower court. Early Market Call – as of 8:25 AM EDT

Oil settles $1 up, war risk premium outweighs ample US stocks (Reuters) - Oil futures settled higher on Thursday on worries about global crude supply disruptions as geopolitical pressure in the Middle East and Europe mounted, while a surprise increase in U.S. crude and gasoline inventories gave prices a ceiling.Brent crude oil futures settled up $1.14, or 1.34%, to $86.39 a barrel. U.S. West Texas Intermediate crude futures settled up by 84 cents, or 1.04%, at $81.74.WTI futures also rose by more than $1 a barrel earlier in the session.Cross-border strains between Israel and Lebanon's Hezbollah have been escalating, fanning fears that a widening war could draw in other countries including major oil producer Iran.The French foreign ministry said France is extremely concerned about the situation in Lebanon and called for restraint. Any contagion could have a big impact on crude supplies from the Middle East, said Panmure Gordon analyst Ashley Kelty.Turkish President Tayyip Erdogan said his country stood in solidarity with Lebanon and called on the region's countries to show support. Israel stormed a neighbourhood in Gaza City, telling Palestinians they must head south. Israeli forces also bombed the southern city of Rafah in what it called final stages of an operation against Hamas militants. Yemen's Houthis targeted "vessel Seajoy" in the Red Sea with a drone boat and a number of missiles and drones, the Iran-aligned group's military spokesman Yahya Saree said. The Houthi militia, which controls the most populous parts of Yemen, has staged attacks on ships in the waters off the country for months in solidarity with Palestinians fighting Israel in Gaza. In Europe, Russia is considering a possible downgrade of relations with the West due to deeper involvement of the U.S. and its allies in the Ukraine war, but no decision had yet been made, the Kremlin said.Downgrading relations - or even breaking them off - would illustrate the gravity of the confrontation between Russia and the West over Ukraine following escalating tensions surrounding the war in recent months.The U.S. Energy Information Administration (EIA) reported a 3.6 million-barrel weekly jump in crude oil stocks. Analysts polled by Reuters had expected a drawdown of 2.9 million barrels."Yesterday’s EIA report is still an overhang for the market today as it was a surprise in terms of the builds we saw, and the refinery run rates," U.S. gasoline stocks rose by 2.7 million barrels. Analysts had expected a 1 million-barrel draw."We are right now at the peak of the summer driving season, approaching July 4 weekend, so for markets to be moving sideways now, then we may well even see a dip after the holiday weekend,” .In Europe, independently held gasoline stocks in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 9% in the week to Thursday, data from Dutch consultancy Insights Global showed, suggesting limited scope for transatlantic U.S. gasoline demand. Meanwhile, comments from Atlanta Fed President Raphael Bostic in a policy essay released on Thursday reiterated expectations of an interest rate cut in the fourth quarter of this year, in line with investors' expectations of cuts starting in September. "There is certainly nothing we can hang our hats on in terms of the Fed looking to juice the markets again,"

Oil price news: Oil hits 2-month high as Mideast tensions rattle market - Oil touched the highest level in almost two months, with the market gripped by turmoil in the Middle East and political uncertainty in some of the world’s biggest economies. Brent crude and West Texas intermediate edged up, hitting their highest intraday levels since April 30. Brent traded above US$87 a barrel, while the U.S. benchmark rose toward $83. Israel is lurching closer to a full-blown war with Hezbollah in Lebanon, while its fight against Hamas in Gaza continues. Meanwhile, Houthi rebels in Yemen have stepped up attacks on commercial shipping in the region. Iran, which backs all three militant groups, is holding a snap election Friday following the death of President Ebrahim Raisi in a helicopter crash last month. “The idea of a tightening market remains very much the remit of futures at present, and is where much of the anxiety of what might just happen in the Middle East is represented,” said Tamas Varga, an analyst at brokerage PVM, in a research note. Looming votes elsewhere are also grabbing traders’ attention. In France, voters are set to go the polls this weekend for the first round of a snap election that has roiled markets. And in the U.S., a disastrous debate for President Joe Biden on Thursday has led some Democrats to question whether they should quickly replace him with another candidate to face Republican Donald Trump in November’s election. Separately, traders are awaiting U.S. personal consumption data due Friday for clues on the path forward for U.S. monetary policy. U.S. Federal Reserve Bank of Atlanta President Raphael Bostic said he continues to expect one interest rate cut this year in the fourth quarter as inflation shows progress. Crude has traded in a narrow range of about $2 this week as bullish momentum counteracts weak near-term fundamentals for the economy. U.S. Gulf Coast inventories surged last week, while overall stockpiles are the highest since April. There are also signs of lackluster fuel consumption. Persistent concerns about China’s economic outlook remain an issue for the market. The nation’s refiners have been forced to cut operating rates and prolong maintenance due to a demand slowdown in the world’s biggest crude importer. Still, prompt spreads are signaling some strength, with the measure for Brent rallying to over $1 a barrel in a bullish backwardation structure ahead of the contract expiry. WTI for August delivery was 1% higher at $82.57 a barrel at 10:55 a.m. in London. Brent for August settlement, which expires Friday, rose 0.9% to $87.13 a barrel. The more-active September contract climbed 0.9% to $86.03 a barrel.

Oil eases on weak US fuel demand, profit taking – CNA -- Oil prices fell on Friday as investors weighed weak U.S. fuel demand and took some money off the table at quarter-end, while key inflation data for May boosted the chances the Federal Reserve will start to cut interest rates this year. Brent crude futures for August settlement, which expired on Friday, settled up 2 cents at $86.41 a barrel. The more liquid September contract fell 0.3 per cent to $85 a barrel.U.S. West Texas Intermediate (WTI) crude futures settled 20 cents lower, or 0.24 per cent, to $81.54.For the week, Brent rose 0.02 per cent while WTI futures posted a 0.2 per cent loss. Both benchmarks gained around 6 per cent for the month.While U.S. oil production and demand rose to a four-month high in April, demand for gasoline fell to 8.83 million barrels per day, its lowest since February, according to the Energy Information Administration's Petroleum Supply Monthly report published on Friday."The monthly report from the EIA suggested the gasoline demand was pretty poor," "Those numbers didn't really inspire more buying."Analysts said some traders took profits at the end of the second quarter after prices rallied earlier this month.The U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, was flat in May, lifting hopes for rate cuts in September.Still, the reaction in financial markets was minimal. For oil traders, the release passed unnoticed, Growing expectations of a Fed easing cycle have sparked a risk rally across stock markets. Traders are now pricing in a 64 per cent chance of a first rate cut in September, up from 50 per cent a month ago, according to the CME FedWatch tool.Easing interest rates could be a boon for oil because it could increase demand from consumers."Oil prices have been converging with our fair value estimates recently, revealing the underlying strength in fundamentals through a clearing in the fog of war," Barclays analyst Amarpreet Singh wrote in a client note. Barclays expects Brent crude to remain around $90 a barrel over the coming months.Oil prices might not change much in the second half of 2024, with concern over Chinese demand and the prospect of higher supply from key producers countering geopolitical risks, a Reuters poll indicated on Friday.Brent crude is expected to average $83.93 a barrel in 2024 with U.S. crude averaging $79.72, the poll found.The U.S. active oil rig count, an early indicator of future output, fell by six to 479 this week, the lowest level since December 2021, energy services firm Baker Hughes said.Money managers raised their net long U.S. crude futures and options positions in the week to June 25, the U.S. Commodity Futures Trading Commission (CFTC) said.

US Imposes New Sanctions Against Iran, Claiming ‘Nuclear Escalation’ - The US State Department announced today, as it threatened earlier this month, a new round of sanctions against Iran, claiming it was the result of “nuclear escalations.” Secretary of State Antony Blinken said that Iran announced expansions that had “no credible peaceful purpose.” The IAEA had earlier informed the US and others that Iran was installing additional centrifuge cascades. The cascades have been installed as an Iranian attempt to get the JCPOA parties to remedy the fact that the signatories of the JCPOA, notably, Germany, France, and Britain, have never honored the sanctions relief that is central to the deal.In trying to force the talks, Iran has increased uranium enrichment up to 60%, which still falls far short of the 90-95% generally recognized as weapons-grade. So far, the three European nations have just threatened Iran and accused them of not honoring the spirit of the deal. The US, of course, imposes new sanctions regularly although the US left the deal during the Trump administration years ago.Blinken continues to play up the false allegation of Iran seeking nuclear weapons and presented the sanctions as a US action to preclude that from happening. This, despite reports from the US Director of National Intelligence that Iran is not seeking nuclear weapons at all.The JCPOA was meant to offer Iran substantial sanction relief and a path to international normalization in return for implementing measures in its civilian nuclear program that went far beyond those any other nation has been subjected to. The US, however, blocked the sanctions relief from the beginning, and has continuously threatened Iran ever since.Iran’s civilian nuclear program is meant to provide fuel for its nuclear energy program and to produce nuclear isotopes for medical purposes. The nation has sought to be as self-reliant as possible because in the past the West has seized its nuclear assets. The JCPOA was also meant to guarantee Iran access to the international market for nuclear fuel.The new sanctions target three UAE-based companies which are accused of transporting Iranian oil. Since Iran’s economy is heavily reliant on oil exports, blocking such exports is a go-to action for the US when imposing harsh sanctions.

Shadow banking network for Iranian military hit with US sanctions -- The U.S. Treasury Department is imposing sanctions on a what it calls a shadow banking network for Iran’s military.The sprawling network expands to 50 people and firms in Hong Kong, the United Arab Emirates and the Marshall Islands, and is used by Iran’s Ministry of Defense and Armed Forces and Islamic Revolutionary Guard Corps, the department said.According to the Treasury Department’s announcement, the network has gained illicit access to international finance system, allowing it to “process the equivalent of billions of dollars since 2020.”The release said the individuals and organizations are involved in the sale of Iranian oil and petrochemicals, and use the money to purchase weapons, some of which are transferred to Russia for its war in Ukraine, and fund groups like Yemen’s Houthi rebels, which have caused a crisis in Red Sea shipping lanes amid the war in Gaza.Deputy Treasury Secretary Wally Adeyemo said in a statement that the U.S. is taking action against the shadow banking network like “hundreds of other targets” involved in Iran’s activity since President Biden took office.“We will continue to pursue those who seek to finance Iran’s destabilizing terrorist activities,” Adeyemo said. “We continue to work with allies and partners, as well as the global financial industry, to increase vigilance against the movement of funds supporting terrorism.”The Treasury said Iran’s defense ministry is responsible for the development, production, funding for all its defense operations, including the manufacturing of weapons.

US assault ship sent to eastern Mediterranean amid Israel-Hezbollah tensions - The Pentagon has sent the Navy amphibious assault ship USS Wasp with Marines aboard to the eastern Mediterranean amid rising tensions between Hezbollah and Israel along Lebanon’s border, U.S. European Command confirmed Friday. The Wasp and the 24th Marine Expeditionary Unit — which includes about 2,200 personnel — entered the Mediterranean Sea on Wednesday “on a scheduled deployment to the US Naval Forces Europe-Africa area of operations,” the command said in a Thursday statement. The ship is intended to serve as a deterrent in the region and keep the Israel- Hamas war from becoming a broader regional conflict, EUCOM added. Asked Friday about the ship’s movement, Pentagon deputy press secretary Sabrina Singh stressed that the deployment was scheduled and that the US was not preparing any noncombat evacuation of American citizens out of Lebanon. “The purpose is not to conduct a type of … military assisted departure,” she told reporters. “It is there to ensure regional stability and deter aggression. It has many other capabilities — one being, if there was a need for any type of departure, it can be there to assist in that.” The Wasp will be joined in the eastern Mediterranean by the USS Oak Hill, which is already in the waterway, and the USS New York, which is currently operating in the Atlantic Ocean. The three ships make up the Wasp’s Amphibious Ready Group, Singh said. Amphibious Ready Groups and Marines are trained for a wide variety of missions that include the evacuation of U.S. citizens from war zones. After trading fire across the Lebanese-Israeli border for nearly nine months, fears are growing of a full-blown conflict. The animosity stems from Hamas’s attack in Israel on Oct. 7, which set off a brutal Israeli air and ground campaign in the Gaza Strip to defeat Hamas. Both Israel and Hezbollah have recently ratcheted up the rhetoric, with an escalation in the clashes and the Israeli government earlier this month announcing it had approved a plan for a military offensive against Hezbollah in Lebanon.

Rare LNG vessel sails through Red Sea amid Houthi attacks, data shows (Reuters) - The first liquefied natural gas (LNG) tanker since January is sailing through the Red Sea, just days after Yemen-based Houthi militants sank their second vessel in attacks begun last November. The vessel, Asya Energy, passed Yemen, travelling through the Bab al-Mandab Strait on Tuesday, shiptracking data from LSEG and Kpler showed, the same week that the second ship believed to have been hit by the militants sank. "Asya Energy is the first LNG tanker to sail through the Strait since January, when LNG voyages through the Red Sea were suspended amid repeated rocket attacks," said LSEG analyst Olumide Ajayi. Data showed the ship was carrying cargo, he added. Most LNG tankers have avoided the route after the Houthis' repeated drone and missile strikes in the Red Sea region. They call the attacks, since expanded to other busy waterways, acts of solidarity with Palestinians in Israel's war in Gaza. The Suez Canal links the Red Sea to the Mediterranean, creating the shortest shipping route between Europe and Asia, and is connected to the Gulf of Aden by the Bab al-Mandab Strait between Yemen and Djibouti. Palau-flagged Asya Energy is heading for Gibraltar, Kpler data shows. It previously called at the Sohar port in Oman, LSEG data showed. It was not immediately clear who had chartered the ship. Nur Global Shipping manages the ship, which is owned by Lule One Services, Equasis data showed, with both companies based in Dubai in the United Arab Emirates. Nur Global Shipping did not immediately respond to a request for comment when contacted on LinkedIn. Reuters could not find contact information for Lule One Services. The Asya Energy may soon become the first vessel to take the Red Sea passage since Jan. 12 after waiting around the coast of Oman since mid-January, said Ana Subasic, natural gas and LNG analyst at data and analytics firm Kpler. "At present, automatic identification system (AIS) signal feed to our platform shows the ballast vessel has set a course towards the Gibraltar checkpoint, although ... it is too early to be making an accurate prediction," she said. "We are keeping a very close eye on it and waiting for more ad-hoc raw signals or market sources to feed in." Leading industry groups have called for urgent action in the Red Sea to stop attacks on merchant shipping by the Houthis, whose first ship sunk was the British-owned Rubymar, on March 2, about two weeks after being struck by missiles.

Russia Confirms US Drone Strikes Against Eastern Syria - Russian officials have issued a statement confirming that multiple drone strikes overnight in eastern Syria, near the Iraqi border. The strikes killed multiple, and included an attack on a cargo truck traveling through the region, killing a member of Iraq’s Sayyed al-Shuhada Brigades.The reports are that MQ-1C multi-purpose drones were used. The United States has not commented on its apparent involvement in the attacks. The US-led Global Anti-Terrorism Coalition denied that any drone operations took place, despite multiple reports of the attacks.One of the strikes hit a group which the Syrian Observatory for Human Rights labeled “pro-Iran fighters,” though two of the slain were identified as Iraqis, and the third has not yet been identified.The attacks took place in and around al-Bukamal, a key city at the border crossing between Syria and Iraq. That main strike was at a military base, causing an explosion that was heard throughout the area.The second strike, which targeted a truck, killed a man that Sayyed al-Shuhada Brigades claimed was on a “reconnaissance patrol.” The brigades said that the United States was behind the attack. The US targets Shi’ite militias operating on the Syrian side of the border fairly regularly.

Israel Pounds South Lebanon Town With White Phosphorous - Amid growing fear of a full-scale invasion, Israeli warplanes carried out airstrikes against the southern Lebanon town of Khiam, using incendiary white phosphorous bombs, according to the National News Agency.Israel has not commented on the use of white phosphorous in a populated civilian area, nor is it likely to. The extent of any casualties is not known at the present.In recent weeks, the use of phosphorous, even including flinging fireballs into Lebanon with medieval trebuchets, has become a go-to Israeli strategy. At the time, Israel maintained setting fires was a security measure, clearing brush in the agricultural areas of southern Lebanon. Employing white phosphorous is not actually illegal, but the Convention on Certain Conventional Weapons severely regulates its use against civilian targets. Israel is a signatory to the convention, but in its frequent warfare with neighboring countries, does not appear to view the regulation as restricting its use of the substance. Beyond Khiam, Israel carried out strikes on Shebaa Farms in southern Lebanon, destroying at least three homes, and artillery strikes against Wazzani, Wadi Hamoul and Dhayra. Israeli jets also attacked what they described as “infrastructure” in southern Lebanon, in places including Kfar Chouba and Ayta ash-Shab. Israel’s military released video footage of the attacks.

Israeli Defense Minister Vows to Return Lebanon to ‘Stone Age’ - Defense Minister Yoav Gallant said Israel was prepared to send Lebanon back to the “Stone Age” with a massive bombing campaign. The White House desperately tries to avert a major war in the Middle East but is not making progress.After three days of meetings with top officials in Washington, Gallant told reporters that Israel preferred diplomacy but was also willing to utterly destroy Lebanon. “We do not want war, but we are preparing for every scenario. Hezbollah understands very well that we can inflict massive damage in Lebanon if a war is launched,” he said. Israel could bomb “Lebanon back to the Stone Age, but we don’t want to do it.”Gallant’s remarks come as daily tit-for-tat exchanges between Hezbollah and Israel risk escalating into a major war that could see the US, Iran, and other militias across the Middle East enter the fray. After announcing it had “operational plans” ready for an attack, Israel has started to move some military assets from near Gaza to its northern border.The White House has invested considerable effort into bringing the conflicts in Lebanon and Gaza to a close. However, rather than applying pressure on Tel Aviv to deescalate, Washington has tried to force Hezbollah and Hamas to accept Israeli demands. Last week, American officials told Beirut that Washington was unable to constrain Tel Aviv, in hopes the warning would convince Hezbollah to back down.President Joe Biden has significant leverage he could use to reign in Prime Minister Benjamin Netanyahu, but has largely refused to do so. While US officials claim their diplomatic efforts are not stalled, an increasing number of countries worry war will break out and are asking their citizens to leave Lebanon.Last week, Biden’s envoy Amos Hochstein visited Tel Aviv and Beirut, hoping to work on a deal to end the fighting. At the time, Hochstein pushed for a deal to end the war in Gaza, with the belief that it would lead to deeslcation on Israel’s northern border as well.Hezbollah maintains that it will end operations against Israel once the onslaught in Gaza comes to a close. Israel says it will not stop attacks on Lebanon until Hezbollah withdraws several miles from the border. Tel Aviv has decimated southern Lebanon, turning much of the area within three miles of the border into a “dead zone.”Now, the Biden administration’s tactics have flipped, with officials telling reporters that the deal to end the fighting across the Israel-Lebanon border must be separate from any Gaza ceasefire. “The logic of [Hezbollah leader Hassan] Nasrallah…is that it is all tied to Gaza, and until there is a cease-fire in Gaza the firing at Israel won’t stop,” the Wall Street Journalreported, citing a senior Biden official. “We frankly, completely reject this logic.”

IDF Kills Over 100 Palestinians in Weekend Strikes Across Gaza Strip - Tel Aviv carried out several attacks across the Gaza Strip this weekend. On Saturday, Gaza’s Health Ministry said more than 100 Palestinians were killed, along with 169 others wounded, in 24 hours amid various strikes. This was the deadliest day in the Strip since the June 8 massacre on the Nuseirat refugee camp, which slaughtered at least 274 Palestinians and wounded hundreds more. A UN facility was hit on Sunday, killing at least four people. On Friday, the IDF bombarded areas in southern Gaza near the International Committee of the Red Cross (ICRC) base at the al-Mawasi camp, a location Tel Aviv claimed was a safe zone for displaced Palestinians following its invasion of Rafah. Palestinian officials say two Israeli strikes killed a minimum of 25 people and wounded 50 others, the Associated Press reported. The victims were among hundreds of Palestinians sheltering in tents outside the ICRC office.Witnesses whose family members were slaughtered in the bombing told AP that the IDF fired a second volley that killed people making their way out of their tents. The ICRC denounced the mass killing at the camp and noted the warring parties were aware of the location of its humanitarian office, which was also struck during the attack.“Firing so dangerously close to humanitarian structures, of whose locations the parties to the conflict are aware and which are clearly marked with Red Cross emblems, puts the lives of civilians and Red Cross staff at risk,” an ICRC statement reads. It added, “The strike damaged the structure of the ICRC office, which is surrounded by hundreds of displaced civilians living in tents, including many of our Palestinian colleagues.” A day later, Al Jazeera documented further assaults on the al-Mawasi camp with Tareq Abu Azzoum, one of the outlet’s correspondents on the ground, reporting “Witnesses said Israeli tanks carried out a sudden and unexpected incursion in al-Mawasi, launching a number of artillery shells towards the evacuation centers and makeshift tents… The entire area of al-Mawasi is an evacuation center. It’s a very tiny strip of land where more than 100,000 Palestinians have been taking refuge. It’s the place where field hospitals have been established and it’s a center for humanitarian organizations.”In northern Gaza, on Saturday, at least 43 more Palestinians were murdered by Israeli attacks on the Shati refugee camp as well as Gaza City’s Tuffah neighborhood. Abu Azzoum said a residential area in the Shati refugee camp was targeted, another location where displaced Palestinians from the north were told they could seek refuge.“Rescuers with the help of civilians are trying to sift through the rubble to find survivors… The casualties arriving at Al-Aqsa hospital are surging,” he said. The head of Gaza’s Government Media Office told the outlet that, in Shati, 24 people were killed in 7 homes. Gaza’s Civil Defense reported recovering 19 bodies from Tuffah.On Sunday, eight Palestinians were killed and multiple others wounded in Gaza City near an aid center, sheltering hundreds of people, that was the primary headquarters of the UN agency for Palestinian refugees (UNRWA) in the besieged enclave. The air strike hit the compound’s main gate. This facility is used to distribute the miniscule amount of aid that reaches the Strip.According to UNRWA, since the start of the Gaza onslaught, 188 UN facilities have been targeted during 445 Israeli bombing raids killing more than 500 displaced Palestinians and wounding more than 1,500. Additionally, the IDF has murdered a record 193 UN workers.In an X post, the IDF took credit for the “precise strike” on the UNRWA aid center but blamed Hamas and Islamic Jihad, claiming it has become a base of their operations without providing evidence. Over the last several days, Israeli tanks have advanced further into the western and northern parts of Rafah, with the southern Gazan city’s residents saying the pace of Israeli operations is accelerating. Reuters reports the IDF is moving toward a complete capture of the city, where approximately 1.5 million Palestinians had been displaced throughout the first seven months of the genocidal war.More than a million people have been displaced from Rafah since the IDF seized the vital Rafah border crossing with Egypt on May 7 andsubsequently destroyed it, deliberately exacerbating the already catastrophic humanitarian crisis caused by the massive bombing campaign and its concomitant starvation siege. The director of Gaza’s Kamal Adwan Hospital said Saturday that four children starved to death this week. “We lost a child in the nursery department of the hospital during the past few hours. He is the fourth child to die in the hospital in the last week due to malnutrition,” he told a news conference.

20 killed, including police officers, as attacks launched on synagogues, Orthodox churches in southern Russia: Officials - The death toll from apparent coordinated terrorist attacks Sunday in southern Russia climbed to 20 on Monday, including 15 law enforcement officers, when militant terrorists wielding automatic weapons opened fire on synagogues and Orthodox churches in two cities miles apart in the Dagestan region, according to Russian officials. At least 46 people were injured in the two attacks, said Tatyana Belyaeva, the minister of health for the Republic of Dagestan. "Unfortunately, 20 people have died, including law enforcement officers and civilians," the report said, citing Belyaeva. Belyaeva said seven of the victims wounded in the attacks are in serious condition. The attacks unfolded Sunday afternoon in Derbent and Makhachkala, Caspian Sea coastal cities 75 miles apart. Around 6 p.m. local time, multiple gunmen unleashed a barrage of automatic weapons on a synagogue and a Russian Orthodox church in Derbent, according to Russian officials. A Volkswagen Polo is believed to have been used by the suspects in the Derbent attack and was seen by witnesses fleeing the scene, Russian officials said. A second attack occurred in Makhachkala, the capital of the Republic of Dagestan and the region's largest city, where terrorists targeted two more synagogues and two Russian Orthodox churches, Russian officials said.A Russian Orthodox priest was killed in the Makhachkala attacks and one of the Orthodox churches there was set ablaze, officials in the region said. Following the attacks on the houses of worship, a long gun battle erupted Sunday night between police and the suspects in Makhachkala, according to officials. At least six militants were killed in the fighting, Russian officials said. In Makhachkala, gunmen also opened fire on traffic police on one street and a police car was set on fire on another street, the TASS state-owned news agency reported. Sergei Melikov, a Russian leader of the Dagestan region, said in a statement that an operational headquarters had been established amid the attacks. "This evening in Derbent and Makhachkala, unknown persons made attempts to destabilize the social situation. Dagestan police officers stood in their way. According to preliminary information, there are victims among them," Melikov said in his statement.

Dagestan: Deadly attacks on churches and synagogue in southern Russia - Attacks on police posts, churches and a synagogue in Russia's North Caucasus republic of Dagestan have left 20 people dead, most of them police officers. Five gunmen were also killed. At least 46 people were taken to hospital with injuries after the Sunday evening attack. Three days of mourning have been declared in Dagestan, a predominantly Muslim republic in southern Russia which neighbours Chechnya. The apparently coordinated attacks targeted the cities of Derbent and Makhachkala on the Orthodox festival of Pentecost, with an Orthodox priest among those killed. He was later identified as Father Nikolai Kotelnikov, who had served in Derbent for more than 40 years. Russian media reported that around 18:00 (15:00 GMT) local time on Sunday, gunmen opened fire with automatic weapons on an Orthodox church and a synagogue in Derbent, which is home to an ancient Jewish community. Two gunmen were said to have then retreated into a nearby building, where police later said they were killed. The Kele-Numaz synagogue was severely damaged by fire. At around the same time, in the city of Makhachkala, two gunmen ran into an Orthodox church, tried to set fire to its main icon and then opened fire, Izvestia newspaper said. Videos on social media showed heavy shooting also taking place outside the church when gunmen dressed in black took aim at passing police cars with automatic weapons. A police post near the Makhachkala synagogue was also attacked. All exits from the city were closed for some time as the interior ministry stated that it was possible the militants' accomplices were preparing to escape the city. In the nearby village of Sergokala, a police officer was injured a few hours later when a police car was attacked. Later, the head of the republic of Dagestan, Sergei Melikov, said at least 15 police officers were killed in total. Dagestan has in the past been the scene of Islamist attacks. Although the assailants have not been officially identified, Russian media widely reported that among the gunmen were two sons of the head of the Sergokala district, Magomed Omarov, who was detained by police. However, in a video posted on Telegram, Mr Melikov implied Ukraine had been involved in the attack and that Dagestan was now directly involved in Russia's war in Ukraine. "The war is coming to our homes," Mr Melikov said. "We understand who is behind the organisation of the terrorist attacks and what goal they pursued," he said. On Monday, Mr Melikov said authorities were continuing to hunt for members of "sleeper cells" who had prepared the attacks, including with assistance from abroad. The head of the Russian State Duma's international affairs committee, Leonid Slutsky, put forward similar claims, saying that the Dagestan attacks and a missile strike which killed four in Russia-occupied Sevastopol on Sunday "could not be a coincidence". "These tragic events, I am sure, were orchestrated from abroad and are aimed at sowing panic and dividing the Russian people," Mr Slutsky said. But a leading Russian nationalist in occupied Ukraine, Dmitry Rogozin, warned that if every attack was blamed on "the machinations of Ukraine and Nato, this pink mist will lead us to big problems".

After attack in Dagestan, Russian officials minimize Islamic State claim - Russian lawmakers on Monday quickly blamed external forces, including Ukraine and NATO, for terrorist attacks on Sunday that killed at least 20 people in Dagestan, a predominantly Muslim region of Russia in the North Caucasus that has long been a hotbed of violence by Islamist militants.The gunfire attacks on Sunday — at a police post, a synagogue and Orthodox churches in the regional capital of Makhachkala and a second city, Derbent — killed at least 17 police officers and an Orthodox priest, authorities said.Pro-Kremlin media appeared to play down a claim from Al Azaim Media, a Russian-language channel associated with the Islamic State in Khorasan Province, which posted a statement late Sunday that the attack was carried out in response to calls for attacks on behalf of the Islamic State organization, or ISIS.Dagestan governor Sergei Melikov said that six suspects were killed during the operation. “Our recent call did not keep us waiting long,” the Al Azaim post said. “Our brothers from the Caucasus let us know that they are still strong. They showed what they are capable of.”Dagestan has experienced some unrest apparently tied to Israel’s war onHamas in Gaza.In October, hundreds of people stormed the Makhachkala airport in search of Jewish air passengers arriving on a flight from Tel Aviv.At the time, Russian Foreign Ministry officials claimed without evidence that Ukraine played “a direct and key role” in the October airport riot, calling it a “provocation” orchestrated from outside Russia.In March, gunmen with alleged ties to the Islamic State in Khorasan Province attacked the Crocus City Hall concert venue on the outskirts of Moscow, killing 145 people. At the time, Russian security officials also implicated Ukraine, and the Kremlin disputed Washington’s account that U.S. intelligence had shared a specific warning ahead of that attack.While Russia’s deadly war in Ukraine overshadows virtually all other events in Russia these days, some officials cautioned against seeing Kyiv’s hand in every incident.If every terrorist attack is “blamed on the intrigues of Ukraine and NATO, this pink fog will lead us to big problems,” Russian senator Dmitry Rogozin said.On Sunday, gunmen opened fire at several locations in the two cities, including the Church of Intercession of the Blessed Virgin Mary in Derbent, where a priest, Nikolai Kotelnikov, 66, was killed. They also attacked the city’s only synagogue, which was apparently empty at the time.But even before local and national law enforcement had gained control over the violence on Sunday, officials were already blaming the United States and Ukraine.A local lawmaker, Abdulkarim Gadzhiev, blamed Sunday’s attack on “the special services of Ukraine and NATO countries.” The pro-Kremlin head of the Liberal Democratic Party of Russia, Leonid Slutsky, who heads the foreign affairs committee in the State Duma, Russia’s lower house of parliament, blamed “outside forces” aiming to divide Russians and “sow panic.”

US missiles massacre beachgoers in Crimea, as US says Ukraine can strike “anywhere” in Russia Four people were killed and 144 were injured Sunday when a US-made long-range missile fired from Ukraine released cluster bomblets over a busy beach in Sevastopol, Crimea. Sevastopol Governor Mikhail Razvozhaev said 82 people were hospitalized and 27 children were injured. The Russian Defense Ministry claimed the targeting of the beachgoers was “deliberate,” saying: Responsibility for the deliberate missile attack on the civilians of Sevastopol is borne above all by Washington, which supplied these weapons to Ukraine, and by the Kyiv regime, from whose territory this strike was carried out. Russia’s Defense Ministry claimed that four US Army Tactical Missile System (ATACMS) missiles were shot down mid-air over Crimea, and that one released its bomblets, killing and wounding the beachgoers. It claimed that the coordinates for the ATACMS missiles were transmitted by US spy satellites. “Fallen cluster munitions hit the beach. There is a high density of people there, hence there are so many victims,” one Russian think tank analyst told Sputnik News. Sputnik reported: “At the moment when ATACMS were launched at Sevastopol, a US RQ-4 Global Hawk long-range surveillance drone was detected over the Black Sea.” Former Russian President Dmitry Medvedev called for Russia to retaliate, saying he hopes the “USA” will “burn in hell ... in earthly fire.” Medvedev declared: “The bastards from the USA supply missiles with cluster charges to [Ukrainian fascist Stepan] Bandera’s supporters and help guide them to the target.” Russian Orthodox Patriarch Kirill noted that the attack occurred on the Eastern Orthodox holiday of Trinity Sunday, declaring: “There was no justification whatsoever for a missile strike on civilians.” The assault on Sevastopol is the latest in a series of escalatory moves by the US intended to open the entirety of Russia up for strikes by US-provided weapons launched from Ukraine.

Between the Kremlin Cup and the General Staff Lip After Sunday’s Crimea and Dagestan Attacks By John Helmer, the longest continuously serving foreign correspondent in Russia. Originally published at Dances with Bears - The Ukrainian missile attacks on Sevastopol on Sunday afternoon – five US ATACMS missiles with cluster-bomb warheads – have drawn the most explicit reaction yet from Russia’s independent military bloggers, followed in four hours by an official communiqué from the Defense Ministry. The Kremlin communiqué which followed the Defense Ministry an hour later as Sunday evening came on, was not the same. A salvo of five ATACMS (Army Tactical Missile System) missiles was intercepted over the Uchkuevka beach at Sevastopol just after midday. In celebration of the 30-degree sunshine and the Orthodox Trinity holiday, there were a large number of people in the water and on the sand. The missiles were intercepted in the air, but shrapnel from the detonating warheads struck the beach. At latest count, four people were killed, two of them children; 151 people, including 27 children, were wounded; 82 were hospitalized, 13 of them in serious condition. Boris Rozhin, editor in chief of the Colonel Cassad military blog, was in Sevastopol and he reported from one of the hospitals to which the casualties were taken. His reports started at 12:23 local time and continued for almost twelve hours. Rozhin is one of the independent Russian war correspondents calling on the Kremlin to remove the limit which has been placed on attacking the US Air Force (USAF) drones and other NATO aircraft which operate over the Black Sea, in international waters off the Crimean shore, to provide flight course, evasion of Russian air defence units, and target coordinates to the American and Ukrainian ground crews operating the ATACMS batteries and executing the fire orders. Russian reports indicate the launch point for the Sevastopol beach attack was Nikolaev on the Ukrainian mainland. If so, the range of the missiles was at least 300 kilometres – longer than the US has publicly admitted. This also means that to be effective in defence against the repetition of such attacks against civilians, the proposed Russian demilitarized zone for the Ukraine, or “sanitary zone” as Putin has called it, must stretch from Nikolaev westward to Kiev.Rozhin has blamed the US explicitly in language repeated by other military bloggers. They mean to say, as they have been repeating in recent weeks, that the USAF drones used in the Sevastopol attacks should be destroyed.Just after 1600 Moscow time on Sunday, the Russian Defense Ministry issued its bulletin. The text, auto- translated into English, reads: [embedded] Note that that the Ministry, and the General Staff behind it, target the US as directly engaged in the operation of the missile attack. However, they start by calling the attack a “terrorist” strike, not an act of war. The wording of the statement also avoids identifying the USAF drones and other airborne electronic warfare systems offshore from Crimea. Instead, it refers to “satellite intelligence”. These are ideological references, not military ones. The distinction between Ukrainian acts of terrorism and war is Kremlin policy. By terming such attacks, including the Crocus City Hall attack in Moscow in March, terrorism but not war, the policy follows that the Special Military Operation is not in fact a war, and that Russian war tactics and strategy should be limited to retaliation, not to the defeat and demilitarization of the US and NATO on the Ukrainian battlefield. At 1715 the Kremlin followed with a communiqué headlined: “The President reached out to the Government’s social bloc and the military following the attack by the Ukrainian Armed Forces against Sevastopol.” The two-paragraph statement said: “Vladimir Putin has been in touch with senior officials from the Government’s social ministries and agencies and healthcare institutions on an ongoing basis considering the urgency of providing care to the attack victims. The President has also been interacting with the military. The Ukrainian Armed Forces targeted Sevastopol with an intentional missile strike in the afternoon of June 23, using five ATACMS US-made tactical missiles. The attack left at least 124 people wounded or injured, to a varying degree of severity, including 27 children.”

International Criminal Court issues arrest warrants for Russia’s top general, ex-defense minister - The International Criminal Court (ICC) issued arrest warrants Tuesday for former Russian Defense Minister Sergei Shoigu and Valery Gerasimov, Russia’s top general, accusing them of war crimes related to civilian attacks in Ukraine.Shoigu and Gerasimov are charged with “directing attacks at civilian objects” and “causing excessive incidental harm to civilians or damage to civilian objects,” along with the “crime against humanity of inhumane acts,” the Hague-based ICC said in a press release.Specifically, the ICC said there was sufficient evidence that both Gerasimov and Shoigu are responsible for directing attacks between Oct. 10, 2022, until at least March 9, 2023, on Ukrainian energy infrastructure, which has been a major strategy employed by Russian forces during the war.The targeting of civilians and civilian infrastructure is a war crime under the Geneva Conventions, and the ICC said for any potential lawful targets under the Russian operation, the likelihood of civilian harm outweighed the military objective of the attacks.The arrest warrants were issued by a three-judge panel at the ICC after the prosecution at the court filed evidence in the case.Shoigu was Russia’s defense minister for years before Russian President Vladimir Putinappointed him as the secretary of his Security Council last month. Gerasimov has been Russia’s chief of the general staff since 2012; he became the top commander overseeing the war in Ukraine in early 2023.The ICC last year also issued arrest warrants for Putin and his children’s rights commissioner, Maria Lvova-Belova, for the alleged deportation of Ukrainian children into Russia.An active warrant means any state that is party to the ICC is obligated to arrest the individual, which could restrict the travel of both Shoigu and Gerasimov. Russia is not party to the court.The U.S. has previously backed the ICC arrest warrant against Putin and is likely to do the same for Shoigu and Gerasimov. But the U.S. is not party to the ICC and criticized the court last month after the top prosecutor announced he was seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Israel’s defense minister, Yoav Gallant, along with top Hamas officials, for alleged war crimes related to the war in Gaza.

EU Approves Military Aid to Ukraine Drawn From Frozen Russian Assets - European Union foreign ministers have approved, for the first time, thetransfer of approximately €1.4 billion ($1.5 billion) in military and financial aid to Kiev, using interest profits drawn from frozen Russian central bank assets. EU foreign policy chief Josep Borrell made the announcement on Monday, as reports say Washington is preparing to send Ukraine another arms package worth $150 million. The EU also imposed a raft of sanctions on Russia along with entities in China, Turkey, and India.Given Kiev’s long-range missile strikes into Crimea over the weekend, the EU’s plan comes amid dangerous developments in NATO’s Ukraine proxy war. Russia accuses Ukrainian forces of using US-supplied Army Tactical Missile Systems (ATACMS), with a range of nearly 200 miles, and satellite imagery for the attack, which killed at least four people and wounded more than 100. Russia’s Foreign Ministry declared Washington “has effectively become a party” to the war now and threatened “retaliatory measures.”For almost a year, Budapest has vetoed further funding of Kiev’s war effort using an off-budget fund known as the European Peace Facility (EPF) worth €6 billion. Another fund holding €5 billion is blocked as well. Borrell referred to this “structural difficulty” during a presser following the foreign ministers meeting in Luxembourg. Using interest profits off seized Russian assets was seen as a workable alternative. Such international theft marks an unprecedented escalation in the economic war targeting Russia. Earlier this month, G7 leaders agreed to provide Ukraine with $50 billion by the end of the year using stolen Russian funds.According to the South China Morning Post, “A legal analysis noted that as Hungary abstained on the decision to use the frozen assets for Ukraine, and that the new aid is derived from the Russian Central Bank assets, and not EU funds, Budapest’s veto does not apply.” Therefore, Borrell said “it’s not necessary” to involve Hungary in the decision-making process. In keeping with Budapest’s objections against the bloc’s support for the Ukraine war, Hungarian Foreign Minister Peter Szijjarto condemned the move and said it violated EU rules.Some 90% of the aid disbursed will be for weapons to support Kiev’s war, while 10% will go toward direct financial aid. Per EU diplomats, Berlin and Prague were selected to use the stolen proceeds first to send Ukraine more air defenses as well as artillery shells. The European Commission says it has frozen roughly €210 billion in the Russian central bank’s funds. Between the US and Europe, about $280 billion in Russian assets have been seized. Euroclear, a financial institution based in Brussels, holds the majority of the European-held assets and claims to have extracted €4.4 billion in interest profits last year.Moreover, the ministers also announced a series of new sanctions against Russia including asset freezes and travel bans imposed on 69 individuals and 47 entities they claim are linked to the Kremlin’s invasion. Organizations based in China, Turkey, and India were also hit with an EU export ban over accusations that these entities provide goods and services bolstering Moscow’s war effort.

Yen Tumbles To 1986 Lows After Japanese 'Currency Chief' Comments; Gold, Oil, & Bonds Dump -- The market is testing Japanese officials... and so far it's winning...Reaffirming its constant stance of jawboning over actual intervention, Vice Finance Minister Masato Kanda said late Wednesday that the government is watching the yen with a high level of urgency as he described the currency’s latest moves as “rapid” and “one sided.”“I have serious concern about the recent rapid weakening of the yen and are closely monitoring market trends with a high sense of urgency,” Kanda told reporters late Wednesday.“We will take necessary actions against any excessive movements,” he said.Kanda refrained from commenting if the yen’s latest move was excessive.This 'status quo' sent the yen lower against the dollar......breaking down to its weakest since 1986... Source: BloombergEarlier this week, Kanda said authorities were ready to intervene in currency markets at any time around the clock if needed.Finance Minister Shunichi Suzuki said they are closely monitoring developments in the market and will take all possible measures as needed.“If the moves start to get disorderly north of 160, they may come in to smooth the move,” said Win Thin, global head of markets strategy at Brown Brothers Harriman & Co in New York. “Buy until the BOJ tilts more hawkish, upside for USD/JPY is the path of least resistance.”Well, it's starting to look 'disorderly'.“Given quarter-end dollar demand and the fact that the volatility environment remains contained, Japanese authorities might wait a bit more before intervening once again,” said Roberto Cobo Garcia, head of G-10 FX strategy at Banco Bilbao Vizcaya Argentaria SA in Madrid.“Volatility needs to rise more if they are to step in again.”The yen weakness sent the dollar higher and triggered selling in Gold...