oil prices ended higher for a second week after the US and China agreed to lower their tariffs to a sustainable level, defusing fears of a damaging trade war….after rising 4.9% to $61.02 a barrel last week on improved market sentiment after Trump announced a trade deal with the UK ahead of US-China trade talks, the contract price for the benchmark US light sweet crude for June delivery jumped more than 3% in Asian trading early Monday after the US and China said they would reduce most of their tariffs, raising hopes of an end to the trade war between the world's two largest consumers of crude oil, then followed thru to rise more than $2 in early trading in New York following the agreement between the U.S. and China to temporarily slash tariffs on mutual goods trade, but erased some of those early gains during the afternoon session as questions remained on what the end game would be after the 90 day tarilff pause that was agreed to by the U.S. and China, and settled 93 cents, or 1.5% higher at $61.95 per barrel as Wall Street stocks and the U.S. dollar also ended sharply higher on hopes the world's two biggest oil consumers would end the trade war that had stoked fears of recession….oil prices edged lower during Asian trading early Tuesday, as concerns over rising global supply levels outweighed the positive sentiment from a temporary tariff pause between the US and China, but resumed their climb Tuesday morning in New York, as trade optimism and a lower-than-expected U.S. inflation report supported the move higher, and settled with a $1.72 or 2.5% gain at $63.67 a barrel, supported by the better than expected inflation report and news that Saudi Arabia planned to invest $600 million in the U.S. amid President Trump’s visit to Saudi Arabia….oil prices fell on global markets on Wednesday, as traders eyed a potential jump in U.S. crude inventories, following an overnight report by the American Petroleum Institute of a bigger than expected build in crude stocks, then rebounded from the overnight drop after official EIA data echoed API's report with a sizable crude build, but also reported draws at the Cushing Hub and in oil products and then traded in a sideways trading range during the remainder of the day, pressured by OPEC’s unchanged forecast for global oil demand growth and lower supply growth estimates from countries outside of OPEC+, as the cartel prepared to accelerate their output hikes for a second month in June, and settled 52 cents lower at $63.15 a barrel, driven down by the surprise US inventory buildup….oil prices declined sharply in Asian trading on Thursday, dropping by nearly $2 per barrel amid growing expectations of a U.S.-Iran nuclear agreement that could lead to the easing of sanctions and the return of more Iranian crude to global markets, and were down by 4% early in the US after Trump said Iran and the US were close to a nuclear deal with Iran, while a top Iranian officials hinted at abandoning uranium enrichment if the U.S. would lift the economic sanctions, and settled $1.53 lower at $61.62 a barrel as the possibility of a U.S.-Iran nuclear deal raised the prospect of increased global crude supply… oil prices rose slightly during Asian trading on Friday, as optimism surrounding U.S.-China trade relations offset concerns about a potential increase in Iranian oil supply, then steadied Friday morning in New York after comments by Iranian officials cast doubt on the alleged progress made in negotiations with the U.S. delegation in Oman, but finished with a strong move to the upside to settle 87 cents higher at $62.49 a barrel amid optimism about U.S. trade policy following Monday's news of a U.S.-China trade deal, and hence posted a 2.4% gain for the week…
natural gas prices, on the other hand, finished lower for the first time in three weeks on another large inventory increase and on forecasts for milder weather…after rising 4.5% to $3.795 per mmBTU last week on recovering LNG demand, lower production, and a forecast for a hot summer, the price of the benchmark natural gas contract for June delivery opened 9.3 cents higher on Monday, but quickly headed lower, as steady production and comfortable weather conditions took the wind out of last week’s rally, and settled down 14.9 cents at $3.646 per mmBTU on a rise in well output over recent days,coupled with a decline in gas flows to liquefied natural gas export plants...natural gas opened 3.6 cent higher Tuesday, but traded sideways into the afternoon as traders eyed steady production levels against the imminent increase in cooling demand, and the contract price settled a tenth of a cent higher at $3.647 per mmBTU as reduced output offset lower demand…June natural gas opened 11.3 cent lower on Wednesday, as near-term bearish weather forecasts and expectations for another above-average storage injection had knocked prices lower overnight, then faded further in afternoon trading after a brief rally failed to settle 15.5 cents lower at $3.492 per mmBTU on a smaller-than-expected output decline and forecasts for lower-than-expected demand next week, due in part to a reduction in gas flows to LNG plants during their spring maintenance season….natural gas prices fell another 5 cents at the open on Thursday, as traders awaited a potentially lofty government inventory print, then sold off again to settle 13 cents lower at $3.362 per mmBTU after news of the expected seasonally bearish injection hit the wire….unsupportive weather trends and the widening storage surplus kept natural gas prices in negative territory early Friday, which then reversed a brief bargain hunting rally to settle 2.8 cents lower at $3.334 per mmBTU, as milder weather conditions forecast to return were expected to sink demand and keep storage building at a hastened pace, which left the June contract price down 12.1% for the week…
The EIA’s natural gas storage report for the week ending May 9th indicated that the amount of working natural gas held in underground storage rose by 110 billion cubic feet to 2,255 billion cubic feet by the end of the week, which left our natural gas supplies 375 billion cubic feet, or 14.5% below the 2,630 billion cubic feet of gas that were in storage on May 9th of last year, but 57 billion cubic feet, or 2.6% more than the five-year average of 2,198 billion cubic feet of natural gas that had typically been in working storage as of the 9th of May over the most recent five years….the 110 billion cubic foot injection into US natural gas storage for the cited week was in line with the 109 billion cubic foot addition to storage that was forecast by a Reuters' poll of analysts ahead of the report, while it was quite a bit more than the 73 billion cubic foot that were added to natural gas storage during the corresponding week of 2024, as well as more than the average 83 billion cubic foot addition to natural gas storage that has been typical for the same early May week over the past five years…
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending May 9th indicated that after a decrease in our oil exports and an increase in the supply of oil that the EIA could not account for, we had surplus oil to add to our stored crude supplies for the eleventh time in fifteen weeks, and for the 19th time in forty-four weeks, even after a sizable increase in the amount of oil that US refineries processed during the week...Our imports of crude oil fell by an average of 214,000 barrels per day to average 5,841,000 barrels per day, after rising by an average 557,000 barrels per day over the prior week, while our exports of crude oil fell by an average of 637,000 barrels per day to average 3,369,000 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 2,472,000 barrels of oil per day during the week ending May 9th, an average of 423,000 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 supplies from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 586,000 barrels per day, while during the same week, production of crude from US wells was 20,000 barrels per day higher at 13,387,000 barrels per day. Hence, our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 16,445,000 barrels per day during the May 9th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 16,401,000 barrels of crude per day during the week ending May 9th, an average of 330,000 more barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period the EIA’s surveys indicated that a net average of 569,000 barrels of oil per day were being added to the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from net imports, from transfers, and from oilfield production during the week ending May 9th averaged a rounded 524,000 barrels per day less than what what was added to storage plus our oil refineries reported they used during the week. To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ +524,000 ] 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 a small error or omission in the week’s oil supply & demand figures that we have just transcribed…However, since 5,000 barrels per day of oil supply could not be accounted for in the prior week’s EIA data, that means there was a 519,000 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, meaning the week over week changes that we have just cited are useless….However, since most oil traders react to these weekly EIA reports as if they were gospel, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil supply, see this EIA explainer….also see this old twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had once hoped to do about it)
This week’s rounded 569,000 barrel per day average increase in our overall crude oil inventories came as an average of 493,000 barrels per day were being added to our commercially available stocks of crude oil, while 75,000 barrels per day were being added to our Strategic Petroleum Reserve, the seventy-first SPR increase in the past eighty-one weeks, following nearly continuous SPR withdrawals over the 39 months prior to that… Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports fell to 5,746,000 barrels per day last week, which was 14.8% less than the 6,746,000 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 20,000 barrels per day higher at 13,387,000 barrels per day as the EIA’s estimate of the output from wells in the lower 48 states was 8,000 barrels per day higher at 12,950,000 barrels per day, while Alaska’s oil production was 12,000 barrels per day higher at 437,000 barrels per day.….US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 2.2% higher than that of our pre-pandemic production peak, and was also 38.0% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 90.2% of their capacity while processing those 16,401,000 barrels of crude per day during the week ending May 9th, their highest utilization rate in seventeen weeks, up from their 89.0% utilization rate of a week earlier, but down from the 91.7% utilization rate of eighteen weeks earlier, initially reflecting the impact of January's below freezing weather on Gulf Coast refineries, and then an extended period of US refinery’s usual Spring maintenance…. the 16,401,000 barrels of oil per day that were refined this week were 0.9% more than the 16,255,000 barrels of crude that were being processed daily during the week ending May 10th of 2024, but were 1.6% less than the 16,676,000 barrels that were being refined during the prepandemic week ending May 10th, 2019, when our refinery utilization rate was at 90.5%, also a bit low for this time of year…
Even with the increase in the amount of oil being refined this week, gasoline output from our refineries was quite a bit lower, decreasing by 327,000 barrels per day to 9,383,000 barrels per day during the week ending May 9th, after our refineries’ gasoline output had increased by 253,000 barrels per day during the prior week.. This week’s gasoline production was 3.2% less than the 9,698,000 barrels of gasoline that were being produced daily over the week ending May 10th of last year, and was 5.3% less than the gasoline production of 9,912,000 barrels per day during the prepandemic week ending May 10th, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 69,000 barrels per day to 4,581,000 barrels per day, after our distillates output had increased by 41,000 barrels per day during the prior week. With that production decrease, our distillates output was 4.6% less than the 4,804,000 barrels of distillates that were being produced daily during the week ending May 10th of 2024, and 13.0% less than the 5,264,000 barrels of distillates that were being produced daily during the pre-pandemic week ending May 3rd, 2019…
With this week’s decrease in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the tenth time in eleven weeks, decreasing by 1,022,000 barrels to a twenty week low of 224,706,000 barrels during the week ending May 9th, after our gasoline inventories had increased by 188,000 barrels during the prior week. Our gasoline supplies also fell this week because the amount of gasoline supplied to US users rose by 77,000 barrels per day to 8,784,000 barrels per day, and even though our imports of gasoline rose by 57,000 barrels per day to 765,000 barrels per day and as our exports of gasoline fell by 42,000 barrels per day to 822,000 barrels per day….But after twelve gasoline inventory withdrawals over the past fourteen weeks, our gasoline supplies were 1.3% lower than last May 10th’s gasoline inventories of 227,767,000 barrels, and were about 3% below the five year average of our gasoline supplies for this time of the year…
With the decrease in this week’s distillates production, our supplies of distillate fuels fell for the 13th time in 16 weeks, decreasing by 3,155,000 barrels to a 20 year low of 103,553,000 barrels during the week ending May 9th, after our distillates supplies had decreased by 1,107,000 barrels barrels during the prior week.. Our distillates supplies decreased this week because the amount of distillates supplied to US markets, an indicator of domestic demand, rose by 256,000 to 3,777,000 barrels per day, and as our exports of distillates rose by 29,000 barrels per day to 1,433,000 barrels per day, while our imports of distillates rose by 62,000 barrels per day to 179,000 barrels per day...But after 42 inventory withdrawals over the past 69 weeks, our distillates supplies at the end of the week were 11.0% below the 116,365,000 barrels of distillates that we had in storage on May 10th of 2024, and fell to about 16% below the five year average of our distillates inventories for this time of the year…
Finally, with the decrease in our oil exports and the increase in the supply of oil that the EIA could not account for, our commercial supplies of crude oil in storage rose for the 13th time in twenty-six weeks, and for the 26th time over the past year, increasing by 2,032,000 barrels over the week, from 438,376,000 barrels on May 2nd to 441,830,000 barrels on May 9th, after our commercial crude supplies had decreased by 2,032,000 barrels over the prior week… After that increase, our commercial crude oil inventories rose to 6% below the most recent five-year average of commercial oil supplies for this time of year, and to about 27% above the average of our available crude oil stocks as of the second weekend of May over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to increased exports to Europe following the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze-offs, our commercial crude supplies have somewhat leveled off since, and as of this May 9th were 3.3% less than the 457,020,000 barrels of oil left in commercial storage on May 10th of 2024, and 5.5% less than the 467,624,000 barrels of oil that we had in storage on May 12th of 2023, but were 5.0% more than the 420,820,000 barrels of oil we had left in commercial storage on May 13th of 2022…
This Week’s Rig Count
The US rig count decreased by two during the week ending May 16th, the seventh decrease in nine weeks, as one rig targeting oil and one rig targeting natural gas were removed...for a quick snapshot of this week's rig count, we are again including below a screenshot of the rig count summary pdf from Baker Hughes…in the table below, the first column shows the active rig count as of May 16th, the second column shows the change in the number of working rigs between last week’s count (May 9th) and this week’s (May 16th) count, the third column shows last week’s May 9th active rig count, the 4th column shows the change between the number of rigs running on Thursday 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 17th of May, 2024…
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Ohio Delays Decision to Frack Under Egypt Valley Wildlife Area -- Marcellus Drilling News - Earlier this year, an undisclosed shale driller asked the Ohio Oil and Gas Land Management Commission (OGLMC) to consider opening up an additional 4,360 acres of state-owned Egypt Valley Wildlife Area in Belmont County for shale drilling under the land (see New Request to Frack Under Another 4,743 Acres of OH Wildlife Areas). At a meeting on Monday, May 5, the OGLMC decided to delay a decision on the proposal until a future meeting. However, the May 5 meeting was not without controversy. A Cleveland Plain Dealer reporter tried to confront commission members to ask questions and was turned back by a police officer. The reporter said the officer “grabbed her arm.” A video of the event shows no such thing happening.
ODNR Says Fracking in Noble County, OH Caused Series of Earthquakes -Marcellus Drilling News -- A series of earthquakes (low level, sometimes felt, most of the time not felt) have hit Guernsey and Noble counties in eastern Ohio. According to the latest news we can find, some five quakes have hit since April 22, and another couple of quakes hit earlier in the year, in January/February. There is an existing fault line in the area, near Cambridge, known as the Burning Springs-Cambridge fault zone, formed more than 4.6 million years ago. So, earthquakes in the region are not unknown. The question is, why this most recent flurry? The Ohio Department of Natural Resources (ODNR) claims it’s tied to oil and gas activity in the area.
Fracking Halted at Encino Pad in Ohio Linked to Earthquakes - Yesterday, MDN brought you the news that the Ohio Department of Natural Resources (ODNR) is laying the blame for a series of low-level earthquakes in southeastern Ohio on fracking at a shale well in Noble County (see ODNR Says Fracking in Noble County, OH Caused Series of Earthquakes). We were/are somewhat incredulous. Most of the time, low-level quakes are tied to injection wells near active faults, not to wells being fracked. However, a new news report says ODNR has halted fracking at the suspect well while it investigates.
ODNR links earthquakes to fracking operations in Noble County - Farm and Dairy— A well pad in Noble County is standing on shaky ground after several consecutive earthquakes occurred, prompting the Ohio Department of Natural Resources to halt hydraulic fracturing operations at the pad. ODNR linked the seismic events to oil and gas operations conducted by Energy Acquisition Partners, operating as Encino Energy. The earthquakes took place on several days throughout the first week of May.According to the Ohio Seismic Network, which monitors earthquake activity, the first seismic event was detected on April 29 at roughly 10 p.m. about 2 miles southeast of Pleasant City. It was a 2.8 magnitude earthquake and was reported by 33 people. The second one occurred on May 2 at 6:43 a.m., detected about 2 miles southeast of Pleasant City. It was a 2.4 magnitude earthquake and twelve individuals reported the incident. On May 6, a 2.3 magnitude earthquake was detected roughly 2 miles southeast of Pleasant City at 4 p.m. One individual reported the incident. The latest incident took place on May 8 at 11:13 p.m., roughly 2.5 miles southeast of Pleasant City. The network had 33 individuals report the earthquake. A few media outlets reported that the earthquakes took place at Bears Pad in Noble County.According to Karina Cheung, spokesperson for the Ohio Department of Natural Resources, the agency responsible for overseeing fracking operations, “Some of these earthquakes which occurred in Noble County, slightly surpassed magnitudes strong enough to feel.” This prompted the agency to halt operations at the well pad until further notice. This isn’t the first time that earthquakes have been linked to fracking operations in Ohio, though. Between 2011-2012, 12 earthquakes occurred at the Northstar 1 Class II injection well in Youngstown, Ohio, the first starting only two weeks after companies started pumping fracking waste fluid into the ground. The final earthquake had a magnitude of almost 4.0; ODNR subsequently shut down operations. Shortly after, the agency created its seismic section that monitors seismic activity in real-time across Ohio to determine whether seismic events are related to oil and gas operations. The first earthquake to be linked to hydraulic fracturing in Ohio — and the second in the country — occurred in 2013 in Harrison County. The quakes were 2.0 magnitude or smaller, and took place at a depth of about 10,000 feet, nearly 2,000 feet below the Utica shale that was being fracked. In 2014, a 3.0 magnitude earthquake was felt in Poland Township, Ohio as a result of hydraulic fracturing operations. Following the incident, University of Miami scientists studied the seismic activity in Poland Township and found that 77 earthquakes occurred, but only a couple were actually felt. Most recently, in 2018, University of Miami scientists published a study that found a link between hydraulic fracturing and earthquakes by measuring earthquake patterns in eastern Ohio. The researchers found that while fracking activity occurs in shallow layers of Marcellus and Utica shale, operations can cause earthquakes in deeper, mature faults.“The earthquakes we have been studying show patterns that indicate the operations are re-activating old faults instead of creating new ones,” said Miami geology professor Michael Brudzinski, co-author of the study. “In most cases, the faults we are seeing re-activated have the same type of orientation that is aligned with the overall stress field in the Earth’s crust. We say these faults are ‘optimally oriented,’ and they should have the largest stresses placed on them naturally. This means they would be stressed to a critical point such that only small changes in conditions (like that from fluid injection) would cause them to move.”
Ohio Utica's Gulfport Energy Signals Potential M&A This Year - Large Utica shale operator Gulfport Energy alerted investors that M&A could be one use of its free cash flow this year. The comment comes while Gulfport neighbors Ascent Resources and Encino Energy are reportedly in play. Both are privately held. Advisory firm Energy Advisors Group wrote recently, “With [the] higher gas price, 2025 [will be] likely more active as PE-backed firms like Ascent [Resources] and Encino [Energy are] considering exit or IPO."Another of the Utica’s Top 5 producers, Infinity Natural Resources, IPO’ed earlier this year. Ascent Resources is an Oklahoma City neighbor of Gulfport’s. Encino Energy is based in Houston.John Reinhart, Gulfport president and CEO, said on a May 7 call, “We continue to assess the landscape and remain optimistic about the opportunities to meaningfully increase our leasehold footprint to enhance resource depth and believe these opportunities rank very high as we evaluate uses of free cash flow in 2025.”He made the comment during his prepared remarks.A securities analyst noted in the subsequent Q&A, “Typically, CEOs don't state that by accident in their comments.”As the oil market is in turmoil—since WTI has fallen to $58 at press time—“A&D is probably stuck in the mud,” the analyst, Tim Rezvan with KeyBanc Capital Markets, said.“What gives you optimism that you may have an opportunity in front of you?”Reinhart said Gulfport’s deal team is looking “through the landscape in Ohio” for property and “currently assessing” what would be a fit.Historically, Gulfport develops its land acquisitions within two years, he said.“As we look at the landscape, we favor right now the dry-gas and the wet-gas areas” of the Utica, where Gulfport holds 193,000 net acres, including in the oil window.But “I would also not rule out any kind of investment pickups in the condensate window,” he said. Gulfport Energy holds 193,000 net acres in the Utica’s oily, wet-gas and dry-gas windows in Ohio among other operators, including EOG Resources and privately held Ascent Resources and Encino Energy. (Map Source: Energy Advisors Group)
Gulfport Energy Signals It Wants to Buy Another Ohio Driller - Marcellus Drilling News -- Wow, what a difference four years can make! In May 2021, Gulfport Energy, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), emerged from bankruptcy with a new board and new management (see Gulfport Energy Emerges from Bankruptcy w/New Board, CEO/CFO Gone). Later in 2021, the rumors began to swirl that Gulfport was looking to sell itself (see Big News: OH Utica Driller Gulfport Energy Looking to Sell Itself). In the spring of 2022, the rumors centered on a combo with (sale to) fellow Ohio driller Ascent Resources (see Rumor: Gulfport Energy in Talks to Merge with Ascent Resources). None of the rumors came true. In last week’s first quarter update, Gulfport CEO John Reinhart indicated his company is now looking to DO the buying, rather than be bought.
Infinity's Balancing Act in Appalachia: Ohio Oil or Marcellus Gas —The Utica Shale in Appalachia might not be the flashiest play in the U.S., but its consistency has its rewards, said Zack Arnold, CEO and president of Infinity Natural Resources. “You may have oil in West Texas. They may have gas in the northeast part of Pennsylvania. But for us to have true oil returns and true gas returns separated by about a two-hour truck drive gives us a lot of flexibility,” said Arnold, who spoke at Hart Energy’s SUPER DUG Conference & Expo on May 15. The close location of the Utica and Marcellus allows Infinity to adjust depending on how the market reacts. It’s an adjustment that has become useful over the past two years. Natural gas prices struggled under $2/MMBtu at the Henry Hub for much of 2024. This year, oil prices have shown volatility with ongoing trade disputes and OPEC’s announcement that it was increasing production. “That flexibility and that balance has really allowed us to grow our company year-over-year. Even if gas prices languished last year and oil prices are weak this year, it gives us a lot of growth opportunity to continue to develop,” Arnold said. In first-quarter 2025, the company reported total net daily production of 26,500 boe/d, with about 31% oil and 55% in liquids. So far this year, complications from ongoing political battles have not been an overbearing problem for Infinity, and in some cases inadvertently helped the company’s bottom line. Infinity bought its steel for the year before the tariffs kicked in, Arnold said, so the company is insulated on an expense that accounts for less than 5% of its annual budget. At the same time, one of the biggest costs for any company is fuel, and the price has gone down slightly through the year with the price of oil. “A lot of times in a lower oil price environment like we're seeing today, the savings we see just in buying diesel fuel will offset whatever we're going to see as an increase because of the tariffs,” he said.
Shell to Produce Polyethylene from Recycled Plastic Feedstock at Pennsylvania Facility -- Shell Polymers plans to use pyrolysis oil derived from recycled plastics to manufacture polyethylene resin at its complex in Monaca, Pennsylvania. The recycled feedstock will be supplied by Freepoint EcoSystems, which operates an advanced recycling facility in Hebron, Ohio. In a statement, Shell described the agreement with Freepoint as a “landmark feedstock agreement.” Laura Chamorro, Shell’s commercial general manager, said the deal enhances the company’s ability to deliver advanced recycling and mass-balanced products certified by ISCC Plus. “We are committed to helping our customers access certified, flexible solutions that support their sustainability goals,” Chamorro said. The partnership also bolsters Shell’s offerings in mass-balanced products, which company officials see as key to expanding sustainable options in the U.S. plastics market. Freepoint’s Hebron plant is expected to be fully operational later this year. Once online, the facility is projected to recycle approximately 200 million pounds of plastic annually, producing up to 130 million pounds of pyrolysis oil for use as feedstock. In April, Freepoint delivered its first shipment of pyrolysis oil to a Shell refining site in Norco, Louisiana. Shell’s Monaca plant, located near Pittsburgh, began operations in 2022 and was the first major U.S. resin production facility built outside of Texas or Louisiana in more than four decades. The complex has an annual production capacity of about 3.5 billion pounds of polyethylene. Positioned near the Marcellus and Utica shale fields, the facility typically uses natural gas liquids from those formations as feedstock. Officials noted that the Monaca site is strategically located within range of over 70% of the North American polyethylene processing market, giving it a competitive advantage for distribution and logistics. Freepoint is also expanding internationally. In May 2024, the company announced plans to construct its first pyrolysis facility outside the United States. The new plant, to be located in the Ghent-Terneuzen Canal region of Belgium, is expected to recycle roughly 180 million pounds of plastic annually. Shell and Freepoint say their partnership marks a significant step toward advancing the circular economy for plastics, providing a scalable solution to reduce plastic waste and increase the use of recycled materials in manufacturing. The use of pyrolysis oil in resin production aligns with Shell’s broader sustainability goals and industry efforts to incorporate more recycled content into plastic products, particularly in response to growing demand for environmentally responsible packaging and materials.
Jet fuel leak in Pennsylvania contaminates drinking water and prompts investigations - (video) A jet fuel leak from Sunoco Pipeline’s Twin Oaks Pipeline in Bucks County, Pennsylvania, confirmed on January 31, 2025, has contaminated at least 38 private wells, prompting lawsuits and investigations. The leak, undetected for months, was first reported by residents in 2023. u Sunoco Pipeline L.P. confirmed a jet fuel leak in its Twin Oaks Pipeline in Upper Makefield Township’s Mt. Eyre Manor neighborhood, Bucks County, on January 31. Residents had reported unusual tastes and odors in their well water since 2023. The pipeline transports jet fuel from a terminal near Philadelphia to the Newark Terminal in New Jersey. Federal authorities suggested the leak may have persisted for up to 16 months before detection. Kristine Wojnovich, a resident of Washington Crossing, first contacted Sunoco in 2023 after detecting an oily odor and taste in her water. Initial testing by the company found no fuel and attributed the issue to potential bacterial contamination. However, her well was later found to contain approximately 15 gallons of jet fuel, believed to have accumulated since September 2023. She is now suing Sunoco and plans to relocate. The Pennsylvania Department of Environmental Protection (DEP) confirmed contamination in at least 38 private wells. Energy Transfer, Sunoco’s parent company, initially reported seven affected wells on January 31. Residents in the area rely on private wells for drinking and cooking water. Sunoco contractors continue daily skimming operations to remove fuel from the contaminated wells. YouTube video Sunoco excavated and repaired the affected pipeline section on February 2, allowing operations to resume shortly afterward. By May 1, Energy Transfer had distributed bottled water and installed 112 water filtration systems in affected homes at no cost. The company stated it remains committed to cleanup and long-term restoration efforts in the neighborhood. The Pennsylvania DEP issued a Notice of Violation to Sunoco on February 18, followed by an enforcement order on March 6 requiring the company to provide clean water and implement a remediation plan. On May 2, the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Consent Order mandating pressure reductions and additional testing. These measures are intended to address ongoing safety risks. The Pennsylvania Attorney General’s Office has launched a criminal investigation into the incident. This follows PHMSA data showing that Sunoco Pipeline reported more fuel spills in 2024 than any other U.S. pipeline operator. The investigation is focused on potential environmental violations related to the leak.
NRG Buys 18 Gas-Fired Power Plants, Including 5 in PA, for $12B -Marcellus Drilling News -- A map showing the location of the power plants being purchased by NRG (click for larger version) NRG Energy agreed to acquire LS Power’s portfolio of natural-gas power plants in a deal valued at roughly $12 billion, including debt, that will expand NRG’s footprint in Texas and along the East Coast. NRG said the acquisition would give it 18 more natural-gas-fired facilities in nine states—including five in Pennsylvania and one in Ohio—doubling its generation capacity to about 25 gigawatts (GW). The PA acquisition includes the Springdale natural gas power station in Allegheny County, the Armstrong plant in Indiana County, the Gans plant in Fayette County, the Chambersburg plant in Franklin County, and the Ironwood plant in Lebanon County
PJM Approves 6 New Gas-Fired Power Plants, 32 Gas-Fired Expansions -Marcellus Drilling News - In December, MDN told you that the country’s largest electric grid, PJM Interconnection, which covers all or parts of 13 states, including PA, OH, and WV, proposed changes to how it decides which new power plants can connect to the system first. The new policy *favors* adding natural gas-fired power over other types of power like unreliable solar and wind (see New PJM Policy Favors Gas-Fired Power Over Solar & Wind). The change comes in response to the rapidly increasing demand for more electricity from data centers and artificial intelligence computing. PJM’s gas-favoring policy change rankled the environmental left. According to green grifters, the PJM proposal unfairly allows gas-fired projects to “jump the queue” ahead of unreliable renewables. Good news: On May 2, PJM announced it had selected 51 projects (out of 94) for fast-track approval
22 New Shale Well Permits Issued for PA-OH-WV Apr 27 - May 4 - Marcellus Drilling News -- For the week of April 28 - May 4, the number of permits issued to drill new wells in the Marcellus/Utica was down two from the previous week. Last week, 22 new permits were issued in the M-U. In the Keystone State (PA), 10 new permits were issued. The top permittee was NFG's Seneca Resources, which had four permits in Tioga County. PennEnergy Resource received two permits in Butler County. Expand Energy (SWN) received two permits in Lycoming County. Finally, both Coterra Energy and EQT (Rice Drilling) received a single permit, in Susquehanna and Washington counties, respectively. ASCENT RESOURCES | BELMONT COUNTY | BUTLER COUNTY | CARROLL COUNTY | COTERRA ENERGY (CABOT O&G) | ENCINO ENERGY | EQT CORP |EXPAND ENERGY | HARRISON COUNTY | JEFFERSON COUNTY (OH) | LYCOMING COUNTY | PENNENERGY RESOURCES | SENECA RESOURCES |SOUTHWESTERN ENERGY | SUSQUEHANNA COUNTY | TIOGA COUNTY (PA) | WASHINGTON COUNTY
Infinity Natural Resources Adds Second Rig to Drill in PA Marcellus - Marcellus Drilling News -- Infinity Natural Resources (INR), headquartered in Morgantown, WV, focuses 100% on the Marcellus/Utica. The company went public earlier this year with a $265 million ($20/share) initial public offering, giving INR a $1.18 billion market capitalization (see INR IPO Does Better than Expected, Stock Trading Pops 10% Higher). INR issued its second public quarterly update yesterday. Among the bits of news is that INR recently contracted a second drilling rig to drill four natural gas wells in the Pennsylvania Marcellus Shale, which are expected to be turned online to sales this summer.
New WV Law Makes it Easier, Cheaper to Plug Orphaned Wells - Marcellus Drilling News - West Virginia has more than 21,000 abandoned and orphaned oil and gas wells. Plugging them to prevent environmental problems is a thorny issue, as it is in other states like Pennsylvania and Ohio (and Texas, and Oklahoma, etc.). Regulatory hurdles make it expensive. A WV bill not previously on our radar made its way through the legislature and was signed yesterday by Governor Patrick Morrisey: House Bill (HB) 3336. The bill (now law) makes it cheaper and faster to plug abandoned and orphaned oil and gas wells in the Mountain State.
Data center growth has sparked a natural gas 'gold rush' - Nuclear generation may be a long-term solution for the data center energy crunch, but in the short term renewables and natural gas are poised to be king. For those playing in this space, that means the race is on to lock down hyperscaler contracts and stake a claim in the energy land grab. “As far as data centers, we call it kind of the gold rush,” Energy Transfer’s Co-CEO Mackie McCrea said during the company’s earnings call this week. According to a recent report from the International Energy Agency, data centers are expected to drive 10% of global electricity demand growth through 2030, but 20% in advanced economies. To help meet this rising tide, natural gas generation is expected to grow by anywhere from 175TWh to 290TWh, with production mostly concentrated in the U.S. Judging from their earnings calls, domestic companies are already getting into the growth mindset. Take Energy Transfer, for example. The energy provider has assets in 44 U.S. states. Its natural gas pipelines are clustered in Texas, Oklahoma, Louisiana and Arkansas but stretch from Arizona in the West to Michigan, Ohio and Western Pennsylvania in the East.McCrea said on its earnings call the company has identified approximately 150 data center opportunities in Texas alone and expects to make some deal announcements in the next four to six weeks. He also called out demand in “a couple” other unnamed states where it expects to strike deals in the coming months and highlighted “Arizona as a very significant growth area for data centers, really a growth area for natural gas demand.”But it’s not taking the opportunity in front of it for granted. Co-CEO Tom Long noted competition for the wave of data center-related projects has been fierce. Then there’s Williams and Company, which has natural gas lines running through Colorado, Utah, Idaho, Oregon and Washington in the West and from Texas to New York in the central and eastern U.S.Even with supply chain constraints, incoming CEO Chad Zamarin said on the company’s earnings call that it is “certainly reasonable” the company will be able to bring around a gigawatt worth of power online for data center use by the end of 2027.“The Salt Lake area and the Idaho area are getting pretty hot in terms of power demands for data centers in those markets, and we absolutely are going to be a part of providing those solutions,” Zamarin said. EQT, which draws its natural gas from the Marcellus Shale basin in Ohio, Pennsylvania and West Virginia, similarly said it is focused on data center deals. It is particularly looking at in-basin opportunities following the cancellation of the Atlantic Coast Pipeline project, which would have allowed it to transport natural gas down to Virginia and North Carolina."Without that pipeline, people that want that power are going to move back closer into our basin," EQT Toby Rice said. "So, I mean that's the high-level theme that's taking place....We've got a lot of shots on goal. So we've got a lot of conversations that are taking place right now."Indeed, Fierce has previously pinpointed Ohio as one of several secondary data center hubs that are emerging as primary hubs running low on space and power for new builds. Western Pennsylvania, specifically the area around Pittsburgh, is also an increasingly popular focal point for new construction.
FERC Extends Lake Charles LNG In-Service Date as Energy Transfer Pursues FID -- FERC has granted a three-year extension for the proposed Lake Charles LNG export project, a key step for developer Energy Transfer LP (ET) to reach a final investment decision (FID) later this year. Last month, ET’s terminal development unit asked the Federal Energy Regulatory Commission for more time to place its 16.45 million ton/year (Mt/y) capacity project into commercial service. Along with inflationary pressures and ongoing negotiations with contractors, representatives for the company told FERC regulatory uncertainty during the Biden administration further delayed the project. “The applicants assert that the FID requires that all Commission authorization remain in full force and effect during construction of the projects; thus, it requests a three-year extension, until December 31, 2031, to complete the projects and place them into service,” FERC staff wrote.
Venture Global Exports Record LNG Volume as All Trains at Plaquemines Phase One Nearly Online --Venture Global LNG Inc. CEO Mike Sabel said Tuesday the company expects to have the first phase of its Plaquemines export project in Louisiana completely online and being commissioned by the end of May as U.S. liquefaction capacity continues to grow rapidly. Plaquemines made its first LNG late last year and currently has 22 of its smaller, modular liquefaction trains producing the super-chilled fuel. Sabel said during a call to discuss financial results that the first phase’s 24 trains would be up and running by the end of the month. The second phase would include another 12 trains that are expected to be brought online by the end of this year, when the facility is forecast to reach peak capacity.
Woodside Looks to Push Louisiana LNG Commercial Service to Late 2029 Woodside Energy Group is seeking an extension from federal regulators to place its Louisiana LNG project into commercial service, potentially shifting another wave of U.S. feed gas demand to the end of the decade. Natural Gas Intelligence's (NGI) spot Texas Eastern W. LA daily natural gas price graph showing historical market volatility. Developers of the project sited in Calcasieu Parish, LA, requested an eight-month extension from FERC to complete the 16.5 million ton/year (Mt/y) first phase of Louisiana LNG by Dec. 31, 2029. Woodside sanctioned the estimated $17.5 billion first phase at the end of April after acquiring the terminal and related pipeline project last year. However, representatives for the company told Federal Energy Regulatory Commission staff that its contractor advised more time would be needed to complete the project as it completes offtake and equity agreements.
Rising LNG Feed Gas Demand, Oil Market Oversupply Push Up 2026 Natural Gas Prices — The Offtake --A look at the global natural gas and LNG markets by the numbers
- $5/MMBtu: An oversupply of crude oil later this year and falling West Texas Intermediate crude oil (WTI) prices are expected to put pressure on associated gas production and increase natural gas prices in 2026, according to Tudor, Pickering, Holt & Co. The firm raised its forecast average gas price next year by $1 to $5/MMBtu, citing “meaningful oversupply” of crude oil markets in the second half of this year that could push WTI below $55/bbl. Meanwhile, commissioning of Gulf Coast LNG terminals is expected to continue tightening U.S. gas supplies through the decade.
- 11.8 Bcf/d: While producers have disclosed plans to cut costs and lower rig counts in the Permian Basin, stronger natural gas prices could sustain a buildup in the Marcellus Shale, according to East Daley analytics. As average Henry Hub prices rise and hold above $3, analysts with East Daley wrote the rig count in northeastern Pennsylvania has doubled from five at the beginning of the year to 10 at the end of April. The firm reported the sample production rate from the region at 11.8 Bcf/d with 10 rigs operating.
- 4.6 Mt/y: NextDecade Corp. disclosed its plans to reach a final investment decision on a fourth train at Rio Grande LNG later this year after successfully marketing a significant portion of its capacity. In a 10-Q filing earlier in the month, NextDecade representatives wrote the project has “sufficient commercial support” after securing 4.6 million tons/year (Mt/y) of Train 4’s 5.4 Mt/y capacity under long-term offtake deals. NextDecade plans to launch the funding process with lenders and investors during the summer after receiving a price refresh from Bechtel Corp.
- 100 MMcf/d: Eni SpA has achieved first gas at the Merakes East field off the coast of Indonesia, boosting its possible LNG production in East Asia. The Merakes East development, 80% owned by Eni, is expected to contribute 100 MMcf/d of gas production that will be transported via subsea connection to the Jangkrik Floating Production Unit. The development is a part of Eni’s long-term partnership with Indonesia and other producers to extend the life of the Bontang LNG export terminal.
China Unlikely to Resume U.S. LNG Purchases Despite Tariff Reprieve – Three Things to Know About the LNG Market - NO. 1: Venture Global LNG Inc. is urging FERC to reauthorize its CP2 export project so it can better work toward a final investment decision (FID). Image showing a comprehensive market analysis of the European Union’s gas storage levels with graphs representing trends in inventories, highlighting key insights into energy market dynamics and gas data projections for the near future. In a letter to the Federal Energy Regulatory Commission, Venture Global CEO Mike Sabel said the company needs the “Commission to act” and reauthorize construction of the project by June 26. FERC approved the 20 million tons/year CP2 project last June. However, it rescinded the order in November to more closely study the facility’s impact on air quality. That study was completed last week.
US natgas prices drop 4% on rising output, lower flows to LNG export plants — U.S. natural gas futures fell about 4% on Monday on a rise in output in recent days coupled with a decline in gas flows to liquefied natural gas export plants. The price drop came despite forecasts for more demand this week than previously expected. Gas futures for June delivery on the New York Mercantile Exchange fell 14.9 cents, or 3.9%, to settle at $3.646 per million British thermal units. On Friday, the contract closed at its highest since April 9. But, with futures up about 29% over the prior two weeks, speculators last week boosted their net long futures and options positions on the New York Mercantile and Intercontinental exchanges for the first time in nine weeks, according to the U.S. Commodity Futures Trading Commission's Commitments of Traders report. Analysts said mostly mild weather should keep heating and cooling demand low in coming week, allowing utilities to continue injecting more gas into storage than normal for this time of year. Gas stockpiles were already about 3% above the five-year (2020-2024) normal. Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 103.7 billion cubic feet per day so far in May, down from a monthly record of 105.8 bcfd in April. On a daily basis, gas output was on track to slip to a preliminary 103.4 bcfd on May 12, down from a one-week high of 104.4 bcfd on May 10 and up from a 10-week low of 102.7 bcfd on May 6. That compares with a daily record high of 107.4 bcfd on April 18. Looking ahead, analysts said the roughly 11% drop in U.S. crude futures so far in 2025 should prompt drillers to cut back on oil production. Any decline in oil production would ultimately reduce the amount of gas pulled out of the ground that is associated with that oil output. About 37% of U.S. gas production comes from associated gas, according to federal energy data. Over time, analysts said any reduction in associated gas output should increase gas prices. Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through May 27. With warmer weather starting to boost air conditioning use, LSEG forecast average gas demand in the Lower 48, including exports, will rise from 97.0 bcfd this week to 98.2 bcfd next week. The forecast for this week was higher than LSEG's outlook on Friday. The average amount of gas flowing to the eight big LNG export plants operating in the U.S. fell to 15.1 bcfd so far in May, down from a monthly record of 16.0 bcfd in April. The LNG feedgas decline so far this month was mostly due to reductions for maintenance at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG 3.9-bcfd Corpus Christi plant under construction and in operation in Texas, and a one-day outage at Freeport LNG's 2.1-bcfd plant in Texas on May 6.
US natgas prices fall 4% to one-week low on forecast for less demand — U.S. natural gas futures fell about 4% to a one-week low on Wednesday on a smaller-than-expected output decline this week and forecasts for lower-than-expected demand next week, due in part to a reduction in gas flows to liquefied natural gas (LNG) export plants during the spring maintenance season. Gas futures for June delivery on the New York Mercantile Exchange fell 15.5 cents, or 4.3%, to settle at $3.492 per million British thermal units, their lowest close since May 6. Despite a heat wave coming to Texas this week, analysts said heating and cooling demand should remain low across much of the rest of the country in coming weeks, allowing utilities to keep injecting more gas into storage than normal for this time of year. Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 103.7 billion cubic feet per day so far in May, down from a monthly record of 105.8 bcfd in April. On a daily basis, gas output was on track to drop from a record 107.4 bcfd on April 18 to a preliminary 11-week low of 102.4 bcfd on Wednesday. That decline, however, was less than projected on Tuesday. Analysts have noted that preliminary data is often revised later in the day. Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through May 29. After hitting 90 degrees Fahrenheit (32.2 Celsius) on Tuesday, AccuWeather meteorologists forecast temperatures in Houston, the biggest city in Texas, would reach 95 F on Wednesday, breaking the May 14 record high of 91 F set in 1961, and would keep hitting the 90s F every day from May 13-26. The normal high in the city at this time of year is 86 F. As homes and businesses crank up their air conditioners in Texas, LSEG forecast average gas demand in the Lower 48, including exports, will rise from 96.4 bcfd this week to 97.0 bcfd next week. The forecasts for next week were lower than LSEG's outlook on Tuesday. The average amount of gas flowing to the eight big LNG export plants operating in the U.S. fell to 15.1 bcfd so far in May, down from a monthly record of 16.0 bcfd in April. The LNG feedgas decline so far this month was mostly due to reductions for maintenance at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG 3.9-bcfd Corpus Christi plant under construction and in operation in Texas, and a one-day outage at Freeport LNG's 2.1-bcfd plant in Texas on May 6. LNG gas flows to the Corpus Christi facility were on track to drop to a two-month low of 1.5 bcfd on Wednesday, down from 1.6 bcfd on Tuesday and an average of 2.0 bcfd during the prior seven days, according to LSEG data.
Coast Guard to conduct controlled burn in Plaquemines Parish—The Coast Guard is scheduled to oversee an in-situ burn for crude oil discharge near Garden Island Bay on Wednesday.The operation is scheduled to begin at 9 a.m. until 4 p.m. and could continue into Thursday if necessary.This is due to the initial report of the oil discharge on April 26.As of Sunday, May 4, more than 100,000 gallons of oily water has been recovered. In-situ burning involved the controlled burning discharge of oil and is one way to reduce environmental impact.Observations of oil should be made to the National Response Center at 800-424-8802. Individuals or businesses directly impacted by the incident can contact 1-866-601-5880 for assistance and information.
EPA rejects request to ban toxic chemical at oil refineries -EPA on Monday denied a petition from environmental groups seeking a ban on the use of hydrogen fluoride at oil refineries under the Toxic Substances Control Act.The chemical, also known as HF, is used at around a quarter of refineries in the U.S. for alkylation, which increases a fuel’s octane levels. But it’s highly toxic, and accidental releases and near-misses in recent years have prompted environmentalists and the federal Chemical Safety Board to urge refineries still using HF to switch to alkylation methods using other substances. In a response sent to the Natural Resources Defense Council and other groups on Monday, EPA called the petition “deficient. The groups named prior incidents at refineries involving HF, such as the 2019 explosion at the Philadelphia Energy Solutions facility that released 2.5 tons of HF, in making their case. But the groups “did not establish the likely duration, intensity, frequency, and number of exposures of HF involving such releases,” the agency said in its response.
Colorado tribe calls out state, petroleum company for pipeline spill - Southern Ute Indian Tribe leadership recently urged the state of Colorado and a Texas energy company to step up the monitoring and cleanup of a five-month-old fuel spill on the southwestern Colorado tribe's land.Tribal leadership called the response by both the state and the company "inadequate." In a May 5 social media post, it criticized the Colorado Department of Public Health and Environment (CDPHE) for not sending any personnel to the area in the months since the spilled happened. It also blamed the company for what it claimed was the lack of a contingency plan in the event the spill advances through groundwater to the near Animas River. "We will not stand by while our ground and surface water, Tribal resources, and the health of our Tribal Members are put at risk," stated Southern Ute Chairman Melvin J. Baker in the post. "Enterprise must treat this with the seriousness and urgency it deserves—not just from a regulatory standpoint, but from a moral and environmental one. Failure to move now will impact our water rights, wildlife, cultural sites, and properties for years to come. It is our duty as leaders and original stewards to protect the land that has been home to our ancestors since time immemorial and will be home for our future generations to come." The spill occurred on Dec. 5. Beginning on that day, a spill at an Enterprise Products pipeline near the intersection of La Plata County Road 219 and Riverview Ranch Road (about four miles south of Durango) was reported by an unidentified person at 4:50 p.m. The pipeline was clamped and leak stopped at 3:40 p.m. on Dec. 7, according to an early CDPHE report. An estimated 544 barrels, or 23,000 gallons, of fuel was released.Southern Ute Indian Tribe land near Durango. A Texas-based petroleum company is paying a contractor to monitor groundwater contamination following a fuel spill in December 2024. Three days after the first report of the leak, a groundwater measurement taken 275 feet south-southwest of the leak site detected concentrations of benzene, tuloene, ethylbenzene, and xylenes at 13 micrograms per liter. Four days later, the same test well measured 300 micrograms per liter. Pond water at a nearby property also detected those four elements, plus acetone and styrene. But, according to that early CDPHE report about that pond, "None of the concentrations exceed their most protective EPA or CDPHE water standard."In the months since, however, a dozen residences have had high contamination readings in the their water wells. Water must now be hauled in, according to the tribe, and stored in cisterns installed by Enterprise Products. Filtration systems are also being provided. The contamination has now migrated away from the leak site. The tribe - which is doing its own monitoring beyond the several monitoring wells drilled by a remediation team hired by the energy company - said a spring within .3 mile of the Animas River is now showing increased measurements of benzene. "If the spill were to reach the nearby Animas River in elevated concentrations, the danger to plant, animal, and human life in the local area and potentially downstream along the river could be widespread," the tribe stated on its social post. "Despite this, Enterprise still does not have a site-specific contingency plan in place to protect the Animas River."According to CDPHE documents, Enterprise Products is required to publicly post monthly bulletins about the spill's monitoring data, submit quarterly reports to the CDPHE, and provide a contingency plan to the state for dealing with contamination reaching the Animas River. That deadline for that contingency plan was April 30. Leaders of the Southern Ute Tribe learned of the contingency plan's delay during a meeting the next day. "[T]he response from Enterprise has lacked the urgency and transparency this situation demands to minimize impacts and risk to the Animas River and Tribal resources," the tribe stated.
Treasury Department sanctions over 20 companies it says gave Iranian oil to China - The Treasury Department announced on Tuesday that it has sanctioned a network of more than 20 companies it says have supplied Iranian oil to China. The department’s Office of Foreign Assets Control (OFAC) sanctioned nearly two dozen firms on Tuesday that it says have assisted in dispatching billions of dollars’ worth of oil to Beijing for Iran’s armed forces general staff and Sepehr Energy, its primary commercial affiliate. “Today’s action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade, which the regime uses to fund its dangerous and destabilizing activities,” Treasury Department Secretary Scott Bessent said in a statement. “The United States will continue targeting this primary source of revenue, so long as the regime continues its support for terrorism and proliferation of deadly weapons,” Bessent added. The department imposed sanctions on Huangdao Inspection and Certification Co., stating they have been providing oil cargo inspection services to ships already sanctioned for carrying Iranian oil. CCIC Singapore PTE, an export company, was also on the list. The OFAC said CCIC Singapore PTE has assisted Sepehr in delivering inspections needed before the oil is transferred to China and in helping it hide where the oil originated. Qingdao Linkrich was also slapped with sanctions, with OFAC stating that it helped Sepehr Energy-chartered vessels with discharge and arrival at Qingdao Port in China. State Department spokesperson Tammy Bruce said the revenue from the sale of the oil funds helped in the development of “ballistic missiles and unmanned aerial vehicles (UAVs), nuclear proliferation, and Iran’s terrorist proxies, including the Houthis’ attacks on Red Sea Shipping, the U.S. Navy, and Israel.”
Pemex patches up pipeline in the aftermath of oil spill offshore Mexico - Mexico’s state-owned petroleum heavyweight Petróleos Mexicanos (Pemex) has undertaken repair work at a pipeline, which is connected to its oil platform off the coast of Mexico, to address leaks and prevent hydrocarbon presence on the North American country’s coast.The Mexican giant has confirmed the completion of works related to reported leaks from the pipeline that transports crude oil from the Akal-C platform to the Dos Bocas Maritime Terminal (TMDB), which were contained by installing two metal clamps, concluding the work on May 6.As a result, the controlled operation of the pipeline began, enabling the firm to monitor the state of the repairs without finding any traces of oil in the completed segments. This subsea pipeline leak is said to have released an estimated 300 barrels of crude oil into the Gulf of Mexico.The company has tackled the presence of hydrocarbons observed on the coast of the municipality of ParaÃso, Tabasco, covering the 7 kilometers that were originally impacted. In addition, the company claims that 15 points with hydrocarbon presence were analyzed, of which 14 were treated, and one was estimated to be completed on May 9. “Containment measures continue with the support of vessels and the installation of barriers in the Mecoacán Lagoon and near the Dos Bocas Maritime Terminal to prevent any additional arrivals on the coast,” emphasized Pemex.The firm is also working on the Zama oil project off the coast of Tabasco state, whose development is expected to require a $4.5 billion injection of capital, covering the planning of two offshore platforms, 68 kilometers of pipelines and cables, alongside a new onshore facility.
Sempra Moves to Realign Mexico Natural Gas Assets as ECA LNG Nears Completion - Sempra’s EnergÃa Costa Azul (ECA) LNG is ready to enter pre-commissioning activities, signaling a coming leap in Mexican natural gas export capacity early next year.After more than five years of construction, the 3.25 million ton/year (Mt/y) capacity project is on track to reach commercial operations by next spring, CFO Karen Sedgwick said during a 1Q2025 call with analysts Thursday (May 8). But, before cargoes begin leaving Mexico’s Pacific Coast, ECA could begin raising feed gas demand from the United States by the end of the year as equipment comes online.
‘Significant Interest’ for Cedar LNG Capacity, Says Pembina CEO - - Calgary-based Pembina Pipeline Corp. is benefiting from natural gas and liquids growth across Canada, with growing confidence that the Cedar LNG project underway on the west coast could be expanded. Map of Western Canada with Pembina Pipeline's natural gas infrastructure and nearby LNG export facilities. Pembina’s executive team led by CEO Scott Burrows discussed the midstream giant’s outlook during the first quarter conference call. As the U.S. tariff war upends geopolitical dynamics with Canada, the country’s exploration and production companies, in partnership with the midstream operators, are looking to extend their outreach overseas. And the prolific natural gas produced in northeastern British Columbia (BC) “needs an egress solution,” Burrows said.
No Rest for Canada’s Top Natural Gas E&Ps as Major Export Terminal Nears -- Exploration and production (E&P) stalwarts Tourmaline Oil Corp. and Canadian Natural Resources Ltd. both said they generated record natural gas production in the first quarter and expect to maintain momentum to support an expected jump in LNG export demand.Natural Gas Intelligence's (NGI) spot NOVA/AECO daily natural gas price graph showing historical market volatility. Calgary-based Tourmaline, Canada’s largest natural gas producer, said output rose 10% year/year in the first quarter to average 2.94 Bcf/d, marking a high point for the company as it braces for ongoing demand increases in North America and globally. “The expectation for power, LNG and industrial gas – demand is as stable as ever,” Tourmaline CEO Michael Rose said during an earnings call with analysts on Thursday.
Nigerian oil producer Oando completes pipeline repairs after spills (Reuters) - Nigerian oil producer Oando has completed repairs on its pipeline in the oil-rich Bayelsa state after four oil spill incidents caused by sabotage in recent weeks, the company said on Tuesday.The company activated emergency responses immediately after each spill, shutting down affected wells, halting crude delivery and deploying containment measures. Joint investigations were conducted with government regulators and community representatives, it said in a statement. Oando, which now owns former Eni unit Nigerian Agip Oil Co, said it plans a sectional replacement of the pipeline to further reduce future risks.
Goldman: Trump Wants Oil Prices in the $40-50 Range U.S. President Donald Trump likes crude oil prices in the range of $40 to $50 per barrel, Goldman Sachs analysts have said, following an analysis of his social media posts on the topic.The president’s “inferred preference for WTI appears to be around $40 to $50 a barrel, where his propensity to post about oil prices bottoms,” the team wrote, also noting that Trump “has always been focused on oil and on US energy dominance, having posted nearly 900 times,” on the topic, Bloomberg reported, citing parts of the Goldman report.Crude oil is currently trading at over $66 per barrel ofBrent crude and some $63 per barrel of West Texas Intermediate following news of progress on the trade talks between the U.S. and China that could see a quicker instead of slower end to the tariff hysteria that has gripped market since April.The U.S. president “tends to call for lower prices (or celebrate falling prices) when WTI is greater than $50,” the Goldman analysts also wrote in their report, adding that “In contrast, President Trump has called for higher prices when prices are very low (WTI less than $30) often in the context of supporting US production.”The dominant opinion at the moment is that even $50 is too low for U.S. shale drillers to keep drilling, let alone boost that drilling. This has prompted some commentators to suggest that Trump’s quest for lower prices at the pump had put him on a sort of a collision course with his oil industry supporters and donors.Oil prices are currently trading at the highest in two weeks, after the U.S. and China struck an agreement for a 90-day trade ceasefire and a significant reduction in mutual tariffs, which brightened the outlook for oil demand. On the flip side, traders anticipate the EIA to report a significant build in crude oil inventories after the API estimated one, at 4.3 million barrels, on Tuesday.
Inside Trump’s Hardball Strategy to Control Global Oil Prices There is one critical economic reason and one crucial political one why sitting U.S. presidents want to keep oil prices at the lower rather than higher end of historical averages. The economic rationale centres on the close correlation between oil prices and the wider health of the U.S. economy. Historical data highlights that every US$10 per barrel (pb) or so change in the price of crude oil results in around a 25-30 cent change in the price of a gallon of gasoline, and for every 1 cent that the average price per gallon of gasoline rises, more than US$1 billion or so per year in consumer spending is lost. The political reason is that since 1896, the sitting U.S. president has won re-election 11 times out of 11 if the economy was not in recession within two years of an upcoming election. However, sitting U.S. presidents who went into a re-election campaign with the economy in recession won only one time out of seven. The same pattern broadly applies to the re-election chances of candidates of any sitting president’s party in U.S. mid-term elections as well, the outcome of which affects the ability of the incumbent leader to push ahead with their legislative agenda for the last two years of their presidency. In any event, the statistics make sober reading for incumbent U.S. presidents and the senatorial, congressional and gubernatorial candidates of their party when considering how to handle domestic and international policies related to the oil price. Consequently, it is not surprising -- as Bob McNally, the former energy adviser to former President George W. Bush put it – that, “Few things terrify an American president more than a spike in fuel [gasoline] prices.” Trump’s view when he began his first term as president on 20 January 2017 was that the oil price needed to trade in a US$40-45 per barrel (pb) of Brent to US$75-80 pb range – ‘The Trump Oil Price Range’. The floor was seen as the price at which most U.S. shale oil producers could make a decent profit, and the ceiling was seen as being most advantageous for U.S. economic growth. However, at that point the Saudis were still trying desperately in 2017 to repair the appalling damage its 2014-2016 Oil Price War had done to its own finances and to those of its OPEC brothers, so they embarked on coordinated production cuts (with Russia as the new-found member of the expended ‘OPEC+’ cartel) to push the oil price higher. Harking back to the original 1945 U.S.-Saudi Arabia agreement that balanced oil against security as also examined inmy latest book, Trump said: “OPEC and OPEC nations are, as usual, ripping off the rest of the world, and I don’t like it. Nobody should like it.” He added: “We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices. Not good. We want them to stop raising prices. We want them to start lowering prices and they must contribute substantially to military protection from now on.” Following Trump’s direct and clear warnings to Saudi Arabia’s Royal Family in the third quarter of 2018 of the catastrophic consequences if the Kingdom continued to keep oil prices higher than the US$80 per barrel Brent price ceiling, Saudi Arabia increased production and oil prices came down again. That period was the only part of Trump’s presidency that saw his Oil Price Trading Range breached to the upside. That said, the ceiling of this range is well below the recent levels that Saudi Arabia has needed to fully restore its finances to where they were before the onset of the 2014-2016 Oil Price War. This pricing discrepancy prompted Saudi Arabia to launch another oil price war in 2020 using the same strategy that had previously failed in 2014-2016 and towards the same aim of setting back the seemingly inexorable advance of the U.S. shale oil sector. Trump’s reaction to this was even more aggressive than before, with a telephone call made on 2 April (according to a very senior source in the White House spoken to by OilPrice.com at the time) in which he very clearly told Saudi Crown Prince Mohammed bin Salman that unless OPEC started cutting oil production – so allowing oil prices to rise (above the danger zone for U.S. shale oil producers) – that he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from Saudi Arabia. It was also made very clear by Trump that the next time the Saudis tried the same thing it would be the end of the 1945 Agreement between the U.S. and Saudi Arabia. This, said Trump, would involve the immediate withdrawal of all U.S. military assistance from the Kingdom, without further notice. Following that, Saudi Arabia and OPEC gradually cut oil production to bring prices back up. As of now, Saudi Arabia’s 2025 fiscal breakeven price per barrel of the Brent crude benchmark is a minimum of US$90.9, according to IMF figures. So bad are the real-world ramifications of this that several ‘Vision 2030’ projects – aimed at reducing the Kingdom’s dependence on oil -- have either been suspended or radically reduced in size, including the flagship Neom City development. Initially-costed at US$1.5 trillion the linear city project located has been cut back in size from 106 miles long to just 1.6 miles long. A deficit on both the current account and budget are still in place, and according to economic data sources Saudi Arabia’s public debt jumped 16% to over US$324 billion last year. “This gap between the spot Brent price and the level the Saudis need to breakeven fiscally looks set to run and with retaliatory options cut off now Trump’s in power, it looks like they’ll have to keep going to the debt markets to fill it,” a senior source in the European Union’s energy security complex exclusively told OilPrice.com last week. “This is likely to make it [Saudi Arabia] even more reliant on the U.S. over time, given the dominance of the country in the global bond markets,” he added. On top of all this, Trump ordered the ‘No Oil Producing and Exporting Cartels’ (NOPEC) Bill be made fully ready to be passed into law at minimal notice, as a further deterrent to be used against Saudi Arabia. The NOPEC Bill would make it illegal to artificially cap oil production or to set prices, as OPEC does under the leadership of the Kingdom. The Bill would also immediately remove the sovereign immunity in U.S. courts for OPEC as a group and for every one of its individual member states. This would leave Saudi Arabia open to being sued under existing U.S. anti-trust legislation, with its total liability being its estimated US$1 trillion of investments in the U.S. alone. The U.S. would then be legally entitled to freeze all Saudi bank accounts in the U.S., seize its assets in the country, and halt all use of U.S. dollars by the Saudis anywhere in the world (oil is denominated in U.S. dollars, of course). It would also allow the U.S. to go after Saudi Aramco and its assets and funds, as it is still a majority state-owned production and trading vehicle. This would mean that Aramco could be ordered to break itself up into smaller, constituent companies that are not deemed to break competition rules in the oil, gas, and petrochemicals sectors or to influence the oil price.
Oil prices jump over 3% on US-China tariff reductions - Oil prices rose more than $2 in Asian trading on Monday after the US and China said they would ease some of their tariff measures, lifting market sentiment that the world’s two largest crude users may be moving toward resolving their trade dispute. Brent crude futures climbed $2.11, or 3.3%, to $64.14 a barrel by 0714 GMT. US West Texas Intermediate (WTI) crude futures were trading at $63.14 a barrel, up $2.12, or 3.47%, from Friday’s close. Both sides said on Monday they would suspend 24% of additional ad valorem tariffs on goods from the other country for an initial period of 90 days, in a joint statement following trade talks in Geneva over the weekend. Both benchmarks rose more than $1 on Friday and gained over 4% last week for their first weekly gains since mid-April, after a US trade deal with Britain swelled investors’ optimism that economic disruptions from US tariffs on trading partners may be avoided. The United States and China had ended trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said both had reached “important consensus”. Positive talks between the world’s two largest economies could help boost crude demand as trade, currently disrupted by massive tariffs levied by both countries, is restored between them. Toshitaka Tazawa, an analyst at Fujitomi Securities, said that OPEC’s plan to raise output capped gains. Tazawa was referring to plans by the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, to accelerate output hikes in May and June that will add more crude to the market. However, a Reuters survey found that OPEC oil output edged lower in April. Additionally, talks between Iranian and US negotiators to resolve disputes over Tehran’s nuclear programme ended in Oman on Sunday with further negotiations planned, officials said, as Tehran publicly insisted on continuing its uranium enrichment. A US-Iran nuclear deal could alleviate concerns about lower global oil supply, which could also pressure oil prices. Last week, US energy firms cut the number of oil and natural gas rigs operating to their lowest since January, energy services firm Baker Hughes said on Friday.
Oil Prices Jump on US-China Tariff Reduction -- Oil futures rallied Monday morning after the U.S. and China agreed to temporarily slash tariffs on mutual goods trade. Over the next 90 days, the U.S. will tax imports from China by 30%, and China will tariff imports from the U.S. by 10%. NYMEX-traded WTI for June delivery was up $2.09 barrel (bbl) to trade near $63.11 bbl, and ICE Brent for July delivery rose $2.08 bbl to $65.98 bbl. June RBOB gasoline futures gained $0.0536 to $2.1620 gallon, while the front-month ULSD futures contract was up $0.0655 to $2.1319 gallon. The U.S. dollar index strengthened by 1.217 points to 101.385. The 90-day pause to the trade-prohibitive reciprocal 115% in additional tariffs was negotiated over the weekend in Switzerland. This followed reports of a near-total drought in Chinese container ships bound for the U.S. Oil prices have suffered from the escalating trade war, dropping more than 20% in early April. Despite today's jump, crude oil futures are still priced some 12% lower than at the
Oil prices settle up at 2-week high as US, China ease tariffs (Reuters) - Oil prices rose about 1.5% to settle at a two-week high on Monday, after the U.S. and China agreed to temporarily slash tariffs, raising hopes of an end to the trade war between the world's two biggest economies. Brent crude futures rose $1.05, or 1.6%, to settle at $64.96 a barrel. U.S. West Texas Intermediate (WTI) crude gained 93 cents, or 1.5%, to settle at $61.95. Both benchmarks notched their highest settlements since April 28. The U.S. and China tapped the brakes on tariffs, sending Wall Street stocks, the U.S. dollar and crude prices sharply higher on hopes the world's two biggest oil consumers can end a trade war that has stoked fears of recession. "This was a larger-than-expected de-escalation and represents an upgrade to the outlook, though the negotiation process will likely remain challenging," analysts at bank ING said in a note. U.S. Federal Reserve Governor Adriana Kugler said the trade deal could make it less necessary for the Fed to cut interest rates to stimulate the economy. This pressured oil prices in early trading, since lower rates can boost oil demand. In April, oil prices fell to a four-year low as investors worried the U.S.-China trade war could depress economic growth and oil demand. Also, the Organization of the Petroleum Exporting Countries (OPEC) decided to boost oil output by more than previously expected. In Saudi Arabia, the biggest producer in OPEC, oil giant Aramco (2222.SE), opens new tab said it expects oil demand to remain resilient this year and sees further upside if the U.S. and China resolve their trade dispute. In Iraq, OPEC's No. 2 producer, crude exports were on track to decline to around 3.2 million barrels per day (bpd) in May and June, which would be a significant reduction from previous months. Oil prices gained support after Norwegian energy firm Equinor (EQNR.OL), opens new tab said it temporarily halted output from the Johan Castberg oilfield in the Arctic Barents Sea to make repairs. In the Black Sea, Black Sea CPC Blend exports via the Caspian Pipeline Consortium system were on track to ease to 1.5 million bpd in May from 1.6 million bpd in April. In Mexico, PMI, trading arm of state-owned energy company Pemex, anticipates a reduction in crude exports this year as more will be sent to local refineries, especially the new Olmeca refinery. Ongoing talks between the U.S. and Iran over Tehran's nuclear program could pressure crude prices, since Iran is OPEC's No. 3 producer and any nuclear deal could reduce sanctions on Iran's exports. Russian crude supply could also increase on global markets if U.S.-brokered talks result in peace between Russia and Ukraine. Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russia's Vladimir Putin in Turkey on Thursday after U.S. President Donald Trump told him publicly to immediately accept the Kremlin leader's proposal of direct talks. Trump raised the prospect of joining talks between Russia and Ukraine in Turkey. Russia was the world's No. 2 oil producer in 2024, according to data from the U.S. Energy Information Administration. A deal between Russia and Ukraine could reduce sanctions on Moscow and boost the amount of oil Russia can export. In India, Prime Minister Narendra Modi warned Pakistan that New Delhi would target "terrorist hideouts" across the border again if there were new attacks on India and would not be deterred by what he called Islamabad's "nuclear blackmail". India is the world's third biggest consumer of oil.
Oil Prices Decline Amid Supply Concerns - Oil prices fell on Tuesday from their highest level in two weeks, affected by concerns over rising supplies, despite earlier optimism regarding the easing of the U.S.-China trade war after both countries temporarily reduced tariffs. Brent crude futures dropped by 22 cents, or 0.3%, to $64.74 per barrel by 02:48 GMT. U.S. West Texas Intermediate (WTI) crude declined by 18 cents, or 0.3%, to $61.77. Both benchmark crudes had closed up by about 1.5% on Monday, marking their highest closing since April 28. These gains come during a volatile period for global oil markets. The United States and China agreed to a significant reduction in tariffs for at least 90 days, which led to a sharp rise in Wall Street stocks, the U.S. dollar, and crude oil prices on Monday. Analysts at ING stated in an email to clients: “While the easing of trade tensions between China and the U.S. is helpful, there is still a lot of uncertainty about what will happen over the next 90 days. This uncertainty may continue to create headwinds for oil demand.” However, the underlying divisions that led to the dispute remain unresolved, including the U.S. trade deficit with China and President Donald Trump’s demand for more action from Beijing to combat the U.S. fentanyl crisis. Markets are also focusing on increased supply as a key factor behind weaker oil prices. ING analysts added: “Although demand has been a major concern for the oil market, the increased supply from OPEC+ means the oil market is likely to remain well supplied for the rest of the year.” They noted that the adequacy of supply will depend on whether OPEC+ follows through with its plans to significantly increase output in May and June. The Organization of the Petroleum Exporting Countries (OPEC) has boosted oil production more than expected since April, and May output is likely to rise by 411,000 barrels per day. Meanwhile, analysts’ opinions are divided on U.S. crude oil inventories. A Reuters poll indicated that U.S. crude stockpiles likely fell last week, but Walter Chancellor, energy strategist at Macquarie, expects a rise in U.S. crude inventories by 7.6 million barrels.
Oil Futures Rise on Trade Optimism, Inflation Report -- Oil futures continued to climb Tuesday morning, extending gains made Monday after the U.S. and China agreed to temporarily slash tariffs on mutual goods trade. A lower-than-expected U.S. inflation report also supported the move higher. NYMEX-traded WTI for June delivery was up $0.76 barrel (bbl) to trade near $62.71 bbl, and ICE Brent for July delivery rose $0.68 bbl to $65.64 bbl. June RBOB gasoline futures gained $0.0030 to $2.1361 gallon, while the front-month ULSD futures contract was up $0.0197 to $2.1308 gallon. The U.S. Dollar Index softened by 0.274 points to 101.325. The U.S. Consumer Price Index for April, published by the Bureau of Labor Statistics Tuesday morning, was up 0.2% month-on-month and 2.3% year-on-year, slightly below expectations of 0.3% and 2.4%, respectively. This deceleration, however, was largely due to dropping energy prices. The core CPI, which excludes volatile categories like food and energy, increased 2.8% year-on-year in April, unchanged from March.
The Market Was Supported by the U.S.-China Agreement to Cut Tariffs - The oil market on Tuesday remained supported by the U.S.-China agreement to cut tariffs for at least 90 days. While the market rallied about 4% on Monday, the market on Tuesday initially remained cautious over whether the pause in the U.S.-China trade war will lead to a longer-term deal. However, the crude market found some support from a better than expected inflation report and news that the White House announced Saudi Arabia’s plans to invest $600 million in the U.S. amid President Donald Trump’s visit to Saudi Arabia. The crude market, which posted a low of $62.90 in overnight trading, rebounded and retraced its previous losses. It was supported by the CPI report, which showed that U.S. inflation in April was 2.3%, the smallest year over year gain in four years. Leading Wall Street firms have to cut forecasts for a U.S. recession in the coming months. The market posted a high of $63.88 in afternoon trading. The June WTI contract traded in a sideways trading range ahead of the close and settled up $1.72 at $63.67. The July Brent contract settled up $1.67 at $66.63. The product markets were higher, with the heating oil market settling up 6.02 cents at $2.1713 and the RB market settling up 3.29 cents at $2.1660. U.S. President Donald Trump said that Iran is the most destructive force in the Middle East, contrasting Iran’s action with what he described as positive developments on the Arabian Peninsula. Earlier, the State Department said the U.S. imposed sanctions on a shipping network it says has sent millions of barrels of Iranian oil to China, days after Iran and U.S. negotiators concluded a fourth round of nuclear talks in Oman. It said the network facilitated the shipment of oil worth billions of dollars to China on behalf of Iran’s Armed Forces General Staff and its front company, Sepehr Energy. The top aide to Ukraine’s President Volodymyr Zelenskiy, said the Ukrainian President will only attend talks if Russia’s Vladimir Putin is also there for talks to end Russia’s war in Ukraine. Ukrainian President Volodymyr Zelenskiy said he wanted to negotiate an unconditional 30-day ceasefire face-to-face with Russia’s President Vladimir Putin at this week’s talks in Istanbul because only the Russian leader could enact such a pause. S&P Global Commodity Insights reported that according to its latest OPEC+ survey, Saudi Arabia pumped 8.95 million b/d in April. Goldman Sachs estimates around $3-$4/barrel of upside risk to its Brent and WTI oil price forecast of $60/barrel and $56/barrel, respectively for the rest of 2025 and $56/barrel and $52/barrel respectively in 2026 due to the recent trade de-escalation. Saudi Arabia’s crude oil supply to China will hold steady in June after reaching the highest level in more than a year in the previous month, following OPEC+ decision to increase output. Saudi Aramco will ship about 48 million barrels to China in June, the same as in May, which was the highest amount since at least 2024.
Oil ticks lower on inventory boost despite trade truce - Oil prices pulled back during Asian trade on Wednesday as traders weighed signs of rising United States crude inventories, although markets held near two-week highs.By 3:20 pm AEST (5:20 am GMT) Brent crude futures fell by $0.44 or 0.7% to US$66.19 per barrel, while U.S. West Texas Intermediate (WTI) crude dipped $0.39 or 0.6%, to US$63.28.Both benchmarks gained more than 2.5% in the previous session.The retreat followed a rally sparked by Monday’s agreement between the U.S. and China to ease their tariff dispute. The U.S. agreed to cut tariffs from 145% to 30%, while China lowered its duties on U.S. goods from 125% to 10%, pausing their trade war for at least 90 days.Traders are also digesting preliminary data from the American Petroleum Institute showing U.S. crude inventories rose by 4.29 million barrels for the week ended 9 May, well above expectations of a 2.4 million barrel draw.Official figures from the U.S. Energy Information Administration are expected later Wednesday (Thursday AEST).Geopolitical developments are also in focus as President Donald Trump commenced a high-profile Gulf trip. Speaking at an investment forum in Riyadh on Tuesday, he announced that the U.S. would lift long-standing sanctions on Syria and revealed a US$600 billion investment pledge from Saudi Arabia.Simultaneously, the U.S. imposed new sanctions on roughly 20 companies accused of assisting Iran’s Armed Forces General Staff and its front company, Sepehr Energy, in shipping oil to China.
WTI Rebounds From Overnight Dip But 'Drill, Baby, Drill' Remains Elusive --Oil prices are marginally lower this morning after four straight sessions of gains driven by tariff optimism, following a bigger than expected build in crude stocks reported by API overnight. The rise in stocks comes as OPEC+ readies to add another 411,000 barrel per day tranche of supply to the market as it unwinds 2.2-million barrels per day of voluntary production cuts. The new supply is likely to check prices as Saudi Arabia looks to regain market share and respond to a U.S. call for lower prices, even as U.S. President Donald Trump began the first presidential trip of his current term with a visit to Riyadh on Tuesday. "While OPEC officials maintain that the US played no role in the decision to accelerate the phase -in of the voluntary barrels, the oil price environment has provided a beneficial backdrop to the Presidential visit from the Washington standpoint, All eyes now on the official data for confirmation of builds...API
- Crude +4.29mm
- Cushing -850k
- Gasoline -1.37mm
- Distillates -3.68mm
DOE
- Crude +3.45mm
- Cushing -1.07mm
- Gasoline -1.02mm
- Distillates -3.16mm
The official data echoed API's report with a sizable crude build but draws at the Cushing Hub and in products... Graphs Source: Bloomberg. In a week when the Trump administration proposes a major bill to refill the SPR, total crude stocks rose around 4mm barrels (including 528k barrels to the SPR)...US crude production rose very modestly last week but along with the rig count is basically unchanged since President Trump's election...OPEC released its May Monthly Oil Market Report on Wednesday, sticking with its forecast for 2025 demand growth of 1.3-million barrels per day, higher last week's estimate from the Energy Information Administration for demand growth of one-million bpd this year. The International Energy Agency will release its monthly outlook on Thursday.The cartel also lowered its estimate from production growth for countries outside of OPEC+ by 100,000 bpd to 0.8-million bpd.WTI is rallying back from overnight weakness...
The Market Remained Cautious Amid the Uncertainties Around Global Trade Negotiations - The oil market posted an inside trading day as the market remained cautious amid the lingering uncertainties around global trade negotiations. The market traded to its high of $63.68 in overnight trading as the market remained supported by a de-escalation in the trade war between the U.S. and China, the softer inflation data and new sanction on Iranian oil. However, the market gave up its gains in early morning trading and posted a low of $62.75 in anticipation of the EIA’s oil inventory report showing builds in crude stocks for the week ending May 9th after the API late Tuesday afternoon reported a crude stock build of over 4 million barrels on the week. The market was also pressured by OPEC maintaining its forecast for global oil demand growth as it prepares to accelerate its output hikes for a second month in June and lowered its supply growth estimates from countries outside of OPEC+. The market later bounced off its low and traded in a sideways trading range during the remainder of the day. The June WTI contract settled down 52 cents at $63.15 and the July Brent contract settled down 54 cents at $66.09. Meanwhile, the product markets ended the session higher amid the draws in product stocks, with the heating oil market settling up 3.48 cents at $2.2061 and the RB market settling up 40 points at $2.17. The U.S. Treasury Department said the U.S. issued new Iran-related sanctions on Wednesday. The sanctions target individuals and entities in China and Iran.French Foreign Minister, Jean-Noel Barrot, said the European Union approved a 17th sanctions package on Russia, adding that the bloc would now turn to working on further, tougher sanctions in coordination with the United States.OPEC cut its forecast for growth in oil supply from the United States and other producers outside the OPEC+ group this year and said it expected lower capital spending following a decline in oil prices. In its monthly report, OPEC said supply from non-OPEC+ countries will increase by about 800,000 bpd in 2025, down from last month’s forecast of 900,000 bpd. A slowdown in supply growth outside OPEC+ would make it easier for OPEC+ to balance the market. While the United States is still expected to drive supply growth, OPEC expects U.S. total oil output to increase by about 300,000 bpd this year, down from a previous forecast of 400,000 bpd. It left its forecasts for global oil demand growth unchanged in 2025 and 2026 at 1.3 million bpd and 1.28 million bpd, respectively.Platts reported that despite the increases in quotas in April by OPEC+, overall production by the group stayed flat at 41.01 million b/d. Platts survey found that serial overproducers Iraq and Kazakhstan both cut output in April by 20,000 b/d and 30,000 b/d, respectively.IIR Energy said U.S. oil refiners are expected to shut in about 714,000 bpd of capacity in the week ending May 16th, increasing available refining capacity by 560,000 bpd. Offline capacity is expected to fall to 227,000 bpd in the week ending May 23rd. The EPA reported that U.S. generated 592 million biodiesel blending credits in April, up from 573 million in March. It also reported that the U.S. generated 1.16 billion ethanol blending credits in April, down from 1.21 billion in March.
Oil prices plunge over 3% on hopes of U.S.-Iran nuclear deal - Oil prices declined sharply on Thursday, dropping by nearly $2 per barrel amid growing expectations of a U.S.-Iran nuclear agreement that could lead to the easing of sanctions and the return of more Iranian crude to global markets. Brent crude fell by $1.98, or 3%, to $64.11 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $2, or 3.2%, to $61.15. U.S. President Donald Trump stated that Washington was nearing a nuclear deal with Tehran, indicating that Iran had “sort of” agreed to the terms. A senior Iranian official, in an interview with NBC News, said Iran was open to a deal in exchange for the lifting of economic sanctions. Such a development could potentially allow up to 800,000 barrels per day of Iranian oil to re-enter the market, putting downward pressure on prices. In parallel to the diplomatic talks, the U.S. continued to apply sanctions on Iran, targeting domestic missile component production and a network of companies involved in shipping Iranian oil to China. These actions followed the fourth round of negotiations in Oman focusing on Iran’s nuclear program. Adding to market concerns, the U.S. Energy Information Administration reported a surprise increase in crude inventories. Stockpiles rose by 3.5 million barrels to 441.8 million last week, contrary to expectations of a drawdown, intensifying fears of an oversupplied market. Meanwhile, the International Energy Agency revised its oil demand growth forecast for 2025 to 740,000 barrels per day, a slight upward adjustment driven by improved economic projections and lower oil prices supporting consumption. However, the agency warned that economic challenges and record electric vehicle sales are expected to slow demand growth to 650,000 barrels per day for the remainder of the year, down from nearly one million in the first quarter. OPEC and its allies, collectively known as OPEC+, have been steadily increasing supply, though OPEC recently lowered its forecast for non-OPEC+ supply growth, particularly from the United States and other producers outside the alliance.
Oil Prices Sink 4% on Hints of U.S.-Iran Deal -Oil prices dipped by 4% early on Thursday after U.S. President Donald Trump said the United States were close to a nuclear deal with Iran, while a top Iranian officials hinted at Tehran abandoning uranium enrichment if the U.S. lifts the economic sanctions. In Asian and early European trade on Thursday, the U.S. oil benchmark, WTI Crude, was down by 4.12% at $60.58 a barrel, while the international benchmark, Brent Crude, was falling by 3.80% on the day and traded at $63.52 per barrel. Oil came under pressure late on Wednesday after the U.S. Energy Information Administration (EIA) confirmed a crude oil inventory increase of 4 million barrels during the week ending May 9. On Tuesday, the American Petroleum Institute (API) reported a surprise build in US crude oil inventories of 4.287 million barrels in U.S. crude oil inventories with draws in gasoline and distillate stocks.The slide in oil prices intensified early on Thursday, after President Trump said“We're in very serious negotiations with Iran for long-term peace.” “We're getting close to maybe doing a deal without having to do this... there (are) two steps to doing this, there is a very, very nice step and there is the violent step, but I don't want to do it the second way,” President Trump told a pool of reporters during his tour of the Middle East. Meanwhile, Ali Shamkhani, a top political, military, and nuclear adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, told NBC News that Iran is ready to sign a nuclear deal with the United States under certain conditions, including the U.S. lifting the sanctions on Tehran. These comments came hours after the U.S. Treasury slapped additional sanctions on Iran, designating nearly two dozen firms operating in multiple jurisdictions in virtually every aspect of Iran’s illicit international oil trade.
Oil prices settled down 2% on expectations for US-Iran nuclear deal (Reuters) - Oil prices settled lower on Thursday on expectations for a U.S.-Iran nuclear deal that could result in sanctions being eased and more barrels released onto the global market. Brent crude futures settled down $1.56, or 2.36%, to $64.53 a barrel. U.S. West Texas Intermediate crude futures settled down $1.53, or 2.42%, to $61.62. U.S. President Donald Trump said on Thursday that the U.S. was getting close to securing a nuclear deal with Iran, and Tehran had "sort of" agreed to the terms. An Iranian official told NBC News in an interview published on Wednesday that Iran was willing to agree to a deal with the U.S. in exchange for lifting economic sanctions. "(Any) immediate sanctions relief stemming from a nuclear agreement could unlock an additional 0.8 million barrels per day of Iranian crude for the global market – an undeniably bearish development for prices," SEB analyst Ole Hvalbye said. Washington issued sanctions on Wednesday to target Iranian efforts to domestically manufacture components for ballistic missiles, the U.S. Treasury Department said, following Tuesday's sanctions on some 20 companies in a network that it said has long sent Iranian oil to China. The sanctions followed a fourth round of U.S.-Iran talks in Oman aimed at addressing disputes over Iran's nuclear programme. "We are swinging between President Trump zeroing out Iran to bringing them into the community of nations, so the threat to supply is in both directions, with either some Iranian barrels continually snuck onto the market or we get the full benefit of Iranian production, that is what is swinging the price," Elsewhere, Russia's Vladimir Putin spurned a challenge to meet face-to-face with Ukrainian President Volodymyr Zelenskiy in Turkey on Thursday, dealing a blow to prospects for a peace breakthrough. Zelenskiy said Putin's decision to send what he called a "decorative" lineup showed the Russian leader was not serious about ending the war. Meanwhile, the International Energy Agency lifted its oil demand growth forecast in 2025 to 740,000 barrels per day, up 20,000 bpd from the previous report, citing higher economic growth forecasts and lower oil prices supporting consumption. The IEA said economic headwinds and record sales of electric vehicles are expected to reduce demand growth to 650,000 bpd for the remainder of the year, from growth of nearly 1 million bpd in the first quarter. The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply, although OPEC on Wednesday trimmed its forecast for growth in oil supply from the U.S. and other producers outside the wider OPEC+ group this year. Weighing on prices, data from the U.S. Energy Information Administration on Wednesday showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel draw. Black Sea CPC Blend crude oil exports are pencilled in at 1.6 million to 1.7 million bpd in June, several trading sources with knowledge of the month's loadings told Reuters. At that level, loadings will be higher than the approximately 1.5 million bpd scheduled for export in May.
Oil Prices Rise on U.S.-China Trade Truce, Eye 1% Weekly Gain - Oil prices rose slightly on Friday, recovering some ground after a sharp drop in the previous session, as optimism surrounding U.S.-China trade relations offset concerns about a potential increase in Iranian oil supply. As of early Friday trading, Brent crude futures were up by 17 cents, or 0.26%, reaching $64.70 per barrel. Meanwhile, U.S. At $61.80 a barrel, West Texas Intermediate (WTI) crude increased 18 cents, or 0.29%. The gains put oil on track for a weekly rise of more than 1%, despite Thursday’s decline of over 2%. U.S. President Donald Trump suggested Tehran had tentatively accepted the plan, implying that Washington was getting close to a nuclear accord with Iran. However, sources close to the negotiations noted that key issues remained unresolved. Earlier in the week, oil markets saw a boost from renewed trade optimism after the U.S. and China—two of the world’s largest oil consumers—agreed to a 90-day pause in their trade dispute. The temporary truce, which includes a rollback in tariffs, helped ease investor fears about global economic slowdown and its impact on energy demand. Still, oil market sentiment remains fragile, influenced by concerns over potential increases in supply, particularly from Iran if sanctions are lifted. Analysts also point to rising output from OPEC+ countries, which could further weigh on prices. In a client note, ANZ Bank highlighted that easing geopolitical tensions had tempered bullish momentum, while worries about rising output among oil-producing nations added to market caution. The International Energy Agency (IEA) added to supply-side concerns on Thursday, projecting that global oil production could increase by 1.6 million barrels per day this year—an upward revision of 380,000 barrels per day from its previous forecast. The adjustment comes as major producers, including Saudi Arabia and other OPEC+ members, scale back earlier output cuts. With both demand-side optimism and supply-side risks in play, traders remain cautious as the global oil market continues to navigate a complex mix of economic and geopolitical factors.
Oil Prices Steady as Quick Iran Deal Seems Less Certain (DTN) -- Oil futures steadied Friday morning after comments by Iranian officials cast doubt on the alleged progress made in negotiations with the U.S. delegation in Oman. U.S. President Trump on Thursday hinted at a possible Iran nuclear deal, which would likely see the removal of some sanctions on Iranian oil trade and bring back several hundred thousand bpd in additional supply to the market, causing prices to drop.NYMEX-traded WTI for June delivery was down $1.50 bbl to trade near $61.65 bbl, and ICE Brent for July delivery fell $1.54 bbl to $64.55 bbl.June RBOB gasoline futures softened by $0.0457 to $2.1243 gallon, while the front-month ULSD futures contract was down $0.0512 to $2.1549 gallon.The U.S. Dollar Index softened by 0.333 points to 100.540.Iranian Foreign Minister Araghchi denied reports of receiving a written proposal from the U.S. According to a report by Bloomberg, the minister saw "many opposing and contradictory positions" from the U.S. delegation. This stood in contrast to comments made by U.S. President Trump on Thursday in which he claimed the two parties were "getting close to maybe doing a deal" after the fourth round of nuclear talks in Oman. The potential return of Iranian barrels added to oversupply woes caused by a global economic slowdown and OPEC+ opening the spigots. The International Energy Agency, in its most recent oil market report published Thursday, projected global oil demand to slow from 990,000 bpd in the first quarter to 650,000 bpd during the remainder of the year. At the same time, global supply is now expected to rise even faster given OPEC's commitment to rolling back output curbs. The forecasted growth in global supply this year, now at 1.6 million bpd, is more than twice the anticipated demand growth rate of 740,000 bpd.
Oil posts weekly gain but remains under supply hike pressure (Reuters) - Oil settled higher on Friday, notching a second straight week of gains on easing U.S.-China trade tensions, although prices were held back by expectations of higher supply from Iran and OPEC+. Brent crude futures settled up 88 cents, or 1.4%, at $65.41 per barrel, while U.S. West Texas Intermediate crude futures closed 87 cents, or 1.4% higher at $62.49. The benchmarks posted a weekly rise of 1% and 2.4% respectively. The contracts fell by more than 2% in the previous session on the prospect of an Iranian nuclear deal, which could result in an easing of sanctions that could see Iranian crude return to the global market. "Expected increases in OPEC+ oil production along with a more probable Iranian nuclear agreement has re-surfaced the bear trade," "Near term, with geopolitical temperatures cooling, a strong seasonal travel demand will be needed in the coming months to counter the expected rises in supplies," U.S. President Donald Trump said on Thursday the U.S. was nearing a nuclear deal with Iran, with Tehran "sort of" agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve. ING analysts wrote in a note that a nuclear deal lifting sanctions would allow Iran to increase oil output, resulting in additional supply of around 400,000 barrels per day. Investor sentiment was boosted this week by the U.S. and China, the world's two biggest oil consumers and economies, agreeing to a 90-day pause on their trade war during which both sides would sharply lower trade duties. The hefty reciprocal tariffs had raised concerns about a sharp blow to global growth and oil demand. Analysts at BMI, a unit of Fitch Solutions, said in a research report, however, that "while the 90-day cooling off period leaves the door open for additional progress on lowering trade barriers on both sides, the uncertainty on longer-term trade policy will limit price upside." Keeping a lid on supply additions, Kyiv and Moscow failed to agree to a ceasefire at their first direct talks in more than three years, with Russia presenting conditions that a Ukrainian source described as "non-starters". Israel struck Yemen's Red Sea ports of Hodeidah and Salif on Friday, continuing its campaign to degrade Houthi military capabilities. On the U.S. supply side, oil rigs fell by 1 to 473 this week, their lowest since January, energy services firm Baker Hughes said in its closely followed report on Friday. The dollar rose on Friday after the latest round of economic data showed a jump in import prices while consumer sentiment remained subdued, putting it on pace for a fourth straight weekly advance.
Kurdish PKK Will Disarm and Disband, Seeking End to Decades of Conflict in Turkey - In an announcement on Monday, the Kurdistan Workers’ Party (PKK) announced that they have agreed to totally disarm and disband, aiming toend a multi-decade conflict with the Turkish government.Turkish President Erdogan praised the move, calling it a move toward “peace and fraternity” in Turkey. Tens of thousands of Kurds were killed in the conflict, according to the Turkish government, since the PKK began armed resistance in 1984.The dissolution of the PKK was agreed upon at a party congress meeting in northern Iraq on Friday, though the announcement, which was called “pending” at the time, only came on Monday.The PKK is labeled a terrorist organization in Turkey and has been banned in Germany (which has a large Turkish population) since 1993. The EU also has considered it a terrorist organization since 2002. Germany says its dissolution won’t change their stance of banning them.The PKK has its origins in the military coups in Turkey in 1971 and 1980. After the 1980 coup, Turkey banned Kurdish language use in public or private, and started imprisoning Kurdish speakers. They also banned traditional Kurdish clothing and even forbade giving children a Kurdish name.This fueled a violent insurgency, which was cracked down on heavily for decades. The Turkish government didn’t officially even recognize the Kurdish people as a distinct population until 1991, previously simply categorizing them as “Mountain Turks.”The PKK’s founder and leader was Abdullah Öcalan who was captured in 1999 and is still being held by Turkey. He called for the PKK to be disbanded back in February via a statement from his prison on Imrali island. He also reported submitted a statement to the party congress that met Friday and decided to disband.Öcalan said that the insurgency had reach a point that the “Kurdish issue”could be resolved through democratic politics. The end of the PKK could also have impact internationally, at least so far as the Turkish government is concerned.That’s because Turkey has tended to present Kurdish separatist movements in other countries as effectively wings of the PKK. The clearest example is in Syria, where the largest member of the Kurdish SDF bloc, the YPG, is officially considered by Turkey to be part of the PKK, and subsequently Turkey has been targeting the SDF militarily for years on this basis.
Arab Leaders Condemn Gaza Genocide, Urge Action at Baghdad Summit -The 34th Arab League Summit opened in Baghdad on Saturday amid growing regional turmoil and urgent calls to end the Israeli war on the Gaza Strip.The summit, held under the theme “Dialogue, Solidarity, and Development”, convenes as the situation in Gaza reaches what Iraq’s Prime Minister described as an “unprecedented stage of genocide,” with continued Israeli bombardment, mass displacement, and a worsening humanitarian catastrophe.Attending the summit are several Arab heads of state and senior officials, including the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, Egyptian President Abdel Fattah el-Sisi, Palestinian Authority President Mahmoud Abbas, and Lebanese Prime Minister Nawaf Salam. Spanish Prime Minister Pedro Sanchez and UN Secretary-General António Guterres were also present, underscoring the international dimension of the crisis. Iraqi Prime Minister Mohammed Shia al-Sudani, who assumed the rotating presidency of the Arab Summit, used his opening remarks to denounce the Israeli campaign in Gaza, calling for serious and united Arab action to halt the genocide and open humanitarian corridors.“The war in Gaza has reached a horrifying and unprecedented stage,” al-Sudani said, adding that Arab countries must act collectively to stop the bloodshed and ensure the delivery of aid. Egyptian President Abdel Fattah el-Sisi echoed these concerns, stating that Palestinians are being subjected to systematic efforts aimed at erasing their presence in Gaza. He called on US President Donald Trump to intervene and push for a ceasefire, and announced that Egypt is preparing an international conference to coordinate the reconstruction of Gaza once hostilities end.Sisi also commented on the broader implications of the Gaza crisis, urging fellow leaders to resist regional destabilization and to work together toward solutions in Libya and Sudan.
UN Agencies Condemn US-Israeli Plan To Use Aid as 'Bait' To Force Palestinians in Gaza To Head South - UN aid agencies have condemned a US-Israeli plan to use aid as “bait” to forcibly displace Palestinian civilians into a small area of southern Gaza. US Ambassador to Israel Mike Huckabee unveiled the plan on Friday, although there’s no clear timeline, and Gaza remains under a total Israeli blockade, pushing millions of civilians into starvation. Huckabee said the effort will be headed by a newly formed private foundation, and the aid distribution will be carried out by private US security contractors. He said four aid distribution sites would be established and admitted that the program would initially only feed about 1.2 million people, or about 60% of Gaza’s population.When pressed on the lack of a plan to feed the rest of the Palestinian population of Gaza, Huckabee said it would be “scaled up” over time. An Israeli official speaking to The Times of Israel said Israel hoped other countries would begin taking in Palestinians to minimize the need for aid, meaning Israel intends to use the threat of starvation to push for ethnic cleansing.The Times of Israel report also said the four aid distribution sites will be set up south of the Morag Corridor, a strip of land Israel has seized that is just north of the southern city of Rafah. Under its plans to escalate the assault on Gaza, Israel wants to “concentrate” all of Gaza’s civilian population into this tiny area.Once Palestinians are forced into a concentration camp in the south, Israelwould then pressure them to leave Gaza, although it’s unclear where they would go. “The Gazan citizens will be concentrated in the south. They will be totally despairing, understanding that there is no hope and nothing to look for in Gaza, and will be looking for relocation to begin a new life in other places,” said Israeli Finance Minister Bezalel Smotrich.James Elder, a spokesman for the UN’s Palestinian relief agency, UNRWA, said establishing the aid distribution centers in the south would give Palestinians the “impossible choice between displacement and death.” He said the plan “contravenes basic humanitarian principles” and appears designed to “reinforce control over life-sustaining items as a pressure tactic.”
Pope Leo XIV Calls for Peace in Gaza, End to Israeli Blockade on Aid - Pope Leo XIV called for a ceasefire in Gaza and an end to the Israeli blockade of aid on Sunday in his first Sunday blessing since being elected pontiff last week. “I am deeply pained by what is happening [in Gaza,” Leo said from the loggia of St. Peter’s Basilica. “Let the fighting cease immediately, let humanitarian aid be provided to the exhausted civilian population, and may all hostages be released.”The pope also called for a ceasefire in Ukraine, saying, “I carry in my heart the sufferings of the beloved Ukrainian people. Let everything possible be done to achieve genuine, just and lasting peace as soon as possible.”Leo, the first US-born pontiff, welcomed the ceasefire between India and Pakistan and made an appeal to world leaders for peace and an end to war. “In today’s dramatic context of a third world war fought piecemeal … I too appeal to the powerful of the world by repeating these ever-relevant words: ‘never again war!'” he said.The pope made the remarks after singing the Regina Caeli (Queen of Heaven) prayer, which is recited throughout the Easter season. He closed his address with a “heartfelt appeal” to Mary Queen of Peace, “so that she may present it to the Lord Jesus and obtain for us the miracle of peace.” Leo’s comments signal he will continue the late Pope Francis’s emphasis on the issues of war and peace. Francis frequently called for peace in Gaza and was highly critical of Israel’s conduct, suggesting in his last book that there should be an investigation into whether it constitutes genocide.
Multiple Western Press Outlets Have Suddenly Pivoted Hard Against Israel -- Caitlin Johnstone -After a year and a half of genocidal atrocities, the editorial boards of numerous British press outlets have suddenly come out hard against Israel’s genocidal onslaught in Gaza. The first drop of rain came last week from The Financial Times in a piece by the editorial board titled “The west’s shameful silence on Gaza,” which denounces the US and Europe for having “issued barely a word of condemnation” of their ally’s criminality, saying they “should be ashamed of their silence, and stop enabling Netanyahu to act with impunity.”Then came The Economist with a piece titled “The war in Gaza must end,” which argues that Trump should pressure the Netanyahu regime for a ceasefire, saying that “The only people who benefit from continuing the war are Mr Netanyahu, who keeps his coalition intact, and his far-right allies, who dream of emptying Gaza and rebuilding Jewish settlements there.”On Saturday came an editorial from The Independent titled “End the deafening silence on Gaza — it is time to speak up,” arguing that British PM Keir Starmer “should be ashamed that he said nothing, especially since Mr Netanyahu has now announced new plans to expand the already devastating bombardment of Gaza,” and saying that “It is time for the world to wake up to what is happening and to demand an end to the suffering of the Palestinians trapped in the enclave.”On Sunday The Guardian editorial board joined in with a write-up titled “The Guardian view on Israel and Gaza: Trump can stop this horror. The alternative is unthinkable,” saying “The US president has the leverage to force through a ceasefire. If he does not, he will implicitly signal approval of what looks like a plan of total destruction.”“What is this, if not genocidal?” The Guardian asks. “When will the US and its allies act to stop the horror, if not now?”To be clear, these are editorials, not op-eds. This means that they are not the expression of one person’s opinion but the stated position of each outlet as a whole. We’ve been seeing the occasional op-ed which is critical of Israel’s actions throughout the Gaza holocaust in the mainstream western press, but to see the actual outlets come out aggressively denouncing Israel and its western backers all at once is a very new development.Some longtime Israel supporters have unexpectedly begun changing their tune as individuals as well.Conservative MP Mark Pritchard said at the House of Commons last week that he had supported Israel “at all costs” for decades, but said “I got it wrong” and publicly withdrew that support over Israel’s actions in Gaza.“For many years — I’ve been in this House twenty years — I have supported Israel pretty much at all costs, quite frankly,” Pritchard said. “But today, I want to say that I got it wrong and I condemn Israel for what it is doing to the Palestinian people in Gaza and indeed in the West Bank, and I’d like to withdraw my support right now for the actions of Israel, what they are doing right now in Gaza.”“I’m really concerned that this is a moment in history when people look back, where we’ve got it wrong as a country,” Pritchard added. Pro-Israel pundit Shaiel Ben-Ephraim, who had been aggressively denouncing campus protesters and accusing Israel’s critics of “blood libel” throughout the Gaza holocaust, has now come out and publicly admitted that Israel is committing a genocide which must be opposed.“It took me a long time to get to this point, but it’s time to face it. Israel is committing genocide in Gaza,” Ephraim tweeted recently. “Between the indiscriminate bombing of hospitals, starvation of the population, plans for ethnic cleansing, slaughter of aid workers and cover ups, there is no escaping it. Israel is trying to eradicate the Palestinian people. We can’t stop it unless we admit it.”It is odd that it has taken all these people a year and a half to get to this point. I myself have a much lower tolerance for genocide and the mass murder of children. If you’ve been riding the genocide train for nineteen months, it looks a bit weird to suddenly start screaming about how terrible it is and demanding to hit the brakes all of a sudden.These people have not suddenly evolved a conscience, they’re just smelling what’s in the wind. Once the consensus shifts past a certain point there’s naturally going to be a mad rush to avoid being among the last to stand against it, because you know you’ll be wearing that mark for the rest of your life in public after history has had a clear look at what you did.
Italy Breaks Ranks: ‘Enough!’ Tajani Demands Israel Halt Gaza Genocide - Italy’s Foreign Minister Tajani urgently called on Israel to halt its war on Gaza, emphasizing the intolerable suffering of Palestinian civilians and demanding a ceasefire for peace and the release of captives. In an unprecedented display of condemnation, Italian Foreign Minister Antonio Tajani has issued a stark rebuke to Israel, demanding an immediate cessation of its relentless military offensive in the besieged Gaza Strip. Tajani’s forceful words reflect a growing tide of international outrage against the devastating human cost of the Israeli genocide in Gaza, which Palestinian health authorities report has claimed the lives of at least 146 people in the past 24 hours alone.“We have to tell the Israeli government, ‘That’s enough’,” Tajani declared in a statement, marking a significant departure from Italy’s previously unwavering support for Israel. “We no longer want to see the Palestinian population suffer. Stop the attacks, let’s secure a ceasefire, free the hostages, but leave in peace a people who are victims of Hamas.”Tajani’s intervention comes amidst Israel’s announcement of mobilizing to expand its operations in Gaza, a move that has triggered widespread alarm and condemnation. The minister’s words resonate with the cries of a global community witnessing the systematic destruction of Gaza, where over 53,000 Palestinians, primarily civilians, have been slaughtered since October 7, 2023.The situation in Gaza remains catastrophic, with nearly all of its 2 million residents displaced and enduring unimaginable suffering. The relentless Israeli bombardment, supported by the United States, continues to reduce homes, hospitals, and schools to rubble, creating a humanitarian crisis of immense proportions.
Israel Launches Nine Bunker Busting Missiles at Gaza's European Hospital - Israeli security officials stated that Tel Aviv launched nine bunker busting missiles into and around the courtyard of southern Gaza’s European hospital near Khan Younis on Tuesday. At least 28 people have been killed and 70 others wounded including a journalist hit with shrapnel. Nermeen Ziyad Abo Mostafa, a medical student, living in a house near the hospital posted on social media describing the terror during the attack. “My heart almost stopped, a continuous belt of fire… We started running from one corner to another, shouting at each other to gather in [one] place, I could not feel my ears from the force of the successive explosions, the fire of the bombs lit up everywhere even though it was not night,” she wrote. As The Washington Post noted, “The hospital, one of Gaza’s largest, has frequently housed displaced Palestinians along with patients and staff over the course of the war. It was knocked out of service in July after the Israeli military ordered its evacuation, then reopened in August with the help of PalMed Europe, a Paris-based nonprofit of Palestinian doctors.” Haaretz, the Israeli newspaper, reported that Shin Bet and the IDF released a joint statement asserting Tel Aviv’s strike was intended to hit a “command and control center” beneath the hospital. No evidence has been provided to support this claim, which is Tel Aviv’s standard pseudo justification offered up for attacking hospitals in flagrant violation of international humanitarian law.This closely follows another strike the same day on the third floor of the Nasser Hospital in Khan Younis which killed journalist Hassan Aslih, who had been repeatedly targeted by Israeli forces. Several others were wounded. Aslih was a patient at Nasser, receiving treatment for wounds he sustained in a previous strike, when he was killed today along with another patient. According to Reuters, at the time of the strike, “[on the third floor] dozens of patients and injured were being treated.”Social media footage shows large explosions taking place when the missiles made impact with the European Hospital, other videos show Palestinians attempting to rescue people buried under the sand after the bombing. The Israeli army claims the attack was also an assassination attempt on the life of Mohammed Sinwar, the brother of former Hamas leader Yahya Sinwar who was killed by the IDF in Rafah last October. There is, as yet, no verification on whether Mohammed Sinwar was killed in the strike or indeed was present at the hospital when it was attacked.
Israel Admits It Bombed A Hospital To Kill A Journalist For Doing Journalism - Caitlin Johnstone - The IDF has admitted to bombing a hospital in order to assassinate a prominent Palestinian journalist in Gaza, explicitly stating that they assassinated him for engaging in journalistic activities. The official Israel Defense Forces account made the following post on Twitter: “Don’t let Aslih’s press vest fool you: Hassan Abdel Fattah Mohammed Aslih, a terrorist from the Hamas Khan Yunis brigade, was eliminated along with other terrorists in the ‘Nasser’ hospital in Khan Yunis. Aslih participated in the brutal October 7 massacre under the guise of a journalist and owner of a news network. During the massacre, he documented acts of murder, looting, and arson, posting the footage online. Journalist? More like terrorist.” Documenting newsworthy acts and posting the footage online is also known as journalism. It’s the thing that journalism is. Aslih was killed in the hospital’s burn unit where he was recovering from a previous Israeli assassination attempt in which they bombed a tent near that same hospital. That’s right kids, Israel will literally assassinate a journalist by bombing a hospital, openly admit that they bombed the hospital to assassinate the journalist for engaging in journalistic activities — and then call you an antisemite if you say Israel bombs hospitals and assassinates journalists.
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