oil prices rose for the first time in three weeks on growing supply concerns, resumption of US-China trade talks, and what the market perceived as a beater than expected US jobs report….after falling 1.2% to $60.79 a barrel last week as OPEC met and decided to increase their production again in July, the contract price for the benchmark US light sweet crude for July delivery climbed nearly 3% during Asian trading on Monday amid rising tensions after Ukraine targeted several military air bases in Russia, then hit a high of $63.88 by mid-morning in New York before it retraced some of its gains and traded back towards the $62 level before settling $1.73 higher at $62.52 a barrel on supply concerns, given that OPEC+ decided not to accelerate plans to hike output, and since wildfires in Canada's oil-producing province had disrupted production….oil prices rose in early Asian trading again on Tuesday on growing supply concerns, as Iran appeared poised to reject a proposed U.S. nuclear deal that would be key to easing sanctions on their signifcant oil production, while wildfires further disrupted production in Canada, then continued to trade higher in New York, supported by concerns over the wildfires in Canada’s province of Alberta that had shut in more than 344,000 bpd of oil sands production, and settled 89 cents higher at $63.41 a barrel, amid ongoing concerns about supplies, due to escalating geopolitical tensions and stuttering U.S.-Iran nuclear talks…oil prices edged lower in early Asian trade on Wednesday, weighed down by a loosening supply-demand balance following increasing OPEC+ output, and on lingering concerns over the global economic outlook due to tariff tensions, then tumbled in New York on a report that Saudi Arabia wanted OPEC+ to continue with accelerated oil supply hikes in the coming months, as it put greater importance on regaining lost market share, and settled 56 cents lower at $62.85 a barrel after U.S. data showed surprisingly large builds in gasoline and diesel inventories, resulting from weaker demand post-Memorial Day….oil prices ticked lower during Asian trading on Thursday, pressured by a surprise build in United States fuel stockpiles and price cuts by Saudi Arabia for July crude deliveries to Asia, but rebounded sharply Thursday morning in New York following a Chinese state media report of a phone call between U.S. President Trump and his Chinese counterpart Xi Jinping, sparking hopes of easing trade tensions between the U.S. and China, and settled the day’s session 52 cents higher at $63.37 a barrel after Trump said his call with Xi focused on trade and led to "a very positive conclusion," in announcing further lower-level U.S.-China discussions….oil prices dipped on global markets early on Friday as volatility in the global commodity markets persisted, driven by a complex mix of supply-demand imbalances and geopolitical tensions. but steadied Friday morning in New York on signs of resuming Sino-American trade talks. then rallied as stronger-than-expected US jobs data eased concerns about an economic slowdown and spurred algorithmic traders to cover short positions and settled $1.21 or 2% higher at $64.58 a barrel, further supported by a sharp decline in US drilling activity, leaving oil prices 6.2% higher for the week..
meanwhile, natural gas prices finished higher for a second time in three weeks as traders looked past short term weakness to higher LNG demand and greater demand for cooling by the end of the month…after falling 7.5% to $3.447 per mmBTU last week as another outage at the plagued Freeport LNG plant reduced US demand by 2%, the price of the benchmark natural gas contract for July delivery opened 24 cents higher on Monday and rose to an intraday high of $3.731 by 9:25 AM, as lower production and warmer temperature forcasts led to a bout of short covering, then traded within a tight band near $3.70 for the balance of the session before settling 24.7 cents higher at $3.694 per mmBTU on a drop in output and forecasts for warmer weather and higher demand…natural gas opened 1.9 cents lower on Tuesday and slumped to an intraday low of $3.631 by 9:20 AM, as annual maintenance at LNG plants curtailed exports and overshadowed a slowdown in production, but trended higher soon thereafter and rose to a three-week intraday high of $3.764 at 1:15 PM, before settling 2.8 cents higher at $3.722 per mmBTU as US well output was on track to drop to a three-month low, while Canadian gas was trapped in the nation's biggest gas-producing province by widespread wildfires… the July contract opened 2.5 cents lower on Wednesday and remained rangebound through the session, as near-term weak demand offset forecasts for July heat, and settled 0.6 cents lower at $3.716 per mmBTU as lower output offset forecasts for weaker demand over the next two weeks than was previously expected. ..natural gas prices opened 6.3 cents higher on Thursday, but competing fundamentals, subdued LNG production and high demand forecast or July saw prices slide nearly 10 cents ahead of the report, when prices fell another six cents before recovering to trade higher by midday, before slipping again to settle 3.9 cents lower at $3.677 per mmBTU, as the looser than expected storage print had a limited impact on prices, as traders were betting on rising temperatures and recovering LNG demand in the weeks to come….natural gas futures pushed higher in early trading Friday, as traders shifted their attention from Thursday’s larger-than-expected inventory build to a hot weather outlook beginning mid-June, then rallied through midday trading as feed gas flows to two U.S. LNG terminals paced at all-time highs ahead of pipeline outages that could squeeze Louisiana gas supply, and settled 10.7 cents higher at $3.784 per mmBTU on expectations for higher air-conditioning and LNG feedgas demand by late June, which was enough to lift natural gas prices 9.8% for the week..
The EIA’s natural gas storage report for the week ending May 30th indicated that the amount of working natural gas held in underground storage rose by 122 billion cubic feet to 2,598 billion cubic feet by the end of the week, which left our natural gas supplies 288 billion cubic feet, or 10.0% below the 2,886 billion cubic feet of gas that were in storage on May 30th of last year, but 117 billion cubic feet, or 4.7% more than the five-year average of 2,481 billion cubic feet of natural gas that had typically been in working storage as of the 30th of May over the most recent five years….the 122 billion cubic foot injection into US natural gas storage for the cited week was more than the 114 billion cubic foot addition to storage that the market was expecting ahead of the report, and also more than the 94 billion cubic foot that were added to natural gas storage during the corresponding week of 2024, as well as more than the average 98 billion cubic foot addition to natural gas storage that has been typical for the same late 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 30th indicated that after a big increase in oil flows to US refineries, we again had to withdraw oil from our stored crude supplies for the sixth time in eighteen weeks, and for the 28th time in forty-nine weeks, even after a sizable decrease in our oil exports…Our imports of crude oil fell by an average of 5,000 barrels per day to average 6,346,000 barrels per day, after rising by an average 262,000 barrels per day over the prior week, while our exports of crude oil fell by an average of 394,000 barrels per day to average 3,907,000 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 2,439,000 barrels of oil per day during the week ending May 30th, an average of 389,000 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 578,000 barrels per day, while during the same week, production of crude from US wells was 7,000 barrels per day higher at 13,408,000 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 16,425,000 barrels per day during the May 30th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 16,998,000 barrels of crude per day during the week ending May 30th, an average of 670,000 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 542,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from net imports, from storage, from transfers, and from oilfield production during the week ending May 30th averaged a rounded 31,000 barrels per day less than what what our oil refineries reported they used during the week. To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ +31,000 ] 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…(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 542,000 barrel per day average decrease in our overall crude oil inventories came as an average of 615,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while 73,000 barrels per day were being added to our Strategic Petroleum Reserve, the seventy-fourth SPR increase in the past eighty-four 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 rose to 6,157,000 barrels per day last week, which was still 9.6% less than the 6,809,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be 7,000 barrels per day higher at 13,408,000 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 12,974,000 barrels per day, while Alaska’s oil production was 1,000 barrels per day lower at 434,000 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 2.4% higher than that of our pre-pandemic production peak, and was also 38.2% 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 93.4% of their capacity while processing those 16,998,000 barrels of crude per day during the week ending May 30th, up from their 90.2% utilization rate of a week earlier, and the highest utilization rate since last July 12th, with the recent refinery slowdown initially reflecting the impact of January's below freezing weather on Gulf Coast refineries, and then an extended period of US refineries’ usual Spring maintenance…. the 16,998,000 barrels of oil per day that were refined this week were 0.9% less than the 17,144,000 barrels of crude that were being processed daily during the week ending May 31st of 2024, but were 0,4% more than the 16,938,000 barrels that were being refined during the prepandemic week ending May 31st, 2019, when our refinery utilization rate was at 91.8%, 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 lower, decreasing by 714,000 barrels per day to 9,037,000 barrels per day during the week ending May 30th, after our refineries’ gasoline output had increased by 190,000 barrels per day during the prior week.. This week’s gasoline production was 4.7% less than the 9,484,000 barrels of gasoline that were being produced daily over the week ending May 31st of last year, and 10.1% less than the gasoline production of 10,049,000 barrels per day during the prepandemic week ending May 31st, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 182,000 barrels per day to 4,994,000 barrels per day, after our distillates output had increased by 100,000 barrels per day during the prior week. Even with those production increases, our distillates output was 1.3% less than the 5,061,000 barrels of distillates that were being produced daily during the week ending May 31st of 2024, and 7.6% less than the 5,404,000 barrels of distillates that were being produced daily during the pre-pandemic week ending May 31st, 2019…
Even with this week’s decrease in our gasoline production, our supplies of gasoline in storage at the end of the week rose for the fourth time in fourteen weeks, increasing by 5,219,000 barrels to 228,300,000 barrels during the week ending May 30th, after our gasoline inventories had decreased by 2,441,000 barrels to a twenty-three week low during the prior week. Our gasoline supplies rose this week because the amount of gasoline supplied to US users fell by 1,189,000 barrels per day to a nineteen week low of 8,263,000 barrels per day, and even though our exports of gasoline rose by 312,000 barrels per day to 938,000 barrels per day, while our imports of gasoline rose by 90,000 barrels per day to 845,000 barrels per day while ….But after thirteen gasoline inventory withdrawals over the past seventeen weeks, our gasoline supplies were 1.15% lower than last May 31st’s gasoline inventories of 230,946,000 barrels, and were about 1% below the five year average of our gasoline supplies for this time of the year…
With the increase in this week’s distillates production, our supplies of distillate fuels rose for the 6th time in 20 weeks, increasing by 4,230,000 barrels to 107,638,000 barrels during the week ending May 30th, after our distillates supplies had decreased by 724,000 barrels to a 20 year low during the prior week.. Our distillates supplies increased this week because the amount of distillates supplied to US markets, an indicator of domestic demand, fell by 742,000 to a 60 week low of 3,151,000 barrels per day, and even though our exports of distillates rose by 269,000 barrels per day to 1,405,000 barrels per day, while our imports of distillates rose by 52,000 barrels per day to 166,000 barrels per day...After 43 inventory withdrawals over the past 72 weeks, our distillates supplies at the end of the week were 12.1% below the 122,485,000 barrels of distillates that we had in storage on May 31st of 2024, and were about 16% below the five year average of our distillates inventories for this time of the year…
Finally, with the increase in our oil refining , our commercial supplies of crude oil in storage fell for the 13th time in twenty-six weeks, and for the 27th time over the past year, decreasing by 4,304,000 barrels over the week, from 440,363,000 barrels on May 23rd to 436,059,000 barrels on May 30th, after our commercial crude supplies had decreased by 2,795,000 barrels over the prior week… After that decrease, our commercial crude oil inventories fell to 7% below the recent five-year average of commercial oil supplies for this time of year, while they were still about 23% above the average of our available crude oil stocks as of the last 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 30th were 4.4% below the 455,922,000 barrels of oil left in commercial storage on May 31st of 2024, and 5.1% less than the 459,657,000 barrels of oil that we had in storage on May 26h of 2023, but were 5.1% more than the 414,733,000 barrels of oil we had left in commercial storage on May 27th of 2022…
This Week’s Rig Count
The US rig count decreased by four during the week ending May 30th, the ninth decrease in eleven weeks, as nine rigs targeting oil were removed while five rigs targeting natural gas was added...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 30th, the second column shows the change in the number of working rigs between last week’s count (May 23rd) and this week’s (May 30th) count, the third column shows last week’s May 23rd 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 31st of May, 2024…
the 442 oil directed rigs that were drilling this week was the lowest oil rig count since October 2021
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OH Landowners Say Injection Wells Leaked, Ruined 55 Oil Wells -- Marcellus Drilling News - Two conventional oil producers in Southeast Ohio say dozens of their wells have been flooded with industrial waste (brine) from the fracking industry. They claim that nearby injection wells that handle frack waste/brine are leaking. State regulators agree that injection wells, at least at some locations, are leaking. Not only have these leaks (if true) affected oil wells, but there’s a concern they may be contaminating area water wells.
New Permits Near OH Earthquake Site Require Seismic Monitoring - Marcellus Drilling News - A few weeks ago, 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 an Encino Energy shale well in Noble County (see ODNR Says Fracking in Noble County, OH Caused Series of Earthquakes). We were somewhat incredulous. We can count on one hand the number of verified instances when fracking itself (not injection wells) has caused earthquake activity. Yet it appears to be so in this instance, with all future fracking at this site blocked (see Fracking Halted at Encino Pad in Ohio Linked to Earthquakes). The ODNR is now saying, “Any future permits to drill a well that may be issued in the area of this seismicity will include seismic monitoring terms and conditions.”
Ohio budget proposal links fracking royalties to state parks' bottom lines -- WOSU Public Media - The Ohio Department of Natural Resources (ODNR) was poised to benefit from more than $30 million in bonus royalty payments from drilling under state parks, but the latest version of House Bill 96 ties that money to the agency’s already-existing budget instead. The Senate on Tuesday released language that would cut ODNR’s parks and recreation budget—financed by tax revenue in the General Revenue Fund—by 50% in fiscal year 2026 and 13% in fiscal year 2027, according to Legislative Service Commission documents. Then, it would redirect the royalties to fill those holes. Sen. Jerry Cirino (R-Kirtland) said in an interview Thursday his caucus was accounting for General Revenue Fund shortfalls, like those coming from cutting state income taxes, by shifting the additional money over. Before this, the royalty payments from private companies were said to be additional money for the Division of Parks and Watercraft. “It’s moving the royalties generated from fracking on public lands, which are, by the way, public lands,” Cirino said. “They don’t belong to ODNR. They belong to the people of the state of Ohio.” In early 2023, Gov. Mike DeWine signed a law clearing hurdles for drilling companies to obtain leases to extract resources from public lands and parks, although drilling under them has been legal since 2011. GOP lawmakers have said it was done to increase natural gas accessibility and bolster tax revenue. A large cohort of opponents have decried the decision since. In December, the Oil and Gas Land Management Commission advanced the bid for Infinity Natural Resources to drill under almost 1,000 acres of Salt Fork State Park. Matt Misicka, executive director of the Ohio Conservation Federation, said he sees this version of HB 96 differently than Cirino does. Misicka worries that with lower tax revenue levels this two-year budget cycle, future lawmakers might not restore tax revenue funding when the royalties go dry. “Any time you lose [General Revenue Fund money], it’s awful hard to get it back,” he said in an interview Thursday. “Oil, gas, these are finite resources for any given well, right?” Cirino rebuffed that idea. “We’re in the thick of it right now, where justifications can be made for additions to GRF [General Revenue Funds], we’re doing it all the time, so I think that’s a that’s a false narrative,” he said. An ODNR spokesperson said Thursday evening the agency was reviewing the proposal.
EOG to acquire Utica Shale operator Encino Acquisition Partners for $5.6 billion -S&P Global - US upstream shale maven EOG Resources agreed May 30 to acquire Encino Acquisition Partners from Encino Energy and the Canada Pension Plan Investment Board for $5.6 billion, expanding EOG's existing Utica Shale Basin footprint and adding a sizable wedge of oil, gas and liquids-rich production. The pending transaction, by an acquirer well-known for shunning large acquisitions, attracted EOG because it met the company's "strict criteria for acquisitions: high-quality acreage with exploration upside, competitive with current inventory, and an attractive price," EOG CEO Ezra Yacob said during a webcast to outline the deal. The Encino deal "significantly" expands EOG's contiguous liquids-rich acreage, while also adding premium-priced gas exposure, and increases working interest of its properties in the play, Yacob said in a statement. It also expands the company's core acreage in the volatile oil window, which averages 65% liquids production, by 235,000 net acres for a combined contiguous position of 485,000 net acres. The acquisition also boosts EOG's scale in the Utica, where for the past few years, it has worked to turn the Utica into one of EOG's core operations. "It's not often that a transformative event like this comes along for a company," Yacob said during the webcast. Post-close, which is slated for second-half 2025, "we will have increased production by over 200,000 [b/d of oil equivalent], doubled the acreage position in [our] Utica's volatile oil window, added a tremendous option on low-cost gas with exposure to new markets, increased our regular dividend 5%, realized immediate accretion across financial metrics, and executed the transaction without using any equity while maintaining a pristine balance sheet," he said. The Encino acquisition combines two large, premier acreage positions in the Utica, creating a third foundational play for EOG alongside the company's Delaware Basin and Eagle Ford assets, he added. "Encino's acreage improves the quality and depth of our Utica position, expanding EOG's multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource," he said. The acquisition adds Encino's 675,000 net core Utica acres to EOG's portfolio, bringing its Utica position to a combined 1.1 million net acres in the play and representing more than 2 billion barrels of oil equivalent net resource. Encino also adds 235,000 boe/d of production to EOG's existing 1.09 million b/d of equivalent oil output during the first quarter. In the volatile oil window, which averages 65% liquids production, Encino will add 235,000 net acres, while in the natural gas window, Encino brings 330,000 net acres along with existing natural gas production with firm transportation that's exposed to premium end-markets, EOG said. Encino's Utica production of 235,000 boe/d will be added to EOG's existing 40,000 boe/d in the play, for pro forma 2025 production of 275,000 boe/d, consisting of 25% oil, 30% NGLs and 45% natural gas.
EOG Digs Into the Utica With $5.6B Encino Buy | Hart Energy -- EOG Resources’ $5.6 billion acquisition of Encino Acquisition Partners shocked the market after it was announced on May 30, but analysts expect investors to come around once they evaluate the assets and the opportunity.“We believe investors will warm up to the deal as they assess the scale and benefits EOG can extract over a 1.1 million net-acre position in Ohio,” said Tim Rezvan atKeyBanc Capital Markets.Investors showed little immediate reaction to the purchase from Canada Pension Plan Investment Board and Encino Energy. By early afternoon, EOG’s stock was down about $1 at $108.98 per share.The deal, expected to close in the second half of this year, is 10% accretive on an annualized basis to EOG’s 2025 earnings and 9% accretive on an annualized basis for both cash flow from operations and free cash flow, Chairman and CEO Ezra Yacob told investors during a conference call following the announcement.“After closing, we will continue to have the strongest balance sheet in our peer group underscoring our relentless focus on capital discipline,” he said.CPP and Encino established EAP in 2017 to acquire high quality oil and gas assets with an established base of production in mature basins across the Lower 48. "“We are pleased with EAP’s success and the strong returns this investment has delivered,” said Bill Rogers, head of sustainable energies at CPP.The investment group is active globally and holds net assets worth some $26.4 billion (CA$36.3 billion).EOG’s acquisition has industrial logic, Rezvan said, given the price and the contiguous acreage. Likely year-end leverage of 0.3x is manageable.“There has been marketplace chatter about Encino’s owners seeking an exit strategy for several years, and EOG is one of a few operators to be able to digest a $5.6 billion acquisition,” he said.Leo Mariani, managing director at Roth Capital Energy Group, estimated EOG paid about $5,000 per undeveloped acre for Encino, assuming a price close to $15,000 per flowing boe for production with more than half of Encino’s acreage undeveloped.“This is a good value, in our opinion, compared to what others have recently paid for more competitive basins in North America,” he said.“However, the basin is still in the early days of proving out the competitiveness of the volatile oil window with other premier shale plays.”Rezvan, an admitted bull on Utica Shale productivity, noted some market reticence about the play. He said more data points should improve the sentiment.“The combination of attractive pricing, overlapping acreage and a thoughtful marketing portfolio from Encino all validate the acquisition to us. Lastly, EOG’s low cost of capital and ability to use scale to drive down well costs should not be overlooked as tangible synergies,” Rezvan said. This time last year, KeyBanc produced a deep dive on the Utica, highlighting EOG’s increasing activity there. In June 2024, about 577 wells had been drilled in the play, and KeyBanc said it would be “premature to judge a play, especially with an O.G. shale operator like EOG Resources entering” and stepping up activity.The analysts leaned in on well data and found promising results.“Clients have been skeptical that high initial oil cuts in the volatile oil window of the Utica hold up, with some dismissive comments that oil cuts ‘fall off a cliff,’” Rezvan wrote.“Our work refutes that bear-case thesis. We see decline rates that compare favorably with those from four other oily shale plays, which we believe debunks the bear case on EOG’s ongoing Utica development.”
Ingenious OH Law Blocks “Sue and Settle” by Environmentalists - Marcellus Drilling News -Last week, MDN told you about House Bill (HB) 15, which makes significant changes to state energy policy to encourage the development of more in-state electric generation by making it easier (and more cost-effective) to build gas-fired power (see OH Passes Bill (Now Law) to Encourage More Gas-Fired Power Plants). The bill was signed into law by Gov. Mike DeWine. We touted the aspects of the bill that aim to boost power generation, specifically dispatchable power (natural gas), in Ohio while improving affordability for ratepayers and increasing reliability within the state’s electrical grid. What we missed and now bring you is that the bill (now law) shuts down a favorite lawfare tool of the radical environmental movement known as “sue and settle.”
Explosion, smoke reported at Shell plant in Beaver County - The Allegheny Front An explosion was reported at Shell’s ethane cracker in Beaver County Wednesday afternoon. A company spokeswoman stated that smoke was seen coming off of a furnace unit at the plant around 2:20 p.m. She said the incident was managed by site personnel, and the smoke dissipated. The company dispatched a team from an air monitoring company to the site, and state and local agencies have been notified.A video posted by the group Beaver County Marcellus Awareness Community appeared to show smoke coming out of the facility. The group said a worker reported an explosion at the plant via its tipline. Shell opened the plant in 2022, after receiving a record $ 1.65 billion state tax credit to build it. The plant produces plastic from ethane, a component of natural gas. More recently, the company has discussed selling the plantand other chemical production sites in the past few months. In 2023, Shell received a $10 million fine from the state Department of Environmental Protection for violating air quality laws. In a statement, DEP spokesman Neil Shader said Shell notified the agency of a fire at “ethane cracking furnace #5” at the plant. Shader said there was “a possible release of an unknown amount of 1,3-butadiene and benzene” —both hazardous air pollutants and known carcinogens. “DEP expects Shell to calculate the amount of these emissions, if any, and report its findings to DEP,” Shader said.Shell reported evacuating 15 employees and reported one minor heat-related injury among its employees.
35 New Shale Well Permits Issued for PA-OH-WV May 26 – Jun 1 - Marcellus Drilling News - For the week of May 26 – Jun 1, the number of permits issued to drill new wells in the Marcellus/Utica increased significantly from the previous week. There were 35 new permits issued across the three M-U states last week, up 11 from 24 two weeks ago. A whopping 27 new permits were issued in the Keystone State (PA) after issuing only four permits two weeks ago. EQT and its drilling subsidiary Rice Drilling received 10 permits, all of them in Greene County, spread across two pads. Spain-based Repsol received the second most permits, five, for a single pad in Tioga County. ANTERO RESOURCES | ASCENT RESOURCES | BELMONT COUNTY | BKV/BANPU | BUTLER COUNTY | CHESAPEAKE ENERGY | COTERRA ENERGY (CABOT O&G) | ENCINO ENERGY | EQT CORP | EXPAND ENERGY | GREENE COUNTY (PA) | HARRISON COUNTY | HARRISON COUNTY | LAUREL MOUNTAIN ENERGY | REPSOL | SULLIVAN COUNTY | SUSQUEHANNA COUNTY | TIOGA COUNTY (PA) | WASHINGTON COUNTY |WYOMING COUNTY (PA)
Expand Energy - SW App Crew Drills the Longest Well and Longest Lateral in the U.S. – Europétrole --The SW App Drilling team recently celebrated achieving several records on the BW Edge MSH 210H, which the crew referred to as a ‘postcard well’ for its near picture-perfect status. Most notably, this well featured the U.S.’s longest lateral to date at more than five miles. Rig EDC 41: A Record-Breaking Well":
- Longest lateral in U.S. Land (27,657 feet)
- Longest well in U.S. Land (34,507 feet)
- Longest single bit/BHA run in U.S. Land (30,368 feet)
- 48-hr footage world record (21,314 feet)
- Expand Energy 24-hr footage record (12,370 feet)
- Expand Energy footage per day record (2,774 feet/day)
Ultra-long laterals enable Expand Energy to access significantly more subsurface acreage from fewer surface locations, minimizing the environmental footprint and operational impact. This is particularly valuable in regions like Appalachia, where surface access is limited. By reaching premium reservoir targets from a distance, we not only optimize resource recovery but also enhance capital efficiency and well economics — both of which are vital in today’s market conditions. “Breaking records is the outcome of relentless preparation, innovation and collaboration,” said Sebastian Ziaja, SW App Senior Drilling Engineer. “With support from leadership, our Drilling and Asset teams work months in advance to engineer optimal well designs. Once execution begins, seamless coordination among our Drilling team, rig crews and service providers drives top-tier performance. It’s a collective effort rooted in trust, expertise and a shared commitment to excellence.” Operational records are typically maintained and managed by drilling service providers and industry partners. These groups verify records achieved across the U.S., offering third-party confirmation to maintain transparency and consistency for benchmarking. Ziaja added, “Ultimately, record-setting performance reflects Expand Energy’s commitment to operational excellence and long-term value creation.”
Tenney introduces the 'Freedom to Frack Act' which would withhold some federal grants to NY – Congresswoman Claudia Tenney (NY-24) today reintroduced the Freedom to Frack Act to withhold certain federal grants from states that issue statewide hydraulic fracturing bans. Much of Central New York, Western New York, and the Southern Tier lie above the Marcellus Shale and the deeper Utica Shale formations. These tremendous resources alone could support the state’s energy needs for decades and create hundreds of thousands of jobs for New Yorkers. Unfortunately, despite this, in 2014, New York implemented a statewide ban on hydraulic fracturing (fracking). The ban was then officially established in 2015 by the New York State Department of Environmental Conservation and codified in 2020 by the New York State Legislature. New York’s statewide fracking ban directly opposes environmental science and basic economics. American natural gas is the cleanest in the world, and its exportation has been the single greatest force behind the reduction in global CO2 emissions. The ban has also been a disaster for New York’s economy, as despite its abundant natural resources, New Yorkers pay some of the highest prices in the country for energy. While Pennsylvania has become the second largest natural gas producer in the United States, New York continues to fall behind. Albany Democrats must reverse course on their disastrous fracking ban so New Yorkers can rightfully take advantage of the liquid gold lying beneath their feet. “President Trump has taken bold action to unleash American energy production through multiple Executive Orders, and it’s time for states like New York to follow suit. I introduced the Freedom to Frack Act to push back against Albany’s anti-science, politically motivated ban on hydraulic fracturing,” Tenney said. “States that refuse to comply with these federal energy directives should face the consequences, including the loss of federal funding. Albany’s baseless, anti-American energy policies have blocked access to valuable local resources for too long. By lifting these restrictions, we can stimulate economic growth, create thousands of good-paying jobs, and fully unlock the potential of American energy.”
DC Circuit upholds FERC decision on Mountain Valley expansion - A federal appeals court Friday upheld a decision by federal regulators that granted developers more time to complete a natural gas pipeline expansion in Virginia and North Carolina.The Federal Energy Regulatory Commission “reasonably found that [Mountain Valley Pipeline LLC] had satisfied the good cause standard in seeking an extension” for the MVP Southgate project, Senior Judge Harry Edwards wrote in an opinion for the U.S. Court of Appeals for the District of Columbia Circuit.Given that developers focused their “efforts on securing authorization” for the main, 303-mile Mountain Valley pipeline project, “MVP made a good faith effort to meet the original Southgate deadline,” said Edwards, a Carter appointee. The MVP Southgate project, approved by FERC in June 2020, was originally conceived as a 75-mile extension to the mainline Mountain Valley project. That main pipeline started operating last year and connects West Virginia with southern Virginia. MVP Southgate would continue on into North Carolina.
Henry Hub Price Volatility in 2026 Seen Rising With LNG Feed Gas Demand — The Offtake - A look at the global natural gas and LNG markets by the numbers
- $4.75/MMBtu: The likelihood of average Henry Hub prices rising above $4/MMBtu this year is decreasing, according to commodity researchers with Bank of America. However, the upside in 2026 is growing as LNG feed gas demand continues to surge. In a recent note, researchers wrote that flagging gas-to-power demand and hefty storage rates could keep 2025 prices to around $3.75, but could lift exponentially by the following summer. The bank increased its guidance for average prices in 2026 to $4.75.
- 13.3 Bcf: U.S. feed gas demand from LNG export terminals has been trending near a yearly-low with ongoing maintenance at Cheniere Energy Inc. facilities. Wood Mackenzie data showed feed gas nominations at 13.3 Bcf Wednesday, slightly up from the beginning of the week because of upswings from the Corpus Christi and Freeport facilities. Sabine Pass LNG maintenance is scheduled to continue through June 26.
- 8.74 Mt: U.S. LNG exports fell in May as European buyers slowed intake of Gulf Coast cargoes during the month. Natural gas exports from the United States fell more than 3% month/month to 8.74 million tons (Mt) in May, according to Kpler data. Europe’s imports of U.S. gas was trending above last year’s rate during the first quarter, but began to decrease in April as traders weighed geopolitical risk from tariffs and the war in Ukraine.
- 33%: LNG exports from Trinidad and Tobago could be rising to the highest point in six years as utilization of Atlantic LNG rises. Export volumes from the Caribbean nation rose to 0.72 Mt in May, a more than 33% increase over last month, according to Kpler. Predictive data shows June exports could reach 1.08 Mt by the end of the month, marking the highest monthly export rate since March 2019.
Site Work Begins at Venture Global’s CP2 LNG Ahead of 2027 First Export Target --Venture Global LNG Inc. is mobilizing construction crews and starting site work at the CP2 export facility in Louisiana, starting the clock on another wave of potential natural gas demand on the Gulf Coast within the next two years. Chart and map of Lower 48 LNG export facilities tracking daily natural gas feedstock flows to sites for market intelligence. The Virginia-based LNG developer disclosed Tuesday it had given the greenlight to contractors to begin preparation work after FERC delivered a final order and notices to proceed at the end of May. “With all federal approvals now in hand we are excited to announce that we have launched on-site work for this project, which is expected to deliver reliable low-cost LNG to the world starting in 2027,” CEO Mike Sabel said.
Sempra’s Port Arthur LNG Phase 2 Clinches Worldwide Natural Gas Export Permit From DOE -- The U.S. Department of Energy (DOE) has granted its first final non-free trade agreement (NFTA) export authorization for a proposed LNG project since closing out a Biden-era study last month. DOE disclosed Friday it had approved Sempra Infrastructure’s request to export LNG cargoes to countries without a trade agreement with the United States from its 13.5 million ton/year (Mt/y) capacity Port Arthur Phase 2 project in Texas. CEO Justin Bird said DOE’s NFTA authorization “marks another milestone” helping push the project closer to a final investment decision (FID).
U.S. Feed Gas Demand Hits Lowest Point Since December — Feed gas deliveries at U.S. LNG export facilities continue to flow at some of the lowest levels in months as maintenance work continued and periodic outages cut into demand. Infographic titled “North America LNG Export Flow Tracker” showing U.S. LNG export facility deliveries from May 27 to June 5, 2025. A bar chart highlights daily total feed gas volumes ranging from 13.21 to 15.47 million Dth, with June 5 registering 13.93 million Dth. A summary table lists operational data by facility, including Corpus Christi, Freeport, Cameron, Sabine Pass, and others, detailing daily deliveries, operational capacity, and utilization rates. A U.S. map shows LNG terminal locations, and a note clarifies that volumes are based on dekatherm data from NGI, Wood Mackenzie, and pipeline EBBs. Two trains at Cheniere Energy Inc.’s Sabine Pass LNG terminal in Louisiana, along with the Creole Trail Pipeline that feeds it, are offline for planned work that started at the end of May. The maintenance is expected to completed by the last week of June. One of three trains at Cameron LNG has also been offline since May for annual maintenance. It’s unclear when the unit will return to service. Historically, similar work at Cameron has lasted roughly a month. Unplanned outages at Freeport LNG on the upper Texas coast and declines at Cheniere’s Corpus Christ LNG in South Texas have also periodically cut into feed gas demand since last month. In a filing with state regulators this week, Freeport LNG Development LP said Train 2 at the facility tripped offline Tuesday, but was restarted by Wednesday.
US natgas prices jump 7% to 3-week high on lower output, higher demand — U.S. natural gas futures jumped about 7% to a three-week high on Monday on a drop in output and forecasts for warmer weather and higher demand this week than previously expected. Analysts said gas prices also gained some support from a 3% increase in U.S. oil futures after OPEC+ kept its output increase unchanged. Gas futures for July delivery on the New York Mercantile Exchange rose 24.7 cents, or 7.2%, to settle at $3.694 per million British thermal units, their highest close since May 9. Even though gas futures rose 3% last week, speculators cut their net long futures and options positions on the New York Mercantile and Intercontinental exchanges for a second week in a row to their lowest since December 2024, the U.S. Commodity Futures Trading Commission's Commitments of Traders report showed. Analysts, meanwhile, forecast gas stockpiles - already about 4% above the five-year (2020-2024) average - rose by more than usual for a seventh week in a row during the week ended May 30. Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.0 billion cubic feet per day so far in June, down 105.1 bcfd in May and a monthly record high of 105.8 bcfd in April. Analysts noted output data from early in the month was often revised. Energy traders said output reductions over the past month or so were primarily due to normal spring maintenance on gas pipelines. Energy firms usually work on gas pipes and other equipment in the spring and autumn when demand for the fuel for heating and cooling is low. But, some analysts also noted that several energy firms have cut spending on oil drilling due to a 13% decline in oil prices so far this year. That drop in oil drilling also reduces the amount of gas pulled out of the ground that is associated with that oil production. About 37% of U.S. gas production comes from associated gas, according to federal energy data. Meteorologists projected weather across the Lower 48 states would remain mostly warmer than normal through June 17. LSEG forecast average gas demand in the Lower 48, including exports, will rise from 97.4 bcfd this week to 99.9 bcfd next week. The forecast for this week was higher than LSEG's outlook on Friday, while its forecast for next week was lower. The average amount of gas flowing to the eight big LNG export plants operating in the U.S. fell to 14.1 bcfd so far in June, down from 15.0 bcfd in May and a monthly record high of 16.0 bcfd in April. Energy traders said LNG feedgas reductions over the past month or so was primarily due to normal spring maintenance, including about three-weeks of planned work at Cheniere Energy's LNG 4.5-bcfd Sabine Pass plant in Louisiana from around May 31-June 22. Gas was trading around $12 per mmBtu at both the Dutch Title Transfer Facility benchmark in Europe and the Japan Korea Marker benchmark in Asia.
US natgas prices edge up to 3-week high as output declines — U.S. natural gas futures edged up about 1% to a three-week high on Tuesday as a drop in output in recent weeks offset forecasts for less demand and lower gas flows to liquefied natural gas (LNG) export plants over the next two weeks. Gas futures for July delivery on the New York Mercantile Exchange rose 2.8 cents, or 0.8%, to settle at $3.722 per million British thermal units, their highest close since May 9 for a second day in a row. In Canada, where wildfires were raging across the country, spot gas prices at the AECO hub in Alberta fell to an eight-month low of just 6.3 cents per mmBtu in a sign that gas was trapped in the nation's biggest gas-producing province. That compares with average AECO prices of $1.41 per mmBtu so far this year, 96 cents in 2024 and $2.28 over the prior five years (2019-2023). Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.0 billion cubic feet per day so far in June, down 105.2 bcfd in May and a monthly record high of 106.3 bcfd in March. On a daily basis, output was on track to drop to a preliminary three-month low of 102.9 bcfd on Tuesday, down from a 104.3 bcfd on Monday and an average of 105.3 bcfd over the prior seven days. Analysts noted preliminary data was often revised later in the day. Energy traders said output reductions over the past month or so were primarily due to normal spring maintenance on gas pipelines. Energy firms usually work on gas pipes and other equipment in the spring and autumn when demand for the fuel for heating and cooling is low. But, some analysts also noted that gas output could also be down as several energy firms cut spending on oil drilling due to a 13% decline in oil prices so far this year. That drop in oil drilling also reduces the amount of gas pulled out of the ground associated with that oil production. About 37% of U.S. gas production comes from associated gas, according to federal energy data.
U.S. Gas Prices Near 3-Week High Despite Weaker Demand (Reuters) — U.S. natural gas futures held near a three-week high on Wednesday as lower output offset forecasts for weaker demand over the next two weeks than previously expected. Energy traders noted much of the demand decline will come from lower gas flows to liquefied natural gas (LNG) export plants during planned maintenance. Gas futures for July delivery on the New York Mercantile Exchange fell 0.6 cents, or 0.2%, to settle at $3.716 per million British thermal units. On Tuesday, the contract closed at its highest level since May 9 for a second day in a row. In Canada, spot gas prices at the AECO hub in Alberta have traded near an eight-month low this week (6 cents per MMBtu on Tuesday and 10 cents on Wednesday) in a sign that wildfires had reduced demand in Alberta and trapped some of the fuel in the nation's biggest gas-producing province. AECO prices have averaged $1.41 per MMBtu this year, 96 cents in 2024 and $2.28 over the prior five years (2019-2023). Financial firm LSEG said average gas output in the Lower 48 U.S. states has fallen to 103.9 billion cubic feet per day so far in June, down from 105.2 Bcf/d in May and a monthly record high of 106.3 Bcf/d in March. On a daily basis, output was on track to drop to a preliminary three-month low of 103 Bcf/d on Wednesday, down from 103.4 Bcf/d on Tuesday and an average of 105.3 Bcf/d over the prior seven days. The decline on Tuesday was less than previously forecast. Analysts noted preliminary data is often revised later in the day. Gas exports from Canada to the U.S., meanwhile, were on track to rise to 8.8 Bcf/d on Wednesday, up from 8.0 Bcf/d on Tuesday and 7.9 Bcf/d on Monday. That reading compares with a recent highs of 9.1 Bcf/d on May 22 and May 23 and an average of 8.6 Bcf/d over the past two weeks (May 21-June 4), according to LSEG data. Gas exports from Canada to the U.S. were around 8.2 Bcf/d in June 2024 and averaged 7.3 Bcf/d during the month over the past five years (2020-2024). They set a record high for the month of June of 9.7 Bcf/d in 2022. LSEG forecast average gas demand in the Lower 48, including exports, will rise from 94.8 Bcf/d this week to 97.1 Bcf/d next week. Those forecasts were lower than LSEG's outlook on Tuesday. The average amount of gas flowing to the eight big U.S. LNG export plants has fallen to 13.5 Bcf/d so far in June, down from 15 Bcf/d in May and a monthly record high of 16 Bcf/d in April. Energy traders said LNG feedgas reductions over the past month or so were primarily due to normal spring maintenance, including work at Cheniere Energy's plants. . Analysts have noted that gas flows to Sabine would likely remain reduced for about three weeks of maintenance from around May 31-June 22.
US natgas prices climb 3% to 4-week high on forecasts for demand to spike in late June — U.S. natural gas futures climbed about 3% to a four-week high on Friday on expectations hot weather will soon prompt businesses crank up air conditioners, boosting demand for gas-fired power even as some liquefied natural gas (LNG) export plants exit maintenance outages. Gas futures for July delivery on the New York Mercantile Exchange rose 10.7 cents, or 2.9%, to settle at $3.784 per million British thermal units, their highest close since May 9. For the week, the contract was up about 10% after gaining about 3% last week. Prices jumped this week even though gas stockpiles were about 5% above normal levels for this time of year and analysts forecast energy firms would make a record-tying triple-digit injection for a seventh week in a row this week. The last time energy firms added 100 bcf or more gas into storage for seven weeks in a row was in June 2014, according to federal energy data going back to 2010. Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.8 billion cubic feet per day so far in June from 105.2 bcfd in May and a monthly record high of 106.3 bcfd in March. The reduction so far this month, however, was smaller than previously projected. LSEG forecast average gas demand in the Lower 48, including exports, will rise from 95.4 bcfd this week to 97.7 bcfd next week and 100.4 bcfd in two weeks. The forecasts for this week and next were similar to LSEG's outlook on Thursday. The average amount of gas flowing to the eight big U.S. LNG export plants fell to 13.8 bcfd so far in June, down from 15.0 bcfd in May and a monthly record high of 16.0 bcfd in April. Traders said LNG feedgas reductions since April were primarily due to spring maintenance, including work at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG 4.5-bcfd Sabine Pass in Louisiana and 3.9-bcfd Corpus Christi in Texas, and short, unplanned unit outages at Freeport LNG's 2.1-bcfd plant in Texas on May 6, May 23, May 28 and June 3. With maintenance reducing flows to Sabine, the nation's biggest LNG export plant, and as new units enter service at Venture Global LNG's VG 3.2-bcfd Plaquemines in Louisiana, the country's newest plant, the amount of gas expected to flow to each facility was on track to reach around 2.8 bcfd on Friday - a 23-month low for Sabine and an all-time high for Plaquemines. Energy traders have noted that LNG maintenance would likely continue through early- to mid-June at Cameron and late-June at Sabine.
Trump’s ethane restrictions threaten oil industry output - President Donald Trump’s latest salvo in his trade war with China is a direct hit on a portion of the oil and gas industry that could more broadly damage his plans to boost U.S. fossil fuels.The Commerce Department is restricting exports of ethane to China, telling companies that their cargoes pose an unacceptable risk of being diverted to a “military end use.” The department has already denied permission to export three shipments, which totaled 2.2 million barrels of the gas.That could throw sand into the gears of the entire oil and gas production stream. Ethane and other natural gas liquids — or NGLs — come up with the crude oil and natural gas most people associate with pump jacks. That means Trump’s export controls could clog up flows all the way back to U.S. oil fields.“Those NGLS need a home,” said George Fatula, a partner in the Washington office of the Bracewell law firm who focuses on energy matters. “It has to go somewhere, and this is making it more difficult and complicated to find that somewhere.”
Hey, Hey, What Can I Do - 'Unacceptable Risk' Label Could Disrupt U.S. Ethane, Butane Exports -After dodging the huge tariffs on exports of U.S. LPG and ethane to China — at least until August 12 — a new wrinkle has emerged. Enterprise Products Partners said in a filing May 29 that the U.S. Bureau of Industry and Security (BIS) has flagged its exports of butane and ethane to China as a security risk; specifically, that they pose an “unacceptable risk of use in or diversion to a military end use.” Details about the licenses and how they will apply are limited at this point, but it appears they will be required for these exports to continue. In today’s RBN blog, we examine the potential impact on the ethane and butane markets. In its 8-K filing to the Securities and Exchange Commission (SEC), Enterprise indicated that it is unable to determine, as yet, whether it will be able to acquire such licenses for its exports in a reasonable amount of time, if at all. (An 8-K filing is a mandatory disclosure that public companies must file with the SEC to inform their shareholders and the public about major, unscheduled material events or corporate changes.) There has been no direct word from the other ethane exporter, Energy Transfer, nor exporters of butane, including Targa Resources and Phillips 66 (P66). However, it is reasonable to assume that they received similar letters from the BIS regarding their exports. The location of LPG (propane and butane) and ethane export terminals and the products they export are shown in Figure 1 below. (For more on U.S. LPG and ethane exports, see Hot To Go!) The BIS decision has the potential to ruin the U.S. ethane market and disrupt global flows. The U.S. is the sole source of long-distance ethane exports to China. In the short term, there are no markets that could replace China’s ethane imports nor are there markets that can take most of the U.S. ethane previously destined for China. The impact on the butane market is less severe, as only 5% of U.S. butane exports head to China and the smaller volume can easily be diverted to other countries. For example, butane that would typically head to China from the U.S. could instead be sent to India, and the volume destined for India from, say, the Middle East would then go to China. Just as was the case with the tariffs, however, this issue may disappear once lobbying efforts get traction. After all, this BIS order seemingly takes the energy industry in the opposite direction of “Drill Baby Drill” for producers. It will certainly hamper the ability of companies, especially Energy Transfer and Enterprise, to maximize revenue and profit from existing and planned infrastructure. (For more on U.S. export trends for propane, butane and ethane, including port of origin, destination and volume, see our NGL Voyager report.)
At least 2,000 gallons of oil spilled in Baltimore Harbor as cleanup efforts under way - ABC News At least 2,000 gallons of oil have spilled into the Baltimore Harbor as cleanup efforts are currently underway, officials said.Maryland leaders are expected to give an update early Thursday morning on the status of the ongoing response to the diesel fuel spill in Baltimore’s Harbor East where approximately 2,000 gallons of oil spilled in the harbor.Officials say a Johns Hopkins Hospital pipeline is the cause of the leak, but an investigation is currently underway to determine the exact cause.At least 2,000 gallons of oil have spilled into the Baltimore Harbor as cleanup efforts are currently underway, officials said. Responders have deployed pollution response equipment, including containment boom, and are actively working to remove all recoverable product from the waterway, according to ABC News’ Baltimore affiliate WMAR. Coast Guard personnel remain on scene monitoring cleanup activities to ensure compliance with federal environmental response standards and adequate protection of the environment, WMAR said. The spill is currently contained in the marina at the South Central Avenue Bridge in Harbor East, in an area roughly 100 yards by 250 yards.
Federal environmental review says Line 5 tunnel would reduce oil spill risk (MPRN)— Public comment is now open on a federal environmental review of the Line 5 tunnel in the Straits of Mackinac.The U.S. Army Corps of Engineers released on Friday its draft report that describes the environmental effects of building a tunnel under the lakebed. The report says the tunnel would reduce the risk of an oil spill, and the Army Corps supports the continued operation of Line 5, citing the need for crude oil in the "foreseeable future."Sean McBrearty is with Oil and Water Don't Mix, a group that supports shutting down Line 5. At a recent rally against the tunnel, he called on the state of Michigan to reject the project. "We're not going to ask people who have been fighting this pipeline for a decade to waste their time providing comments into a sham federal process, where the public's interests and comments will not be heard anyway."Enbridge says the Army Corps has been working on this "rigorous and comprehensive" review for more than five years. The Detroit District is conducting a 30-day public comment period on the DEIS from May 30 to June 30, 2025. The public and concerned parties are welcome to provide comments using the following methods:
- The Line 5 Tunnel EIS website at https://www.line5tunneleis.com/comment-here-new/.
- Virtual public meetings:
- Wednesday, June 18, 2025, 1-4 p.m., link
- Wednesday, June 25, 2025, 5-8 p.m., link
- Written comments (post marked by June 30, 2025) mailed to:
- Line 5 Tunnel EIS
- 6501 Shady Grove Road, P.O. Box 10178
- Gaithersburg, MD 20898
It's Tricky - Chevron's Diminished Role in Venezuela Complicates Plans for U.S. Refiners Seeking Heavy Crude -Exports of Venezuelan crude to the U.S. have moved lower in recent months, a trend that seems likely to continue with the May 27 expiration of Chevron’s permit to operate there. But while a limited extension of that permit appears likely, if not yet official, the development adds new challenges for Gulf Coast refiners that process heavy crude. In today’s RBN blog, we’ll update the situation in Venezuela, assess what it means for Chevron, and discuss the outlook for the heavy crude-capable Gulf Coast refiners. [...] The first Trump administration imposed economic sanctions on Venezuela in August 2017, which resulted in lower oil production and reduced exports to the U.S. The Trump administration followed that up with an April 2020 order for Chevron to wind down production in Venezuela, although exports to the U.S. had reached zero by that time. The Biden administration later reversed that order and eased sanctions further in October 2022, allowing Chevron to increase production for sales to the U.S. Imports began again in January 2023. However, as we discussed in You Can’t Always Get What You Want, the second Trump administration announced in February that it was ending Chevron’s license to operate in Venezuela — effectively eliminating the company’s ability to extract and export oil. .Venezuela has long been a critical supplier of heavy crude to Gulf Coast refineries, ranking as high as first in some years in the late 1990s, before the imposition of sanctions shut off the flow in mid-2019. The reinstatement of Chevron’s license by the Biden administration allowed it to pull back into a distant third place (behind Canada and Mexico) in 2024. Venezuelan imports into PADD 3 (Gulf Coast) averaged 211 Mb/d in 2024 and reached 285 Mb/d in December, according to data from the Energy Information Administration (EIA). But exports dropped to 156 Mb/d in April according to Kpler and are expected to continue falling as the Chevron license to operate there expired on May 27. It has been widely reported that the U.S. will be issuing a new license to Chevron, although it would be extremely limited in scope, mimicking a similar license granted during the first Trump administration. Our understanding is that Chevron won’t be able to operate oil fields in Venezuela or export Venezuelan crude, although it will be able to retain its stakes in joint ventures and maintain a minimal workforce in the country. Venezuelan crude is generally heavy, with API gravities ranging from 8.5 degrees (extra-heavy crude in the Orinoco Belt) to 24 degrees for lighter varieties like Leona crude, although it does produce some lighter grades (30-35 API). Sulfur content for heavy and light crudes ranges from 1.5% to 2.7%, which categorize them as sour crudes. To process the heavy Venezuelan crude grades generally requires refineries to have deep conversion capability (primarily in the form of delayed cokers), although simpler asphalt refineries also have an appetite for the heaviest grades, particularly Boscan. Reduced heavy crude production in the U.S. (primarily California) and from other traditional suppliers in the Western Hemisphere (especially Mexico and Brazil) has led to narrower light-heavy differentials and smaller margin advantages for the coking refineries, and there are a number of other important developments — aside from the changes in Venezuela — that will continue to stress the supply/demand balance for heavy crude:
- Tighter Heavy Sour Market: The reduction of Venezuelan barrels will tighten the heavy sour crude market and Gulf Coast refiners will have to again look for other options, including Canada, Mexico, Colombia and elsewhere. Of course, this results in Gulf Coast refineries that had relied on Venezuelan crude facing higher costs and logistical challenges to source their crude from more-distant suppliers.
- Less Crude from Mexico: The U.S. is getting less heavy crude from Mexico, whose production has been declining for about two decades due to the depletion of its major oil fields. Pemex, Mexico’s state-owned oil company, has faced significant budget deficits and debt in recent years, which has limited its ability to make investments to sustain production. It has also recently struggled to maintain the quality of its oil production. In May, it said its crude exports could be as low as 527 Mb/d in 2025, which would be the lowest in several decades.
- Rising Sour Crude Differentials: The reduction in Venezuelan supply has led to higher prices and narrower discounts for alternative heavy sour crudes, such as Canadian grades, as refiners compete for a shrinking pool of suitable feedstock.
- Trade and Tariffs: Tariffs are very much a part of the conversation (see Everybody Hurts). With declines in Venezuelan and Mexican imports and strong growth in the oil sands of Alberta, Canadian crude over the past few years has become the most significant source of heavy oil for U.S. refiners. In March, the Trump administration proposed 10% tariffs on Canadian crude and 25% on Mexican crude oil. Tariffs were implemented very briefly and then paused; goods that fall under the U.S.-Mexico-Canada (USMCA) trade agreement, including crude oil, are not subject to the tariffs. Of course, there is always the chance the Trump administration could change this policy.
- Canadian Exports: The startup of the 580-Mb/d Trans Mountain Expansion Project (TMX) in late May 2024 directed more Canadian barrels toward the West Coast and Asia and away from Midcontinent and Gulf Coast refineries (see Both Sides Now), further tightening heavy crude supply in those regions. Currently, more than 400 Mb/d of Canadian crude is being shipped from British Columbia to refineries on the U.S. West Coast and Asia.
Chevron to cut 800 job in Texas -Chevron has announced it will lay off nearly 800 employees in Midland County, Texas, US, as part of a broader plan to reduce its global workforce by up to 20% by the end of 2026. The job cuts, slated for 15 July, are said to be a response to the need for cost-cutting and business simplification. The lay-offs in Texas, where Chevron holds significant operations in the Permian Basin, the leading US oilfield, underscore the company’s strategic adjustments amid challenging industry conditions. In February, Chevron disclosed its workforce reduction plans, which have since become more pressing due to recent operational setbacks. The revocation of Chevron’s licence in Venezuela and the uncertain future of its $53bn acquisition of Hess due to an arbitration dispute have added to the company’s pressures. Chevron had also previously announced the lay-off of at least 600 employees in California, effective 1 June, as reported in a March filing. Despite these challenges, Chevron remains proactive in seeking new opportunities. This month, the company expressed its intent to explore and develop significant oil and gas assets in Indonesia, targeting blocks with potential reserves of around 15 trillion cubic feet (tcf) of gas.Djoko Siswanto, the chairman of Indonesia’s upstream oil and gas regulator, SKK Migas, confirmed Chevron’s interest.However, Chevron, along with other multinational oil and gas companies, recently exited its Red Sea oil and gas concession blocks in Egypt after failing to locate any discoveries.. The Egyptian Petroleum Ministry has stated that these companies are reallocating their resources to other areas within Egypt, particularly the Mediterranean. Chevron was awarded its first oil and gas exploration concessions in the Red Sea alongside Shell and Mubadala Investment Company in 2019.
Large flames coming from tank battery in Wanette, Oklahoma -- Large flames are burning after a tank battery caught fire Friday morning in Wanette. Sky 5, which is the only news helicopter in the air on weekday mornings, shows a big fire and plumes of smoke coming from a tank battery near Skelly Road and Highway 39.Pilot Chase Rutledge says fire crews have responded to the scene and have blocked off the highway. The fire started after storms moved through the area. It's unknown if severe weather started the fire.This fire is the second that's sparked in about a week at that location. On May 29, another tank battery fire started after storms moved through the area.The Wanette Fire Department said at the time of that the first fire that one home had to be evacuated, and crews let the fire burn itself out.
US Oil Drillers See Sharp Decline in Activity - The total number of active drilling rigs for oil and gas in the United States fell yet again this week, according to new data that Baker Hughes published on Friday, following a 3-rig decrease last week, and a 10-rig decrease the week before that.The total rig count in the US fell by 4 to 559 rigs, according to Baker Hughes, down 35 from this same time last year.The number of oil rigs fell by 9 to 442 after falling by 4 during the previous week—and down by 50 compared to this time last year. The number of gas rigs rose by 5 this week, to 114 for a gain of 16 active gas rigs from this time last year. The miscellaneous rig count stayed the same at 3.The latest EIA data showed that weekly U.S. crude oil production rose again this week, from 13.401 million bpd to 13.408 million bpd. The figure is 223,000 bpd down from the all-time high reached during the week of December 6, 2024.Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells, rose during the week of May 30 to 190, compared to 186 in the week prior. The count is now 25 below where it was on March 21.WTI is trading up on the day—but still below what many Permian players say is their breakeven. Drilling activity in the basin fell by 3, to 275—a figure that is 35 fewer than this same time last year. The count in the Eagle Ford also sank by 3, to 40 active rigs. Rigs in the Eagle Ford are 11 below where they were this time last year.At 11:55 p.m. ET, the WTI benchmark was trading up $1.18 per barrel (+1.86%) on the day at $64.55, up more than $4 per barrel from last Friday’s price. The Brent benchmark was trading up $1.10 (+1.68%) on the day at $66.44— up nearly $3 per barrel from last Friday as US-China trade talks and Canadian wildfires near oil installations boost market sentiment.
Judge nixes suit over Colorado oil and gas leasing permits - A federal judge in Colorado has dismissed a conservation group’s challenge to federal drilling permits for extracting publicly owned oil and gas from wells on adjacent private and state lands. Judge Daniel Domenico on the U.S. District Court for the District of Colorado said the Center for Biological Diversity lacked standing to bring its case challenging the Interior Department’s approval of so-called Fee/Fee/Fed wells in Colorado’s Pawnee National Grassland.The type of extraction associated with these wells involves boring horizontally beneath the surface of state or private land — sometimes across miles — to tap federal oil and gas.The Center for Biological Diversity had alleged that the proliferation of oil and gas development in northeastern Colorado — without the federal government imposing measures to mitigate environmental harm — impaired its members’ enjoyment of the grassland.
Supreme Court hands big win to fossil fuels, agency power - The Supreme Court last week reshaped how the federal government thinks about fossil fuel infrastructure. While environmental groups frequently describe projects ranging from coal mines to pipelines as “carbon bombs,” the high court said in an 8-0 ruling that may not be the case — finding in Seven County Infrastructure Coalition v. Eagle County that the projects themselves are not responsible for the upstream or downstream pollution for fuel or other products they simply transport or produce. The justices narrowed the scope of environmental reviews taken by agencies when they determine whether to approve an infrastructure project — and the grounds upon which such reviews can be challenged. The ruling is a blow to those fighting to protect the environment and a win for developers and fossil fuel companies, making it more difficult to challenge a project on its climate or environmental grounds, or even to get information about its environmental impacts. “It is going to grease the wheels for … fossil energy approvals,” said Travis Annatoyn, who was an attorney at the Interior Department during the Biden administration. “I think it’s going to make a difference,” added Annatoyn, who is now with the law firm Arnold & Porter. “You will see courts take a more hands-off approach to reviewing technical analysis.” Frequently, opponents of projects approved by the federal government sue to get them overturned, arguing that the analysis underlying their approval was insufficient under the National Environmental Policy Act (NEPA). But the justices determined Thursday that government agencies do not need to consider a project’s upstream or downstream impacts, that courts should defer to an agency’s judgment about where to draw the line when considering a project’s indirect impacts, and that courts cannot block agency projects based on the outcome of a potential future project. What that means in practice is that a court cannot rule that an agency’s environmental analysis is insufficient because it did not consider whether it will spur more emissions or pollution when fossil fuels are burned.
Big Deal - Supreme Court's Ruling on Uinta Basin Railway Is a Big Win for Energy Infrastructure Projects -- Midstream developers have complained for decades that federal courts reviewing agency approvals for their infrastructure projects have cast too wide a net — that is, instead of requiring agencies to simply analyze the specific environmental impacts of the project in question, the courts have been insisting regulators also examine the effects of the upstream and downstream activities the project would enable. As we discuss in today’s RBN blog, the U.S. Supreme Court ruled last week that under the all-important National Environmental Policy Act (NEPA) of 1969, it’s up to regulators to set the boundaries of their environmental review and that courts should defer to their judgment as long as they fall within a “broad zone of reasonableness.” The project at the center of the case — formally known as Seven County Infrastructure Coalition v. Eagle County, Colorado‚ is as quirky as they come in the energy space: A proposal to build an 88-mile short-line railroad in northeastern Utah whose primary purpose would be to transport at least two 110-car unit trains of waxy crude a day from the epicenter of Uinta Basin production to interconnections with two long-haul rail lines. As we’ll get to in a moment, while the high court’s ruling eliminates a major hurdle for the $2-billion-plus Uinta Basin Railway, it remains to be seen whether the project will actually proceed to financing and construction.What is clear, however, is that the long-running case provided the Supreme Court’s conservative majority an opportunity to further narrow the scope of NEPA by limiting the extent to which federal regulatory agencies need to consider indirect or cumulative environmental impacts. When combined with the changes Congress made to NEPA via its passage of the Fiscal Responsibility Act of 2023, the high court’s new ruling should make the advancement of energy infrastructure projects through the regulatory and legal gauntlet at least a little easier and less time-consuming. For interstate natural gas projects, this means that environmental reviews at the Federal Energy Regulatory Commission (FERC) could be limited to the levels FERC has attempted in the past but were often rebuffed by the U.S. Court of Appeals for the District of Columbia Circuit (aka the DC Circuit Court). It could also avoid the constant permit reversals that were experienced by the developers of Mountain Valley Pipeline (MVP).Let’s unpack that. The key issue before the Supreme Court in the Uinta Basin Railway case was whether the U.S. Surface Transportation Board (STB) was required under NEPA to consider the environmental impacts not only of the proposed railway itself but also a host of other potential effects, including the increase in upstream oil and gas production the project would enable and the refining of the waxy crude in downstream refineries. In August 2023, the DC Circuit Court sided with Eagle County, CO, which had argued that the STB had failed to factor in (among other things) the environmental harm that could come from a waxy-crude train derailment along the Colorado River. The DC Circuit Court vacated the STB’s December 2021 approval of the railway project, finding that the scope of the board’s review was too limited. On May 29, the Supreme Court ruled 8-0 (with Justice Neil Gorsuch recusing) that the STB’s review of the project was appropriate and sufficient and that the DC Circuit was wrong to require that the board expand its analysis to include potential upstream and downstream impacts not directly related to the railway project itself. But while the high court was unanimous in supporting the STB’s approval of the project, they split 5-3 on whether to rule more broadly on how regulatory agencies should approach environmental reviews and the degree to which the courts should defer to the agencies’ judgment.The five more conservative members of the court voting on the matter (Chief Justice Roberts, plus justices Alito, Thomas, Kavanaugh and Barrett) said that NEPA only requires agencies to prepare an environmental impact statement (EIS) and leaves it to those agencies to determine the appropriate breadth of its assessment as regulators see fit. Writing for the majority, Justice Kavanaugh said, “When assessing significant environmental effects and feasible alternatives for purposes of NEPA, an agency will invariably make a series of fact-dependent, context-specific, and policy-laden choices about the depth and breadth of its inquiry — and also about the length, content, and level of detail of the resulting EIS. Courts should afford substantial deference and should not micromanage those agency choices so long as they fall within a broad zone of reasonableness.” He added, “Some courts have strayed and not applied NEPA with the level of deference demanded by the statutory text and this Court’s cases. Those decisions have instead engaged in overly intrusive (and unpredictable) review in NEPA cases. Those rulings have slowed down or blocked many projects and, in turn, caused litigation-averse agencies to take ever more time and to prepare ever longer EISs for future projects. The upshot: NEPA has transformed from a modest procedural requirement into a blunt and haphazard tool employed by project opponents (who may not always be entirely motivated by concern for the environment) to try to stop or at least slow down new infrastructure and construction projects.” The high court’s three more liberal members (Justices Sotomayor, Kagan and Jackson), in turn, agreed that federal agencies are entitled to some deference on how they scope their reviews, but warned against what they saw as the other justices’ efforts to suggest NEPA does not require full assessments of a project’s environmental impacts. The Supreme Court’s ruling in the Uinta Basin Railway case came in the wake of two other recent actions — one legislative (in 2023) and the other judicial (in 2024) — that, with this new ruling, have the effect of making it at least somewhat easier to advance energy infrastructure projects. As we discussed in Rescue Me, the Fiscal Responsibility Act of 2023’s primary purpose was to increase the federal government’s debt ceiling, but it also amended NEPA to:
- Require an EIS to be prepared only if an agency action has a “reasonably foreseeable significant effect on the quality of the human environment,” and allow for the use of a less-intensive environmental assessment (EA) when an agency action “does not have a reasonably foreseeable significant effect.”
- Designate a lead agency when two or more agencies are involved in a review in order to reduce confusion and delays.
- Allow project applicants to prepare their own environmental reviews under the supervision of a federal agency, which is intended to streamline the process for developers.
- Set a two-year limit for preparing and finalizing an EIS and a one-year limit for an EA. (The lead agency can extend the timeline in consultation with the project applicant.)
- Limit the evaluation of a project’s environmental impacts to a single document of no more than 150 pages for an EIS (expandable to 300 pages for a complex project) and 75 pages for an EA.
It should be noted that FERC already used a number of these approaches — but was often second-guessed by the appellate court.
Pipeline spill in northwest North Dakota releases over 3 million gallons of brine • A pipeline failure in northwest North Dakota caused an estimated 73,000 barrels, or nearly 3.1 million gallons, of brine to spill in Williams County, the Department of Environmental Quality reported this week. Continental Resources staff discovered the spill about 1:35 p.m. Monday about 16 miles northeast of Williston and notified state regulators, said Marty Haroldson with the Division of Water Quality. “This would be a larger spill,” Haroldson said Wednesday. Brine, or produced water, is a waste byproduct of oil production that can be destructive to land. The spill contaminated grassy land near the site of the pipeline failure, Haroldson said. Brine also contaminated an unnamed tributary that eventually flows into Stony Creek. The spill did not reach Stony Creek and has had no known impacts to drinking water sources, Haroldson said. An incident report indicates that trucks began removing fluid from the site earlier this week and crews blocked culverts and set up berms to contain the contamination. Crews were working to excavate the pipeline to repair it, according to the incident report. A Continental Resources representative did not immediately respond to an email seeking comment Wednesday. Department of Mineral Resources Director Nathan Anderson said the pipeline has been shut down and drained of fluid. The pipeline, installed in 2015, is made of high density polyethylene and had a monitoring system, Anderson said. The cause of the spill is under investigation. Department of Environmental Quality and Department of Mineral Resources staff are inspecting the site and will be overseeing the investigation and cleanup.
Trump officials are visiting Alaska to discuss a gas pipeline and oil drilling - (AP) — The Trump administration is sending three Cabinet members to Alaska this week as it pursues oil drilling in the pristine Arctic National Wildlife Refuge and reinvigorating a natural gas project that’s languished for years.The visit by Department of Interior Secretary Doug Burgum, Energy Secretary Chris Wright and Environmental Protection Agency Administrator Lee Zeldin comes after Trump signed an executive orderearlier this year aimed at boosting oil and gas drilling, mining and logging in Alaska. It also comes amid tariff talks with Asian countries that are seen as possible leverage for the administration to secure investments in the proposed Alaska liquefied natural gas project.Their itinerary includes a meeting Sunday with resource development groups and U.S. Sens. Dan Sullivan and Lisa Murkowski in Anchorage before heading to Utqiagvik, an Arctic town on the petroleum-rich North Slope where many Alaska Native leaders see oil development as economically vital to the region.The federal officials also plan to visit the Prudhoe Bay oil field Monday — near the coast of the Arctic Ocean and more than 850 miles (1,368 kilometers) north of Anchorage — and speak at Republican Gov. Mike Dunleavy's annual energy conference Tuesday in Anchorage.While it's not unusual for U.S. officials to visit Alaska during warmer weather months, Dunleavy's office said the officials' visit is significant. Dunleavy, a Trump ally, said he is thankful for an administration that “recognizes Alaska's unique value.”Government and industry representatives from a number of Asian countries, including Japan, are expected to participate in a portion of the trip, reflecting pressure from the U.S. to invest in the pipeline — despite skepticism and opposition from environmental groups.In Alaska, some environmentalists criticized the agenda for Dunleavy's conference. Highlighting fossil fuels alongside renewable or alternative energy make “energy sources of the past look more legitimate at a conference like this," said Andy Moderow, senior policy director with the Alaska Wilderness League.“I think we should be looking at climate solutions that work for Alaskans, not trying to open up places that industry is taking a pass on, namely the Arctic refuge,” he said.Trump has long taken credit for provisions of a 2017 tax law championed by Alaska's congressional delegation that called for two oil and gas lease sales in the Arctic National Wildlife Refuge's coastal plain by late 2024.The first one remains the subject of ongoing litigation, with the main bidder a state corporation that saw its seven leases later canceled by then-President Joe Biden's administration. A judge in March ruled Biden's administration overstepped, and the Interior Department, in line with Trump's executive order, is working to reinstate the leases.There weren't any bids in the second sale, held under Biden and blasted by the state as overly restrictive.Debate over drilling in the refuge — home to polar bears, musk ox, birds and other wildlife — has long been a flashpoint. Indigenous Gwich’in leaders consider the coastal plain sacred land, noting its importance to a caribou herd they rely upon.Many North Slope Iñupiat leaders who support drilling in the refuge felt their voices were not heard during the Biden era. During the Trump officials' visit, they also hope to make a case for additional development in the National Petroleum Reserve-Alaska, which Trump has advocated, and for being included in planning decisions.Nagruk Harcharek, president of Voice of the Arctic Iñupiat, an advocacy group whose members include leaders from the region, called the officials' visit “a step in the right direction.”
Canada Confirms Work Has Begun on 559-Mile Prince Rupert Gas Pipeline (Reuters) — British Columbia's Environmental Assessment Office has determined that work on the Prince Rupert Gas Transmission natural gas pipeline project has been substantially started, the provincial government said on June 5. The decision means a 2014 environmental assessment certificate for the project will remain in effect indefinitely, unless suspended or cancelled under the Environmental Assessment Act, the B.C. government said in a press release. The 900-kilometer (559-mile) PRGT project will run from Hudson's Hope in northeastern B.C. to Lelu Island near Prince Rupert on Canada's Pacific Coast. It was acquired from TC Energy by the Nisga'a First Nation and the Western LNG in March 2024 to supply natural gas to the proposed 12 million tonnes per annum Ksi Lisims liquefied natural facility. The 2014 environmental assessment certificate required that the project show substantial progress by November 25, 2024. The B.C. Environmental Assessment Office launched a review process late last year to examine whether work had started, considering site inspections, documentation from PRGT and input from local First Nations. The government statement said compliance and enforcement officers will continue to monitor the PRGT project throughout construction and operation to ensure it meets all environmental requirements.
Alberta's wildfires disrupt some 7% of Canada's oil production (Reuters) - Wildfires burning in Canada's oil-producing province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude oil output, according to Reuters calculations. At least two thermal oil sands operators south of the industry hub of Fort McMurray evacuated workers from their sites over the weekend and shut production as a precaution. Canadian Natural Resources said it evacuated workers from its Jackfish 1 location and shut in approximately 36,500 bpd of bitumen production.Cenovus Energy said it evacuated non-essential personnel from its Christina Lake oil sands site, and shut in approximately 238,000 bpd of production.The company said on Sunday it is not aware of any damage to its infrastructure and anticipates a full restart of its Christina Lake operations in the near term. MEG Energy said on Friday it had evacuated workers from its Christina Lake site. While production at the site continues, the company said on Saturday that the fires caused a power outage that is delaying startup of its Phase 2B operations, which represent approximately 70,000 barrels per day of production.Wildfires have also affected some of Alberta's conventional oil-and-gas production. A blaze burning near the town of Swan Hills in the northern part of the province forced Aspenleaf Energy to shut in about 4,000 bpd of production last week.Canada produces about 4.9 million barrels of oil per day.Alberta has 49 active fires and there are 24 active fires in Manitoba and 16 in Saskatchewan, according to provincial data.In parts of Minnesota and North Dakota, air quality reached unhealthy levels on Monday, according to the U.S. Environmental Protection Agency's AirNow page. In 2023, Canadian wildfires blanketed much of the U.S. East Coast in smoke, forcing millions of Americans to stay indoors.Alberta Premier Danielle Smith said on Monday that some 400,000 hectares (988,422 acres) have now burned in the province, up from about 9,000 as of last week.She said nearly 5,000 people have been evacuated, adding that the government is restarting its emergency management cabinet committee out of concerns the situation in the province is worsening."We've got to be able to respond in a way that is going to be rapid," Smith told reporters in Saskatoon.The Canadian Interagency Forest Fire Centre says that as of June 1, a total of 1.4 million hectares have burned so far across Canada. Last week, Manitoba urged 17,000 people to evacuate due to fires in the province's remote north. Wildfires have hit oil and gas production in Canada several times in the past decade.Last year, Suncor Energy (SU.TO), opens new tab, Canada's second-largest oil sands producer, temporarily curtailed production at its Firebag complex due to a nearby blaze.In May of 2023, companies shut in at least 319,000 barrels of oil equivalent per day, or 3.7% of Canada's total production, as more than 100 wildfires burned in Alberta.In 2016, thousands of oil sands workers were evacuated as a monster wildfire destroyed part of the community of Fort McMurray, forcing companies to reduce their oil output by a million barrels per day.
Shell approves offshore gas development near Trinidad & Tobago -- Shell has reached a final investment decision on its Aphrodite gas field offshore Trinidad & Tobago, the UK supermajor said on Tuesday. Development of Aphrodite is still subject to regulatory approvals, according to Shell. Once approved, it is expected to start production in 2027 at peak rates of about 18,400 barrels of oil equivalent per day, or 107 million cubic feet per day of gas. The undeveloped gas field will build on existing infrastructure in Trinidad & Tobago’s prolific East Coast Marine Area (ECMA), which is home to Shell’s largest gas-producing fields in the country, including Dolphin, Starfish, Bounty and Endeavour. Aphrodite’s gas network will include a single subsea tieback to existing infrastructure in the Shell-operated Barracuda network. Gas will be rerouted to Shell’s Dolphin A platform to send to domestic markets via the National Gas Company of Trinidad & Tobago (NGC) and foreign markets via liquefied natural gas shipped from Atlantic LNG. Aphrodite will also serve as a gas backfill for Trinidad’s Atlantic LNG facility, according to Shell. “By increasing the gas supply to Atlantic LNG, the project will not only serve to fortify the domestic gas market, it will also boost the local petrochemical and power-generation industries,” Shell senior vice president Adam Lowmass said in a statement. Shell will be operator of Aphrodite with a 100% interest. The field was discovered in 2022.
Trinidad's Atlantic LNG increases production in May -Exports of liquefied natural gas from Trinidad and Tobago's flagship Atlantic LNG export facility increased by 43 per cent in May compared to April, according to LSEG preliminary ship tracking data. Trinidad is Latin America's largest LNG exporter and its flagship plant, Atlantic LNG, is jointly owned by Shell and BP with a capacity to produce 12 million tonnes per annum (mtpa) of the gas. In May, Atlantic exported 0.83 mtpa of LNG, up from 0.58 MT in April, LSEG data showed. Similar to the US, Europe bought the majority of cargoes sold by Atlantic, while the rest went to Asia and Latin America. BP has made Trinidad and Tobago one of its focus areas for growth of its upstream production and in May announced first gas from its Mento following April's announcement of first gas from its Cypre development, both offshore Trinidad.
Record Brazil pre-salt oil and natural gas production set in April -ANP released the Monthly Bulletin of Oil and Natural Gas Production for April 2025, which contains consolidated data on national production. The month recorded a new record in pre-salt oil and gas production, with 3.734 million barrels of oil equivalent per day (boe/d). This represents an increase of 0.5% compared to the previous month and 18.3% compared to April 2024. Pre-salt production, which occurred through 164 wells, accounted for 79.7% of the national total in the month. Total production (oil + natural gas) in the country, considering pre-salt, post-salt and land, was 4.689 million boe/d. With regard to oil, 3.632 million bbl/d were extracted, an increase of 0.3% compared to the previous month and 13.7% compared to the same month in 2024. Natural gas production in April was 168.01 million m³/d. There was a 1.5% increase compared to March and a 22.9% increase compared to April 2024. In April, the use of natural gas was 97.1%. 55.36 million m³/d were made available to the market and flaring was 4.98 million m³/d. There was a 13.6% decrease in flaring compared to the previous month and a 25.5% increase compared to April 2024. The main reason for the reduction compared to March was that the FPSO Almirante Tamandaré, in April, commissioned part of the compressors, allowing the injection of natural gas to begin and consequently reducing its flaring. In the month, offshore fields produced 97.6% of the oil and 87.1% of the natural gas. The fields operated by Petrobras, alone or in consortium with other companies, were responsible for 89.76% of the total production. Production came from 6,505 wells, 538 of which were offshore and 5,967 onshore. In April, the Tupi field, in the pre-salt layer of the Santos Basin, was the largest producer, registering 783.91 thousand bbl/d of oil and 39.81 million m³/d of natural gas. The facility with the largest production was the FPSO Guanabara, in the shared Mero field, with 184 thousand bbl/d of oil and 12.10 million m³/d of natural gas.
All Signals for U.S. LNG Point to Europe as Asian Spot Buying Remains Weak --Asian LNG spot buying remains sluggish heading into the summer months and is not expected to accelerate, which is likely to keep U.S. LNG flowing into Europe as the continent works to refill storage inventories that were drained over the winter. (a graph showing Asia's historical LNG imports by month) Through May, Asia’s LNG imports fell 7% year/year to 111.8 million tons (Mt), according to Kpler. Europe’s LNG imports, meanwhile, have increased by 20% over the same time to 56.7 Mt. The Trump administration’s trade war, higher spot prices and more long-term contracts have kept a lid on Asian spot buying. But China has been the main driver of the decline in Asia, which has historically been the world’s top destination for LNG.
TTF Prices Climb Despite Weak Asian Demand as Natural Gas Supply Concerns Continue — LNG Recap --European natural gas prices bounced back on Monday after posting a weekly loss on Friday for the first time in four weeks with storage worries mounting. 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. Natural gas inventories on the continent have been steadily rebuilding, but are still at 48% of capacity, compared with 70% at this time last year. The Title Transfer Facility (TTF) prompt month contract added about 30 cents to finish higher at $11.72/MMBtu on Monday after falling nearly 7% over the course of last week. Norwegian output remained at about 10 Bcf on Monday as seasonal maintenance is underway. That’s down from typical levels of about 12 Bcf/d.
Russian LNG Exports Dip Amid Sanctions and EU Clampdown ---Liquefied natural gas (LNG) exports out of Russia fell by 3% in January through May from a year earlier, amid tighter EU restrictions on transshipment and U.S. sanctions on a new LNG project that can’t find buyers yet.Russia’s LNG shipments dipped by 3% year-over-year to 13.2 million tons in the first five months of the year, Reuters reports, citing preliminary data from LSEG. Exports to Europe slumped by 12%, while shipments in May alone declined by 14.3%, according to the data. That’s mostly the result of the EU ban on transshipment of Russian LNG for re-export to third countries from EU ports, which took effect in March this year.The EU ban doesn’t concern imports for the EU markets, but prohibits EU terminal operators from reloading Russian LNG or re-exporting it to countries outside the bloc, as Europe looks to cut Russia’s energy revenues without compromising EU gas supply.Moreover, the U.S. and EU sanctions on Russia’s Arctic LNG 2, which was billed as Russia’s flagship LNG project, have effectively frozen the start-up of the export facility in the Gydan Peninsula. The project has come under intensifying sanctions from the United States, which have put off any buyers that were previously considering buying cargoes from Arctic LNG 2. Meanwhile, Russia’s natural gas deliveries via pipeline to Europe jumped by 10.3% in May compared to April. Last month, Russia’s gas giant Gazprom sent 46.0 million cubic meters of natural gas via the only remaining route to Europe – TurkStream, per Reuters estimates based on data from Entsog, the European gas transmission group. Last month, the EU unveiled a roadmap to end dependency on Russian energy.The roadmap calls for the EU to stop all imports of Russian gas by the end of 2027 by improving the transparency, monitoring, and traceability of Russian gas across the EU markets. New contracts with suppliers of Russian gas will be prevented and spot contracts (for immediate payment) will be stopped by the end of 2025, the European Commission said.
LNG re-gasification hits record high at 1,050 mmcfd | The Financial Express - Bangladesh's liquefied natural gas (LNG) re-gasification reached its highest level ever on Monday as the regular berthing of LNG tankers to the floating storage and regasification units (FSRUs) resumed, following last week's rough weather in the Bay of Bengal. The country's LNG re-gasification surged to 1,050 million cubic feet per day (mmcfd) on the day, driven by the increased volume of LNG supply, according to official data. The previous highest LNG re-gasification was recorded on March 18 this year, when the country re-gasified around 1,022 mmcfd of LNG. However, LNG re-gasification dropped as low as 558 mmcfd on May 30, when berthing of LNG vessels was disrupted due to a low over the Northwest Bay and adjoining areas that intensified into a depression. At least a couple of LNG tankers were kept anchored at the pilot boarding station (PBS), around 10-12 kilometers from the FSRUs, due to rough sea conditions in the Bay of Bengal last week. The country's overall natural gas output is currently hovering around 2,889 mmcfd, boosted by the increased LNG re-gasification volume, according to Petrobangla data as of Monday. Natural gas supply to industries increased significantly as overall output ramped up, Petrobangla Chairman Md Rezanur Rahman told The Financial Express on Tuesday. He expected LNG re-gasification to continue exceeding 1,000 mmcfd until August, allowing industries to receive more gas during the period. To meet rising demand, Petrobangla has increased LNG purchases from the spot market. The LNG tankers carrying gas from Oman's OQ Trading and Gunvor Singapore Pte Ltd - which had been held at the PBS - completed berthing and ship-to-ship LNG transfers on Sunday. Another scheduled LNG vessel arrived on June 1 and completed ship-to-ship transfer by Monday, pushing re-gasification to the record level. Each of these LNG cargoes carried around 3.36 million British thermal units (MMBtu) and delivered LNG to one of the two FSRUs near Moheshkhali Island.
Nigeria’s Dangote refinery buying more and more US crude oil - Where does a giant refinery in Nigeria, Africa’s largest oil producer, go to source the raw materials it needs to make fuels for the nation of 228 million people? Try crude fields around Midland in West Texas, about 6,500 miles away. This year, the mega plant Dangote, near the commercial capital Lagos, bought a third of its crude from the US — the lion’s share of it being the grade West Texas Intermediate – Midland, ship tracking compiled by Bloomberg shows. The proportion has been almost double what it was in 2024, the ramp-up year. The cargo purchases matter because they could just as easily have been sent on tankers to Europe, helping to determine the world’s most important physical oil price, Dated Brent. The fact they’re not means fewer are available for purchase in the North Sea, slightly limiting availability of benchmark barrels. They also underscore Nigeria’s longstanding challenges to boost output in line with the country’s ambitions. Dangote’s elevated purchases “probably at the margin supported the Brent market a little,” said Sparta Commodities analyst Neil Crosby. “I expect WTI to keep flowing to Dangote to some degree in the future, but the volumes will depend on price.” To be clear, the heightened flows are logical. No two crudes are identical and the profits from running them vary depending on what fuels each one churns out. WTI offers Dangote advantages over Nigerian crudes that result in improved yields of reformate and better gasoline blending capabilities, according to Randy Hurburun, senior refinery analyst at Energy Aspects Ltd. A spokesman for Dangote said the increased use of US oil reflects the refinery’s rising processing levels and a reduction of Nigerian crude that’s available to buy. WTI Midland is by far the largest stream of six grades that set Dated, as the benchmark is known among traders. It was added to the benchmark because of concerns that the other five — North Sea grades Brent, Forties, Oseberg, Ekofisk and Troll — were slowly running out, making trading potentially more volatile. In June and July alone, Dangote is expected to take in 14 million barrels of WTI Midland, according to traders who monitor the company’s buy tenders closely. Trading giant Vitol Group was the biggest supplier of US barrels, lists of vessel bookings show. A spokesperson for the company declined to comment. The extra WTI flows to the plant also coincided with relatively weak demand for the WTI Midland in Asia in recent months due to Chinese tariffs on US crude and availability of competing supplies of Abu Dhabi’s Murban crude, Crosby said.
Venezuela Defies U.S. Sanctions as Oil Exports Hold Steady -Venezuela’s oil exports remained largely unchanged in May despite mounting pressure from the U.S. and the expiration of key licenses that once allowed limited sanctioned trade. Increased shipments to China helped offset a sharp drop in U.S.-authorized sales as state-run PDVSA scrambled to re-route barrels ahead of tightening sanctions.According to internal PDVSA documents and vessel-tracking data, Venezuela shipped 779,000 bpd of crude and refined products last month—down only slightly from April’s 783,000 bpd. While exports to U.S.-authorized firms like Chevron and Reliance came to a halt, China-bound cargoes surged to 584,000 bpd, up from 521,000 bpd in April.The resilience comes despite a hard stop to licenses that previously allowed U.S. and European firms to legally engage with Venezuela’s sanctioned oil sector. May 27 marked the final deadline for Chevron and others to wind down operations. PDVSA canceled multiple cargoes to Chevron due to payment concerns, and new shipments of Boscan heavy crude—once sent to U.S. refiners—were instead dispatched to Asia.This shift follows Venezuela’s latest controversial election, which saw President Nicolás Maduro tighten his grip on power. With turnout estimated below 15% by the opposition, the Biden administration cited the lack of credible democratic reform as a key reason for letting the licenses expire. Secretary of State Marco Rubio confirmed last week that no further extensions would be granted. In a last-minute move, PDVSA completed a large oil swap with France’s Maurel & Prom and trading giant Vitol—the final U.S.-authorized transaction under the previous license regime. Meanwhile, fuel imports jumped to 159,000 bpd as PDVSA rushed to stockpile heavy naphtha for blending operations. With Western doors closing and sanctions tightening, Venezuela’s oil now flows more heavily through intermediaries and shadow channels—keeping barrels moving, but with far less transparency and far more risk.
Ukraine to Prosecute Russian Captain for Causing Kerch Oil Spill -The Prosecutor General of Ukraine has filed papers in court seeking to hold a Russian sea captain responsible for oil pollution resulting from the loss of a vessel in the Kerch Strait in December 2024. It is the latest in a series of efforts launched by Ukraine attempting to prosecute mariners for their role in the incidents or for operating vessels transporting grain and other materials in the Russian-occupied regions. According to the reports, Ukraine is charging the captain with spilling 1,500 tons of fuel as part of a larger oil leak from a tanker that it says was in Ukrainian waters. They did not specify the name of the tanker or the captain, but it relates to the two Russian river sea tankers lost in December 2024 in the Kerch Strait. Ukraine in the court papers is reportedly estimating the damages at $480 million. “The suspect, contrary to the usual seafaring requirements, did not take into account the weather conditions in the waters of the Azov and Black Seas, as well as in the Kerch Strait, which led to the accident," the prosecutor charges. They said the vessel was transporting 4,000 tonnes of M-100 fuel from Volgograd to Kavkaz with the accusation the fuel was to be transferred to an ocean-going shadow fleet tanker. The river sea tanker Volgoneft 212 sank in a wintertime storm in December 2024 transporting 4,300 tonnes of oil. A second tanker of the same operator, Volgoneft 239, ran aground around the same time in the area near the Kerch bridge. Ukraine reported that oil was drifting ashore at various points in the Black Sea prompting a large-scale cleanup in the winter after the incident. Environmentalists warned it would be more difficult to clean up because of winter storms. In the past, Ukraine has detained and sought to prosecute crews for entering the ports of occupied Crimea and transporting grain or other materials that it alleges were stolen from Ukraine. In the summer of 2024, they seized a cargo ship named Usko Mfu registered in Cameroon while it was sailing near the port of Reni on the Danube. The courts ordered the vessel seized and last fall Ukraine reported it was prosecuting the ship’s officers for entering Sevastopol. In April 2025, Ukraine reported seizing another cargo vessel they accursed of looting grain from Crimea. In the current case, it is unclear if the prosecutor named a specific individual. Clearly, the captain would have been charged in absentia and it is unclear if they are also attempting to file charges against the owner of the Volgoneft tankers.
India’s Russian crude oil imports surge to 10-month high in May 2025 on price discounts - The Hindu India's imports of Russian crude oil surged to a 10-month high of 1.96 million barrels per day in May, driven by continued availability at significant discounts compared to global benchmark prices, according to ship-tracking data from Kpler.India, the world's third largest oil importing and consuming nation, bought from abroad around 5.1 million barrels of crude oil, which is converted into fuels like petrol and diesel in refineries.Of this, Russia was the largest supplier, accounting for over 38 per cent of the supplies. Iraq maintained its position as the second-largest supplier, with 1.2 million bpd of sales to India.
Coast Guard initiates steps to contain oil spill from sunken ship - The Hindu -Three Indian Coast Guard (ICG) vessels Vikram, Saksham, and Samarth are relying on infrared cameras to detect the extent of the oil spill in the vicinity of the Liberian container ship MSC ELSA 3 that sank off the Kochi coast on Sunday morning. They also utilised oil spill dispersant (OSD) to contain the spread of oil from the vessel that was carrying 84.44 MT of diesel and 367.1 MT of furnace oil when it sank. These apart, a dedicated pollution control vessel is being mobilised from Mumbai to catalyse oil spill containment efforts, while a Dornier aircraft of the ICG equipped with specialised gear is positioned in Kochi for aerial assessment of the oil spill, says a defence release. To ensure safety of other vessels, all ships through the route have been diverted, and mariners warned to navigate cautiously due to floating debris and potential navigation hazards. Two offshore patrol vessels (OPVs) have been deployed on-site for round the clock monitoring, while pollution response vessel Samudra Prahari and additional OPVs have been mobilised with large quantities of OSD. The vessel was carrying 640 containers, including 13 with hazardous cargo and 12 containing calcium carbide. The Mercantile Marine department, Kochi, issued a pollution liability warning to the vessel owners MSC under the Merchant Shipping Act, 1958 while the MSC appointed T&T Salvage for container recovery, oil removal, and environmental clean-up. The ICG also advised the State government to prepare for shoreline clean-up and alert local communities not to handle any cargo or debris that may wash ashore. In addition, ICG officials are in constant communication with government agencies concerned, in an advisory capacity, for shoreline clean-up operation, it is learnt.
Goldman Sachs sees OPEC+ raising oil output by 0.41 mb/d in August (Reuters) - Goldman Sachs anticipates the eight country OPEC+ oil group will implement a final 0.41 million barrels per day (mb/d) production increase in August, the bank said in a note dated Sunday. "Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th," Goldman Sachs said in a note. OPEC+, the world’s largest group of oil producers, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. The decision likely reflects relatively tight spot fundamentals, a resilient global economy, and an ongoing shift toward a long-term equilibrium aimed at normalizing spare capacity, supporting internal cohesion, and disciplining U.S. shale production, Goldman Sachs noted. Oil prices rebounded more than $1 a barrel in early Asian trade on Monday after OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, in line with market expectation. [O/R] Goldman Sachs expects OPEC+ to maintain flat production levels from September, citing slowing global growth in third quarter and new large-scale non-OPEC projects ramping up. Goldman maintained its cautious oil price forecast, projecting Brent crude to average $60 per barrel and West Texas Intermediate (WTI) $56 per barrel for the remainder of 2025. For 2026, it sees Brent at $56 and WTI at $52 per barrel. The forecast reflects expected supply growth outside of U.S. shale will drive surpluses of 1 mbpd in 2025 and 1.5 mbpd in 2026. The bank mainted its oil price forecast stating a moderate upgrade to demand offsets the increase in OPEC+ supply. Goldman Sachs further cited an upward revision of historical International Energy Agency (IEA) Africa demand estimates, stronger-than-expected European demand data, and a softer electric vehicle (EV) outlook in Western markets as contributing factors.
Oil rises as Ukraine strikes Russian bases ahead of Istanbul peace talks -- Oil prices climbed on Monday amid rising tensions after Ukraine targeted several military air bases in Russia, as Kyiv and Moscow prepared for peace talks in Istanbul. International benchmark Brent crude increased by around 2.61%, trading at $64.24 per barrel at 10.26 am local time (0726 GMT), up from $62.60 at the previous session's close. Similarly, US benchmark West Texas Intermediate (WTI) rose by about 2.88%, reaching $62.02 per barrel, compared to $60.28 in the prior session. Prices increased as Ukraine's Security Service (SBU) on Sunday claimed to have destroyed 34% of Russian strategic bombers capable of carrying strategic cruise missiles during attacks on military air bases in Russia. Ukrainian forces attacked Russia's military airfields with unmanned aerial vehicles (UAVs), the SBU said in a statement. The SBU carried out a special operation called "Spider Web," causing $7 billion in damage to Russia's strategic aviation, the statement said. As fighting escalates in the Russia-Ukraine war, attention has shifted to talks between the two sides set for today in Istanbul. The last negotiations between the two sides were held on May 16 at Istanbul's Dolmabahce Palace. The next round of talks between the two parties is expected to take place at 1 p.m. local time (1000 GMT) on Monday in Istanbul's Ciragan Palace. The prospect of new US sanctions against Russia if no agreement is reached with Ukraine soon is deepening supply concerns and driving prices higher. Last week, international media reported that US President Donald Trump was expected to move forward with additional sanctions on Russia. Meanwhile, eight countries in the OPEC+ alliance, made up of the Organization of the Petroleum Exporting Countries and allied non-OPEC producers, agreed to raise supply by 411,000 barrels per day in July. The decision, made by Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, was in line with expectations and is easing concerns about oversupply and downward pressure on prices. Elsewhere, developments related to US tariffs on its trading partners continue to drive price volatility. President Trump said during a Friday press conference in the Oval Office that China had violated its trade agreement with the US, adding that he would speak with Chinese President Xi Jinping and hoped to resolve the issue. Trump's remarks followed his accusation of China breaching the preliminary trade agreement after talks in Geneva on May 10-11, possibly fueling the trade tensions between the world's top two economies. Fears that renewed trade tensions could dampen oil demand are curbing further price gains.
Oil gains on supply concerns as wildfires disrupt Canada supply, OPEC+ keeps output plans unchanged (Reuters) - Oil prices climbed nearly 3% on Monday on supply concerns as producer group OPEC+ decided not to accelerate plans to hike output and wildfires in Canada's oil-producing province disrupted production. Brent crude futures settled $1.85, or 2.95%, higher at $64.63 a barrel. U.S. West Texas Intermediate crude gained $1.73, or 2.85%, to $62.52. Wildfires burning in Canada's oil-producing province of Alberta have affected about 7% of the country's overall crude oil output as of Monday, according to Reuters calculations. At least two thermal oil sands operators south of the industry hub of Fort McMurray evacuated workers from their sites over the weekend and shut production as a precaution. "The wildfires in Alberta are now starting to seep in," said John Kilduff, partner at Again Capital in New York. Also supporting prices, the U.S. dollar (.DXY), opens new tab slipped across the board on Monday on worries that Trump's fresh tariff threats might hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for buyers using other currencies. Prices were also supported by a perception of increased geopolitical risk after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon. Meanwhile, mixed signals from Iran-U.S. talks kept market participants on edge. An Iranian diplomat said on Monday Iran was poised to reject a U.S. proposal to end a decades-old nuclear dispute. Delegations from the two countries made some progress after a fifth round of talks in Rome last month. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced into Brent and WTI futures. Phil Flynn, a senior analyst with Price Futures Group, said investors had expected the oil-producing group to increase production by more than it did. "I think they were caught the wrong way." Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said.
Oil Prices Rise Amid Supply Concerns Linked to Iran, Russia, and Canada Oil prices rose in early Asian trading on Tuesday due to growing supply concerns, as Iran appeared poised to reject a proposed U.S. nuclear deal that would be key to easing sanctions on one of the world’s largest oil producers, while wildfires disrupted production in Canada. Brent crude futures climbed 55 cents, or 0.85%, to $65.18 a barrel by 12:00 GMT. U.S. West Texas Intermediate (WTI) crude rose 59 cents, or 0.94%, to $63.11 a barrel, after gaining nearly 1% earlier in the session. Both benchmarks had risen about 3% in the previous session after OPEC+ agreed to maintain its planned production increase of 411,000 barrels per day, a figure lower than some in the market had feared and consistent with the past two months' increases. Geopolitical tensions further supported prices on Tuesday. An Iranian diplomat said on Monday that Iran was on the verge of rejecting a U.S. proposal to resolve the decades-long nuclear dispute, stating that the deal fails to serve Tehran’s interests or soften Washington’s stance on uranium enrichment. If the U.S.-Iran nuclear talks collapse, sanctions on Iranian oil would remain in place, restricting supply and supporting higher oil prices. Meanwhile, the ongoing conflict between Russia and Ukraine continues to fuel supply worries and raise geopolitical risk premiums. Adding to supply fears, a wildfire in Alberta, Canada, has led to the temporary shutdown of some oil and gas production, potentially curbing output. According to Reuters calculations, the wildfires have impacted over 344,000 barrels per day of oil sands production—around 7% of Canada’s total crude oil output.
Concerns Over the Wildfires in Canada's Province of Alberta - The crude market on Tuesday continued to trade higher as supply risks offset concerns over increased OPEC+ output. The market was supported by Iran’s potential rejection of the latest U.S. nuclear proposal to end their nuclear dispute. On Monday, an Iranian diplomat said Iran was poised to reject a U.S. proposal, saying it fails to address Iran’s interests. The market was also supported by concerns over the wildfires in Canada’s province of Alberta that has shut in more than 344,000 bpd of oil sands production. Further support came from a weaker dollar, with the dollar index near six week lows amid concerns over the economic outlook due to President Donald Trump’s tariff policy. The oil market posted a low of $62.40 early in the session before it continued to trade higher and posted a high of $63.89 by mid-day. The market later settled in a sideways trading range during the remainder of the session. The July WTI contract ended the session up 89 cents at $63.41 and the August Brent contract settled up $1.00 at $65.63. The product markets ended the session higher, with the heating oil market settling up 5.54 cents at $2.0999 and the RB market settling up 2.63 cents at $2.0788. Senior Ukrainian officials visited Washington on Tuesday seeking U.S. support against Russia, as Kyiv showed its ability to fight on by setting off an explosive device under a bridge that has become a symbol of the Kremlin’s claims on Ukrainian territory. A day after talks in Istanbul that made little progress towards ending Russia’s war in Ukraine, Ukraine’s SBU security service said it hit a road and rail bridge that links Russia and Crimea below the water level with explosives. The extent of any damage was not clear but there were no immediate signs of traffic disruption. The bridge is a flagship project for Russian President Vladimir Putin, built after he annexed Crimea from Ukraine in 2014. Andriy Yermak, chief of staff to Ukrainian President Volodymyr Zelenskiy, arrived in the United States along with Deputy Prime Minister Yuliia Svrydenko. Ukraine says Moscow is stalling the peace talks and President Zelenskiy’s chief of staff signaled that he would press Ukrainian demands for tougher sanctions on Russia. Bloomberg reported that according to Kayrros, which monitors global oil inventories, is estimating that crude oil inventories have grown by some 170 million barrels over the past 100 days, led in part by gains in Chinese crude stocks. RBC Capital Markets in a recent research note estimates the global crude stocks during the second quarter have grown by 1.5 million b/d faster through the middle of May compared to the same period last year.Wildfires in Alberta have shut down nearly 350,000 b/d of heavy crude oil production at the start of this week due to raging wildfires. Cenovus Energy, MEG Energy and Canadian Natural Resources are among the companies that have curtailed output due to the Caribou Lake Wildfire.
Oil rises as geopolitical concerns and weaker dollar support -Oil rose on Tuesday, in the face of rising geopolitical tensions as the war in Ukraine ramped up despite peace talks in Turkey and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer. Crude had gained nearly 3% on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared. Brent crude futures gained $1, or 1.55%, to close at $65.63 a barrel. U.S. West Texas Intermediate crude was up 89 cents, or 1.42%, to settle at $63.41. "Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend," said analyst Harry Tchilinguirian of Onyx Capital Group. "But more importantly for the barrel count, there is the to and fro between the U.S. and Iran regarding uranium enrichment." Ukraine and Russia at the weekend ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an attack on nuclear-capable bombers deep in Siberia. Iran, meanwhile, was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If the nuclear talks fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Further support came from the weak dollar. The dollar index held near six-week lows as investors weighed the outlook for U.S. President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. "Crude oil prices continue to rise, supported by the weakening dollar," said Priyanka Sachdeva, senior market analyst at Phillip Nova. Adding to supply worries, wildfires burning in Canada's province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude output, according to Reuters calculations. Further price support could come if forecasts of a drop in U.S. crude inventories are realised in the latest round of weekly supply reports.
Oil prices slip as rising OPEC+ output, tariff fears weigh on outlook -Oil prices edged lower in early Asian trade on Wednesday, weighed down by a loosening supply-demand balance following increasing OPEC+ output and lingering concerns over the global economic outlook due to tariff tensions. Brent crude futures dipped 5 cents, or 0.1%, to $65.58 a barrel by 0040 GMT while U.S. West Texas Intermediate crude was at $63.32 a barrel, down 9 cents, or 0.1%. Both benchmarks climbed about 2% on Tuesday to a two-week high, supported by worries over supply disruptions from Canadian wildfires and expectations that Iran will reject a U.S. nuclear deal proposal that is key to easing sanctions on the major oil producer. ”Despite fears over Canadian supply and stalled Iran-U.S. nuclear talks, oil markets are struggling to extend gains,” said Tsuyoshi Ueno, senior economist at NLI Research Institute, adding that OPEC+ production increases were capping the upside. Ueno said hopes for progress in U.S.-China trade talks were overshadowed by profit-taking, as investors remained cautious over the broader economic fallout from tariffs. U.S. President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. As the Trump administration pressed U.S. trading partners to provide their best offers by Wednesday, the protracted negotiations and moving deadlines have led economists to scale back growth forecasts. On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump’s trade war takes a bigger toll on the U.S. economy. Meanwhile, scores of wildfires have swept across Canada since the start of May, forcing thousands of evacuations and disrupting crude oil production in the country. U.S. crude stocks fell by 3.3 million barrels in the week ended May 30, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories rose by 4.7 million barrels and distillate stocks rose by about 760,000 barrels. [API/S] A Reuters poll of nine analysts estimated an average draw of 1 million barrels in crude stocks.
Oil Prices Tumble On Report That Saudis Want To 'Super-Size' OPEC Production Hikes - Crude prices are higher this morning on signs of progress in trade talks between the US and EU and the API report of a major drawdown in American crude inventories (despite product builds). Geopolitical tensions continue to drive prices more aggressively as the possibility of a Putin-Zelensky meeting came and went and Iranian peace deal talks stumble.The big question for traders is - will the official data confirm API's drawdown? API:
- Crude -3.28mm
- Cushing +952k
- Gasoline +4.73mm
- Distillates +761k
DOE
- Crude -4.30mm
- Cushing +576k
- Gasoline +5.22mm
- Distillates +4.23mm
The official data confirmed API's report with a large crude draw offset by big draws in products... Even including the 509k barrel addition to the SPR, total crude stocks fell by the most since December... Update (1130ET): Having surged overnight and extended gains on a big crude draw (and trade-talk progress with the Europeans), oil prices are tanking now as Bloomberg reports that, according to people familiar with the matter, Saudi Arabia wants OPEC+ to continue with accelerated oil supply hikes in the coming months as it puts greater importance on regaining lost market share.The kingdom, which holds an increasingly dominant position within OPEC+, wants the group to add at least 411,000 barrels a day in August and potentially September, the people said, asking not to be named because the information was private.Riyadh is keen to unwind its cuts as quickly as possible to take advantage of peak demand during the northern hemisphere summer, one person said.... ...the kingdom sees no reason to slow down — as Russia, Algeria and Oman suggested at the last OPEC+ meeting — because seasonal demand will peak in the coming months, the people said.Before the group’s most recent meeting, there had been some discussion of an even larger increase, according to people familiar with the matter. The reaction was instant, slamming WTI down 2%...We would imagine Russia will not be pleased at this outburst (or the US shale producers or the Kazakhs), but Trump might be happy with what his old friends in The Kingdom are saying (and doing).
Oil settles 1% lower after US data shows large builds in fuel stocks (Reuters) - Oil prices settled down just over 1% on Wednesday after U.S. data showed surprisingly large build in gasoline and diesel inventories, swelling fuel supplies with OPEC+ planning more output and trade tensions clouding the energy demand outlook. Brent crude futures closed down 77 cents, or 1.2%, at $64.86 a barrel. U.S. West Texas Intermediate crude settled 56 cents, or 0.9% lower at $62.85. U.S. gasoline stocks swelled by 5.2 million barrels, the Energy Information Administration said. Analysts polled by Reuters had expected a rise of 600,000 barrels. Distillate stockpiles rose by 4.2 million barrels compared with expectations for a rise of 1 million barrels. Crude inventories dropped by 4.3 million barrels. Analysts polled by Reuters had expected a draw of 1 million barrels. "The report is in my view bearish, due to large builds in refined products," Giovanni Staunovo, an analyst with UBS. "There was a strong increase in refinery demand for crude, resulting in a large crude draw. But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases," he added. Plans by OPEC+ producers to increase output by 411,000 barrels per day (bpd) in July were also weighing on investors. On Tuesday, both benchmarks climbed about 2% to a two-week high, driven by worries about supply disruptions and expectations that OPEC member Iranwould reject a U.S. nuclear deal proposal key to easing sanctions. Russia posted a 35% decline in May oil and gas revenue, which could make Moscow more resistant to further OPEC+ output hikes, as such moves weigh on crude prices.On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump's trade policies takes a bigger toll on the U.S. economy, which would in turn impact oil demand.. Meanwhile, U.S. President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, days after Trump accused China of violating a deal to roll back tariffs and trade curbs. U.S. economic activity has declined and higher tariff rates have put upward pressure on costs and prices in the weeks since Federal Reserve policymakers last met to set interest rates, the central bank said in its latest snapshot of the economy. Geopolitical tensions continued to escalate. Russian President Vladimir Putin told Trump that he must respond to high-profile Ukrainian drone attacks on Russia's nuclear-capable bomber fleet and a deadly bridge bombing that Moscow blamed on Kyiv. "Overall, we see limited upside potential amid ongoing concerns about a supply glut and softening demand growth," analyst Ole Hansen at Saxo Bank said in a note. Meanwhile, production operations in Canada, some of which was shut-in due to wildfires, were restarting on Wednesday. Canadian Natural Resources said it has restarted its Jackfish 1 oil sands site in northern Alberta after determining wildfires in the region were a safe distance away. Wildfires in Canada had reduced the country's output by some 344,000 bpd, according to Reuters calculations on Tuesday.
Oil dips on surprise US build, Saudi price cuts - Oil prices ticked lower in Asian trade on Thursday trade, pressured by a surprise build in United States fuel stockpiles and price cuts by Saudi Arabia for July crude deliveries to Asia. By 3:05 pm AEST (5:05 am GMT), Brent crude futures fell 18 cents, or 0.3%, to US$64.68 per barrel, while West Texas Intermediate (WTI) crude dropped 30 cents, or 0.5%, to US$62.55. The losses followed a near 1% decline in the previous session, after official data showed an unexpected rise in U.S. gasoline and distillate inventories, indicating subdued demand in the world’s largest economy. Data from the U.S. Energy Information Administration revealed gasoline and diesel stocks rose more than expected, rising by 5.2 million barrels versus a 1.5 million-barrel build expected.Meanwhile, data revealed a 4.3 million barrel draw in crude oil inventories - far above analyst forecasts of a 900,000-barrel decrease.Adding further pressure, Saudi Arabia's state firm Aramco, the world's leading oil exporter, reduced its official selling price for July-loading crude to Asia. The cuts brought prices to near four-year lows and came just days after Organisation of the Petroleum Exporting Countries (OPEC+) announced it would raise output by 411,000 barrels per day starting in July. The price reduction is widely seen as part of a strategic move by Saudi Arabia and Russia - leaders within the OPEC+ alliance - to regain market share and curb overproduction by some member states, Reuters reported. Elsewhere, tensions continued to simmer across global trade corridors. Canada prepared retaliatory measures while the European Union reported progress in trade negotiations, as new U.S. tariffs on metals disrupted global economic relations and added urgency to ongoing discussions with Washington.
Oil Futures Jump on Trump-Xi Call -- Oil futures rebounded Thursday morning following Chinese state media reporting of a phone call between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. The conversation, the first direct contact between the two leaders since President Trump took office, sparked hopes of easing trade tensions between the U.S. and China. NYMEX-traded WTI for July delivery was up $0.92 bbl to trade near $63.77 bbl, and ICE Brent for August delivery rose $0.83 bbl to $65.69 bbl. July RBOB gasoline futures gained $0.0344 to $2.0684 gallon, while the front-month ULSD futures contract added $0.0325 to $2.1026 gallon. The U.S. Dollar Index softened by 0.095 points to 98.635. U.S. tariff policy has soured global growth outlooks over the past months, leading prices lower. On Tuesday, the Organization for Economic Cooperation and Development cut growth forecasts for both the U.S. and global economy. U.S. GDP is expected to grow 1.6% this year, compared to 2.8% in 2024. Globally, economic growth is projected to slow to 2.9% this year, compared to 3.3% last year. Prices dropped in the previous session on reports of large builds to U.S. gasoline and diesel inventories, despite falling crude oil stocks. Commercial crude oil inventories fell by 4.3 million bbls to 436.1 million bbls last week, according to U.S. Energy Information Administration data, while gasoline and diesel inventories expanded by 5.2 and 4.2 million bbls, respectively.
Oil Market Update: Recovery After Previous Losses - The crude market traded higher on Thursday, rebounding from the previous day’s losses, following reports that China’s President Xi Jinping spoke with U.S. President Donald Trump by phone. In overnight trading, the market bounced higher after the market fell more than 1% on Wednesday after the EIA report showed that U.S. gasoline and distillates stocks increased more than expected and Saudi Arabia cut its July prices for Asian crude buyers to nearly the lowest level in two months and the Bloomberg News report that Saudi Arabia is open to additional crude production hikes in a bid to increase its market share. The oil market posted a low of $62.50 in overnight trading and traded within Wednesday trading range before it breached its previous high and posted a high of $63.98 on the news that the U.S. and China agreed to more trade talks following a phone call between the two leaders. The market later erased some of its gains and settled in a sideways trading range. The July WTI contract ended the session up 52 cents at $63.37 and the August Brent contract ended up 48 cents at $65.34. Meanwhile, the product markets also ended the session higher, with the heating oil market settling up 2.44 cents at $2.0945 and the RB market settling up 2.89 cents at $2.0629.U.S. President Donald Trump said U.S. and Chinese teams will meet shortly after he and Chinese leader Xi Jinping discussed trade in a phone call on Thursday, adding that there “should no longer be any questions” on rare earth products. President Donald Trump said trade talks with China remained on track and were in good shape, adding that he expected to go to China at some point. President Trump said he expected President Xi to visit the United States as well. He added that U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick would meet with top Chinese officials.Bloomberg News reported that China has avoided buying U.S. crude for a second consecutive month as the country’s trade dispute with the U.S continues. U.S. crude oil exports in April fell by 4% on the month to 3.883 million bpd, the lowest level this year amid the absence of Chinese purchases. In the same month a year earlier, China bought 297,000 bpd from the U.S. and three times that amount in 2023. March and April mark the first time since the pandemic that China’s refiners did not purchase U.S. oil for two consecutive months.The International Energy Agency said an increase in clean energy spending is expected to drive a record $3.3 trillion in global energy investment in 2025, despite economic uncertainty and geopolitical tensions. The IEA said in its annual World Energy Investment report that clean energy technologies, including renewables, nuclear, and energy storage are set to attract $2.2 trillion in investment, twice the amount expected for fossil fuels. Investment in oil and gas is expected to decline, with upstream oil investment set to fall by 6% in 2025, driven by lower oil prices and demand expectations and the first decline since the Covid crisis in 2020.
Oil settles up as US, China teams to meet following Trump, Xi trade call (Reuters) - Oil prices settled higher on Thursday, recovering from the previous day's drop, on news that the U.S. and China agreed to more trade talks following a phone call between U.S. President Donald Trump and Chinese leader Xi Jinping. Brent crude futures settled up 48 cents, or 0.7%, at $65.34 a barrel. U.S. West Texas Intermediate crude settled up 52 cents, or 0.8%, at $63.37 a barrel. "If we step back from the brink of a major trade war, it will increase demand expectations for oil both in the U.S. and in China," s The official Xinhua news agency reported earlier that the talks were held at Trump's request. Trump said on social media his call with Xi focused primarily on trade and led to "a very positive conclusion." He announced further lower-level U.S.-China discussions. "We're in very good shape with China and the trade deal," he told reporters later. Canadian Prime Minister Mark Carney and Trump are also in direct communication as part of Ottawa's bid to persuade Washington to lift tariffs, Industry Minister Melanie Joly said. The news encouraged investors a day after oil fell 1% as data showed U.S. gasoline and distillate stockpiles grew more than expected, reflecting weaker demand in the world's largest economy. Geopolitical events and wildfires in Canada that threaten to reduce oil production are providing further price support, despite a potentially oversupplied market in the second half of the year with expected OPEC+ production hikes. Curbing gains on Thursday, Saudi Arabia, the world's biggest oil exporter, cut its July prices for Asian crude buyers to nearly the lowest level in two months. The Saudi price cut followed a move by OPEC+ last weekend to increase output by 411,000 barrels per day for July.The strategy of Saudi Arabia, OPEC's de facto leader, is partly to punish over-producers by potentially unwinding 2.2 million bpd of cuts between June and the end of October, in a bid to wrestle back market share, Reuters previously reported. In economic news, data on Wednesday showed the U.S. services sector contracted in May for the first time in nearly a year. The number of Americans filing new applications for unemployment benefits increased for the week ending May 31, marking the second straight weekly jump, the Labor Department said on Thursday, citing softening labor market conditions amid mounting economic headwinds from Trump's tariffs. The release on Friday of the U.S. nonfarm payrolls report for May could influence the U.S. Federal Reserve's interest rate policy, while the market's focus will also be on geopolitical tensions in the Middle East, UBS analyst Giovanni Staunovo said.
Oil Prices Slip Amid Mounting Global Uncertainties -- Crude oil prices dipped on Friday as volatility in the global commodity market persisted, driven by a complex mix of supply-demand imbalances and geopolitical tensions. The imbalance appears multidimensional: the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) are increasing production, even as demand weakens—particularly in China, where sluggish economic data and tariff concerns are dampening consumption outlook. The ongoing Russia-Ukraine war continues to disrupt both the supply and demand dynamics of global crude, while escalating tensions in the Middle East, particularly involving Israel, are also contributing to market unease. Despite these pressures, oil prices managed to remain relatively stable, buoyed slightly by developments such as renewed US-China trade communications and continued geopolitical friction in Eastern Europe. Brent crude, the international benchmark, edged up 0.04% to trade at $65.03 per barrel, compared to $65.00 in the previous session. Similarly, US benchmark West Texas Intermediate (WTI) gained 0.06% to $62.64 per barrel, up from $62.60. Supply-side uncertainty grew further amid reports of potential new US sanctions on Russia and stalled nuclear negotiations with Iran—both of which could impact global supply chains. Meanwhile, OPEC+ reaffirmed its intention to increase output starting July, in line with previous guidance. On the demand side, weak macroeconomic signals from both the United States and China continued to weigh heavily. A notable build-up in US petroleum product inventories only added to concerns about sluggish demand in the near term. Elsewhere, a phone conversation on Thursday between US President Donald Trump and Chinese President Xi Jinping revived cautious optimism around trade negotiations. However, analysts warn that the possibility of additional US tariffs still looms, leaving markets wary of a sustained breakthrough. In a separate development that stirred investor sentiment, tensions between President Trump and Tesla CEO Elon Musk surfaced after Musk openly criticized proposed tax legislation—a political spat that added to the broader climate of uncertainty in US economic policy.
Oil Rises as Solid USA Jobs Data Pushes Algos to Drop Short Bets | Rigzone - Oil rose as stronger-than-expected US jobs data eased concerns about an economic slowdown that would crimp demand, spurring algorithmic traders to reduce short positions. West Texas Intermediate climbed almost 2% to settle above $64 a barrel, notching the largest weekly gain since November. Crude followed equities higher after US job growth in May narrowly surpassed economist forecasts, allaying concerns of near-term demand deterioration. The figures also pushed economy-sensitive diesel futures to a two-week high. “Trading is relatively quiet today, with macroeconomic factors continuing to drive the narrative,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “The unemployment data is easing concerns that demand will sharply decline due to tariff uncertainty.” The positive economic data spurred commodity trading advisers to ease off of their bearish tilt. The funds, which can accelerate price momentum, liquidated short positions to sit at negative 9% short in WTI on Friday, compared with 64% short on June 5, according to data from Bridgeton Research Group. The rally was supported by enduring risk-on sentiment from optimistic signs on trade talks between the US and China, the world’s largest importer of crude. President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to further negotiations over tariffs and supplies of rare earth minerals. The positive signals come against the backdrop of an oil market that has been increasingly rangebound in recent weeks. Prices have traded in a $5 band since the middle of May, and a gauge of volatility for US crude futures is at the lowest since early April. Oil has been buffeted in Trump’s second term as trade tensions between the world’s two largest economies menace demand. At the same time, the OPEC+ alliance has been adding barrels back to the market at a faster-than-expected rate, further clouding an already weak outlook for the second half of the year. The number of oil rigs in the US, meanwhile, plummeted to the lowest in about four years as shale explorers anticipate weakening global oil demand. WTI for July delivery rose 1.9% to settle at $64.58 a barrel in New York. Brent for August settlement added 1.7% to settle at $66.47 a barrel.
Crude climbs on US jobs report, China talks (Reuters) - Crude rose more than $1 a barrel on Friday, posting its first weekly gain in three weeks after a favorable U.S. jobs report and resumed trade talks between the U.S. and China, raising hopes for growth in the world's two largest economies. Brent crude futures settled at $66.47 a barrel, up $1.13, or 1.73%. U.S. West Texas Intermediate crude finished at $64.58, up $1.21 or 1.91%. Both benchmarks settled with weekly gains after declining for two straight weeks. Brent has advanced 2.75% this week, while WTI is trading 4.9% higher. "I think the jobs report was Goldilocks," said Phil Flynn, senior analyst with the Price Futures Group. "It was not too hot, not too cold but just right to increase the chances for an interest rate cut by the Federal Reserve." The U.S. Labor Department's monthly employment report showed the unemployment rate held steady at 4.2% last month. Employers added 139,000 jobs, which combined with downward revisions to prior months' estimates showed a cooling in labor demand but nothing abrupt; by comparison, monthly job gains averaged 160,000 last year. A rate cut by the U.S. central bank, much desired by President Donald Trump, could boost economic growth and demand for petroleum. "This market had priced in a lot of bad options," "None of it has come to pass. OPEC+ held the line. There have been talks between China and the U.S." China's official Xinhua news agency said trade talks between Xi and Trump took place at Washington's request on Thursday. Trump said the call had led to a "very positive conclusion", adding the U.S. was "in very good shape with China and the trade deal". The oil market continued to swing with news on tariff negotiations and data showing how trade uncertainty and the impact of the U.S. levies are flowing through into the global economy. On Saturday, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, agreed to ramp up output by a previously announced 411,000 barrels per day (bpd) in July. The group rejected a Saudi recommendation for a bigger output hike, part of a broader strategy to win back market share for OPEC+. "The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+," HSBC said in a note. The U.S. oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021, energy services firm Baker Hughes said on Friday. Oil rigs fell by nine to 442 this week, while gas rigs rose by five to 114, Baker Hughes said.
Israeli Military Admits To Shooting Palestinians Near Gaza Aid Site, 27 Reported Killed - Gaza’s Health Ministry said Tuesday that at least 27 people were killed when Israeli forces opened fire on Palestinians attempting to collect aid near a distribution site in southern Gaza.The Israeli military admitted that it opened fire at Palestinians near the distribution sites, claiming it targeted “suspects” who were approaching IDF troops. The statement did not allege that the Palestinians were armed. Axios later reported that the IDF acknowledged it fired at civilians.“Earlier today, during the movement of the crowd along the designated routes toward the aid distribution site—approximately half a kilometer from the site—IDF troops identified several suspects moving toward them, deviating from the designated routes,” the IDF said in a statement.“The troops carried out warning fire, and after the suspects failed to retreat, additional shots were directed near individual suspects who advanced toward the troops,” the statement added.
Israeli Defense Minister: 'We Will Build a Jewish Israeli State' in the West Bank - Israeli Defense Minister Israel Katz declared on Friday that Israel would build a “Jewish Israeli state” in the Israeli-occupied West Bank.Katz’s comments came a day after the Israeli government approved 22 additional West Bank settlements, which are illegal under international law. The approval marked the biggest single settlement expansion in more than 30 years, according to the Israeli settlement watchdog Peace Now.Katz said the settlement expansion was a response to French President Emmanuel Macron and other world leaders who have been considering recognizing a Palestinian state.“This is a decisive response to the terrorist organizations that are trying to harm and weaken our hold on this land – and it is also a clear message to Macron and his associates: they will recognize a Palestinian state on paper – but we will build the Jewish Israeli state here on the ground,” Katz said. “The paper will be thrown into the trash bin of history, and the State of Israel will flourish and prosper,” he added.
Ukraine Targets Russian Airfields in Major Drone Attack - The Security Service of Ukraine (SBU) conducted a large-scale drone attack deep inside Russian territory on Sunday that targeted several Russian airfields.The Russian Defense Ministry said the attack targeted five Russian regions, including the Amur Oblast in Russia’s far east, which is over 3,000 miles from Ukraine, and a base in the Irkutsk Oblast, over 2,500 miles from the Ukrainian border.The attack also targeted the northern region of Murmansk and the western oblasts of Ivanovo and Ryazan. The Russian Defense Ministry said that “several aircraft” caught fire in Murmansk and Irkutsk and that the attacks were launched “in the exact proximity” of the airfields in the region.The Defense Ministry said the attacks were “repelled” in the other three regions. “No casualties were reported either among servicemen or civilians. Some of those involved in the terror attacks were detained,” the ministry said.A Ukrainian official told Reuters that the SBU was able to pull off the attack by hiding explosive-laden drones inside the roofs of wooden sheds. The sheds were loaded onto trucks driven near the bases, and the roof panels were lifted off by a remotely activated mechanism, allowing the drones to fly out.Videos on social media show drones flying out of a truck near the Belaya airbase in Irkutsk. Ukrainian officials said the attack was planned for more than a year and claimed it destroyed 41 Russian aircraft, including TU-95 long-range bombers, though the number hasn’t been confirmed by the Russian side.Ukrainian President Volodymyr Zelensky described the attack as a “brilliant operation” in his nightly address. ” It took place on enemy territory and was aimed exclusively at military targets – specifically, the equipment used in strikes against Ukraine. Russia suffered truly significant losses – entirely justified and deserved,” he said.
Ukraine destroys 40 aircraft deep inside Russia ahead of peace talks in Istanbul (AP) — A Ukrainian drone attack has destroyed more than 40 Russian planes deep in Russia’s territory, Ukraine’s Security Service said on Sunday, while Moscow pounded Ukraine with missiles and drones just hours before a new round of direct peace talks in Istanbul. A military official, who spoke with The Associated Press on condition of anonymity to disclose operational details, said the far-reaching attack took more than a year and a half to execute and was personally supervised by Ukrainian President Volodymyr Zelenskyy. In his evening address, Zelenskyy said that 117 drones had been used in the operation. He claimed the operation had been headquartered out of an office next to the local FSB headquarters. The FSB is the Russian intelligence and security service. The military source said it was an “extremely complex” operation, involving the smuggling of first-person view, or FPV, drones to Russia, where they were then placed in mobile wooden houses. “Later, drones were hidden under the roofs of these houses while already placed on trucks. At the right moment, the roofs of the houses were remotely opened, and the drones flew to hit Russian bombers,” the source said. Social media footage shared by Russian media appeared to show the drones rising from inside containers while other panels lay discarded on the road. One clip appeared to show men climbing onto a truck in an attempt to halt the drones. The drones hit 41 planes stationed at military airfields on Sunday afternoon, including A-50, Tu-95 and Tu-22M aircraft, the official said. Moscow has previously used Tupolev Tu-95 and Tu-22 long-range bombers to launch missiles at Ukraine, while A-50s are used to coordinate targets and detect air defenses and guided missiles. The Security Service of Ukraine said that the operation, which it codenamed “Web”, had destroyed 34% of Russia’s fleet of air missile carriers with damages estimated at $7 billion. The claim could not be independently verified. Russia’s Defense Ministry in a statement confirmed the attacks, which damaged aircraft and sparked fires on air bases in the Irkutsk region, more than 4,000 kilometers (2,500 miles) from Ukraine, as well as the Murmansk region in the north, it said. Strikes were also repelled in the Amur region in Russia’s Far East and in the western regions of Ivanovo and Ryazan, the ministry said. U.S. Defense Secretary Pete Hegseth was briefed on Ukraine’s attack Russia during a stop at Nellis Air Force Base and was monitoring the situation. A senior defense official said on the condition of anonymity to discuss sensitive matters that the U.S. was not given notification before the attack. The official said it represented a level of sophistication the U.S. had not seen before.
NATO risks nuclear catastrophe with attack on Russian airports -- The destruction of strategic bombers deep inside Russia by the Ukrainian secret service SBU shows that NATO will stop at nothing to escalate the war with Russia, even if it means provoking a nuclear catastrophe. On Sunday, around 120 Ukrainian drones, which had previously been smuggled into the country, attacked four Russian military airfields in a coordinated operation. Two of the airfields—Belaya in Eastern Siberia and Olenia near the Finnish-Russian border—are thousands of kilometers away from Ukraine. President Volodymyr Zelensky personally boasted on X about the “absolutely brilliant success” and announced that it had been a long-planned coup: “One year, six months, and nine days from the start of planning to effective implementation.” The SBU released videos of the attacks. According to its information, more than 40 combat and reconnaissance aircraft were destroyed, about 34 percent of Russian bombers capable of launching cruise missiles. Well-informed Russian bloggers estimate a lower number, but even according to their information, around a dozen aircraft went up in flames. It is inconceivable that NATO was not informed and closely involved. Such a complex operation, prepared over a long period of time, cannot be carried out without reconnaissance data that only the US has at its disposal. Military and intelligence officials from NATO and Ukraine are in constant, close contact, and President Zelensky exchanges information with the heads of government of NATO countries on an almost daily basis. The action was obviously designed to humiliate and provoke the Russian government. The following day, the second round of direct talks between Russia and Ukraine took place in Istanbul, which ended after only an hour without any significant results. In Moscow, the attack will be interpreted as a NATO attack on strategic targets within Russia, and the regime will respond accordingly. Official sources have so far remained cautious. The Russian Ministry of Defense merely stated that “some aviation equipment had caught fire” and that “all terrorist attacks” had been repelled. But bloggers close to the Russian military are calling the attack “Russia’s Pearl Harbor.” In December 1941, the Japanese air force destroyed parts of the American Pacific Fleet in the Hawaiian port. The following day, the US declared war on Japan and entered World War II. The widely read channel “Dva Majora” accused NATO of “directly undermining the nuclear strategic balance” and “reducing our country’s nuclear protection.” The Telegram channel “Rybar,” with 1.3 million subscribers, called for an end to talks with Ukraine and a “new level of escalation of the conflict.” The newspaper Moskovsky Komsomolets, the second largest in the country, described June 1 as a “black day for Russia’s long-range and military transport aircraft” and called for the same “determination and harshness” against Ukraine as Israel has shown against Hamas. President Putin will respond to the growing pressure, and NATO’s experienced strategists know this very well. Attacks on NATO targets outside Ukraine that have a similar strategic significance to the destroyed Russian bombers cannot be ruled out. The danger of further escalation and expansion of the war in Ukraine, including the use of nuclear weapons, is greater than ever before. What is prompting NATO to take this risk? Why is it continuing to escalate a war that has already cost the lives of hundreds of thousands of Ukrainian and Russian soldiers? The history of the war in Ukraine itself provides an answer. This was never the “unprovoked Russian war of aggression,” as portrayed by the media. The Russian oligarchs, who had become rich by plundering the social property of the Soviet Union and whose interests Putin represents, always sought admission into the circle of capitalist “great powers.” Putin himself was therefore celebrated with a standing ovation by the German Bundestag in 2001. But neither the US nor the major European powers wanted to share with the Russian oligarchs. Driven by mounting economic and financial crises and the pursuit of raw materials, markets and profits, they broke one agreement after another that they had made since the dissolution of the Soviet Union and pushed further and further eastward economically and militarily. After NATO had annexed all of Eastern Europe and the former Baltic Soviet republics, it also reached out to Ukraine and Georgia, aiming to destroy Russia.
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