The fragile Middle East truce has knocked down the prices of crops that are tied to oil.
The price of crops around the globe has been impacted by a shaky truce between Iran and Israel, especially those that can be converted into biofuels. Prices are affected by the price for crude oil. The price of crude oil dropped sharply after President Trump announced a ceasefire. This hit futures contracts and stocks for vegetable oils like Malaysian palm, European rapeseed and Chicago soyoil. John Duvenaud, Winnipeg, Canada's crop markets analyst, said that the fall in vegetable oil prices was "totally connected" to the collapse of crude oil futures on Monday and Tuesday.
Eni CEO: Oil markets do not expect closure of the Hormuz Strait
Eni's CEO, Eni of Italy, said that oil markets were signaling an unlikely escalation of tensions between Israel and Iran or the closing of the Strait of Hormuz. The Strait of Oman, located between Oman and Iran, connects the Gulf of Oman in the north with the Gulf of Oman in the south. It also links the Arabian Sea to the east. Claudio Descalzi, Eni, said at an energy conference that the markets had not yet pushed crude oil prices above $80 or $90 per barrel, (signaling that) they were predicting more extreme scenarios, such as the closing of the Strait of Hormuz.
Overview of Iran's major gas fields and oil infrastructure
Israel attacked an installation in Iran's South Pars Gas Field on Saturday. This was the first attack against Iran's oil-and-gas sector, as part of a long-term operation that the Israeli government warned would take place to stop Tehran from developing an atomic bomb. Iran has temporarily suspended gas production at the South Pars Field, Iran's share of the world's biggest natural gas reserve. The field is located beneath the Gulf, and it's shared with Qatar, a major gas exporter. Iran reported that Israel had also attacked a fuel depot in Tehran and an oil refinery close to the capital…
Russian Urals Oil Prices Rise Above Western Price Cap
Russia's Urals crude oil price rose above the $60 per barrel limit imposed by Western nations as the Brent price jumped last week, fuelled by rising tensions in the Middle East, Reuters calculations based on traders' data showed on Monday.Oil prices jumped on Friday and settled 7% higher as Israel and Iran traded air strikes, feeding investor worries that the combat could widely disrupt oil exports from the Middle East.The U.S., other Group of Seven countries and Australia imposed the price cap in late 2022…
Palm gains on Chicago's crude oil and soyoil rally
Malaysian palm futures rose on Monday for the third consecutive session, following gains in Chicago soyoil, after the U.S. proposed increased biofuels blend, and supported by crude oil rally, following tensions in Middle East. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery had gained 156 Ringgit or 3.98% to 4,078 Ringgit ($961.79) per metric ton. The U.S. administration of President Donald Trump proposed on Friday that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-year period.
Saudi Aramco CEO: Oil and gas is important during times of conflict
Saudi Aramco's head told a Monday energy conference that oil and gas are important in times of conflict, as we can see right now. Aramco CEO Amin Nasser gave his speech at the Energy Asia Conference held in Kuala Lumpur via video link. The oil prices rose last week, after Israel, claiming to have launched attacks against Iran on Friday in order to stop Tehran from building atomic weapons, said that they were meant to prevent Tehran. Over the weekend, fighting intensified. He said that the world was concerned about energy security, despite the fact that Israel and Iran were fighting.
ADNOC consortium offers $18.7 billion to takeover Australia's Santos
Santos, an Australian oil and natural gas company, said Monday that it would support a $18,7 billion bid by an international consortium led Abu Dhabi National Oil Company (ADNOC) to acquire the company. ADNOC has, via its investment arm XRG in conjunction with Abu Dhabi Development Holding Company, Carlyle and Abu Dhabi Development Holding Company, offered $5.76 ($8.89 A$) per Santos Share, a 28% increase over the closing price of Friday for the Australian firm. As oil prices rose to multi-week highs…
Overview of Iran's major gas fields and oil infrastructure
Israel attacked an installation in Iran's South Pars Gas Field on Saturday. This was the first attack against Iran's oil-and-gas sector, as part of a long-term operation that the Israeli government warned would take place to stop Tehran from developing an atomic bomb. Iran has temporarily suspended gas production at the South Pars Field, Iran's share of the world's biggest natural gas reserve. The field is located beneath the Gulf, and it's shared with Qatar, a major gas exporter. Iran reported that Israel had also attacked a fuel depot in Tehran and an oil refinery close to the capital…
As tensions in the Middle East rise, traders are betting on oil at $80 US dollars.
The most West Texas Intermediate crude oil call options of $80 have been traded since January. Traders expect prices to rise further after Israeli airstrikes against Iran raised fears about a wider Middle East war. Call options give the holder the right to purchase a futures contract for the price and date specified. A rise in volume can be used to gauge the market sentiment. CME Group data shows that on Friday, 33,411 contracts worth $80 for WTI crude oil call options expiring in August 2025 were traded. This was the largest volume of these options so far this year.
China's crude imports in May are at a 4-mth-low amid widespread refinery repairs
Data released on Monday showed that China's crude imports in May fell to the lowest rate per day in four months as maintenance at state-owned refineries and independent refineries increased. According to the General Administration of Customs, the imports of crude oil in May totaled 46.6 million metric tonnes. This is equivalent to 10,97 million barrels a day. Volume dropped by 3% from 48.06 millions tons in April and by 0.78% compared to May 2024. The data shows that in the first five month of 2025 China imported 229.61 metric tons or 11.1 millions bpd. This is up 0.3% compared to the same period last year.
ADNOC's XRG acquires stake in Turkmenistan Gas Block
XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), announced on Wednesday that it had acquired a stake in a Turkmenistan offshore natural gas block as part of its ambitious expansion plans. XRG was set up in late 2018 and ADNOC reported that it has assets worth $80 billion. Its mandate is to pursue global deals for chemicals, natural gases and renewables. Abu Dhabi wants to create a portfolio of companies in these areas, and rely less and less on oil exports. XRG announced that Malaysian state oil company Petronas would hold a 57% stake in "Block I" offshore…
Palm surges due to stronger soyoils and weaker ringgit
After a long weekend of holidays, palm oil futures in Malaysia extended gains for the third consecutive session on Tuesday. Supported by stronger soyoils, a weaker ringgit and stronger rivals, rising stocks, however, limited gains. The benchmark contract for palm oil delivery in July on the Bursa Derivatives exchange gained 81 Ringgit or 2.07% to close at 3,893 Ringgit ($901.16) per metric ton. "The premium of soyoil over palm oil has increased, and now exceeds $100 per ton in forward-month shipments. This should lead to higher demand in the peak production months," said Mumbai-based trader.
Palm oil surges due to stronger Dalian oil and weaker ringgit
After a long weekend of holidays, the palm oil futures in Malaysia extended their gains for a third consecutive session on Tuesday. The weaker ringgit and stronger Dalian oils supported this. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for July delivery had gained 81 Ringgit or 2.12% to $3,895 ringgit (US$900.58) per metric ton. The contract rose by as much as 3.2% in the first session. This was its largest daily gain since the 7th of March, when the Malaysian market reopened on Monday after Vesak.
Argentina's YPF suffers a net loss in the first quarter
YPF, the state-owned oil company in Argentina, reported a loss of $10m for the first quarter. This was due to lower demand during the season and lower export volumes. This loss is compared to the net profit of $657 millions in the first quarter 2024. The revenue, on the other hand, increased by 7% over a year earlier to $4.61 billion. This was due in part to higher fuel prices in local markets, but also a decline in oil exports and lower demand for diesel. YPF, Argentina's largest domestic fuel supplier…
Mexico's Pemex increased crude exports to Cuba in 2024 according to filings
According to a filing by the company, Pemex, the Mexican state oil company, increased crude shipments to Cuba last year by nearly 20% as Cuba's energy crisis worsened. Gasolinas de Bienestar, a Pemex affiliate, exported 20,100 barrels of crude oil per day and 2,700 bpd in oil products by 2024. This equates to a total of $600 million. Pemex will send the Caribbean island in 2023 16,800 bpd crude oil and 3,300bpd oil products worth $400 million. The shipments that year began in July. Cuba has suffered from frequent and long power outages. It blames this on the Cold War U.S.
Venezuela's oil exports drop by 20% after Chevron cancels cargo
Ship tracking data and documents show that Venezuelan oil exports dropped by almost 20% in April to 700,000 barrels a day (bpd), the lowest level for nine months. This was due to cargo cancellations from U.S. producer Chevron, which forced ships to return to port and left some empty ports. PDVSA, Venezuela's state company, suspended last month most of the loading window it had assigned Chevron. It also ordered the return of certain oil cargoes headed for the U.S. due to payment uncertainty relating to U.S. sanction enforcement. Chevron missed a deadline set by the U.S.
Petroecuador declares emergency at Ecuador's largest refinery after quake
Petroecuador, the state-run oil firm in Ecuador, declared an emergency on the day after an earthquake caused damage to the refinery. However the company said that the move is not expected affect oil exports or domestic fuel distribution. Petroecuador’s Esmeraldas Refinery, located in the north of Ecuador, is the largest refinery on the continent. It has a daily capacity of 110.000 barrels. A tornado has hit the area. The storm, which hit the Pacific Coast of Chile on Friday, caused some oil infrastructure to be temporarily shut down. It also damaged some buildings and injured at least 20 people.
Petrobras reports slight decline in oil and gas production for the first quarter
Petrobras, the state-owned oil company in Brazil, reported Tuesday that it produced 2.77 million barrels equivalents of oil per day (boed), down 0.2% compared to a year ago. Petrobras said that its oil production in Brazil dropped by 1% on an annual basis, reaching 2.21 million barrels of oil per day (bpd). The firm also added that the Almirante Tamandare FPSO began producing at Brazil's Buzios Field in February. The start-up of operations for the FPSO Almirante Tamandare represents a sustainable increase in production, said Renata B.
Sources say that US fuel exports by land to Mexico have been halted due to increased scrutiny.
Three sources with knowledge of the matter confirmed on Tuesday that the Mexican government had halted the importation of U.S. gasoline into Mexico by road as part its crackdown on illegal deals. One source involved in the delivery of such trucks said that Mexican authorities are investigating import permits and increasing cargo inspections. The sources stated that there was no timetable for the return of the trucking business, and that fuel deliveries by rail or water to Mexico via the U.S. were not affected. Sources requested anonymity because the matter was not public.
YPF's earnings could be affected by lower crude oil prices
A Friday presentation to investors revealed that the state-owned oil company in Argentina could have its core earnings fall this year due to lower crude prices. According to the firm's current estimates, its earnings before interest taxes depreciation amortization (EBITDA), in 2025, will range from $5.2 billion to $5.5 billion assuming Brent crude at $72.5 per barrel. The firm estimates that if crude sold for $60 per barrel, projected EBITDA would drop to between $4.2 and $4.5 billion. The price of crude oil has been volatile this week, as traders have had to re-evaluate the risks in the market due to U.S.
