As Wars Rage, Middle East's Waning Influence on World Oil Prices Exposed
The contained move in oil prices during the Israel-Iran war highlights the increasing efficiency of energy markets and fundamental changes to global crude supply, suggesting that Middle East politics will no longer be the dominant force in oil markets they once were.The jump in oil prices following Israel's surprise attack on Iran was meaningful but relatively modest considering the high stakes involved in the conflict between the Middle East rivals.Benchmark Brent crude prices, often considered a gauge for geopolitical risk…
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, but the authorities claimed the situation was now under control.
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, but the authorities claimed the situation was now under control.
Commodity Report: Meeting Oil Demand a Challenge if Israel Hits Iran Oil
Oil market participants have switched to dreading a shortage in fuel from focusing on impending oversupply in just two days this week.After Israel attacked Iran and Tehran pledged to retaliate, oil prices jumped as much as 13% to their highest since January as investors price in an increased probability of a major disruption in Middle East oil supplies.Part of the reason for the rapid spike is that spare capacity among OPEC and allies to pump more oil to offset any disruption is roughly equivalent to Iran's output, according…
Nigerian oil sector enters new phase of growth thanks to local firms
Nigeria's oil and gas industry is undergoing a major shift as local companies take on a greater role, resulting in a new phase for innovation and growth. The companies that are leading the charge include those who have purchased onshore and shallow-water assets from oil majors, which plan to invest billions of dollars in developing abandoned fields. Even smaller producers are contributing. For example, Nigeria's Otakikpo crude terminal was the first onshore crude terminal to be developed and operated locally. It began loading operations Monday. It was built by Green Energy Limited in the OML11 block near Port Harcourt.
Exxon Signs Agreement With Azeri SOCAR to Explore Oil Production
Exxon Mobil and Azeri state energy company SOCAR said on Monday they signed a deal agreeing to explore onshore oil and gas production in Azerbaijan, while BP is expected to buy into new Azeri offshore fields, according to three sources.Azerbaijan's production mainly relies on mature oil fields in the Caspian Sea and the country is aiming to maintain its oil output at around 582,000 barrels per day over the next five years with investment from Western energy companies.At the Baku Energy Week conference, SOCAR and Exxon signed a memorandum of understanding for the exploration…
Azerbaijan’s SOCAR signs agreements for oil exploration with Exxon and BP
Azeri SOCAR, the state-owned energy company of Azerbaijan, signed agreements with Exxon Mobil & BP for oil and natural gas exploration in Azerbaijan at a conference on energy in Baku. According to the U.S. Department of Energy, Azerbaijan's proven oil reserves are 7 billion barrels. Its proven natural gas reserves are 1.7 trillion cubic meters. The country's oil output has been declining for several years after the Azeri-Chirag-Gunashli (ACG) complex of oilfields passed its peak of 50 million metric tons, or 1 million barrels per day, in 2010. BP declined comment. Exxon Mobil didn't immediately respond to a comment request.
EIA: US crude oil production hit a record high in March while demand fell
The U.S. Energy Information Administration reported in its Petroleum Supply Monthly Report on Friday that U.S. crude output reached a record monthly high in March while the demand for oil products fell to the lowest level in a full year. The U.S. crude output increased to 13,49 million barrels a day in March. This is up from the previous all-time record of 13,45 million bpd, which was set in October 2024. EIA data show that crude oil production in Texas, which is the top oil producing state in the United States, increased by 50,000 barrels per day (bpd) from February to 5,71 million bpd, the highest level since November 2024.
Chevron and European firms lobby for the retention of stakes in Venezuelan oil joint ventures
Three sources familiar with the situation said that the U.S. oil company Chevron and several European firms are currently in discussions with the Trump Administration to get permission to retain their stakes in joint-ventures with Venezuela's PDVSA. Washington revoked in March licenses and authorizations that it had granted to PDVSA’s foreign partners and clients in the past years, allowing them to do business in Venezuela, which was under U.S. sanction, and exporting oil to destinations such as the U.S.A., Europe, and India. The U.S. gave companies until May 27, to close transactions.
EIA reports that US oil production rose in February, as New Mexico set a record.
The U.S. Energy Information Administration reported on Wednesday that the total crude oil production in the United States increased slightly in February, as Texas and New Mexico, two of its top producers reversed recent declines by pumping more barrels. The data revealed that the oil output of the world's largest producer, Saudi Arabia, rose by about 29,000 barrels a day in February. The data revealed that Texas, the top oil producing state, increased its output by 41,000 barrels per day (bpd) in February, bringing it to 5.62 millions bpd. This was the first increase since October.
US oil production dropped to an 11-month low, according to data.
The U.S. Energy Information Administration reported on Monday that U.S. crude production dropped by 305,000 barrels a day in January to 13,15 million bpd, its lowest level since Feb. 2024. The data revealed that this was the largest monthly decline in U.S. crude oil production since January 2024. The EIA lowered their estimate of U.S. record oil production for December by about 40,000 barrels per day to 13.45million bpd. The oil output in Texas, which is the largest U.S. state for oil production, dropped by 105,000 barrels per day (bpd) to 5,58 million bpd. This was the lowest level of the last three years.
Shell increases shareholder distributions and cuts spending
Shell raised its shareholder distribution policy to 40-50% from 30-40% on Tuesday, focusing on share buybacks. It also lowered its outlook for spending to $20-$22 billion through 2028. The world's largest LNG trader has said that it wants to increase LNG sales by 4%-5% per year over the next five, while increasing its production by 1% each year, and keeping its oil output at 1.4m barrels per day. Shell predicts that global demand for natural gas liquefied will increase by 60% by 2040. This is mainly due to the economic growth of Asia, artificial intelligence, and efforts to reduce emissions in heavy industry and transportation.
Trump hosts top US oil executives as trade wars threaten
Donald Trump, the U.S. president, will be hosting top oil executives in the White House this Wednesday to discuss plans for boosting domestic energy production amid falling crude prices and trade wars. This will be Trump's first meeting with oil and gas executives since he returned to the White House in January for his second term. According to a source familiar with planning the event, it will include members of American Petroleum Institute (API)'s executive committee. According to public bios, ExxonMobil's CEO Darren Woods is on the executive committee of the trade group…
BOC Manager: Iraq signs deal with Halliburton for development of Nahr Bin Omar Oilfield
The Basra Oil Company's (BOC) head said that Iraq and U.S. oil service firm Halliburton were close to signing an agreement for the development of the Nahr Bin Omar Oilfield. Bassem Abdul Karim said that Halliburton and the Iraqi oil ministry are expected to sign an agreement of confidentiality in the next few days. Iraq will then provide Halliburton data about the Nahr Bin Omar fields and their installations. Abdul Karim, who did not give a specific timeline, said that Halliburton would help Iraq increase production in the field up to 300,000 barrels a day (bpd). The field produces around 50,000 barrels per day.
Trump's nominee for Interior Department says that boosting energy is key to US security
Doug Burgum, Donald Trump's nominee to lead the Interior Department said on Thursday that he would vigorously pursue President-elect Trump's goals to maximize energy production from U.S. Public Lands and Waters, calling it a key to national security. Burgum's remarks to lawmakers at his nomination hearing indicate a sharp change in policy. For years, President Joe Biden tried to limit oil-and-gas drilling by reducing federal leasing auctions and prohibiting future development in certain offshore waters in order to combat climate change.
Malaysia palm oil output resilient despite flood disruption, says MPOB
Malaysian Palm Oil Board said Monday that the country's palm-oil production was resilient, despite recent floods in several states. Ahmad Parveez Ghulam Kadir, MPOB's director general, said that while localised disruptions could occur as a result of temporary waterlogging or harvesting delays the overall impact is expected to be manageable. Malaysian Meteorological Department stated last month that it expected the Northeast Monsoon to last until March. The Northeast Monsoon began on November 5, last year. It warned that heavy rains over a short period of time could lead to flooding in flood-prone and low-lying areas.
Novak claims that OPEC+ discussed Trump's call to increase oil output
Alexander Novak, Deputy Prime Minister of Russia, said that the Joint Ministerial Monitoring Committee of the OPEC+ Group of Leading Oil Producers discussed U.S. president Donald Trump's request to increase oil production. Novak said in comments to Russia’s Rossiya-24 television station that the committee had agreed that OPEC+ would begin gradually increasing its oil production on April 1 in accordance with previous plans. JMMC removed Energy Information Administration of the U.S. Government from its sources for monitoring production and compliance with supply pacts.
Equinor Q4 profit beats forecast, raises 2030 oil output target
Equinor reported slightly higher profits than expected for the final quarter in 2024. It also increased its oil and natural gas production forecast, and scaled back plans to expand renewable energy capacity. Equinor's poll of 24 analysts predicted that the Norwegian oil and gas company would earn $7.90 billion in adjusted earnings for October-December, down from $8.56 million a year ago. Equinor released a statement that said "the expected (oil-and-gas) production in 2030 is around 2.2 millions barrels of oil equal per day. It said that the company has reduced its target for renewable energy in 2030 from 12-16 gigawatts to between 10-12 gigawatts.
Palm oil gains for the first time in three months
The price of Malaysian palm oils futures increased on Friday, posting their first monthly gain for three months. This was boosted by the strength in competing oils and expectations that India will increase its purchases. The benchmark May palm oil contract on the Bursa Derivatives Exchange rose 42 ringgit or 0.93% to 4,553 Ringgit ($1,020.85) per metric ton. "India... had a significantly lower level of imports in January and Februrary." "The stocks are falling and if import and processing margins continue, India may be covered for new coverage before Ramadan," Anilkumar bagani, commodity researcher at Mumbai-based brokerage Sunvin Group, said.
EIA reports that US oil and natural gas production reached a record high in December.
The U.S. Energy Information Administration reported on Friday that U.S. crude and natural gas production set records in December and oil demand reached multi-month highs. The EIA reported that crude oil production reached 13,491 million barrels a day (bpd), up from 13,314 million in November, and surpassing the previous all-time record of 13.436 in October. EIA reported that oil production in the Federal Offshore Gulf of Mexico Region increased 12.3% to 1.86m bpd in December, marking the highest level since October 2023. The hurricane Rafael forced producers in the Gulf of Mexico region to stop more than 25% of their oil production in November.
