Aramco warns of 'catastrophic' consequences for oil in the Strait of Hormuz if shipping is not resumed
Saudi Arabia's Aramco, the world's largest oil exporter, said on Tuesday there would be "catastrophic" consequences for the oil markets of the world if the Iran War continues to disrupt shipping through the Strait of Hormuz. Aramco CEO Amin Nasser said on a earnings call that the disruption will not only have a drastic impact on the aviation, agricultural, automotive, and other industries but will also have 'dramatic domino effects' on them. Nasser said that global oil inventories were at their lowest level in five years and that the crisis would lead to a rapid drawdown. He added that it was vital that shipping resume in the Strait.
Aramco announces first buyback after announcing a drop in profit
Saudi Arabia's Aramco reported a 12% decline in annual profits due mainly to lower crude prices. However, it announced that up to $3 billion worth of shares would be repurchased in its first ever buyback. The buyback will take place over the next 18-months. The company had relied until now on its huge dividend payouts as a way to reward investors. The results are coming at a volatile time for global oil markets, as the U.S. and Israeli war against Iran has caused a 'near-closure of Strait of Hormuz. This has forced several producers in the region to reduce their output. Brent crude, which soared to nearly $120 on Sunday, is currently trading at around $93 on Wednesday.
Russell: Quality is important as coal prices rise amid LNG spikes on Iran War
The rise in spot prices of liquefied gas (LNG), but only in higher-quality grades, has led to a price increase for seaborne thermal coal. Last week, the spot price of LNG in Asia nearly doubled as the market digested a loss of almost 20% of global supply of super-chilled fuel after U.S. and Israeli attacks on Iran effectively closed the Strait of Hormuz. This cut off Qatar's LNG. The price of British thermal units (mmBtu), which is the unit used to measure energy, jumped 116% in a week ending March 6th. Gas-to-coal switchovers in Japan and South Korea are possible due to the surge in LNG prices.
GeoPark rejects Frontera's offer to increase the price of its Colombian oil and gas assets
GeoPark announced in January a definitive deal to acquire Frontera's oil & gas exploration and production assets for $375m. The Parex offer was first announced in February and is valued at $500,000,000 in cash. This includes the assumption of debts as well as a contingent payment for $25,000,000. Parex said that the combination would create the largest independent Colombian energy company. Both firms are already partners in Colombia’s VIM-1 Block. Frontera is one of Colombia's largest private producers and holds 17 exploration and production block, including the Quifa and Cubiro field.
US Energy Chief: US considers selling oil from strategic reserves
Energy Secretary Chris Wright stated on Monday that the U.S. may consider coordinating oil sales from its Strategic Petroleum Reserve with those of other countries as prices have soared during the war against Iran. Wright said that the U.S. also has "some options" to allow more sales of Russian crude oil in tankers in Asia. Washington, for example, issued a waiver late last week allowing the sale of Russian crude oil currently stranded on sea to continue into India. Wright, speaking to reporters at a Colorado natural gas plant, said: "We're talking about coordinated releases from SPR." The U.S. SPR is located off the coasts?of Texas and Louisiana.
Oil majors are still stuck on the sidelines as Iran's war increases oil prices.
Oil prices rose to their highest level since 2022 on Monday, but the shares of major producers such as Shell and Exxon Mobil are still only seeing modest gains'since the U.S. - Israel war on Iran 'broke out last month. This suggests that traders believe the pain in the market could be temporary. The iShares Global Energy ETF, which tracks global energy companies, is up about 2%. Crude oil futures are up more than 40% since Israel launched its joint airstrikes with the U.S. on February 28. This suggests that any gains made from higher prices are temporary or will be offset by lower production.
LSEG data shows that Freeport LNG is on the way to resuming full production.
Freeport LNG in Texas will resume full production Monday after an outage Sunday, according to the company. Freeport LNG said on Monday that it was "in the process" of increasing production rates. LSEG data shows that Freeport, which is the third-largest LNG producer in the U.S.?was pulling 1.2 bcf of natural gas on Monday to be converted into LNG. The plant is capable of handling around 2 bcfd and was only using 600 million cubic foot on Sunday. The company reported on Sunday that the problem with the facility utility system caused the immediate shutdown of Trains 1, 2 and 3.
Venture Global promises on-time LNG delivery amid Middle East conflict
Venture Global LNG, a U.S. developer of liquefied natural gas (LNG), has informed customers that its Plaquemines plant in Louisiana is under construction. The letter was seen by the. Venture Global LNG, a Virginia-based firm, wrote to customers of Plaquemines Phase 1 on Friday and stated that it will begin long-term deliveries on October 31, despite a rise in global gas prices due to the U.S. and Israeli war against Iran. The letter stated that "as of today, Phase 1 is on schedule" as global energy markets react critically to developments in Iran and the Middle East.
Shell sells Jiffy Lube for $1.3 Billion to Monomoy Capital
Shell announced on Monday that it would sell its Jiffy Lube chain of lubricant shops to an affiliate of private equity firm Monomoy Capital Partners for $1.3 billion. The oil major is continuing to divest non-core assets as part CEO Wael sawan's strategy. Premium Velocity Auto is also included in the sale, which is the second largest Jiffy Lube franchise. Pennzoil Quaker State Company is a 'wholly-owned subsidiary of Shell USA, that includes Shell's U.S. Lubricants Business. The agreement also includes a long term lubricants agreement. Shell executive Machteld De Haan said…
Oil stocks held back by G7 nations as Iran crisis raises prices
France's Finance Minister said that G7 countries haven't yet decided whether to release their emergency oil reserves, as prices are surging above $119 per barrel because of the Iran War. He added that there was no immediate shortage in supply. We have agreed to use all necessary tools to stabilize the market, including releasing any stockpiles that may be necessary. On?Monday?, oil prices soared to $119 per barrel, a level not seen since the mid-2022 period, as major producers cut back on supplies due to fears of a prolonged disruption in shipping caused by the 'U.S. - Israel war against Iran.
Source: India will not join IEA's initiative to tap oil resources
A government source confirmed that India does not plan to join the International Energy Agency's (IEA) initiative aimed at releasing strategic oil reserves. This comes as global oil prices have risen due to supply concerns caused by the conflict in Iran. The G7 finance ministers will meet to discuss possible releases of oil reserves in order to calm the markets. On Monday, oil prices soared to $119 a barrel, their highest level since mid-2022. This was after major producers reduced supplies, and there were fears that shipping would be disrupted for a long time due to the U.S./Israeli war against Iran. India is a member of the IEA.
Iran War causes major disruptions in oil and gas
U.S. and Israeli war against Iran, and Tehran's attacks upon Gulf neighbours has caused oil and gas?exports to be disrupted and production stopped. Sources say that Saudi Aramco, the world's largest oil producer, cut its output Monday. The Strait of Hormuz is the most important oil artery in the world, and it handles 20% of the global oil supply. Two sources reported on Monday that Aramco had begun reducing production at two of its fields. Saudi Arabia is the top oil exporter in the world. In February, it produced roughly 10.3 million barrels of crude oil per day.
Oil and Gas Industry urge EU to stop methane emission law
Oil and gas companies warned that the European Union's methane emission law could disrupt Europe’s fuel imports if it is implemented next year. The?industry's call comes after the U.S. The?government asked the EU to exempt U.S. gas and oil from the rules. Brussels has offered more flexible options for companies to comply with the rules, but refused to rollback this policy. It is a key pillar in its climate strategy. A study commissioned by the industry and published on Monday by Wood Mackenzie said that up to 43% of EU imports of gas and 87% EU imports of crude oil could struggle to meet EU regulations from 2027.
EUROPE GAS-European Gas Prices Rise Back to 2023 High as US-Iran Conflict Enters Second Week
LONDON, 9 March - Benchmark European Wholesale Gas rose again on Monday to its highest level for more than three years, tracking a surge of?oil as the US-Iran Conflict entered its second weeks and shipping?around?the Strait of?Hormuz remained near a standstill. Iran named?Mojtaba?Khamenei as the successor to his father, who was killed in a car accident. This shows that the hardliners are still in control and appears to be closing off any way to an end to the Middle East war. Oil prices surged to $119 per barrel on the prospect that disruptions to energy supplies could continue longer than expected.
Head of opposition party says Japan should use nuclear power to counter Iran crisis
Yuichiro Tamaki, leader of an opposition party in Japan, said that Japan should run all its nuclear?power stations to offset the impact the Iran war has had on electricity bills. Japan imports around 11% of liquefied gas and 95% of oil from the Middle East. Around 70% of these are imported via the Strait of Hormuz which is now effectively closed because of the war. Tamaki, the leader of the Democratic Party for the People on X, stated that "unless we fully utilize nuclear power as a?carbon-free power'source, with less dependency on overseas sources…
Bangladesh closes early its universities to save energy amid energy crisis
Bangladesh will close its universities on Monday as part of an emergency measure to conserve fuel and electricity amid a worsening energy crisis related to the conflict in the Middle East. The authorities said that the decision would apply to all private and public universities in the country. They also stated that the move will reduce electricity consumption as well as traffic congestion which results in fuel waste. Officials stated that university campuses "consume large quantities of electricity for residence halls, classrooms and laboratories, as well as air conditioning"; the early closure will help ease the strain on the country's already strained power system.
Head of opposition party says Japan should use nuclear power to counter Iran crisis
Yuichiro Tamaki, the leader of an opposition party in Japan, stated on Monday that Japan should use all its nuclear 'power plants to offset the impact of a war with Iran on?electricity?bills. Around 95% of Japan's oil and 11% of its gas imports come from the Middle East, with 70% and 6% coming through the Strait of Hormuz. This is a?closed Strait due to the conflict. In a recent statement, Tamaki, the leader of the Democratic Party for the People, stated that electricity bills will rise unless we fully utilize?nuclear energy as a carbon free power source and reduce our dependence on foreign sources.
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
Kuwait announced?cuts at the weekend due to the U.S. and Israel war against Iran. Analysts predict the United Arab Emirates (UAE) and Saudi Arabia, which are running out of oil storage, will have to reduce their output as well. Here are the main energy disruptions that have occurred so far. Three industry sources reported on March 8 that the Iraqi production has collapsed: "the country's oil output from its southern oilfields is down 70%, to 1.3 million barrels a day (bpd), from 4.3 millions barrels a day (bpd), before the war. Exports through the Strait of Hormuz are still closed." In addition…
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
The U.S. and Israeli war against Iran has caused oil and gas exports to be disrupted from the Middle East. Production was stopped from Qatar all the way up to Iraq. Kuwait announced cuts this weekend. Analysts predict the United Arab Emirates (UAE) and Saudi Arabia, too, will have to reduce their output as soon as possible when they run out of oil storage. Kuwait Force Majeure: Kuwait Petroleum Corporation cut oil output and declared force majeure March 7, due to the war that shut down exports through the Strait of Hormuz. Abu Dhabi National Oil Company said it actively managed offshore production levels in order to maintain "operational flexibility" on 7 March.
Iran War threatens to hit global energy markets for a long time
Even if the U.S. and Israel's war against Iran ends soon, consumers and businesses around the world could face weeks or even months of higher fuel costs as suppliers deal with damaged facilities and logistics and increased shipping risks. This outlook is a threat to the global economy and to President Donald Trump's political position as he heads into midterm elections. Voters are concerned about energy costs and do not like foreign involvement. JP Morgan analysts stated in a research note published on Friday that the market has shifted from pricing geopolitical risks to dealing with operational disruptions…