Oil Daily | China Crude Stockpiling Continues Amid EU-US Push to Reduce Russian Oil Dependency

【Global Oil Supply and Demand】

China is anticipated to continue its crude stockpiling, adding 500,000 barrels per day over five quarters, driven by lower oil prices and efforts to enhance energy security. Despite this, Goldman Sachs predicts a glut will cause oil prices to drop to between $53 and $56 per barrel in the coming year.

【Oil-Producing Countries Dynamics】

The EU is urged by the U.S. to reduce its reliance on Russian energy, with U.S. Energy Secretary Chris Wright suggesting phasing out Russian imports within a year by replacing them with American LNG. This pressure is part of broader efforts to diminish Kremlin revenue and push for peace talks in Ukraine.

Japan has joined the EU in lowering the price cap on Russian oil purchases to $47.60 per barrel. The move is part of sanctions to curb Russia's energy revenue amid the Ukraine conflict. However, Japan's imports from Sakhalin-2, exempt from this cap, remain unaffected.

【Latest Oil Policies】

The EU and U.S. are intensifying pressure on India and China regarding their continued importation of Russian crude oil. This is part of a broader strategy to economically pressure Russia by targeting its energy revenues during the ongoing Ukraine conflict.

【Industry News】

Challenges in low-emission hydrogen projects are mounting due to rising costs and regulatory uncertainties, potentially reducing clean hydrogen production by 2030 by a quarter compared to last year's expectations. The Hydrogen Council reports $110 billion in investments but acknowledges project cancellations and delays.

【Company News】

Global electric vehicle sales rose by 15% in August, with significant sales in the U.S. due to expiring tax credits. However, growth in China slowed to 6%. Automakers like VW and GM are adjusting production plans in response to upcoming changes in the U.S. tax credit landscape.