Oil Daily | Chinese Refiners Boost Iranian Crude Imports Amid U.S. Leniency, Surpassing 1.4M bpd

【Global Oil Supply and Demand】

Chinese refiners are importing nearly 1.4 million barrels per day of Iranian crude through complex routes, despite a lack of official customs data. In June, imports from Iran increased as independent refiners filled inventories for summer demand. Analysts expect high levels to continue amid U.S. leniency toward these imports.

Wind and solar power generation in India surged in the first half of 2023, accounting for over 17% of the energy mix in June. India aims to add 500 GW of non-hydrocarbon energy capacity by 2030, despite challenges in funding and infrastructure upgrades.

Russia's crude oil exports remained stagnant, averaging 3.21 million barrels per day in late June. Weekly volumes stayed around 3 million barrels, with slight increases from major ports offset by declines elsewhere. Despite strong refinery runs, exports have not risen significantly.

【Oil-Producing Countries Dynamics】

Maintenance at U.S. LNG export facilities resulted in lower exports in June, totaling 8.4 million tons. Europe remained the top buyer, while Asia reduced its purchases due to high prices and slower economic growth. U.S. LNG exports are expected to increase with the entry of LNG Canada.

Kazakhstan's crude oil production rose 7.5% in June to 1.88 million barrels per day, surpassing its OPEC quota. Despite a weak global oil price environment, Kazakhstan has increased output, primarily driven by international consortiums, and is unlikely to enforce production cuts.

【Latest Oil Policies】

Indonesia aims to increase crude oil production to 1 million barrels per day by 2030 by partnering with technology service providers to revive ageing wells. The country plans to offer 74 new oil and gas blocks to boost output levels, following earlier awards to international and domestic players.

【Industry News】

India is exploring cobalt and copper deposits in Zambia to secure mineral supply chains. The initiative is part of India's broader strategy to acquire critical mineral assets in Africa. India also seeks similar deals with countries like the Democratic Republic of Congo, Rwanda, Tanzania, and Mozambique.

Electric utilities in the U.S. face uncertainty over future revenues due to the variable forecasts of AI-driven power demand. Utilities are investing in transmission and grid connections amid differing predictions of AI data center load growth, seeking accurate demand estimates for future connections.

【Company News】

Britain's energy regulator, Ofgem, approved a $33 billion investment program to maintain gas distribution networks and expand the power grid. The plan aims to enhance energy security and increase renewable energy capacity, contributing to a more resilient energy system.

【Others】

Crude oil inventories in the U.S. rose by 680,000 barrels in the week ending June 27, after a series of draws. The Strategic Petroleum Reserve increased by 300,000 barrels. Gasoline inventories also rose, while distillate and Cushing inventories fell.