Oil Daily | US Crude Inventories Drop as Alaska Exploration Gains Momentum Amid Strategic Reserves Shift

【Global Oil Supply and Demand】

The American Petroleum Institute reported a decrease of 1.057 million barrels in U.S. crude oil inventories for the week ending April 4. This follows a significant increase in the prior week. While Strategic Petroleum Reserve levels slightly increased, they remain substantially lower than pre-withdrawal figures. Gasoline and distillate inventories showed mixed changes, affecting overall supply dynamics.

【Oil-Producing Countries Dynamics】

The U.S. is exploring increased oil and gas exploration in Alaska, with active projects like ConocoPhillips' Willow and Santos' Pikka driving job growth in the region. The Trump Administration is pushing for expanded development opportunities, seeking investment from Asian partners for a $44-billion LNG export project.

【Latest Oil Policies】

President Trump’s recent executive orders aim to revive coal power plants in the U.S., reversing previous declines due to rising natural gas and renewable energy. While coal capacity is still growing globally, the U.S. is joining China and India in enhancing coal growth, responding to increased electricity demand from population growth and AI.

【Industry News】

NTPC, India’s largest power utility, is hiring consultants for feasibility studies on small modular reactors to replace older coal-fired plants. This initiative aligns with India's goal to expand nuclear capacity, aiming for 30 gigawatts within two decades, as part of a broader strategy to diversify its energy mix.

【Company News】

Phillips 66 has countered Elliott Investment Management's proposal to spin off its midstream business, labeling it as detrimental to shareholder value. Phillips 66 encourages shareholders to reject Elliott's board nominees, emphasizing potential disruption and long-term value risk from Elliott's strategy.

【Others】

U.S. Secretary of Defense Pete Hegseth has announced intentions to reduce China's influence over the Panama Canal, emphasizing its security and accessibility. This follows concerns over Chinese ownership of key ports, although recent purchases by BlackRock have been stalled by Chinese regulators.