Oil Daily | Crude Prices Rise Amid U.S. Sanctions on Iran and OPEC Production Efforts

【Global Oil Supply and Demand】

U.S. natural gas prices dropped after a larger-than-expected inventory build and forecasts for milder weather. Despite the drop, U.S. LNG exports hit a record high, driven by new production units. Venture Global's Plaquemines plant began production, boosting the U.S.'s standing as a top LNG exporter.

A group of EU member states is pushing for more flexible gas storage targets to avoid price spikes. Germany and France advocate modifying the binding 90% full-storage target by November 1 each year. The rigid target has caused market challenges, prompting discussions on adjusting storage goals.

【Oil-Producing Countries Dynamics】

The Trump administration is advancing plans to unlock Alaska's oil and gas potential, opening more of the National Petroleum Reserve and removing LNG infrastructure restrictions. The Alaska LNG project aims to export gas to U.S. allies, with Taiwan's CPC committing to invest. Concerns remain over future policy changes.

Turkey received a three-month extension on a U.S. sanctions waiver, allowing payments for Russian gas imports via Gazprombank. This follows the U.S. sanctioning Gazprombank but granting waivers for Turkey and Hungary to continue importing Russian gas.

【Latest Oil Policies】

Europe's oil majors are scaling back climate goals due to challenges in delivering clean energy pledges. Equinor and Shell are reducing investments in renewables, citing limited high-value growth opportunities and regulatory challenges.

Crude oil prices rose due to U.S. sanctions on Iran and OPEC's production efforts. U.S. Treasury sanctions targeted Iranian oil exports, impacting a private Chinese refiner and potentially reducing Iranian exports significantly.

【Industry News】

Ofgem introduced new rules to fast-track the connection of renewable projects to the grid. The Advanced Procurement Mechanism allows early investment access, aiming to reduce delays and control costs, supporting the UK's goal of clean power by 2030.

Germany's RWE reduced its investment plan for low-carbon energy projects by $10.9 billion due to regulatory uncertainties and profitability concerns. The company is raising return expectations and adapting to higher costs and geopolitical risks.

【Company News】

Energy transition companies are experiencing market sentiment shifts, turning valuation slumps into acquisition opportunities. Brookfield Asset Management is capitalizing on this by making significant investments in renewable portfolios, citing strong fundamentals for renewable power despite stock market volatility.

Taiwan's CPC Corporation signed a letter of intent to invest in the Alaska LNG project to enhance its gas supply and energy security. The project, strongly supported by the Trump administration, seeks Asian investors, with Taiwan eyeing closer LNG supply sources.

【Others】