Oil Daily | EU Considers Easing Syrian Oil Sanctions Amid Energy Crisis and Reduced Russian Supply

【Latest Oil Policies】

The European Union is discussing a potential partial suspension of sanctions on Syria's energy sector, including lifting bans on importing crude and related technology. Additionally, the EU considers removing certain Syrian factions from terrorist lists and easing airline restrictions. These measures aim to address Syria's energy crisis since Iraq halted crude deliveries.

The UK energy regulator Ofgem supports the introduction of zonal pricing for electricity as a key market reform. Under this system, electricity prices would differ by geographical zones based on supply and demand. The proposal has stirred debate, but Ofgem supports it as beneficial for future energy market developments.

Pakistan plans to renegotiate its costly long-term LNG supply deal with Qatar to reduce energy costs amid an ongoing economic crisis. The current agreement allows for termination or review after a decade. Pakistan, already facing high global energy prices, deferred contracted LNG cargoes from Qatar to 2026 without financial penalties.

【Global Oil Supply and Demand】

India's fuel demand grew by 3.2% in January compared to the previous year, driven by a rise in gasoline and diesel consumption. While demand dropped from December levels, India is expected to account for 25% of global oil demand growth in 2025, surpassing China in driving oil demand.

China's independent refiners have reduced processing rates to nearly five-year lows due to high crude procurement costs and reduced Russian supply. The sanctions on Russian oil have made it more expensive, leading refineries to cut processing volumes. More reductions are possible as logistical challenges persist.

【Oil-Producing Countries Dynamics】

【Industry News】

Canada’s Trans Mountain pipeline could potentially increase its capacity by 300,000 barrels per day through upgrades, though there are no plans for a third line. The pipeline, which tripled its capacity last year, is exploring options to improve flow rates and access to Asian markets amid trade tensions with the U.S.