Oil Daily | EU Sanctions Tighten Crude Market; Kurdistan Exports Stalled Amid Disputes and Attacks

【Oil-Producing Countries Dynamics】

Saudi Arabia is reassessing the NEOM project's scope and timeline due to financial strains affecting its Vision 2030 program. The review impacts The Line, NEOM's flagship city concept, and the green hydrogen complex in Oxagon, currently 80% complete. Internal austerity measures and liquidity challenges may reshape project priorities.

Despite Baghdad's announcements, oil exports from Kurdistan have not resumed. The ongoing dispute between the Kurdistan Regional Government and the federal Iraqi government over export authority and revenue continues. Recent drone attacks have further halted production, complicating the restart of exports despite new agreements.

【Latest Oil Policies】

The European Union implemented its 18th sanctions package against Russia by lowering the crude price cap and targeting the shadow fleet. The sanctions aim to block Russian crude from entering the EU market indirectly, impacting the availability of refined products. Low inventories and high import demand add pressure to European markets.

【Industry News】

Near-term oil market fundamentals remain supportive as OPEC adds fewer barrels than indicated, while demand stays robust during peak travel seasons. The tight fuel market, particularly for diesel, signals strong demand, potentially lifting oil prices further.

【Company News】

Australia's Fortescue is delaying green energy projects in the U.S. due to recent legislation phasing out renewable energy incentives. The company is reassessing its Arizona Hydrogen project timeline and may acquire struggling renewable energy assets. Fortescue's strategy reflects global market conditions and policy shifts.