Oil Daily | Middle Eastern Crude Prices Rise as Iranian and Russian Supplies Decline Due to Sanctions

【Global Oil Supply and Demand】

Moldova's Transnistria region has halted industrial production, except for food, after Russian natural gas deliveries stopped. This followed Ukraine's decision not to renew the transit deal with Gazprom. Moldova seeks alternative gas supplies and aims to reduce energy consumption by 33% after Russian deliveries ceased.

Reduced supply from Iran and Russia has lifted Middle Eastern crude prices, with UAE's Murban crude outperforming Brent. Sanctions on Iranian oil have led to its storage offshore Southeast Asia. Russia faces shipment reductions due to OPEC pressures and sanctions, while Saudi Arabia gains market share in Asia.


【Latest Oil Policies】

The EU is advised to lower its natural gas price cap to prevent energy bill spikes. The cap, set to expire in January 2025, was initially introduced to shield against price surges. Italian Energy Security Minister suggests adjusting the cap to reflect current market conditions.


【Industry News】

The halting of Russian gas deliveries via Ukraine has affected Austria, Slovakia, and Hungary, leaving Hungary reliant on the TurkStream pipeline. Austria and Slovakia have secured alternative gas supplies, adjusting to the new energy landscape amid discontinued Russian gas transit through Ukraine.


【Company News】

U.S. President-elect Donald Trump criticized wind energy and urged reopening the UK North Sea for oil and gas production after Apache announced its exit due to the windfall tax. Apache deemed continued production uneconomical under rising taxes, which discourage investment and increase UK import dependency.