Oil Daily | Russian Pipeline Disruptions and Chevron's Argentina Expansion Dominate Oil Market Trends

【Oil-Producing Countries Dynamics】

Chevron plans to increase its oil production in Argentina’s Vaca Muerta to 30,000 barrels per day by year-end. Despite its potential, Vaca Muerta requires a stable regulatory environment for investment attraction. Foreign firms are withdrawing frac crews amid a decline in oil prices. Rystad Energy reports increased oil and gas production.

Russia’s energy infrastructure faced disruption after explosions damaged major pipelines. Ukraine’s military intelligence confirmed hits on key oil and gas arteries linked to Russian military operations. These actions are part of Ukraine's strategy to weaken Russia’s fuel supply lines, adding pressure on domestic fuel markets.

Iraq’s state oil marketing firm SOMO is in talks with Exxon about crude storage sites near demand markets in Asia, the U.S., and Europe. SOMO aims to create a stable market for Iraqi crude by using existing sites or building new facilities. Iraq plans to boost oil production with BP's assistance.

【Latest Oil Policies】

U.S. Senators oppose reallocating biofuel mandates from exempted small refiners to larger ones, citing consumer burden. The EPA granted exemptions to small refiners, sparking debate over reallocation. The proposed bill aims to prevent imposing additional mandates on larger refiners, highlighting differing interests within the Republican party.

【Industry News】

The clean hydrogen industry reached $110 billion in investment across over 500 projects, despite some cancellations. The Hydrogen Council's report highlights the need for strong policy support to bolster demand. Investments have grown by $35 billion since last year, as projects mature and progress.

Teck Resources and Anglo American will merge to form Anglo Teck, a copper and minerals giant with a market capitalization of over $53 billion. The merger will focus on copper, zinc, and iron ore, creating a leading player in critical minerals. The transaction is subject to regulatory conditions.

【Company News】

Elliott Investment Management has become a significant shareholder in Kansai Electric Power, urging for increased shareholder returns. Elliott's activism is part of a broader push for corporate governance reform in Japan. Kansai Electric's nuclear operations add complexity to the activist campaign.

An immigration raid at LG Energy's battery plant in Georgia impacted several projects by the company in the U.S. LG Energy recalled workers and contractors to South Korea amid visa issues. The raid strained U.S.-South Korea relations, affecting foreign investment activities.

【Others】

The Public Investment Fund (PIF) of Saudi Arabia will unveil its new long-term strategy by year-end. PIF, with assets of $913 billion, aims to diversify investments and support the Kingdom's economy beyond oil. Lower oil prices challenge PIF’s investment strategy and megaproject valuations.

Exxon anticipates European buyers committing to long-term U.S. gas supply deals. Contracts support the European Commission's pledge to buy $750 billion worth of U.S. oil and gas by 2028. Changes in EU policy reflect growing interest in long-term gas commitments, driven by geopolitical considerations.

Crude oil prices were influenced by geopolitical events, including Israel's attack in Qatar and Trump's tariff proposal targeting Russian crude buyers. The market faced ongoing supply uncertainties, adding volatility. Israel’s strike complicates U.S. diplomatic calculations, impacting energy flows.