Oil Daily | U.S. Sanctions Target Iran's Asian Oil Trade; OPEC Production Hike May Lead to Market Surplus

【Oil-Producing Countries Dynamics】

The U.S. Treasury Department has imposed extensive sanctions on a network supporting Iranian oil and petrochemical exports, targeting entities in Iran, Hong Kong, and the UAE. This move seeks to disrupt Iran's oil trade in Asia amid tightening global oil markets.

Spain ceased importing Venezuelan crude in April, in anticipation of a U.S. deadline for foreign operators to exit Venezuela. Despite sanctions, Venezuela's crude exports remain steady, with increased shipments to China offsetting reduced U.S.-authorized sales.

The Dangote oil refinery in Nigeria is purchasing more U.S. WTI crude due to technical benefits and reduced Nigerian crude availability. This shift comes as the refinery ramps up capacity, despite Nigeria being Africa's largest oil producer.

【Latest Oil Policies】

The U.S. Department of Transportation has criticized former President Biden's fuel economy standards for exceeding legal authority. The current administration aims to remove regulatory barriers favoring electric vehicles, promoting consumer choice and addressing concerns over market distortions.

【Industry News】

HSBC predicts a potential surplus in the oil market as OPEC plans to increase production. With announced hikes, the market may face deteriorating fundamentals post-summer, raising downside risks to oil prices and questioning whether OPEC will continue easing cuts as anticipated.