Oil Daily | Saudi Arabia to Boost Crude Prices in Asia as U.S. Hits Record Output Amid Rising Global Demand

【Oil-Producing Countries Dynamics】

Saudi Arabia is anticipated to increase the price of its flagship crude for Asia in August due to strong summer demand and volatile spot prices, particularly amid conflicts between Israel and Iran. Asian refiners have requested more term supplies, prompting expected price hikes for various Saudi crude grades. OPEC's upcoming meeting will influence future production levels.

Argentina has been ordered by a U.S. judge to transfer its 51% stake in YPF to former minority shareholders due to nationalization disputes. The ruling involves a $16 billion damages bill with most compensation allocated to Burford Capital. YPF's development of the Vaca Muerta shale formation is contributing to Argentina's energy self-sufficiency.

India has doubled its U.S. crude imports to avoid tariffs under President Trump's trade plans. Despite reduced imports from Russia, Saudi Arabia, and Iraq, India remains a major growth engine for oil demand, driven by economic momentum and infrastructure projects. The government seeks to negotiate a trade deal with the U.S.

【Latest Oil Policies】

Senate Republicans introduced amendments to President Trump's energy bill, cutting wind and solar tax incentives and imposing excise taxes on Chinese components. Industry leaders criticize the changes, which could disrupt renewable financing and supply chains. The Senate advanced the bill amid GOP dissent and stalled Medicaid talks.

Redeia plans record investments in its strategic plan following an April blackout. Analyses attribute the outage to outdated grid rules and poor coordination. Spanish power utilities blame Red Electrica for inadequate voltage maintenance, prompting calls for improved system capabilities.

【Industry News】

LNG Canada's first cargo has departed for Asia, marking a milestone in Canada’s LNG export capabilities. Supported by major energy companies, the project aims to redirect Canadian gas exports globally. Shell expects LNG demand to surge, particularly in Asia, and is investing in the project amid a strong outlook for LNG interest.

U.S. crude production hit a record 13.24 million bpd in April, reinforcing its position as a top producer. Despite refining constraints, domestic stockpiles could rise rapidly. U.S. crude exports averaged 4.6 million bpd, filling gaps in global supply as geopolitical risks persist.

Rising demand in the U.S. is prompting proposals for new natural gas pipelines from Appalachia. EQT and other producers are evaluating expansion opportunities, driven by growing demand from data centers and coal retirements. Limited pipeline capacity has slowed production growth.

【Company News】

LNG Canada, backed by Shell and other firms, sent its first liquefied natural gas cargo to Asia, aiming to expand global market reach. The project plans to ramp up production to 14 million tonnes annually, leveraging Canada's cost advantages and proximity to Asian markets.

【Others】

An oil tanker experienced an explosion off Libya's coast with no injuries or pollution reported. The Vilamoura, carrying 1 million barrels of crude oil, is being towed to Greece. The cause is unclear but speculations arise due to previous calls at Russian ports and similar incidents this year.