Oil Daily | Saudi Aramco Expands Trading with U.S. WTI Midland Crude Purchase

【Oil-Producing Countries Dynamics】

Saudi Aramco purchased its first cargo of U.S. WTI Midland crude, now part of the dated Brent benchmark, from Gunvor in the Platts window. This move signifies Aramco's intention to expand its crude trading business, which aligns with the growing popularity of WTI Midland in the global oil market.

China's Sinopec reported a 2.03% drop in refinery throughput for 2024 due to decreased crude processing rates, marking the first decline in decades. The decline is attributed to weaker economic performance and a shift towards electric vehicles and LNG trucks, leading to reduced demand for traditional road transportation fuels.

ExxonMobil and QatarEnergy have begun drilling for natural gas in Cyprus' exclusive economic zone in Block 5. Cyprus aims to be a reliable gas source for the EU, with significant exploration activities underway. Several international majors, including Eni and TotalEnergies, have already made discoveries in the region.

【Latest Oil Policies】

President Trump's policies aim to bolster U.S. energy production by removing regulatory barriers and promoting fossil fuels, including coal, as part of a national energy emergency. His approach prioritizes domestic energy security and positions the U.S. as a formidable energy producer on the global stage.

【Industry News】

JERA, Japan's largest LNG buyer, plans to increase purchases from the U.S. to diversify its supply portfolio and enhance energy security. This move comes as Japan faces competition from South Korea and Europe for U.S. LNG, amid potential U.S. tariffs on trade partners for not boosting American oil and gas purchases.

【Company News】

Despite President Trump's pro-drilling policies, U.S. shale producers are influenced more by oil prices and Wall Street than political agendas. Companies focus on capital discipline and shareholder returns, with large public firms prioritizing financial stability over aggressive drilling, despite easing regulatory conditions.