Oil Daily | Spain's Venezuelan Crude Imports Surge to 17-Year High with U.S. License to Repsol

【Global Oil Supply and Demand】

China is expected to achieve a record year for solar capacity additions, with new installations projected to reach between 230 and 260 GW. Despite profitability challenges and overcapacity issues, the growth persists due to strong support for utility-scale solar, rooftop solar expansion, and grid development.

【Oil-Producing Countries Dynamics】

Hungary, reliant on Russian natural gas, has requested the U.S. to exempt Gazprombank from sanctions for processing gas payments. The move follows U.S. sanctions targeting Russia’s financial system. Hungary's ongoing ties with Russia contrast with other EU nations distancing themselves in response to the conflict in Ukraine.

Spain’s crude oil imports from Venezuela have reached their highest level since 2006, facilitated by a U.S. license granted to Repsol. The license allows the Spanish company to import Venezuelan crude as debt repayment, resulting in a significant increase in imports throughout 2024.

【Latest Oil Policies】

The Biden administration is set to release a study on the effects of LNG exports, following a temporary pause on new export facility approvals. Despite the pause, several projects have been approved, contributing to a surge in Gulf Coast developments, leading to cost overruns.

In South Africa, a court has ruled government plans for new coal-fired power capacity as unlawful, citing constitutional health rights violations. This decision challenges South Africa's heavy reliance on coal, with efforts ongoing to transition towards cleaner energy sources.

【Industry News】

Deloitte forecasts increased consolidation in the U.S. oilfield services sector under a Trump presidency. The trend is driven by megamergers in exploration and production that reduce client bases, while regulatory relaxations are expected to facilitate mergers and acquisitions in the sector.

Saudi Aramco is partnering with SLB and Linde to develop a carbon capture and storage hub in Saudi Arabia. The facility aims to capture up to 9 million metric tons of CO2 annually by 2027, aligning with Aramco's net-zero goals and supporting Saudi Arabia's broader environmental objectives.

【Company News】

Shell plans to cease new offshore wind investments while maintaining interest in commercially viable offtakes and equity positions. The decision follows Shell's earlier withdrawal from a hydrogen project in Norway, reflecting a broader shift away from certain clean energy investments.

Exxon Mobil CEO Darren Woods cautions against focusing solely on renewables for climate solutions, advocating for a broader market-driven approach. Woods warns of potential repercussions from reducing oil and gas output too quickly, which could lead to increased reliance on dirtier fuels like coal.

【Others】

Antimony prices surged following China's ban on exports to the U.S. of key minerals with military applications. The restriction is part of an ongoing trade conflict, highlighting the strategic importance of minerals like antimony in military and technological sectors.