Oil Daily | Venezuela Resumes Oil Exports to US; Exxon Explores Caribbean; OPEC Extends Production Cuts

【Oil-Producing Countries Dynamics】

Venezuela is set to load the first crude oil cargo for U.S. refiners after U.S. President Trump reinstated Chevron's sanction exemption. This follows Chevron's previous license revocation, which led to a 20% drop in Venezuelan oil exports. Chevron is allowed to resume operations, with the condition that proceeds do not benefit the Venezuelan government.

Exxon secured a deepwater exploration deal with Trinidad and Tobago, potentially involving $21.7 billion in investments. The area to be explored is larger than the surface of Trinidad and Tobago and lies near Exxon’s Stabroek block in Guyana. Trinidad and Tobago, as the Caribbean's largest oil and gas producer, aims to grow its industry by 4.4% annually through 2030.

The OPEC extended its oil production cuts in July by 335,000 barrels per day, with Saudi Arabia leading the increase. Despite the hike, Saudi Arabia's production figures showed discrepancies between reported output and actual market supply. The Kingdom attributed excess production to temporary conditions during the Israel-Iran war. OPEC plans further production increases to restore pre-cut levels.

TotalEnergies plans to drill up to seven exploration wells offshore South Africa in the Orange Basin, following its Venus discovery offshore Namibia. The French supermajor is seeking environmental authorization, with plans to begin drilling in 2026. Both TotalEnergies and Shell have faced hurdles in South Africa due to environmental and regulatory challenges.

【Latest Oil Policies】

The U.S. Energy Information Administration (EIA) forecasts a drop in Brent crude prices due to aggressive OPEC supply growth, anticipating global inventory builds exceeding 2 million barrels per day by early 2026. Lower oil prices might prompt OPEC to cut output, while U.S. production could hit a record high before declining in response to market conditions.

【Company News】

Venture Global won an arbitration case against Shell over LNG contracts, with the tribunal ruling in favor of the U.S. company. Shell and other energy majors accused Venture Global of profiting from spot market sales instead of fulfilling long-term contracts. Despite the legal victory, TotalEnergies has opted not to engage with Venture Global over the dispute.

Cenovus Energy is negotiating with Canadian Indigenous groups to jointly acquire MEG Energy, competing against a hostile bid from Strathcona Resources. The deal would include Indigenous equity participation, aligning with Canadian government initiatives. The acquisition fits Cenovus's strategy to expand its oil sands operations and could create synergies with MEG's Christina Lake project.

【Industry News】

Sinochem completed its first delivery of Middle East crude to Trafigura as part of its strategy to enhance oil trading activities in Asia. The cargo involved Oman crude and was conducted through the S&P Global Platts Market on Close process. Sinochem aims to diversify its trading capabilities, joining other Asian and Middle Eastern firms in expanding trading roles.

【Others】

Norway's $1.9 trillion sovereign wealth fund reduced its investments in major oil and gas companies like Exxon and Shell due to declining oil prices. The fund, created with oil and gas revenues, trimmed its equity stakes amid market volatility, yet its energy investments yielded a 6.3% return in the first half of the year.