Oil Daily | Asia's Crude Imports Hit Six-Month High Amid Low Prices and Demand Recovery

【Global Oil Supply and Demand】

Asia's crude oil imports surged in June, reaching 28.65 million barrels per day, the highest level since January 2023. This increase follows low oil prices in April when many of the cargoes were contracted, potentially signaling both demand recovery and opportunistic buying due to cheaper prices.

【Oil-Producing Countries Dynamics】

Russia plans to increase ESPO crude exports from its Far East port Kozmino to 4 million tons in July after maintenance-driven reductions. Chinese refiners have been major buyers, but India's demand rose in April due to U.S. sanctions affecting Chinese refiners and seasonal maintenance.

Saudi Arabia's oil export revenues dropped 21% in April from a year earlier, reaching a four-year low. This decline resulted from falling oil prices amid concerns about oversupply and economic growth. Consequently, Saudi Arabia's budget deficit rose in Q1, with all covered by borrowing.

【Latest Oil Policies】

The U.S. lifted restrictions on exports of ethane to China under specific conditions. Energy Transfer and Enterprise Products can load ethane for China, pending express authorization to unload, indicating potential easing of trade tensions and efforts to stabilize petrochemical feedstock supply.

A Seattle federal judge blocked the Trump Administration from withholding $5 billion in funds for U.S. EV charging infrastructure. The judge's ruling, pending appeal, emphasizes the administration's inability to dismiss bipartisan programs aimed at advancing clean energy.

【Industry News】

Canada's Enbridge advocates for legislative changes to accelerate new oil and gas pipeline projects. The proposed Bill C-5 aims to reduce approval times, aligning with Enbridge's plans to expand crude shipment capacity to the U.S., supported by Alberta's pipeline initiatives.

【Company News】

China's CNOOC launched the second phase of its Deep-Sea No. 1 natural gas project, increasing domestic output by 4.5 billion cubic meters annually. As China's largest deepwater gas development, it underscores efforts to enhance energy security and reduce LNG imports.

Constellation Energy plans to restart Unit 1 of the Three Mile Island nuclear plant by 2027, responding to growing clean electricity demand. The move reflects renewed nuclear energy support, despite local opposition and regulatory hurdles.

BP shares surged on speculation of Shell's acquisition interest, despite Shell's denial. A merger would consolidate European energy majors, reshaping the sector amidst geopolitical tensions and strategic challenges.