Oil Daily | Chevron Acquires Hess Stake Amid Exxon Challenge; China's Demand Boosts Oil Prices

【Company News】

Chevron has acquired a 4.99% stake in Hess Corp, purchasing 15.38 million shares for around $3.2 billion. The move is part of Chevron's $53 billion acquisition plan for Hess, driven by interest in Guyana assets, where Exxon operates. Exxon challenges the merger, citing rights to Hess' Guyana assets.

A joint venture between ExxonMobil and Woodside Energy plans a $222 million project to boost natural gas production in the Gippsland Basin. This involves drilling five new wells in the Turrum fields, ensuring continued gas supply for Australia's domestic market beyond 2030.

A consortium of BP, SOCAR, and NewMed Energy has signed a licensing agreement to explore natural gas offshore Israel. The venture received licenses to explore Zone I, marking BP's entry into Israel and SOCAR's first exploration outside Azerbaijan. The partnership aims to enhance Israel's gas export potential.

Officials from Alaska are pursuing Asian investors for the $44-billion Alaska LNG project, supported by the Trump Administration. The project aims to export LNG from Alaska's North Slope to U.S. allies across the Pacific. Discussions with Japan and South Korea are planned for potential participation.

【Global Oil Supply and Demand】

China's consumer demand measures, including higher salaries and subsidies, have boosted oil prices. The country’s refining throughput increased, indicating rebounding consumer spending and a bullish outlook for crude oil demand.

【Oil-Producing Countries Dynamics】

Israel’s strikes on Gaza have escalated tensions, affecting regional oil prices due to potential conflict escalation involving Iran. U.S. strikes in Yemen also underscore the fragile situation in the world's largest oil-producing region.

China has halted U.S. LNG imports due to tariffs, reselling to Europe. European demand remains high, with storage depleted from winter. Chinese LNG demand is expected to drop, while South Korea's 2025 demand forecast increased.

【Latest Oil Policies】

Trump’s energy policy has reversed Biden’s climate initiatives, affecting renewable energy markets. The administration has halted wind and solar project leases, froze DOE activities, and dismantled provisions in the Inflation Reduction Act, impacting the clean energy sector.

Germany's Economy Ministry opposes resurrecting Nord Stream pipelines, citing strategic independence from Russian gas. Speculation on revival as part of a Ukraine peace deal continues, but no plans for discussion on restarting the pipeline exist.

【Industry News】

U.S. natural gas futures fell due to record production, mild weather, and negative Waha Hub prices. Despite robust LNG flows, storage levels are below average, and European futures eased amid Ukraine ceasefire talks.

【Others】

Saudi Arabia denies supporting U.S. strikes in Yemen. Houthi rebels' attacks disrupt Red Sea shipping, forcing detours and heightening piracy concerns. Global trade through the region faces delays affecting fuel prices and commodity availability.

Investors are turning bearish on renewable energy stocks due to Trump's policies. The S&P Global Clean Energy Transition Index has seen declines, impacted by policy reversals and halted spending initiatives.