Oil Daily | EU Sanctions and Rising US Crude Inventories Highlight Global Oil Supply Challenges

【Global Oil Supply and Demand】

U.S. crude oil inventories rose by 3.34 million barrels for the week ending February 14, surpassing analysts' expectations. This is part of an 18 million barrel increase over four weeks. Gasoline inventories increased by 2.83 million barrels, while distillate inventories dropped by 2.69 million barrels, indicating shifts in supply and demand patterns.

The EU agreed on a new sanctions package against Russia, including a ban on Russian aluminum imports and targeting Russia's shadow fleet to maintain economic pressure. These measures reflect ongoing geopolitical tensions impacting global oil supply and demand dynamics.

Potential sanctions relief on Russia, if peace talks with Ukraine succeed, is unlikely to significantly impact Russia's oil supply, as Goldman Sachs notes Russia's production is more constrained by OPEC agreements than sanctions. This highlights the complex interplay of geopolitical factors in oil markets.

【Oil-Producing Countries Dynamics】

Chinese investments in clean energy reached $940 billion in 2024, matching global fossil fuel investments. Clean energy contributed substantially to China's economic growth, with sectors like EVs and solar power leading. This marks China's continued focus on renewable energy development alongside coal power expansion.

【Latest Oil Policies】

The Army Corps of Engineers identified 600 energy projects under President Trump's national energy emergency. These include pipelines, LNG terminals, and natural gas plants, highlighting a shift in policy towards energy independence and infrastructure development, despite environmental concerns.

【Industry News】

Germany's Bundeskartellamt raised concerns about competition in the oil and fuels market due to current pricing mechanisms. The report flagged risks of collusion and manipulation, suggesting that current practices may undermine competitive market conditions.

【Company News】

Exxon Mobil plans a new gas project in Guyana, including fertilizer plants. This project signifies Exxon's continued investment in Guyana, with expected benefits such as reduced electricity costs and increased gas production capacity, aligning with their strategic expansion goals.

A group of investors holding 2.5% of BP urges a shareholder vote on potential strategy shifts, especially regarding climate targets. This comes as BP plans to reset its strategy, possibly reducing low-carbon investments amidst pressure to boost oil and gas production.

【Others】

Gold prices hit a record high amid economic uncertainties linked to tariffs and geopolitical tensions, driven by demand as a hedge against inflation and market volatility. Despite falling physical market demand in key regions, gold remains attractive, particularly as interest rates shift.