Oil Daily | Indian Refiners Reduce Spot Crude Tenders as Russian Supplies Rebound Amid Sanctions

【Global Oil Supply and Demand】

Indian refiners will issue fewer tenders for spot market crude oil purchases as Russian supplies rebound despite U.S. sanctions targeting Russian oil producers and traders, increasing freight rates. India’s oil demand growth has surpassed China’s, with expectations of continued growth through 2025, driven by increased imports from the U.S.

【Oil-Producing Countries Dynamics】

The Venezuelan government has reduced public servants' work week to address energy consumption amid a supply crunch caused by warm weather affecting hydropower. Despite sanctions, Venezuela's oil imports increased last year due to a Chevron waiver allowing operations, though new tariffs from Trump threaten this arrangement.

Iranian oil tankers seized by U.S. forces were using forged Iraqi documents, the Iraqi oil minister reported. The Trump administration resumed "maximum pressure" on Iran, aiming to curb its nuclear ambitions amid rising production of weapon-grade uranium. Trump prefers a new nuclear accord but Iran dismisses talks as U.S. pressure intensifies.

Russian President Vladimir Putin agreed to halt energy infrastructure strikes in Ukraine for 30 days, conditional on Ukraine reciprocating. However, accusations of attacks from both sides persisted. Russia's condition for peace includes the suspension of U.S. military aid to Ukraine, complicating prospects for ceasefire.

【Latest Oil Policies】

U.S. President Donald Trump announced a 25% tariff on countries buying Venezuelan oil, affecting Chevron's operations. Trump administration’s sanctions on Venezuela continue, despite easing some restrictions last year. Venezuela's crude production dropped significantly due to sanctions and infrastructure issues, while Argentina’s output rises.

Indonesia continues its $20-billion energy transition plan despite the U.S. exiting international climate deals. The Just Energy Transition Partnership, co-led by Japan and Germany, supports Indonesia’s net-zero emission target. Indonesia plans to phase out coal-fired power plants within 15 years, leveraging geothermal resources.

【Industry News】

Focused Energy plans to build a fusion R&D facility in Germany with RWE and the state of Hessen, at the former Biblis nuclear plant site. The project aims for completion by 2035. Germany shows significant commitment to nuclear fusion as part of its energy mix compared to the U.S.

Elliott Management demands more share repurchases from RWE after acquiring nearly 5% of Germany's top utility, continuing its campaign for increased returns at energy companies. Elliott’s push follows RWE's reduction in investment for low-carbon projects amid uncertainties about renewable energy policies.

【Company News】

Gulf South Pipeline Company suspended gas deliveries to Freeport LNG due to a lightning strike damaging its pipeline, cutting supply significantly. Freeport LNG, the third-largest LNG producer, faces challenges in maintaining operations amid high demand and previous disruptions caused by fires and hurricanes.

【Others】

Saudi Arabia awarded a $2.6-billion contract to a Spanish-Egyptian joint venture to build a 3 GW gas-fired power plant, equipped for carbon capture. This aligns with Saudi Arabia's goal to increase natural gas-generated electricity, supported by major international energy firms securing contracts in the region.