Oil Daily | Libya Oil Distribution Halted by Protests; Russia May Lift Fuel Export Ban; Iran Braces for Sanctions

【Oil-Producing Countries Dynamics】

Protesters halted oil distribution in Libya, impacting two major fields due to the kidnapping of a senior intelligence officer. The incident underscores ongoing instability in Libya, with frequent kidnappings correlated to corruption probes involving militias disrupting oil production. This new disruption follows a previous blockade resolved between rival governments.

Russia's energy ministry considers lifting a gasoline export ban due to stable domestic fuel prices. The ban, in place until the year's end, was aimed at stabilizing domestic supply after price surges. Russia's official indicated possible lifting if a surplus emerges, as seen with diesel fuel exports.

Iran is prepared for potential new sanctions on its oil exports. The Iranian Oil Minister stated that measures are ready to counteract restrictions, particularly with U.S. President-elect Trump's intent to renew a 'maximum pressure' campaign. This could hinder Iran's oil exports, which might impact global oil prices.

Slovakia's oil company SPP has signed a pilot deal to purchase gas from Azerbaijan, preparing for potential Russian supply cuts via Ukraine. With the EU preparing for reduced Russian gas imports, Slovakia, Hungary, and Austria could be most affected. Turkey aims to increase EU gas exports by re-exporting Azeri gas.

【Latest Oil Policies】

The German cabinet approved reforms restricting oil companies from carrying forward emissions reduction credits, favoring the biofuel industry. The reform stops companies from using past quotas to meet targets until 2027. This follows a rejection of carbon credits over fraud suspicions and a focus on biofuel capacity increases.

【Industry News】

Exploration in the Atlantic Basin is robust, following notable offshore developments in Guyana and Suriname. Suriname, seen as a potential oil boom country like Guyana, holds substantial reserves. Nine offshore discoveries in the last six years highlight the region's growing resource potential.

【Company News】

Saipem secured a $1.9-billion contract from TotalEnergies for the GranMorgu project offshore Suriname. The project focuses on subsea development, with first oil expected in 2028. It's the first major subsea project in Suriname, aimed at expanding production with an FPSO unit capable of future tie-backs.

Exxon plans to cut 397 jobs at Pioneer Natural Resources following a $62 billion acquisition. The move, affecting Dallas and Midland, emphasizes retaining talent essential to the merger's success. The acquisition enhances Exxon's footprint, with production expected to surge, aligning with strategic growth ambitions.

Gautam Adani announced a $10 billion investment in U.S. energy and infrastructure projects by Adani Group. This initiative aligns with deepening India-U.S. relations. Meanwhile, Adani Power reduced electricity supply to Bangladesh over debt issues, highlighting operational challenges despite the group's share price rebound.

Canada's Suncor Energy reported record Q3 production and refining throughput, exceeding earnings estimates. The company increased its quarterly dividend and anticipates benefiting from the upcoming U.S. administration's energy policies. Suncor's performance reflects strong domestic sales and export channel leverage.

Mexico's government considers a $6 billion budget to support Pemex's debt obligations. With significant debt maturing soon, the new administration under President Sheinbaum aims to continue government support. Pemex plans to enhance reserves and attract investments despite ongoing production declines.

【Others】

Crude oil inventories in the U.S. fell by 777,000 barrels, contrary to expected builds. The Strategic Petroleum Reserve saw a slight increase, while gasoline and distillate inventories rose. This reflects ongoing inventory fluctuations as the U.S. energy market adjusts to changing conditions.