Oil Daily | Libya Stabilizes Oil Operations Amid Security Concerns; China Boosts Iranian Crude Imports
Market BriefFriday, May 30, 2025 8:01 am ET
2min read【Oil-Producing Countries Dynamics】
Libyan authorities arrested three suspects accused of breaking into the National Oil Corporation's headquarters in Tripoli. The eastern government may declare force majeure on oilfields due to such incidents. Despite concerns, the National Oil Corporation states oil production and export processes continue safely. Major oil companies return to Libya.
Tankers carrying Iranian crude to China are switching off trackers amid potential new U.S. sanctions. Iran and China maintain a trade relationship benefiting both, with China buying Iran's sanctioned crude. The U.S. continues its pressure on Iran, targeting smuggling networks. Iran's oil export to China reached a record high in March.
Kazakhstan cannot enforce oil production cuts on international firms controlling its major oilfields. Overproduction has created issues within OPEC, but Kazakhstan's expansion plans could top its oil production goals this year. The country plans to shave cumulative output by 2026, but major fields are controlled by Western oil majors.
Portugal's Galp expects a 40% oil production increase in Brazil as the Bacalhau field begins in 2025. Galp's production is set to rise significantly, with Bacalhau's estimated reserves exceeding 1 billion barrels. This aligns with Brazil's expanding oil production, supported by other projects like TotalEnergies' Mero field.
【Latest Oil Policies】
Saudi Arabia reviews spending priorities due to the oil price decline. Finance Minister Al-Jadaan indicates potential delays or acceleration of projects. The Kingdom needs oil prices around $90 per barrel for budget balance but faces a growing deficit. Borrowing may be accelerated to fund initiatives like the Neom project.
The U.S. Supreme Court supports Utah's Uinta Basin Railway project, narrowing environmental review laws, and allowing oil transport expansion. It reverses a lower court's interpretation, affirming agency discretion on environmental impacts. Challenges remain as opponents cite risks from oil spills and increased production from the rail line.
【Industry News】
Crude oil and natural gas investments in Colombia may rise to $4.68 billion this year. Production boost remains challenging due to field depletion and operating complexities. Ecopetrol contributes to production increases, but the government focuses on renewable energy growth alongside hydrocarbons for budget revenues.
【Company News】
Kyushu Electric Power plans a 20-year LNG supply deal from Energy Transfer's Lake Charles facility. This marks the utility's first LNG agreement with the U.S., diversifying energy sources. Energy Transfer is progressing with LNG offtake volumes, targeting a final investment decision by year-end.
【Global Oil Supply and Demand】
China's top oil refiners ramp up exports amid weak domestic demand. Diesel exports rebound as margins improve, while gasoline demand falls due to new energy vehicle adoption. Sinopec and PetroChina adapt output for high-margin exports, with Singapore as a major destination despite fluctuating export volumes.
【Others】
Despite infighting, Libya maintains normal technical and operational processes at oilfields. NOC reassures partners over smooth production and exports, countering rumors of disruptions. International companies like BP and Eni return to Libya, aiming to capitalize on stabilized conditions after years of civil war-related damages.
Libyan authorities arrested three suspects accused of breaking into the National Oil Corporation's headquarters in Tripoli. The eastern government may declare force majeure on oilfields due to such incidents. Despite concerns, the National Oil Corporation states oil production and export processes continue safely. Major oil companies return to Libya.
Tankers carrying Iranian crude to China are switching off trackers amid potential new U.S. sanctions. Iran and China maintain a trade relationship benefiting both, with China buying Iran's sanctioned crude. The U.S. continues its pressure on Iran, targeting smuggling networks. Iran's oil export to China reached a record high in March.
Kazakhstan cannot enforce oil production cuts on international firms controlling its major oilfields. Overproduction has created issues within OPEC, but Kazakhstan's expansion plans could top its oil production goals this year. The country plans to shave cumulative output by 2026, but major fields are controlled by Western oil majors.
Portugal's Galp expects a 40% oil production increase in Brazil as the Bacalhau field begins in 2025. Galp's production is set to rise significantly, with Bacalhau's estimated reserves exceeding 1 billion barrels. This aligns with Brazil's expanding oil production, supported by other projects like TotalEnergies' Mero field.
【Latest Oil Policies】
Saudi Arabia reviews spending priorities due to the oil price decline. Finance Minister Al-Jadaan indicates potential delays or acceleration of projects. The Kingdom needs oil prices around $90 per barrel for budget balance but faces a growing deficit. Borrowing may be accelerated to fund initiatives like the Neom project.
The U.S. Supreme Court supports Utah's Uinta Basin Railway project, narrowing environmental review laws, and allowing oil transport expansion. It reverses a lower court's interpretation, affirming agency discretion on environmental impacts. Challenges remain as opponents cite risks from oil spills and increased production from the rail line.
【Industry News】
Crude oil and natural gas investments in Colombia may rise to $4.68 billion this year. Production boost remains challenging due to field depletion and operating complexities. Ecopetrol contributes to production increases, but the government focuses on renewable energy growth alongside hydrocarbons for budget revenues.
【Company News】
Kyushu Electric Power plans a 20-year LNG supply deal from Energy Transfer's Lake Charles facility. This marks the utility's first LNG agreement with the U.S., diversifying energy sources. Energy Transfer is progressing with LNG offtake volumes, targeting a final investment decision by year-end.
【Global Oil Supply and Demand】
China's top oil refiners ramp up exports amid weak domestic demand. Diesel exports rebound as margins improve, while gasoline demand falls due to new energy vehicle adoption. Sinopec and PetroChina adapt output for high-margin exports, with Singapore as a major destination despite fluctuating export volumes.
【Others】
Despite infighting, Libya maintains normal technical and operational processes at oilfields. NOC reassures partners over smooth production and exports, countering rumors of disruptions. International companies like BP and Eni return to Libya, aiming to capitalize on stabilized conditions after years of civil war-related damages.
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