Oil Daily | Norwegian Oil Output Surges, Russia Eyes Fuel Export Ban Amid Refinery Disruptions

【Oil-Producing Countries Dynamics】

Norwegian oil and gas production exceeded forecast by 2.6% in August, driven by new fields boosting output. Last month's oil production averaged 1.924 million barrels per day, 7.1% above forecast, while natural gas production offshore Norway topped projections by 1.2%. Norway seeks to continue as a key supplier of oil and gas to Europe.

Russia is considering extending its gasoline export ban until October 31, while discussing a potential diesel export ban amid fuel shortages and Ukrainian drone attacks on refineries. Some fuel grades are scarce, although there is no widespread shortage at pump stations. Damage from drone strikes has reduced refining rates significantly.

ExxonMobil has signed a non-binding agreement with Russia's Rosneft, potentially facilitating recovery of losses from exiting the Sakhalin-1 project. This agreement comes amid ongoing Western sanctions. Exxon aims to reclaim lost billions from past investments in Russia, despite continued geopolitical tensions.

President Trump criticized countries buying Russian energy, labeling them as funding the war in Ukraine. He singled out China, India, and certain NATO members while advocating for strong tariffs and urging Europe to cease Russian energy imports. The U.S. administration explores tariff adjustments with India, emphasizing its strategic importance.

【Latest Oil Policies】

In his address to the United Nations, President Trump criticized climate change initiatives and clean energy, challenging their economic viability. He derided renewable energy as expensive, ineffective, and a financial burden. Trump's speech underscores a policy focus on traditional energy sources, contrasting with international trends favoring renewables.

Some traders predict a 60% rise in Europe's natural gas prices by next summer, despite current low levels amid weak Asian LNG demand. Speculative options trading anticipates potential supply challenges due to cold winters and geopolitical uncertainties. EU plans to ban Russian LNG imports by January 1, 2027, heightening market speculation.

【Industry News】

Shares in Ørsted surged 12% after a U.S. court overturned a Trump Administration stop-work order on the Revolution Wind project, allowing construction to resume. Ørsted seeks to raise funds to complete projects amid regulatory challenges. The project, a 704 MW offshore wind farm, is 80% complete and caters to Rhode Island and Connecticut.

Sempra Energy sold a 45% stake in Sempra Infrastructure Partners to KKR and the Canada Pension Plan Investment Board. With KKR leading, the group becomes the majority shareholder. The deal, valuing the venture's equity at $22.2 billion, aligns with Sempra's strategy to focus on utility growth and capital recycling.

【Company News】

Indian state-owned ONGC is set to expand its renewable energy portfolio to 10 GW by 2030, investing $11.5 billion. The company currently holds 2.5 GW of renewable capacity and plans to import 3 million tons of LNG annually. ONGC is partnering to enhance its presence in the clean energy sector despite global shifts away from green energy.

Exxon has petitioned Brazil's antitrust regulator to examine the Subsea7-Saipem merger, citing reduced competition in deepwater offshore drilling. Exxon, Petrobras, and TechnipFMC expressed concerns over limited supplier options, impacting future pricing and competitiveness in the subsea pipeline installation market.

【Others】

The American Petroleum Institute reported a 3.821-million-barrel decline in U.S. crude oil inventories and a rise in distillate inventories. Gasoline stocks decreased, while Cushing inventories slightly increased. The Department of Energy noted a rise in the Strategic Petroleum Reserve, reflecting broader inventory trends.