Oil Daily | OPEC to Unwind Production Cuts; India’s Fuel Demand Rises; EPA Lifts Gasoline Rules in Midwest
AInvestSaturday, Aug 31, 2024 8:00 am ET
1min read
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【Global Oil Supply and Demand】

The Public Utility Commission of Texas will review the extension of $5.38 billion worth of low-interest loans to companies planning nearly 10 gigawatts (GW) of new natural gas-fired capacity in a bid to boost generation capacity for ERCOT. The Texas Energy Fund was established in 2023 to provide grants and loans for electric facilities.

Fuel demand in India is set to rise by 4% to 5% per year, with petrochemicals consumption expected to increase by 7% to 8% annually. Bharat Petroleum Corporation Ltd (BPCL) plans to expand its refining and petrochemical capacities over the next five to seven years to meet the rising demand.

【Oil-Producing Countries Dynamics】

OPEC will likely begin unwinding its production cuts in October, according to six OPEC sources. Libya's significant production losses, due to internal political conflict, provide room for other OPEC members to ramp up production without affecting the overall market balance. Eight OPEC members are set to increase crude oil production by 180,000 bpd in October.

【Latest Oil Policies】

Donald Trump would rescind many of President Joe Biden’s clean energy policies regarding emissions and power plants if he is elected president. The Trump campaign announced plans to speed up approvals for new power plants and halt policies that distort energy markets and increase consumer costs.

【Industry News】

The U.S. Environmental Protection Agency (EPA) has renewed an emergency waiver for summer spec gasoline requirements in four Midwest states due to supply disruptions following the shutdown of ExxonMobil’s Joliet refinery. The waiver lifts federal anti-smog rules, requiring more expensive summer gasoline until September 15.

【Company News】

Power station operator Drax has agreed to pay £25 million after an Ofgem investigation found it failed to report data adequately. Ofgem found no evidence that Drax’s biomass is not sustainable but noted weak procedures and controls, resulting in inaccurate reporting of the types of wood used. Drax will also conduct an independent audit of its data.

ExxonMobil’s Joliet refinery, which processes 275,000 barrels of crude per day, was shut down in mid-July due to a power outage caused by a storm. The facility began restarting in early August, with regional gasoline prices rising due to the outage. Other temporary shutdowns in the Midwest also contributed to the price increase.
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