Oil Daily | Rosneft Expands Crude Supply to China, Dangote Refinery Faces Prolonged Gasoline Shortages

【Global Oil Supply and Demand】

Tight uranium supply could disrupt global nuclear generation capacity growth, with demand projected to increase by over 30% in four years, according to the World Nuclear Association. Existing mines face depletion, necessitating new uranium sources. The International Energy Agency echoes similar concerns due to rapid nuclear power plant expansions.

Biodiesel imports to the U.S. have hit a decade low due to the removal of subsidies for biodiesel and renewable diesel imports. Domestic producers still retain these subsidies, affecting consumption and imports. The change in incentives is expected to keep imports subdued despite potential increases in consumption due to blending mandates.

Nigeria's Dangote Refinery may face gasoline shortages due to extended repairs on its catalytic cracking unit. The delay could last two to three months, impacting domestic supply and regional markets. The extended downtime risks reopening the import gap and affecting regional gasoline balances, potentially increasing dependency on U.S. and European refineries.

For the second time in weeks, a swarm of jellyfish forced the shutdown of a nuclear reactor in France, disrupting the Paluel nuclear power plant's operations. The incident mirrors a similar event at the Gravelines plant. Rising temperatures in rivers due to climate change and heatwaves have also impacted France’s nuclear generation.

【Oil-Producing Countries Dynamics】

Russia's Rosneft has agreed to supply additional crude to China via Kazakhstan, supplementing last year's flows of 10.2 million tons. Discussions between Russia and Kazakhstan aim to increase exports to China, as part of strategic routes involving petroleum and gas, enhancing economic ties amidst global economic challenges.

【Latest Oil Policies】

China is intensifying efforts to curb solar manufacturing overcapacity amid price wars and deepening losses. The country aims for consolidation, pivoting toward innovation and value-based competition. Authorities emphasize quality and sustainable development, addressing detrimental cutthroat competition and overcapacity in the solar sector.

【Industry News】

Offshore wind developer Ørsted faces challenges from a delayed Taiwanese project and a U.S. stop-work order. The company plans a $9.4 billion rights issue to strengthen finances, with Equinor investing significantly. Legal action against the U.S. order ensues amidst concerns of project delays and financial impacts.

CNOOC Limited has commenced oil production at the Wenchang 16-2 Oilfield Project in the South China Sea. The project will utilize existing facilities and new platforms to reach a production plateau by 2027. Despite new projects, CNOOC's profits fell 13% due to declining oil prices.

【Company News】

Russia's potential energy collaboration with ExxonMobil could benefit its Sakhalin region and energy sector. Despite previous tensions, discussions on Exxon's return to the Sakhalin-1 project signal potential bilateral energy deals amidst geopolitical negotiations, following recent amendments to Russian ownership laws.