Oil Daily | U.S. Sanctions on Chinese Firms, Baytex's Asset Sale, and Repsol's Renewable Gasoline

【Oil-Producing Countries Dynamics】

China vowed to protect the rights and interests of its companies following U.S. sanctions on Chinese entities importing Iranian oil. The U.S. Treasury blacklisted around 100 individuals, vessels, and companies, including China's Shandong Jincheng Petrochemical Group, for purchasing Iranian crude. China's Foreign Ministry opposed unilateral sanctions, urging the U.S. to abandon such practices.

The administration of Venezuelan leader Nicolás Maduro has offered to open Venezuela’s oil and gold projects to U.S. companies to ease tensions with the Trump Administration. In a bid to reduce conflict, Venezuelan officials proposed ending some deals with Iran and Russia, but the U.S. rebuffed the proposal.

【Company News】

Baytex Energy Corp. is exploring options for a $3 billion sale of its U.S. assets. Although discussions are at an early stage, the potential sale of the Eagle Ford shale portfolio marks a significant shift, as the Texas barrels comprise over half of Baytex's production. The company is refocusing investments in Canada.

Spanish energy company Repsol announced it achieved industrial-scale production of gasoline from 100% renewable sources. Branded Nexa 95, the renewable gasoline reduces CO2 emissions by over 70% compared to conventional gasoline and is available at select stations in Spain, with plans for expansion.

National energy giant Petronas is expected to contribute significantly less to Malaysia's budget next year, amid falling oil prices and challenging macroeconomic conditions. The dividend drop reflects lower Brent oil price expectations and declining revenues due to adverse exchange rates and lower production.

【Latest Oil Policies】

The U.S. Treasury authorized Shell and Trinidad and Tobago to develop an offshore gas field in Venezuela, intended to supply gas to Trinidad. The authorization requires U.S. firms' involvement, aiming to meet commercial targets, stated Trinidad’s attorney general.

【Industry News】

Total open interest in Europe’s benchmark gas futures reached a record high, signaling a possible end to the lull in trading due to colder weather. Steady LNG flows have eased concerns of inventory depletion, despite Europe lagging behind last year’s pace of gas storage filling.

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