Oil Daily | Saudi Aramco Issues $5B Bonds Amid Low Oil Prices; Chevron Cuts 800 Permian Jobs

【Company News】

Saudi Aramco plans to continue accessing debt markets to support its growth and dividends. The oil giant issued $5 billion in bonds, with varying maturities, under its Global Medium Term Note Programme. Despite recent cash flow reductions due to lower oil prices, Aramco maintains low debt levels and aims to optimize its capital structure.

Chevron is cutting 800 jobs in the Permian as it reduces its global workforce by 20% by 2026. The company faces challenges, including a revoked license in Venezuela and a dispute with Exxon over Hess Corp's Guyana assets. These moves are part of Chevron's efforts to streamline operations amid a difficult market environment.

Sunnova's $2.92 billion loan guarantee cancellation by the Trump administration follows the company's decision against using the funds. Sunnova has faced financial challenges with rising interest rates and subsidy cuts. The solar industry's precarious position worsens as Trump administration curtails alternative energy subsidies.

【Global Oil Supply and Demand】

U.S. crude oil inventories fell by 4.236 million barrels, while SPR inventories increased by 800,000 barrels. Gasoline and distillate inventories showed mixed changes. These shifts reflect ongoing volatility in oil and fuel inventory levels, impacting market dynamics.

【Latest Oil Policies】

Russia may adjust its budget rule oil price level amid falling oil prices. Finance Minister Siluanov suggests revising the $60 per barrel baseline price to better align with current fiscal needs. This policy change would reflect Russia's adaptation to lower oil revenue and potential budget challenges.

【Oil-Producing Countries Dynamics】

Iran signals willingness to halt uranium enrichment at 60% purity in exchange for U.S. recognition and asset release, amid nuclear talks. Diplomatic efforts continue, with verification by the IAEA required. Geopolitical tensions impact oil markets, raising concerns over regional stability and energy supply disruptions.

Russian crude oil export values hit a two-year low in May, despite stable export volumes. Prices of Urals and ESPO grades have declined, reducing Kremlin revenue. The downturn follows significant oil price drops starting last month, affecting Russia's budget and economic forecasts.

【Others】

China considers easing rare earth export restrictions for European semiconductor firms to stabilize supply chains. The potential policy shift follows concerns over approvals and supply chain disruptions. This move aims to support semiconductor companies amid China's dominance in rare earth processing.

Australia approves the extension of the North West Shelf LNG plant's operating life to 2070, with environmental conditions. The decision supports job preservation and long-term gas production, while addressing emissions and cultural heritage concerns. This marks a significant development in Australia's energy sector.