Oil Daily | UK and Greece Warn of Strait of Hormuz Disruptions Amid Israel-Iran Tensions

【Global Oil Supply and Demand】

China's LNG imports are expected to decline this year due to milder winter, weak industrial demand, and increased pipeline gas from Russia and Central Asia. Analysts predict the drop will be between 6% and 11% compared to 2024 levels, which could benefit Asia and Europe as demand increases this summer.

【Oil-Producing Countries Dynamics】

India plans to halt rare earth exports to Japan due to China's export curbs, aiming to develop domestic processing. Despite the large rare earth resources, India lacks facilities for alloys and magnets. The government considers collaboration with private sectors to boost processing capacities amid global supply chain disruptions.

Pakistan's OGDCL has discovered a new oil and gas reservoir at Faakir-1 well, which could address the country's energy crisis. This domestic find is crucial as Pakistan faces declining gas production, rising LNG costs, and power grid issues. A deal with Turkey suggests possible exploration of offshore reserves to reshape the economy.

【Latest Oil Policies】

The EU plans to stop Russian gas imports by 2027, requiring companies to disclose contract details. This follows a roadmap to end Russian energy dependency, banning new gas contracts by 2025. Russian gas imports have dropped from 45% to 18% since 2022, but still account for over 15% of EU deliveries.

【Industry News】

UK and Greece advise shipping companies to be cautious in the Strait of Hormuz amid the Israel-Iran conflict. Escalation may disrupt oil supply through this key transit chokepoint. The worst-case scenario involves closure, impacting global oil shipping as 20 million barrels pass daily through the Strait.

【Company News】

Energean plc has suspended production from its offshore platform in Israel due to regional tensions. Following Israel's airstrikes on Iran, the company paused activities per government orders. Energean maintains dialogue with stakeholders to resume production safely, highlighting the impact of geopolitical events on operations.