FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Australia Eyes Biofuel Mandate in Response to Global Energy Crisis

By

Australia plans to mandate biofuel blending to improve energy security, while bolstering local production due to the energy crisis resulting from conflict in the Middle East, Reuters reported, citing a government official familiar with the matter.

A major producer of canola seed and tallow, the country currently exports these valuable seed oils, while importing most of its fuel needs.

The government is expected to begin consultations in the coming months, including industry engagement, reviews of international best practices, and broader cost-benefit assessments, with a target of developing a policy by the end of the year.

Last year, Australia's center-left government unveiled A$1.1 billion ($780 million) in funding to support biofuel production infrastructure over the next decade to establish a low-carbon fuel industry worth tens of billions by mid-century.

has contacted the Australian government seeking confirmation and comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Oil & Energy

Global Electrified Car Sales Hit Record High in 2025 Says IEA

Global electrified car sales surpassed 20 million units in 2025 according to the International Energy Agency's latest Global EV Outlook released on Wednesday.The agency noted that "about 5% of the global car stock is now electrified, meaning either battery-electric, hybrid or plug-in hybrid, displacing 1.2 million barrels of oil per day in 2025."Battery electric vehicles, one of the categories under the 'electrified' umbrella along with hybrids and plug-in hybrids, spearheaded this growth, captured 65% of total electrified vehicle sales, reversing a two-year slowdown, IEA added."One in four new cars sold worldwide was electric in 2025," the agency said.More than 13 million electrified cars were sold in China last year representing nearly 55% of its domestic market, pushing the country's total EV fleet to 44 million vehicles, IEA said.Europe also experienced a massive 30% increase to 4.2 million units, driven by stricter emission standards, it noted.Germany led the European surge with a 50% jump to a record 850,000 sales, while nations like the UK, Italy, Spain, and Poland recorded stellar growth fueled by purchase subsidies and more affordable models.Additionally, emerging markets in Latin America, Asia Pacific, and the Middle East expanded rapidly, benefiting from the cost-competitiveness of Chinese EV imports, the outlook said.However, the US market stagnated at a 10% sales share, finishing at roughly 1.5 million units, IEA added. US electrified car sales meanwhile plummeted 45% in Q4 2025.

Oil & Energy

EMEA Natural Gas Update: Futures Slide Amid Hopes of US-Iran Peace Deal

European natural gas futures edged lower on Thursday, amid growing optimism surrounding a lasting peace deal between the US and Iran.The front-month Dutch TTF gas contract fell 1.09% to 48.885 euros ($56.87) per megawatt hour, while the UK front-month NBP contract dropped 1.17% to 119.300 British pence ($1.60) per therm.US President Donald Trump continued to express optimism in favor of a peace deal with Iran, while reportedly sticking to a diplomatic way forward, despite tense conversations with Israeli President Benjamin Netanyahu on Wednesday, who remained skeptical, according to a report by Axios.Meanwhile, the US has reportedly sent a new text to Iranian leaders via Pakistan, which is currently being reviewed by the country's senior leaders, according to the Tasnim News Agency.The strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively closed for the 12th week running, with just two vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.This, however, failed to quell supply concerns in European markets, as Norway, the region's biggest piped gas supplier, said that it "will see capacity cuts deeper than previously expected over the next week," as more seasonal work is expected at the Troll gas field, Daniel Hynes, a senior commodity strategist at ANZ said.Europe is currently also grappling with depleted gas inventories, which are currently at 36.87% of capacity, compared to 44.93% during the corresponding period a year ago, data from Gas Infrastructure Europe said.Inventories were also significantly below the five-year average for this period, at 50.6% of capacity, according to the Swiss Federal Office of Energy.These factors coincide with a late-May heatwave forecast across the region, with much of Europe expected to experience a 'heat dome' phenomenon. Countries including Spain and Portugal are projected to see temperatures climb into the mid-to-upper 30s Celsius, likely boosting cooling-related gas demand, according to Severe Weather Europe.

Oil & Energy

EMEA Oil Update: Brent Recovers as Traders Assess Potential Iran Deal

Brent crude futures recovered on Thursday, after a selloff in the previous session, as investors parse a new Iran deal and afterr the US reported a massive drop in inventories.The Brent futures contract added 1.3% to $106.42 per barrel. Murban futures closed at $103.22 on May 20 and were not trading by the time of publication of this oil price update.On Wednesday, the US president said that negotiations with Iran are in their "final stages," raising optimism for a deal."Oil prices sold off heavily yesterday, with hopes growing once again for a potential US-Iran agreement," ING analysts said. Brent futures dropped more than 5% on Wednesday.Analysts at ING noted that while the market has been burned by false breakthroughs before, it remains highly reactive due to the sheer significance of ongoing supply disruptions.On the supply side, the US Energy Information Administration noted that US crude oil inventories decreased by 7.9 million barrels to 445 million barrels for the week ended May 15.