Update: Edison Says QatarEnergy Force Majeure Extension to Impact 3 LNG Cargoes

(Updates to add details from Edison statement from paragraphs 1-5; removes market chatter tag)

Italian energy company Edison on Tuesday disclosed that QatarEnergy has extended a force majeure on the company's deliveries till September-end, which will prevent the Qatar-based state-owned liquefied natural gas giant from delivering three scheduled LNG cargoes.

"QatarEnergy has informed Edison that it will not be able to deliver an additional 3 LNG cargoes scheduled for the Adriatic LNG receiving terminal in Italy," Edison said in a statement.

The company said 24 LNG cargoes, equivalent to about 3 billion cubic meters of natural gas, were now covered by the force majeure period from the beginning of April to the end of September.

Edison said that as of Tuesday it has replaced 17 LNG cargoes or about 1.6 billion cubic meters of natural gas at the Adriatic LNG terminal and added that it was capable of securing alternative gas supplies to meet all customer commitments.

Edison has a 25-year contract with QatarEnergy for the supply of 6.4 billion cubic meters of natural gas per year to Italy, effective from 2009, the statement added.

Meanwhile, according to a Bloomberg report on Tuesday, QatarEnergy has further prolonged force majeure for LNG shipments for Asian and European buyers amid continued energy supply disruptions due to the Middle East conflict.

QatarEnergy has extended the force majeure on deliveries for its European customers until the end of September, up from earlier in that month, the report said, citing people familiar with the matter.

It has also extended force majeure to Asian buyers, including Pakistan, India, and Bangladesh, into September.has reached out to QatarEnergy for comments.

The extension has tightened global supply as Europe and Asia compete for limited alternative cargoes to rebuild inventories ahead of winter. QatarEnergy first suspended deliveries to buyers in March following the outbreak of the war and has been extending the force majeure clause since, the report said.

US Oil Update: Futures Retreat as Middle East, Black Sea Supply Risks Recede

Crude futures plunged in after-hours trading on Monday, pulling back from a multi-session high, as immediate supply threats across key Middle Eastern and Black Sea crude exporting markets began to ease.Front-month West Texas Intermediate crude futures retreated 8.3% to $81.88 per barrel, while Brent futures plunged by 9% to $87.75/bbl.EBW Analytics strategists said on Monday that the market could return to an oversupplied balance if hostilities continue to ease, though risks remain elevated given the potential for the conflict to broaden.The US has held off on new military strikes against Iranian targets since Friday, following 13 straight nights of attacks aimed at degrading Tehran's ability to disrupt commercial shipping in the Strait of Hormuz.Iran, in response, reportedly signaled that it would stop carrying out attacks on its Gulf neighbors as long as the US also refrains from striking, as Tehran held talks with Oman over the Strait of Hormuz.On Monday, the US Central Command said that Washington's ongoing blockade against Iran has redirected 17 commercial vessels, disabled two, and boarded two to enforce compliance.Earlier on Monday, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that while "it's possible that mediators share messages from the US side about current developments," no formal peace negotiations between Iran and the US are currently taking place.He said talks between Tehran and Muscat have no connection whatsoever with the US and are ongoing.However, Saudi Arabia's Ministry of Defense on Monday intercepted drones from Iraq and Yemen's Houthis targeting its oil facilities.Soojin Kim, research analyst at MUFG, said that although the pause in US military action has eased immediate supply fears, constrained maritime traffic across key export routes suggests geopolitical risk remains elevated.The defense ministry said in a social media post that the Gulf state's air defenses intercepted and destroyed several drones that targeted petroleum facilities in the country's Eastern Province and Riyadh region.On Monday, the Houthis also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the Gulf state's drones.Yahya Saree, the Houthis' spokesperson, said that several targets in the supply and transport of crude oil from eastern Saudi Arabia to Yanbu were struck by several drones.Saudi Arabia has re-routed its crude output to Yanbu via its east-west pipeline to get around Iranian attacks on shipping in the Hormuz.Meanwhile, traffic through the Hormuz, through which 20% of the world's oil and liquefied natural gas supplies flowed before the conflict, remains restricted, with the latest shipping data showing only 29 confirmed crossings between July 24 and 26.Bab el-Mandeb, by comparison, recorded 100 verified crossings, with 51 vessels entering the Red Sea and 49 exiting.

Saudi Crude Transit Through Bab el-Mandeb Drops Sharply After Houthi Attacks, Kpler Says

Saudi crude exports continue to move through the Bab el-Mandeb Strait despite a sharp drop in transit volumes following Houthi attacks, Kpler said in a Monday note.Before the July 22 attacks, crude cargoes loaded at Saudi Arabia's west coast averaged about 3 million barrels per day through the strait, reflecting regular shipments from Yanbu to Asia.Kpler said the attacks marked an escalation in Houthi targeting of Saudi-linked shipping in the Red Sea.Since July 22, only six Saudi-loaded crude tankers have crossed Bab el-Mandeb, with transit volumes averaging about 1.5 million b/d over the six days after the attacks.The transit volumes have dropped by almost 50%, although Saudi crude exports have not stopped, according to Kpler.Kpler said it has not confirmed any suspension of Saudi crude loadings from Yanbu or vessel crossings through the strait.The firm said the shipping corridor remains open even as traffic continues at a slower pace.

Update: Edison Says QatarEnergy Force Majeure Extension to Impact 3 LNG Cargoes

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