US weekly ethanol production rose, according to the US Energy Information Administration report on Wednesday.
For the week ending May 29, US ethanol production averaged 1.11 million barrels per day, above last week's 1.09 mmb/d and unchanged from last year's 1.11 mmb/d.
The four-week average output at 1.10 mmb/d was above 1.05 mmb/dd during the same time last year.
Kuwait's oil production could return to 70% of pre-war levels within six to eight weeks once the Strait of Hormuz reopens, with full output resuming in another month, multiple media outlets reported on Wednesday, citing Kuwait Petroleum's managing director for international marketing, Shaikh Khaled Ahmad Al-Sabah.Refinery operations, meanwhile, could return to normal levels within two to three weeks after the crisis ends, Al-Sabah reportedly said during the S&P Global Energy Middle East Petroleum and Gas Conference. KPC has about 1.4 million barrels per day of refining capacity.Resuming normal refinery production would be quicker than recovering hydrocarbon output, according to Investing.com.The Kuwait government was also in talks with "friendly countries" about potential pipeline projects, according to Al-Sabah, as cited by Reuters. The country would reportedly need a larger storage capacity at the same time.KPC did not immediately respond to' request for comment.Gulf refineries could ramp up to about 90% to 95% of capacity within 40 to 60 days, Reuters reported, citing Vitol Bahrain's head of research.Meanwhile, transit through the Strait could return to pre-war levels in mid-2027, Philippe Khoury reportedly said. He is Abu Dhabi National Oil's executive vice president for sales and trading.Toril Bosoni, the International Energy Agency's head of oil, as cited by the news agency, said that a best-case scenario would see a recovery in six to eight months after an agreement is reached.
US natural gas futures rose on Wednesday despite a spike in output and falling LNG feedgas flows, which put downward pressure on prices.The front-month Henry Hub contract and the continuous contract were both up by 0.19% at $3.173 per million British thermal units.From a fundamentals perspective, US natural gas output is expected to hit 107.5 billion cubic feet per day, slightly above the May average, according to NRG Energy.Meanwhile, LNG export feedgas flows touched a four-month low on Tuesday, at 16 Bcf, compared to 17.1 Bcf/d in May, according to a Reuters report, citing LSEG data.On the supply front, the US Energy Information Administration's Weekly Gas Storage Report is expected to show a net injection of 99 Bcf into storage, which falls below the prior year's build of 119 Bcf, and the five-year average for this period at 101 Bcf.Almost the entire country is expected to see above-normal temperatures from June 10 to June 16, according to the National Weather Service, leading to increased air conditioner use and, in turn, higher power burn demand over the next few weeks.
Crude oil market strength amid renewed hostilities in the Middle East spilled into the biofuels market on Wednesday, lifting futures for both Chicago soybean oil and Malaysian palm oil.The July soybean oil contract on the Chicago Board of Trade rose 1.26% to 79.40 cents per pound in early trade. The corresponding soybean contract recovered from near two-month lows and gained 0.56% to $11.72 per bushel.Strong domestic demand, reflected in the high volumes of soybeans crushed in the US, also supported the entire complex.The US soybean crush totaled 218.5 million bushels in April, according to US Department of Agriculture data, exceeding market expectations of 214.7 million bushels.Crush margins also reached a record $4.07 per bushel, AgWeb reported, citing Martinson Ag Risk Management.Soybean prices firmed despite the lack of purchases from China and ample supply availability from Brazil, according to financial services firm StoneX."Despite expectations that the absence of Chinese buying would weigh heavily on demand, soybean consumption indicators continue to outperform forecasts," financial services firm StoneX said."Brazilian soybean production estimates remain exceptionally large, yet US demand indicators continue to show resilience," it said, adding that US soybean exports are only 1% behind the pace required to meet annual target.Meanwhile, prospects of improving weather in the US, which supports planting and enhances yield, weighed on prices, according to analysts.In Asia, Malaysian palm oil futures jumped around 3% on Wednesday, tracking higher crude oil and rival soybean oil, and following the implementation of Indonesia's new export policy.As the market reopened after a holiday, the Bursa Malaysia Derivatives' July and August crude palm oil contracts surged to 4,638 Malaysian ringgit ($1,163.84) per metric ton and 4,677 ringgit/mt, respectively.Indonesia reportedly began a phased implementation of its centralized export system on June 1, to initially cover palm oil, coal, and ferroalloys.Coordinating Minister for Economic Affairs Airlangga Hartarto, as cited by multiple media outlets, said full operation is targeted by Jan. 1, 2027.During the transition period, Hartarto reportedly said that exporters will conduct overseas sales independently, but all export activities must be reported to Danantara Sumberdaya Indonesia, a newly established state-owned entity for improving trade transparency.Prices for palm oil fresh fruit bunches have declined since Indonesia announced export revamp plans last month.Nonetheless, prices may see a recovery once all technical guidelines are finalized and market conditions normalize, Antara reported, citing Regional Representatives Council Speaker Sultan B. Najamudin.In H2, global crude palm oil prices are also projected to rise up to $1,500/mt, driven by bullish factors including elevated crude oil prices, Indonesia's B50 biodiesel blend rollout in July, and the potential development of an El Nino weather phenomenon, according to industry analysts cited by Jakarta Globe.On the NYMEX, July ethanol prices slipped by a further 1.25% to about $1.98 per gallon on Tuesday.