US crude oil inventories decreased by 3.3 million barrels to 441.7 mmbbls in the week ended May 22, the Energy Information Administration said in its weekly report on Thursday.
Crude inventories are now about 2% below the five-year average for this time of year, the EIA said.
The European Commission said Thursday there is no immediate risk to Europe's gas supply ahead of the upcoming winter, despite the ongoing conflict in the Middle East, but cautioned that oil markets could tighten if disruptions persist.The Commission said Europe's Gas Coordination Group saw no immediate concern for the security of gas supply in the region for the next winter season.The group said that the European Union's gas storage levels could reach about 80% by the end of the summer, a level considered sufficient to secure supplies for winter 2026/27.The EU executive body said that progress in storage filling should continue to be closely monitored in light of evolving market conditions, while noting that no member state has so far planned additional market interventions.Meanwhile, the Oil Coordination Group said the effective closure of the Strait of Hormuz is affecting both crude oil and refined petroleum products, with all EU countries exposed to the resulting market dynamics.Though there have been price effects, the group said there have been no physical supply disruptions at the consumer level so far. However, it warned that if the situation does not improve in the coming weeks, markets are expected to tighten further, particularly for jet fuel.
US natural gas consumption for electricity generation is set to remain near record levels this summer before climbing to record highs in 2027, driven by surging power demand from data centers and growing electrification, the Energy Information Administration said on Thursday.The EIA, in its latest Short-Term Energy Outlook, forecast that natural gas consumed by the electric power sector will average 43.7 billion cubic feet per day this summer, unchanged from summer 2025 and about 4% above the five-year seasonal average.However, despite a 2% rise in overall electricity demand this summer, gas-fired generation is expected to remain flat as increased output from renewables offsets higher load growth.The agency expects a more pronounced shift by 2027, when natural gas consumption for power generation rises 6%, or 2.4 Bcf/d, to 46.1 Bcf/d.Trinity Manning-Pickett, applied economist at the EIA, said that figure would surpass the previous summer record set in 2024 by about 3%.The EIA attributed the projected increase primarily to rapidly expanding commercial electricity demand, particularly from data centers and large industrial facilities in Texas and Virginia.Manning-Pickett said these regions are driving higher consumption in the Electric Reliability Council of Texas and PJM Interconnection grids.Commercial and industrial electricity demand in the West South-Central region is forecast to rise 20% between summer 2025 and summer 2027. The EIA also expects additional industrial load growth tied to electrification in the oil and gas sector.To meet rising demand, the agency said ERCOT is projected to boost natural gas-fired generation by 22% over the same period, alongside significant additions in solar capacity.Gas usage for power generation in the PJM region is forecast to rise 6%, or 9 billion kilowatt-hours, by summer 2027 compared with 2025 levels. Solar generation in PJM is also projected to climb 32% over the same period, adding 4 billion kilowatt-hours.The EIA said the generation mix across the US power system continues to shift away from coal toward a combination of natural gas and renewables. The agency expects renewables to account for 25% of total generation by 2027, up from 21% in 2025.
Norway's oil and gas industry is projected to see total investments of around 266 billion Norwegian kroner ($28.66 billion) in 2026, 11 billion kroner more than estimated in the previous quarter, according to a survey by the statistics office published Thursday.However, the estimates are 1.1% lower than the corresponding projections for this time last year, it said."The upward adjustment for 2026 is largely driven by higher estimates within the field development category. The increase is partly due to the submission of plans for development and operation... or three projects. These are redevelopments of previously shut-down fields. Most of the increase, however, is due to higher planned investments in ongoing developments," the survey said.In 2027, total investment in oil and gas extraction and pipeline transport is projected at 207 billion Norwegian kroner, up 2.9% from the previous survey's estimate. This is also 0.2% higher than the corresponding estimate for 2026 during the same time last year.The revision in forecasts for 2027 is primarily due to increased estimates in field development and fields on stream, it said.The country produces over a million barrels of oil equivalent per day, split equally between crude and natural gas, according to a Reuters report.