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Market Chatter: Indian Power Producers Buy More Gas Domestically to Meet Cooling Needs

Power producers in India have made a four-fold increase in their natural gas buying on a domestic exchange in the past couple of months as power demand surges for cooling during a scorching summer, Bloomberg reported on Friday.The Indian Gas Exchange, the largest gas-trading platform in the country, sold 4.5 trillion British Thermal Units to power companies between April 1 and May 26, according to data it shared, resulting in a 350% year-on-year jump.Indian power demand has risen to new highs both by day and night due to heatwaves this summer.The country is facing a higher gas import bill to run gas-fired power stations to generate the current needed to run air conditioners around the clock.Struggles to obtain more of the limited supply has led to power shortfalls of up to 5 gigawatts during peak evening hours, data from the Grid Controller of India showed, the article said.Natural gas is used to generate about 2% of India's power, with the 20 gigawatts of gas-fired capacity mainly kept as a reserve for when demand rises in the evening. Shortages of gas have limited the usage of these plants this summer, the story said.All of the volumes the exchange has sold this summer have been regasified liquefied natural gas, CEO Rajesh Kumar Mediratta said.The average price paid was 1,769 rupees ($18.55) per million Btu over hte April to May period, about 64% more than one year prior, the article said, citing IGX data.has contacted the Indian Gas Exchange seeking comment on the trend.(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.)

Commodities27d ago

Market Chatter: South Bow Seeks US Permit Assurances Before Considering Keystone XL Revival

South Bow CEO Bevin Wirzba will seek assurances about the stability of the US presidential permit before the Canadian pipeline operator will consider a partial restart of the Keystone XL oil pipeline project, Reuters reported on Thursday.The Canadian company previously lost a presidential permit for the cross-border project, Wirzba said, after it was cancelled in 2021 by former US President Joe Biden after years of environmental and indigenous opposition.South Bow is working with the US and Canada to reduce "sovereign risk" or the possibility of a government unilaterally blocking or halting the construction of its proposed 550,000-barrel-per-day Prairie Connector crude oil pipeline, Wirzba told a gathering at the Energy Roundtable conference in Calgary.South Bow was formed in 2024 as a spin-off of TC Energy's oil pipeline business, which included former Keystone XL assets.The company, along with US partner Bridger Pipeline has proposed the construction of a new Alberta-to-Wyoming pipeline, which would include the use of certain already-installed Keystone XL assets in Canada, the report said.Last month, US President Donald Trump approved a cross-border permit for the Prairie Connector pipeline, which is expected to increase Canada's crude exports to the US by over 12%, it said.(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.)

Commodities27d ago

Market Chatter: Suriname Eyes Parallel Oil, Gas Development as Petronas Explores Block

Malaysia's state-owned oil and gas producer, Petronas, is exploring Suriname's Block 52, which was declared commercially viable after large discoveries were made in the region late last year, according to a Reuters report.Annand Jagesar, managing director of Suriname's Staatsoliesaid he expects a "declaration of commerciality" for oil in the region in the next 18 months, which could result in the development of offshore oil and gas development for export.Partners Petronas and Staatsolie are expected to decide later this year on a final investment decision regarding the development, with first gas production targeted for 2030.The South American nation is also set to inaugurate its $10.5 billion Gran Morgu offshore crude oil project, operated by TotalEnergies (TTE), in 2028.To encourage more exploration, Suriname has offered an open-door licensing round covering 70,000 square kilometers (27,027 square miles) across five offshore sectors.That would allow companies to propose work commitments in exchange for production-sharing contracts or joint study agreements aimed at improving geological and seismic data.Jagesar said that the country expects to secure at least three to four investors in the licensing round to operate in these areas. The licensing offer is set to remain open for at least two years.Neither Petronas nor Staatsolie immediately responded to' request for a comment on this story.(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.)

Commodities27d ago

French Power Demand Rises as Temperatures Surge

Electricity demand in France is rising as the country grapples with a heatwave and record-high temperatures.Meteo-France said on Thursday that the country "is experiencing an unprecedented heatwave for May, particularly in the west," with temperatures exceeding average levels by at least 15 degrees Celsius this week.Weather conditions sometimes resemble a heatwave, it said.This month, the hottest day was recorded on May 26, while record-high temperatures of up to 38 degrees Celsius were seen in some areas on May 28, according to the weather service.In Paris, temperatures exceeded 32 degrees Celsius for more than eight consecutive days in May, Meteo-France noted, something that has only ever happened previously in 1947, 1976 and 2003.With higher cooling demand, France's power consumption is expected to exceed 52 gigawatts at 1 p.m. local time on Friday, up compared with 48 GW consumed last week during the same time, according to RTE data.On Thursday, power demand at 1 p.m. was about 51 GW, higher than the previous week's 48 GW. Consumption exceeded 52 GW at around 7 p.m. on Thursday.Electricity prices in the country fluctuated on the same day, with the gap between the cheapest and most expensive hour at about 160 euros per megawatt-hour, Bloomberg reported, citing data from the Epex Spot SE exchange.The weather pattern raises concerns over Europe's ability to adjust to a warming climate, Bloomberg said, considering that more heat waves and even hotter temperatures may occur as summer season progresses.Spain is also experiencing extremely hot weather, according to AEMET, as cited by the news agency, with temperatures potentially reaching 38 degrees Celsius in some areas.In Germany, Bloomberg noted that intermittent solar output led to sharp swings in electricity prices, from almost zero at noon to about 400 euros/MWh at night, based on data from the Fraunhofer Institute.Price volatility occurs when solar power sources are replaced by more expensive gas- and coal-fired power plants in the evening.

Commodities27d ago

Market Chatter: Japan's Mitsui Targets Investments in LNG Facilities

Japanese trading house Mitsui & Co. is eyeing investments in liquefied natural gas projects in the Middle East, US and Australia amid an expected increase in global power demand from new data centers, Bloomberg reported Friday, citing chief executive officer Kenichi Hori.The company was looking to pursue growth opportunities in LNG and gas chemicals, Hori told Bloomberg.Noting that additional demand is being created for LNG by companies looking to power artificial intelligence infrastructure with clean energy, Hori said the company could consider equity stakes or securing offtake agreements.The company will reserve some capital for the energy sector as it seeks new assets as part of a new mid-term strategy unveiled this month, the report said.Mitsui, a stakeholder in Abu Dhabi National Oil Company's under construction Ruwais LNG export facility, could consider further investments in the Middle East, Hori said. The region will remain a key global energy supply source despite the disruptions caused to oil and gas flows by the Iran war, Hori added.has reached out to Mitsui for 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.)

Commodities27d ago

Update: Workers Union Delays Strike at Inpex LNG Facility in Australia Until June 2 as Talks Continue

(Updates with Inpex statement in paragraphs 3 to 5.)Offshore Alliance's members unon workers will postpone any potential protected industrial action at Japanese energy firm Inpex's 9.3 million metric-ton-a-year Ichthys liquefied natural gas export facility in Darwin, northern Australia until June 2, the union's representative Horton Advisory said Friday.The decision has been taken as the union continues its negotiations with the company, according to a statement.In an emailed statement to, Inpex Senior Vice President Corporate Bill Townsend confirmed that the company has been advised that there will be no protected industrial action at the Ichthys facility between May 29 and June 1.The company continues to actively engage with employees to reach a fair and equitable agreement, the statement said."We remain focused on maintaining safe operations at Ichthys LNG - and importantly, ensuring reliable energy supply to our key trading partners in the Indo-Pacific region amid disruption to global energy markets," it added.Earlier this week, a proposed strike at the facility on Wednesday and Thursday was called off fllowing progress in negotiations.The strike was announced after about 326 of 346 union workers at the facility voted last month in favor of a strike to further their demands for better pay and working conditions.According to its website, Offshore Alliance is a partnership between the Australian Workers' Union and the Maritime Union of Australia, and covers workers in the offshore oil and gas industry.A strike at the facility, which accounts for about 2% of global LNG output, could have had severe consequences for the market amid the supply disruptions from the Strait of Hormuz due to the ongoing Middle East crisis, Bloomberg reported earlier this week.

Commodities27d ago

NWS Forecasts Fire Weather Conditions in Four Corners Region, Thunderstorms in Northwest, Southern US

The US National Weather Service said the presence of dry and breezy conditions will lead to elevated fire weather conditions across the Four Corners Region through Friday.Meanwhile, the Northwest and Southern US regions are expected to experience persistent widespread showers and thunderstorms through the end of the week, the agency said.The NWS issued a red flag warning for Arizona's Kayenta, Page, Chinle, Flagstaff, Winslow, Show Low, St Johns, and areas near Grand Canyon Village, primarily served by Pinnacle West Capital (PNW) subsidiary Arizona Public Service.A similar warning was raised for New Mexico's Socorro, Glenwood, Farmington, Grants, Gallup, and parts of Chama and Albuquerque. TXNM Energy (TXNM) unit Public Service Co. of New Mexico and Xcel Energy (XEL) are among the primary electricity suppliers in the state.Colorado's Cortez, Nucla, Montrose, and Durango were also placed under a red flag warning. Xcel Energy and Black Hills (BKH) unit Black Hills Energy are the primary electricity providers in the state.In Utah, a red flag warning was raised for Bluff, Blanding, Monticello, Moab, Vernal, Green River and parts of Capitol Reef National Park. PacifiCorp's Rocky Mountain Power is the primary service provider in the state.The NWS issued a flood warning for Mississippi's Hattiesburg, Gulfport, and areas near Meridian and Columbus. The state is primarily served by Entergy (ETR) and Southern Co.'s (SO) Mississippi units.The NWS also issued flood warnings for certain pockets of Oklahoma, Louisiana, Alabama, Indiana, and Ohio.

$BKH$ETR$PNW$SO$TXNM$XEL

Commodities27d ago

Workers Union Delays Strike at Inpex LNG Facility in Australia Until June 2 as Talks Continue

Offshore Alliance's members unon workers will postpone any potential protected industrial action at Japanese energy firm Inpex's 9.3 million metric-ton-a-year Ichthys liquefied natural gas export facility in Darwin, northern Australia until June 2, the union's representative Horton Advisory said Friday.The decision has been taken as the union continues its negotiations with the company, according to a statement.Earlier this week, a proposed strike at the facility on Wednesday and Thursday was called off following progress in negotiations.The strike was announced after about 326 of 346 union workers at the facility voted last month in favor of a strike to further their demands for better pay and working conditions.According to its website, Offshore Alliance is a partnership between the Australian Workers' Union and the Maritime Union of Australia, and covers workers in the offshore oil and gas industry.A strike at the facility, which accounts for about 2% of global LNG output, could have had severe consequences for the market amid the supply disruptions from the Strait of Hormuz due to the ongoing Middle East crisis, Bloomberg reported earlier this week.has reached out to Inpex for a comment.

Commodities27d ago

Asia Biofuels Update: Palm Oil Rises Over the Week; Monthly Decline Expected

Malaysian palm oil futures rose for a third straight session on Friday, following an overnight increase in rival Chicago soybean oil, bringing weekly gains to more than 1%.The Bursa Malaysia Derivatives' June crude palm oil contract was up 0.74% to 4,495 Malaysian ringgit ($1,136.39) per metric ton in midday trade. The July palm oil contract edged higher by 0.33% to 4,520 ringgit/mt.However, futures declined over the month by around 1%, as weaker exports weighed on sentiment and as crude oil prices eased on peace deal hopes between the US and Iran.Malaysian ringgit also firmed against the US dollar by a further 0.1% in May, following a 2% gain in April. This kept Malaysian export cargoes costlier for international buyers.For the May 1-25 period, Malaysian shipments were estimated to have declined between 14.5% and 18.0% from a month earlier, according to cargo surveyors cited by Trading Economics.Demand for Malaysian palm oil may increase as Indonesia tightens its oversight of shipments by routing exports of palm oil and other commodities to a state-backed entity.In India, world's top palm oil importer, "refiners have already begun internal scenario planning for accelerated Malaysian palm oil sourcing, increased domestic crush of soybean and rapeseed, and renewed evaluation of South American soybean oil contracts," Globoil Intelligence said, as buyers start diversifying their procurement strategies.While tightening global supply will support palm oil prices going forward, Indonesia's export revamp could weigh on margins and valuation of plantation firms, which have already seen a decline in shares following the announcement, analysts said.Indonesia's new export policy is reportedly slated to begin in September, according to Trading Economics, while its mandate to increase palm-based biodiesel blending to 50% from the current 40% is set to start in July.In Malaysia, the government will begin rolling out a new biodiesel blend mandate of 15% in June. This is up from the current blending ratio of 10%.

Commodities27d ago

Oil Stockpiles Nearing 'Unheard of' Levels, Prices to Rise Further, Exxon Mobil's Chapman Says

Oil inventories are nearing "unheard of" levels that will lead to increased prices in the next few weeks, Neil Chapman, senior vice president of Exxon Mobil (XOM), said Thursday at the Bernstein Strategic Decisions Conference in New York."I mean, really, really low levels," he said, according to a transcript of the event. "You can debate whether that's going to hit those really low levels in two weeks or three weeks. Once you get to that point, then you'll see price shoot up."Dated Brent futures will rise to $150 or $160 per barrel when inventories hit their lowest, Chapman said. That will ultimately lead to demand destruction."Prices go so high, becomes unaffordable, and that's what happens," he said.Rising crude futures naturally inflate the price consumers pay at the pump, but the cost of everything from fertilizers to plastics to food to will increase as oil prices climb, Chapman said."People think of crude oil as the source of gasoline. Well, of course it is," he said. "And people say, when crude oil goes to $150, gasoline price will be $9 in California, and that will be a serious issue. It's much, much more than that."He added that crude is an important feedstock for many other products."Crude oil goes into virtually everything around us. Fertilizers comes from crude oil and gas. Food prices, they will reflect the absence or the lack. Plastics, everything you see in the world is plastics. Delivery. Amazon. Still a lot of trucks around the country are running on diesel. So the crude oil price impacts so many parts of society," he said.

$XOM

Commodities27d ago

US Natural Gas Update: Prices Climb Nearly 7% on Small Storage Build, Hotter Forecasts

US natural gas futures extended gains in after-hours trading on Thursday after government data showed a smaller-than-expected storage build and forecasts pointed to higher temperatures ahead.The front-month Henry Hub contract and the continuous contract both rose 6.72% to $3.303 per million British thermal units.The US Energy Information Administration said working gas in storage increased by 92 billion cubic feet for the week ended May 22, bringing inventories to 2,483 Bcf. The build came in slightly below analyst expectations of 93-98 Bcf and under the 104 Bcf injection seen in the same week a year earlier.Stocks now stand 6.2% above the five-year average, narrowing from a 149 Bcf surplus the prior week to 144 Bcf. On a year-over-year basis, inventories are up about 0.9%.Weather models added further support, with updated forecasts turning hotter. Commodity Weather Group data cited by Barchart indicate above-normal temperatures are expected across the West and Midwest from Jun. 2-11, raising expectations for higher power sector demand driven by air-conditioning load.Electricity demand trends also remained firm. The Edison Electric Institute reported US electricity output rose 5.2% year over year to 81,890 GWh for the week ended May 23. Over the past 52 weeks, output increased 2.0% year over year to 4.34 million GWh.Barchart, citing BNEF data, reported US dry gas production at 110.4 Bcf/d on Thursday, up 0.6 Bcf/d from the prior day and 2.6% higher year over year.It said lower-48 demand was pegged at 70.2 Bcf/d, up 0.1 Bcf/d day over day and 2.1% higher year over year. Power burn slipped slightly to 24.9 Bcf, down 0.4 Bcf from the previous day but up 2.3 Bcf from a year earlier, according to Celsius Energy.On the export side, estimated LNG feedgas flows to export terminals were 18.5 Bcf/d, down 0.1 Bcf/d day over day but up 2.2% week over week amid ongoing maintenance. EIA data showed LNG vessel loadings totaled 121 Bcf for the week ended Wednesday, down 7 Bcf from the prior week, with 32 vessels departing US ports, two fewer than the previous week.Gelber & Associates said the market remains focused on whether tightening LNG demand can offset looser near-term storage fundamentals. LNG feedgas continues to provide structural support, with flows near recent highs and commissioning activity at Golden Pass gradually ramping higher. Mexican pipeline exports also remain elevated as seasonal cooling demand builds.

Commodities27d ago

Market Chatter: Alberta Coast Pipeline Would Need Over $72 Billion in Investment, Imperial Oil CEO Says

Canada's oil industry will need to attract over CA$100 billion ($72.5 billion) in investment to support Alberta's proposed 1 million-barrel-per-day pipeline to the British Columbia coast, Bloomberg reported on Thursday, citing Imperial Oil Chief Executive John Whelan.Speaking at the Energy Roundtable conference in Calgary, Whelan reportedly said the industry would need to invest in expanding oil production to supply the new pipeline, secure shipping commitments and help fund a federally mandated carbon capture project."The total cost is north of a hundred billion [Canadian] dollars that we will need to attract to this industry," Whelan said. "Now I think we can do that, but that's kind of scale of what we're talking about."Imperial Oil did not immediately respond to a request for comment from.Alberta Premier Danielle Smith has proposed the new West Coast pipeline as part of a broader plan to eventually double the province's oil production.Canadian Prime Minister Mark Carney has said Ottawa would support the project in exchange for measures, including a higher industrial carbon tax and the development of the long-delayed Pathways carbon capture and storage project, aimed at reducing emissions from Canada's oil sands industry.The Alberta government plans to unveil additional details on the project, including the proposed route to the coast, by July and aims to secure federal approval by October.The province's preferred northwestern route is expected to face opposition from Indigenous groups in BC and from BC Premier David Eby. The project could also require the federal government to lift a moratorium on oil tankers along BC's northern coast, a step Smith has reportedly advocated.Construction could begin as early as late next year, according to the Alberta government.Imperial Oil, majority-owned by Exxon Mobil (XOM), is one of Canada's largest oil sands producers, operating the Kearl mine and the Cold Lake in situ oil sands project in Alberta.(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.)

$XOM

Commodities28d ago

US Treasury Secretary Says Oil Could Fall Below Pre-Conflict Levels Amid Iran Talks

US Treasury Secretary Scott Bessent said Thursday that oil and natural gas prices could fall below pre-conflict levels as markets stabilize and global supplies rebound, while reiterating that any deal with Iran hinges on Tehran guaranteeing free navigation through the Strait of Hormuz.Speaking at a White House press briefing, Bessent said Trump would not accept what he described as a "bad deal" with Iran and insisted the administration's military and economic pressure campaign had succeeded in bringing Tehran to the negotiating table."President Trump has made it very clear," Bessent said. "Iran has to turn over their highly enriched uranium. They cannot pursue a nuclear weapon, and the Strait of Hormuz has to have free transit."Bessent declined to confirm reports of a tentative agreement that would extend the 60-day ceasefire and continue nuclear negotiations, saying it would be "a mistake to get out ahead of the president.""Everything depends on what the president wants to do," Bessent said.The remarks came amid heightened geopolitical tensions and concerns over energy supplies following months of the ongoing conflict in the Middle East.Secretary Bessent sought to reassure markets, saying the US was better positioned to weather energy price volatility because of Trump's push for expanded domestic energy production and deregulation."We are more resilient to energy price fluctuations due to President Trump's energy dominance and deregulatory agenda," he said, adding that the US was now "the world's largest energy exporter."Bessent said oil prices had already fallen about 10% in May and argued that global crude markets would remain well supplied despite disruptions in the Middle East."There are almost 2,000 ships waiting to come out of the Arabian Gulf, and I think the oil market is going to be very well supplied on the other side of this," Bessent said. "We could see prices come down very quickly."Treasury Secretary also pointed to lower natural gas prices and said oil could eventually trade below levels seen before the latest conflict erupted.Meanwhile, the White House dismissed speculation that the US was preparing for military action against Oman after Trump warned at a cabinet meeting that countries interfering with navigation through the Strait of Hormuz would face severe consequences."The President wanted to punctuate freedom of navigation in the Strait," Bessent said.He added that he had spoken earlier on Thursday with Oman's ambassador, who assured him Muscat had no plans to impose transit tolls in the strategic waterway.On whether sanctions relief for Iran was being considered before Tehran made concrete commitments on its nuclear program, Bessent said discussions were part of a "multifaceted agreement" but indicated any easing would proceed cautiously."Nothing is going to be on the table until we see the Strait open and the Iranians agree that they have to turn over the highly enriched uranium and that they can't have a nuclear program," he said.

Commodities28d ago

US Biofuels Update: Soybean Futures Gain as Soy Oil Extends Rally

Biofuels feedstock futures closed higher on Thursday, with the soybeans and soy products finishing firm.The Chicago Board of Trade July soybean futures contract closed 0.78% higher at $11.94 per bushel, while the CBOT July soybean oil futures contract settled 1.91% higher at 76.70 cents per pound.The Nymex July ethanol futures contract settled 1.49% lower on Wednesday at $1.98 per gallon.The White House confirmed media reports that the US and Iran have agreed to a memorandum of understanding for a 60-day extension of the ceasefire and to continue nuclear negotiations, but the agreement is awaiting presidential approval.Dana Mantini, DTN analyst, said the soybean market was held up by technical support and soybean products."There was very little news to drive markets Thursday as traders anxiously await new China buying interest and a solid peace deal with Iran. Crude oil futures were just modestly higher on Thursday after sinking on news of a peace deal getting close on Wednesday," Mantini said.He added that soy crush margins are the key "bullish driver in the soy complex with board crush premiums reported to be record large.""Soybean oil surged Thursday for a third straight higher close. Also giving soybeans a boost is the higher inflation rate, reported to be 3.8%, and a three-year high," the analyst said.On Thursday, the Energy Information Administration reported that for the week ending May 22, US ethanol production averaged 1.09 million barrels per day, below last week's 1.11 mmb/d and above last year's 1.06 mmb/d.The four-week average output at 1.08 mmb/d was above 1.03 mmb/d during the same time last year.Midwest ethanol production averaged 1.04 mmb/d, below 1.06 mmb/d in the previous week. Four-week average output at 1.02 mmb/d, compared with 970,000 b/d a year ago.Domestic ethanol inventories ended the week at 25 million barrels, above 24.9 mmbbls a week ago and 24.3 mmbbls a year ago.

Commodities28d ago

Cheniere Hires Bechtel for First Phase EPC of Sabine Pass LNG Expansion

Cheniere Energy Partners (CQP) said in a Thursday statement that its subsidiary, Sabine Pass Liquefaction Stage V LLC, has signed a lump-sum, turnkey engineering, procurement, and construction contract with Bechtel Energy for the first phase of the Sabine Pass Liquefaction Expansion Project in Louisiana.The company also said it had authorized Bechtel to begin early engineering and procurement work for Phase 1 under a limited notice to proceed.The expansion project is designed to include up to three large-scale liquefaction trains with an expected peak production capacity of about 20 million tonnes per annum of LNG, including debottlenecking opportunities and related infrastructure.Phase 1 of the project includes the construction of Train 7, a boil-off gas re-liquefaction unit and supporting infrastructure tied into the existing Sabine Pass LNG terminal. Cheniere said the first phase is expected to produce more than 6 mtpa of LNG, including estimated debottlenecking capacity.The company said Phase 1 is backed by long-term agreements with creditworthy counterparties. A final investment decision remains subject to regulatory approvals and financing arrangements.Applications with the Federal Energy Regulatory Commission to construct and operate the expansion project, as well as Department of Energy approval to export LNG to non-free trade agreement countries, are still pending."The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year," Chief Executive Jack Fusco said in a statement.Cheniere Partners owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which currently operates liquefaction facilities with total production capacity exceeding 30 mtpa of LNG. The terminal also includes regasification facilities, five LNG storage tanks, vaporizers and three marine berths.The partnership also owns the Creole Trail Pipeline, which connects the Sabine Pass terminal to several interstate and intrastate natural gas pipelines.Price: $60.87, Change: $+0.25, Percent Change: +0.40%

$CQP

Commodities28d ago

Europe Averts Jet Fuel Crunch After Hormuz Disruption, Kpler Says

Europe's jet fuel market has so far weathered the loss of Middle East supplies more smoothly than initially expected, with a combination of higher transatlantic flows, refinery optimization, and new capacity in Africa offsetting most of the disruption, Kpler strategists said in a note Thursday.Europe relies on imports of about 700,000 barrels per day of jet fuel to meet aviation demand, with about 400,000 b/d previously sourced from the Middle East during the May-September peak season."The escalation of the conflict and the effective closure of the Strait of Hormuz abruptly disrupted this key trade corridor, initially raising concerns over a severe supply deficit," said Nikhil Dubey, senior research analyst, Refining and Modeling at Kpler.However, Kpler data indicate that the shortfall has largely been absorbed through rapid rerouting of global supply chains rather than by demand destruction alone.The most significant offset has come from the US, which has redirected about 140,000 b/d of jet fuel toward Europe, supported by wider refining margins and stronger export economics following the disruption, which pushed up regional crack spreads.European policy flexibility, allowing temporary acceptance of Jet A alongside Jet A-1, has also broadened import options, though operational constraints at some airports are expected to limit the full impact.Simultaneously, European refiners have lifted jet fuel yields, optimizing operations toward so-called "jet-max" mode. Kpler said yields have risen to around 11% from about 9%, equivalent to an estimated 160,000 b/d of additional supply at current throughput levels.The analytics firm said that with refinery runs expected to increase further into the summer driving season, that uplift could reach about 210,000 b/d.New supply from Nigeria's Dangote refinery has added about 40,000 b/d year-over-year after the resolution of operational issues at its residue fluid catalytic cracking unit, with most of the incremental volumes also flowing to European buyers.Together, these adjustments have effectively replaced most of the lost Middle Eastern barrels, leaving the European market still short by an estimated 150-200,000 b/d heading into the peak summer season.Trade flows from Asia have also tightened. India, which previously supplied about 100-130,000 b/d of jet fuel to Europe, has seen reduced shipments amid restrictions on products linked to Russian crude processing.Kpler said some relief could come from recent UK policy changes allowing imports regardless of crude origin, potentially restoring up to 50,000 b/d of flows, though this remains uncertain.Higher jet fuel prices have already begun to weigh on demand, with Kpler estimating consumption losses of about 50,000 b/d over the May-September period as airlines trim marginal routes and adjust capacity.However, despite the adjustments, inventories remain under pressure and continue to draw below seasonal norms during a period when stocks would typically be building ahead of winter.The resilience of the market now depends on sustained US export economics, stable European refinery performance and continued output from new capacity, particularly in Nigeria.

Commodities28d ago

UK Solar Installations Hit Record High as Households Drive Rooftop Surge

The UK set new records for solar power deployment in 2025 and early 2026 as households, businesses and public services accelerated investment in rooftop and utility-scale installations, the Department for Energy Security and Net Zero said on Thursday.The latest data shows that 269,000 solar installations were completed across the country in 2025, the highest annual total on record and 37% higher than a year ago.The Department said about 255,000 of those were rooftop systems, translating to at least 95% installation on homes, businesses and other buildings.The UK added 23,000 new installations in April 2026, with over half on residential rooftops, as households turned to self-generation amid heightened concerns about energy security following the outbreak of the Middle East conflict.The government said nine of the 10 strongest months for solar deployment on record had occurred within the past year. Britain also surpassed 2 million cumulative solar installations in March 2026.Costs for solar photovoltaic systems fell by up to 9% over the past year, supporting wider adoption, the data showed.Energy Secretary Ed Miliband said Britain was "taking back control" of its energy system by expanding clean power and reducing exposure to volatile fossil fuel markets."This is what our clean power mission looks like: backing homegrown energy, giving people more control over their bills, and building a stronger, more resilient energy system for the future," he said.The government said rooftop solar was helping households reduce energy bills, with savings of up to 480 British pounds ($645) a month cited in its assessment.The program includes approval of large-scale projects such as Springwell Solar Farm, described as the largest solar farm in the country, alongside plans to roll out low-cost "plug-in" solar panels and require solar installations on new homes in England.Corporate and public sector adoption has also accelerated. Numatic International, the maker of Henry the Hoover, has launched a solar park expected to supply around 20% of the electricity demand at its Somerset factory.Mid Cheshire Hospitals NHS Foundation Trust said rooftop solar installations are expected to reduce its energy bills by about 9,500 British Pounds per year.Kitchen manufacturer Wren Kitchens is also building what it says will become the UK's largest factory rooftop solar array.

Commodities28d ago

Petrobras Raises Wholesale Gasoline Prices, Offsets Part of Increase With Government Subsidy

Brazil's Petrobras (PBR) said it will raise wholesale gasoline A prices, or refinery-level fuel sold to distributors before mandatory blending, by 0.48 Brazilian real ($0.095) per liter starting Thursday, while applying a partial offset through a government-linked subsidy mechanism.The company said it will grant a 0.44 Brazilian real-per-liter subsidy, which reflects a value set by the Ministry of Finance and accounts for federal taxes on fuel sales.After the adjustment and subsidy, the average price of gasoline A sold to distributors will increase from 2.57 Brazilian reais to 2.61 Brazilian reais/liter.Petrobras said the impact on retail prices is partially mitigated by Brazil's mandatory blending rule, under which gasoline C sold at service stations is composed of 70% gasoline A and 30% anhydrous ethanol.Based on that structure, the company said its share of the final pump price will rise from 1.80 Brazilian real to 1.83 Brazilian reais/liter.Petrobras added that the adjusted component remains 27.6% below levels recorded on Dec. 31, 2022.Price: $18.92, Change: $-0.05, Percent Change: -0.24%

$PBR

Commodities28d ago

EMEA Natural Gas Update: Futures Trim Gains on Report of Fresh US-Iran Ceasefire Framework

European natural gas futures pared earlier gains in after-hours trade Thursday after reports of a tentative US-Iran understanding raised expectations of a potential easing in Middle East shipping risks.The Dutch TTF front-month contract was up 1.308% at 47.02 euros ($54.80) per megawatt hour, while the UK NBP front-month contract rose 0.628% to 113.75 pence ($1.53) per therm.Earlier in the day, prices rose by more than 4%.The downward price movement followed an Axios report saying US and Iranian negotiators have tentatively agreed on a 60-day memorandum of understanding aimed at extending a ceasefire and opening talks on Iran's nuclear program, pending approval from US President Donald Trump. The report, citing US officials and a regional mediator, said the framework could be announced as early as Sunday, though it remains subject to collapse.Under the draft proposal, shipping through the Strait of Hormuz would remain unrestricted. Iran would remove naval mines from the waterway within 30 days and cease interference with commercial traffic, while the US would gradually ease its naval posture and issue sanctions waivers to allow limited Iranian oil exports.The prospect of restored flows through the strategic waterway weighed on risk premiums, given that passage through the strait has been heavily disrupted for nearly three months. Data from tracking services indicated only four vessels transited the Strait of Hormuz in the past 24 hours, compared with more than 100 on a typical pre-conflict day.A normalization of traffic would ease global LNG supply constraints, potentially softening prices and allowing European buyers to rebuild storage ahead of the winter heating season.European inventories remain structurally tight. Data from Gas Infrastructure Europe shows storage levels just above 38% capacity, compared with nearly 47% at the same time last year.Near-term fundamentals remain mixed. A European heatwave has boosted power demand while simultaneously constraining generation, with low wind output and pressure on hydro and nuclear cooling systems limiting supply flexibility. Analysts note solar generation has intermittently met a large share of UK demand, but broader renewable output has been uneven.ANZ analyst Daniel Hynes said seaborne LNG deliveries to Europe are running below seasonal norms, while North Asian LNG prices eased despite firmer spot market activity. He added that China's LNG imports have recovered to levels seen a year ago, supported by stronger demand from the transport sector.

Commodities28d ago

Update: Weekly US Crude Inventories Drop by 3.3 Million Barrels, EIA Says

(Updates to include additional details.)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 decline is below Macquarie's forecast of a 1.4-mmbbl draw for the week ending May 22.US Strategic Petroleum Reserve inventories fell to 365.1 mmbbls for the week ended May 22, down from 374.2 mmbbls a week ago, marking a weekly decline of 9.1 mmbbls, EIA data showed.Crude oil input to refineries increased by 652,000 barrels per day from the previous week to average about 17 mmb/d in the week ending May 22. Crude oil production rose by 13,000 b/d to 13.7 mmb/d. Commercial crude imports decreased by 804,000 b/d to average about 5.2 mmb/d.Total motor gasoline stockpiles decreased by 2.6 mmbbls from last week to 211.6 mmbbls, and distillate stocks dropped by 2.1 mmbbls to 100.8 mmbbls, the agency said.

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Commodities28d ago