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OPEC Forecasts Oil Demand at 124.1 Million B/d by 2050, Sees no Peak in Horizon

The Organization of the Petroleum Exporting Countries on Thursday said global demand for oil is expected to grow robustly in the medium and long-term, "with no peak in oil demand on the horizon," projecting demand to reach 124.1 million barrels a day by 2050.By 2030, demand is forecast to reach 113.3 million b/d and is projected to grow by 19 million b/d between 2025 and 2050, OPEC said in its World Oil Outlook 2050 report published Thursday.Non-OECD nations are expected to lead this demand growth, with a projected increase of 7.4 million b/d between 2025 and 2030, and 26.9 million b/d between 2025 and 2050. OECD demand is expected to rise by around 700,000 b/d by 2030, but to decline by 8 million b/d by 2050.By 2030, non-Declaration of Cooperation liquids supply is expected to increase by about 4.1 million b/d to 58.2 b/d, meeting roughly half of expected demand growth, with Brazil, Qatar, the US, Argentina, Canada, and emerging non-DoC African producers driving the increase."The latest analysis indicates that US tight crude supply likely peaked in 2025, at just over [9 million b/d], resulting in only modest total US liquids supply growth of [400,000 b/d] until 2030, before a plateau thereafter," the report added.Non-DoC liquids supply is expected to peak at around 60 million b/d in the 2030s and remain largely flat, averaging 59.6 million b/d by 2050, up 5.5 million b/d from 2025. Canada and Argentina are among the few non-DoC producers expected to continue growing over the long term.Meanwhile, DoC supply is projected to rise from 50.6 million b/d to 64.5 million b/d by 2050, with its market share rising from 48% to 52%.Oil demand growth through 2050 is expected to be driven mainly by India, Other Asia, the Middle East, Africa and Latin America, which together are projected to add 25.2 million b/d, with India alone expected to account for 8.1 million b/d.An addition of about 5.3 million b/d is expected from Other Asia, 4.7 million b/d from the Middle East, 4.3 million b/d from Africa, 2.8 million b/d from Latin America and 1.1 million b/d from China, the report added.Global primary energy demand is projected to increase by 23% to almost 383 million barrels of oil equivalent per day in 2050 from about 312 million boe/d in 2025, with developing countries and regions led by India, Other Asia, the Middle East, Africa and Latin America being the primary drivers of this growth.According to OPEC, all primary fuels, except coal, are expected to see demand increase by 2050, with renewable energy sources, including biomass, solar, wind, and hydro, among others, projected to post the strongest combined growth of 51.3 million boe/d."Solar and wind account for most of this expansion, driven mainly by declining generation costs and policy support. However, grid constraints and rising integration costs remain the key challenges," the report said.Oil demand is projected to rise by 18.6 million boe/d to 2050, natural gas by 19.3 million boe/d, and nuclear energy demand by 10.5 million boe/d during the outlook period. Meanwhile, coal demand is projected to decline by 29.3 million boe/d for the duration.Oil is expected to remain the largest energy source through 2050, accounting for just under 30% of the energy mix. Together, oil and gas are projected to make up about 54%, while renewables are expected to grow from 15% in 2025 to around 26% by 2050.OPEC projects a total oil investment requirement of $17.7 trillion to meet demand by 2050, with upstream at $14.5 trillion, downstream at $1.9 trillion, and midstream at $1.3 trillion.Global electricity generation is projected to rise from about 32,000 terawatt-hours in 2025 to 59,500 TWh in 2050, with wind and solar output increasing the most, from around 5,400 TWh to 26,000 TWh over the same period, the report said.

Commodities54d ago

US Crude Stockpiles Fall 47.5 Million Barrels Over 8 Weeks, TPH Energy Says

US commercial crude inventories fell by 8.3 million barrels last week, marking an eighth straight weekly draw and extending the cumulative decline to 47.5 million barrels, TPH Energy said Thursday.The draw exceeded both the 3 million-barrel consensus estimate and the 5.1 million-barrel five-year average decline. Inventories now sit 1% below year-ago levels and 6% below the five-year average, according to TPH.At the Cushing storage hub, crude stocks dropped 1.6 million barrels to 20 million barrels, reaching a new five-year low and matching what TPH described as the minimum operational threshold.Lower crude imports helped tighten balances as inbound volumes fell by 754,000 barrels per day, more than offsetting a 513,000 b/d decline in exports. Refiners also increased crude processing rates by 230,000 b/d.Refinery runs have moved back above year-ago levels and now track 2% higher over the year. Meanwhile, domestic crude production edged up by 7,000 b/d to 13.81 million b/d, while the adjustment factor increased by 266,000 b/d.Ethanol inventories held steady at 24.5 million barrels, though stocks reached a new seasonal high as production remained near five-year highs and export demand weakened compared with last year, TPH said.Among refined products, gasoline inventories declined by 900,000 barrels, broadly matching the 1 million-barrel consensus draw, while jet fuel stocks fell 1.1 million barrels as weekly demand strengthened.Distillate inventories increased by 1 million barrels against expectations for a 500,000-barrel decline as demand softened.The four-week average for total light product demand remained 1% above last year, with jet fuel improving to flat from negative 2%, gasoline holding at negative 1%, and distillate growth easing to 5% from 7%, according to TPH Energy.

Commodities54d ago

Johor Data Centres to Consume 40% of State's Electricity by 2035, Wood Mackenzie Says

Data centers in Malaysia's Johor state could account for about 40% of total electricity consumption by 2035, increasing pressure on grid infrastructure, Wood Mackenzie strategists said in a note on Thursday.Wood Mackenzie said Johor, which borders Singapore, has emerged as one of Asia's most attractive destinations for data center investments, attracting about 165 billion Malaysian Ringgit ($42 billion) in cumulative commitments from hyperscalers and technology firms.The consultancy projected that the maximum data center demand in Johor has reached about 3.8 gigawatts, equivalent to about 1.5 times the state's current electricity demand.Data centers already account for about 24% of Johor's end-user electricity consumption, and the share is projected to rise to about 40% by 2035."Many investors still view power supply as the main hurdle for data centre development in Johor, but our analysis suggests the challenge is becoming much more localised," said Alvin Tan, research analyst for power and renewables at Wood Mackenzie."The issue is increasingly about where power is available rather than whether it is available," analysts said.Wood Mackenzie said Johor currently has about 6.8 GW of installed power generation capacity, largely from natural gas and coal-fired plants. Power demand in the state stands at about 2.6 GW, providing what the consultancy described as a healthy supply buffer.However, demand is concentrated around major data centre clusters such as Sedenak Tech Park and Nusajaya Tech Park, creating bottlenecks at substations and grid connection points.Wood Mackenzie identified shortages in 132-kilovolt main intake substations and limited nodal injection points for renewable energy integration as among the most immediate constraints facing developers.The consultancy said higher-voltage 275-kV connections, on-site substations, and greater use of decentralized solar generation could help ease the strain, while dedicated renewable energy infrastructure serving data center clusters would be needed over the longer term.Risks to Johor's future supply include about 2.1 GW of coal-fired generation capacity scheduled to retire in the mid-2030s, while reserve margins across Peninsular Malaysia are expected to tighten due to rising demand and expiring power purchase agreements for several gas-fired plants.Wood Mackenzie said Malaysia's NewGen26 program, which aimed at adding 6-8 GW of gas-fired capacity through an open tender, would be critical to maintaining long-term reliability.The Southern Johor Renewable Energy Corridor, with planned projects in Mersing and Kota Tinggi, could add up to 4 GWp of solar capacity combined with battery storage. Malaysia has also accelerated renewable energy procurement, with 1.3 GW of Corporate Renewable Energy Supply Scheme agreements signed in Peninsular Malaysia as of June 2025.Tan said the real test for Johor is whether its infrastructure planning can keep pace with a pipeline growing faster than in almost any other Southeast Asian country."Delays in substations, transmission upgrades or new generation projects could ultimately become the limiting factor on future expansion," Tan said.

Commodities54d ago

Rising Gas-Oil Ratios Drive Faster Natural Gas Growth in Permian Basin, EIA Says

The Permian Basin lifted natural gas production by 60% between 2021 and 2025, outpacing the 39% increase in crude oil output, the US Energy Information Administration said Thursday.Marketed natural gas production climbed to 27.6 billion cubic feet per day in 2025 from 17.2 Bcf/d in 2021, while crude oil production increased to 6.6 million barrels per day from 4.7 million b/d, according to the agency.The Energy Information Administration attributed the stronger gas growth to rising gas-oil ratios, which increase as reservoir pressure declines and natural gas flows more easily than crude oil.The Permian's average gas-oil ratio reached nearly 4,200 cubic feet per barrel in 2025, up 16% from 3,628 cf/b in 2021. The agency expects the ratio to continue increasing as the basin matures.Using 2021 production levels as a benchmark, the basin generated 17.3 Bcf/d of natural gas alongside 4.7 million b/d of crude oil, the Energy Information Administration said.Had the gas-oil ratio remained unchanged from 2021 levels, natural gas production would have reached only 23.8 Bcf/d in 2025. The higher ratio added roughly 3.8 Bcf/d of incremental gas supply, according to the agency.

Commodities54d ago

Update: US Natural Gas Inventories Rise 73 Bcf, EIA Says

(Updates with additional details.)US natural gas stockpiles in underground storage stood at 2,759 billion cubic feet for the week ending June 12, up 73 Bcf from the previous week, the Energy Information Administration said in its weekly report Thursday.Inventories were 29 Bcf below year-ago levels and 151 Bcf above the five-year average of 2,608 Bcf.At 2,759 Bcf, total working gas remains within the five-year historical range, the EIA said.The net increase is smaller than market expectations for an 82 Bcf build, according to data from Investing.com.

Commodities54d ago

US Natural Gas Inventories Rise 73 Bcf, EIA Says

US natural gas stockpiles in underground storage stood at 2,759 billion cubic feet for the week ending June 12, up 73 Bcf from the previous week, the Energy Information Administration said in its weekly report Thursday.Inventories were 29 Bcf below year-ago levels and 151 Bcf above the five-year average of 2,608 Bcf.

Commodities55d ago

US Natural Gas Update: Futures Edge Higher Amid Bullish Storage Forecasts, Tropical Storm Arthur

US natural gas futures edged higher on Thursday ahead of the weekly gas storage report, with forecasts pointing to a bullish inventory build, as Tropical Storm Arthur is expected to weigh on near-term US LNG exports and domestic gas-fired power demand.Both the front-month Henry Hub futures contract and the continuous contract were up by 0.16% at $3.150 per million British thermal units on Thursday.The storm is already driving heavy rainfall across the US Gulf Coast, covering regions that host most of the country's major LNG export facilities, thus impacting their operations, according to multiple news reports. At the same time, stormy conditions are generally expected to weigh on domestic power demand, which is, in turn, bearish for gas demand in the power sector.Over two-thirds of the country is expected to see above-normal precipitation from June 25 to July 01, according to the National Weather Service, adding to the bearish pressures.On Thursday, markets will be awaiting the US Energy Information Administration's Weekly Gas Storage Supplement, with forecasts expecting a 82 billion cubic feet injection into storage, which is significantly below the 108 Bcf injection last week, and the 95 Bcf build during the corresponding period a year ago, according to data compiled by Investing.com.US LNG feedgas flows are expected at 19.17 Bcf on Thursday, which is above the 30-day moving average of 18.01 Bcf, according to the Bloomberg LNG Feedgas Model.

Commodities55d ago

Fires Erupt at Moscow Refinery in Major Ukrainian Drone Assault, Mayor Says

A major Ukrainian drone attack in Moscow caused a blaze at the Gazprom Neft-owned Kapotnya oil refinery which supplies to the fuel stations in the capital, Mayor Sergei Sobyanin wrote on Telegram.This was part of a broader attack on Russia by Ukraine, according to multiple media outlets."The fire caused by a drone strike on the Moscow Oil Refinery has been largely contained, and the remaining fire is being extinguished. There were no injuries at the refinery," Sobyanin said.This was the second attack on the refinery in a week after a drone strike caused a fire at the facility on Tuesday, which authorities later said was extinguished.The English-language Kyiv Independent said that the Gukovo fuel depot in Russia's Rostov Oblast was also hit. It stores fuel and lubricants, the article said.Russia has imposed restrictions on retail fuel sales at times and in different locations this year, most recently in Crimea, which it annexed in 2014, as Ukraine intensifies its aerial attacks on Russia.Media reports said Thursday's attacks were the most intense Ukraine has carried out since the start of the war which begin with Russia's full-scale invasion of its neighbor in February 2022.G7 leaders noted at the top of their joint declaration on Wednesday that they commended Ukraine for its resilience on the battlefield "and emphasize there is now a new momentum."Ukrainian President Volodymyr Zelenskiy acknowledged Thursday's attacks on Twitter and called on Russia to seek peace."In recent days, all our partners have noted the accuracy and effectiveness of our mid-range strikes and long-range sanctions. It's time to end this war, and Russia must take the necessary steps in diplomacy," he wrote.

Commodities55d ago

US Gasoline Prices Fall Below $4 a Gallon on US-Iran Deal

Average prices for regular gasoline in the US dropped to their lowest level since March at just below $4 per gallon on Thursday, according to the American Automobile Association, after the US and Iran signed an interim agreement to end war and reopen the Strait of Hormuz.Data from the AAA gas prices website showed that the national average slipped to $3.999/gal, with Indiana cheapest at $3.399/gal.Since prices peaked at $4.56 on May 21, regular gasoline has posted a downward trajectory as crude oil declined on hopes that a peace deal would be reached.However, experts cited by CNN said prices will not immediately return to pre-war average of $3/gal.A report by Bloomberg, citing analysts, said pre-war levels will likely be reached next year.In terms of inventory, US gasoline stocks plunged to 214.2 million barrels in the week ended June 12, from 253.1 mmbbls in late February before the US-Iran war began.

Commodities55d ago

US Investments in Power, Cooling for Data Centers Projected to Nearly Double by 2031

Rising demand for AI and high-density computing will drive US investments in sustainable power supplies from $59.47 billion in 2025 to $116.43 billion by 2031, according to a research from Arizton Advisory and Intelligence released on Wednesday.Accelerating artificial intelligence and high-performance computing workloads are forcing US data center operators to drastically scale up investments in sustainable infrastructure, it said, noting this referred to power supply and cooling systems.Geographically, the capital expenditure is highly concentrated, with the Southeast US.In 2025, the Southeast captured about 30.9% of the sustainable investment share, followed closely by the Midwest at 28.1%, the Southwest at 24.5%, the West at 12.2%, and the Northeast at 4.3%, as per the research.This regional dominance is expected to persist through the end of the decade and by 2031, the Southeast is projected to edge higher to a about 31.2% market share, anchored by rapid demand spikes and infrastructure readiness, Arizton noted.The migration toward sustainability is equally fueled by pressures on the grid and rising electricity prices, transforming on-site power generation from an environmental preference into an operational necessity, according to the research.Backup generation is undergoing a similar transition, shifting from conventional diesel to hydrotreated vegetable oil to satisfy carbon reduction mandates, which is expected to sharply reduce diesel reliance by 2031, it said.

Commodities55d ago

Exchange-Traded Funds, Equity Futures Higher Pre-Bell Thursday as Interim US-Iran Deal Lifts Risk Sentiment

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.4%, and the actively traded Invesco QQQ Trust (QQQ) advanced 1.3% in Thursday's premarket activity, as investors welcomed an interim US-Iran agreement that reduced concerns about disruptions to global energy supplies.US stock futures were also higher, with S&P 500 Index futures up 0.7%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 1.3% before the start of regular trading.US initial jobless claims fell to a level of 226,000 in the employment survey week ended June 13 from an upwardly revised 230,000 level in the previous week, compared with expectations for a larger decrease to 225,000 in a survey of analysts compiled by Bloomberg as of 7:30 am ET.The Philadelphia Federal Reserve's monthly manufacturing index rose to 10.3 in June after decreasing to minus 0.4 in May, compared with expectations for a slightly smaller increase to a reading of 10 in a survey compiled by Bloomberg.May's leading indicators data will be released at 10:00 am ET, followed by weekly natural gas stocks at 10:30 am ET.In premarket action, bitcoin was down by 0.6%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.5% lower, Ether ETF (EETH) advanced 0.4%, and Bitcoin & Ether Market Cap Weight ETF (BETH) was flat.Power Play:FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.9%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.8% lower.HIVE Digital Technologies (HIVE) shares traded up 12% in early hours activity a day after the company said it received municipal approval to purchase the 32-megawatt Big Boden data center in Sweden from Bodens Utvecklings.Winners and Losers:Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.2%, the Vanguard Health Care Index Fund (VHT) was down 0.1%, while the iShares US Healthcare ETF (IYH) gained 1.1%. The iShares Biotechnology ETF (IBB) was 0.1% higher.Legend Biotech (LEGN) stock was down more than 9% premarket after the company priced an underwritten public offering of 7.7 million American depositary shares at $29.35 each, for gross proceeds of about $226 million.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) gained 2%, and the iShares US Technology ETF (IYW) was flat, while the iShares Expanded Tech Sector ETF (IGM) was up 1.9%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 2.1% higher, while the iShares Semiconductor ETF (SOXX) rose by 4.2%.Intel (INTC) shares were up more than 9% in premarket activity after President Donald Trump said Apple (AAPL) has "agreed to work with Intel to design and build its Chips in America." Apple stock was gaining by 0.3%.EnergyThe iShares US Energy ETF (IYE) gained by 0.03%, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 0.5%.Equinor (EQNR) stock was down more than 3% before market open after edging down 0.2% in the prior close. The company and its partners said they have selected the development concept for the Ringvei Vest project in the Norwegian North Sea, which is expected to contribute about 240 million barrels of oil equivalent.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat, and the iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) gained 0.5%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) rose 1%.Diageo (DEO) shares gained nearly 1% pre-bell after the Financial Times reported that Chief Executive Dave Lewis has ordered senior executives to implement broad cost-cutting measures as part of a major restructuring effort at the spirits giant.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 1%, while the Vanguard Industrials Index Fund (VIS) was up 1.9% and the iShares US Industrials ETF (IYJ) was inactive.SpaceX (SPCX) stock was down more than 1% before the opening bell after experiencing its first post-IPO retreat from recent record highs, as market data and multiple analysts point to active put option trading and technical downward pressure following the stock's initial surge.CommoditiesFront-month US West Texas Intermediate crude oil retreated by 1.9% to $75.35 per barrel on the New York Mercantile Exchange. Natural gas gained by 0.5% to $3.16 per 1 million British Thermal Units. The United States Oil Fund (USO) declined by 1.2%, while the United States Natural Gas Fund (UNG) was 0.6% lower.Gold futures for July were down by 2.7% to $4,261.40 an ounce on the Comex. Silver futures retreated by 5.6% to $67.33 an ounce. SPDR Gold Shares (GLD) gained by 0.6%, and the iShares Silver Trust (SLV) was 0.02% lower.

Dow JonesNasdaq CompositeS&P 500$AAPL$BETH$BITO$DEO$EEM$EETH$EQNR$EXI$FAS$FAZ$GLD$HIVE$IBB$IGM$IGV$INTC$IPK$IVV$IWM$IYE$IYH$IYJ$IYK$IYW$LEGN$PMR$QQQ$RTH$SLV$SOXX$SPCX$SPY$UNG$USO$VDC$VHT$VIS$XLE$XLF$XLI$XLK$XLP$XLV$XLY$XRT$XSD

Commodities55d ago

Biofuels Update: Soybean Complex, Palm Oil Decouple as Crude Drops

The Chicago soybean complex weakened on Thursday as prices moved in tandem with crude oil, but Malaysian palm oil diverged, gaining support from rising exports.The July soybean contract on the Chicago Board of Trade ended a three-session rally slipping 0.97% to $11.21 per bushel. The July soybean oil contract dropped for a third straight session by a further 1.79% to 70.26 cents per pound in early trade.Favorable weather in the US Midwest, supporting soybean planting, also weighed on prices. This added to a more relaxed sentiment regarding supply, following a record harvest in Brazil."With expectations of a bumper US crop compounded by strong South American harvests, the global soybean supply landscape is poised to become even more ample," price reporting agency MySteel said.Hopes for Chinese demand failed to provide a sustained market boost, following talks that Sinograin was looking to secure US soybeans for late 2026 to early 2027 delivery.On Wednesday, the US Department of Agriculture said that 372,000 metric tons of soybeans were sold but destinations were unknown, with 60,000 mt for delivery in the current marketing year, and 312,000 mt for delivery in the 2026/27 season."In the short term, prices are likely to oscillate between favorable US soybean export news and downward pressure from crude oil, and are expected to maintain a rangebound and weak-biased performance," MySteel said.In Asia, Malaysian palm oil futures closed higher on Thursday due to a rebound in exports and a weakening of the local currency, despite declines in crude oil and rival soybean oil prices.The Bursa Malaysia Derivatives' July crude palm oil contract was up 0.20% to 4,510 Malaysian ringgit ($1,113.72) per metric ton. The August contract edged higher by 0.11% to 4,544 ringgit/mt, as trading resumed after a public holiday.Prices firmed as Malaysian ringgit weakened against the US dollar, boosting competitiveness of exports as it makes them cheaper to foreign buyers. The ringgit has so far eased more than 1% over the week.Malaysian shipments also showed a recovery in the first 15 days of June, with cargo surveyors reportedly estimating a 9.6% to 23.8% month-over-month growth.In top importer India, palm oil purchases are reportedly expected to increase to more than 600,000 metric tons this month, from around 549,000 mt in May, according to multiple media outlets.In Indonesia, the government may scale back its proposed single-gate export policy following concerns from buyers and exporters, The Straits Times reported, citing officials familiar with the matter. The Indonesian government has yet to confirm this.The country is set to roll out a higher palm-based biodiesel blending mandate of 50% next month, reducing exportable supplies. At present, the policy is set at a 40% blending ratio.Supplies may further tighten as a developing El Nino weather phenomenon impacts yields.Agronomist Lee Chin Tui, as cited by New Straits Times, said Malaysia's full-year palm oil production target of about 20 million metric tons may be challenging to achieve, and a Q3 benchmark of 1.8 mmt per month should be closely monitored.Investment banks RHB and UOBKH expect the farming sector to receive a boost from rising palm oil prices due to these factors, as well as from easing export interference in Indonesia, Business Times reported.Meanwhile, July ethanol prices on the NYMEX inched up 0.27% to about $1.84 per gallon on Wednesday, as domestic production eased while stocks rose slightly.Data from the US Energy Information Administration showed that ethanol output for the week ended June 12 averaged 1.102 million barrels per day, down from the prior week's 1.108 mmbbls/d.Domestic stocks grew week over week to 24.47 million barrels from 24.45 mmbbls. Exports, on the other hand, dropped to 126,000 barrels per day from 155,000 b/d.In the long term, S&P Global Energy said that US ethanol demand for on-road transportation will likely halve to about 6.6 billion gallons by 2050, largely due to "mounting pressure from electric vehicle penetration, vehicle efficiency gains, and stagnating blend policy."

Commodities55d ago

Policy Support Needed for Low-Emission Hydrogen Sector to Move Forward, IEA Says

Governments should bolster low carbon hydrogen production capacity as one way to increase both energy and food security, as investment in the fuel starts to flag over its relatively high cost, the International Energy Agency said on Thursday.The Middle East conflict has disrupted global production of hydrogen-based products, the agency said in a summary of a new report, something which jeopardizes stability in the production of fertilizer, oil refining and chemicals production.Although the crisis has also increased interest in hydrogen and hydrogen-based fuels as options to bolster energy security, low-emission hydrogen is not currently available at a scale that would make it a back-up in a period of crisis, the IEA said.Global hydrogen demand exceeded 100 million tonnes in 2025, but low-emission hydrogen, despite 20% growth in a year, accounted for only 1 million tons of that volume.Low-carbon hydrogen's high cost, uncertain demand, complex regulations and lack of infrastructure remain barriers to its development and will hamper the achievement of governmental 2030 emission targets for some countries as a result.IEA Executive Director Fatih Birol said that the crisis, whose resolution is not yet certain pending confirmation of a reopened Strait of Hormuz waterway, underscores how dependent economies worldwide are on hydrogen-based products, for fertilizer, fuel and industrial feedstocks.He said low-emission hydrogen can make energy flows more resilient and diversified but that its development will need to accelerate with much stronger policy support "before it can make a meaningful contribution at scale".The Middle East accounts for about one sixth of global hydrogen production and it has a significant role in the trade in ammonia, urea, methanol and refined products, the report said.Urea prices for one, doubled between January and May due to the Iran war, while natural gas prices rose and export restrictions limited availability. The knock-on increase in fertilizer costs is a risk for food production, particularly in import-dependent economies with a large farming sector.While low-emission hydrogen production will climb to a new record in 2026, this will take it only above 1% of total hydrogen. Weaker investment momentum in hydrogen in 2025 will slow low-emission hydrogen's growth, the report notes.The pipeline of projects for low-emissions hydrogen due by 2030 has actually shrunk by one quarter, due to project cancellations or delays, given its relatively higher cost versus more carbon-intensive sources of hydrogen.The pipeline of projects likely to become operational by 2030 has decreased to just above 6 million tonnes, down from 10 million in an assessment last year.There is also doubt in terms of demand, with only about 20% of newly-signed volumes backed by firm offtake agreements. Developers say this has given them pause for thought over new investments, the report said.China still holds the leading position in electrolyser capacity development, claiming about 75% of the four gigawatts of new installations in 2025 globally.Policy support is sustaining momentum in Europe to an extent, particularly in terms of hydrogen's use in refining but slow implementation of regulations is delaying investment.There are also signs of growth emerging in North America, India and Japan but uncertainty remains over regulations, incentives and future demand.

Commodities55d ago

OPEC Says Global Primary Energy Demand to Increase by 23% Through 2050, All Sources to Grow Except Coal

Commodities55d ago

Oil to Retain Major Energy Share at 30% by 2050, OPEC Says in World Oil Outlook

Commodities55d ago

Global Oil Demand Increase to Largely be Driven by Transportation, Jet Fuel, OPEC Says

Commodities55d ago

Power Generation Oil Demand to Decline by 500,000 Barrels Per Day by 2050, OPEC Says

Commodities55d ago

OPEC Expects Global Oil Demand to Increase by 19 Million Barrels per day to 124.1 Million b/d by 2050

Commodities55d ago

April Refining Margins in California Surged to Highest Since September 2023

Gross profit margins for California oil refiners rose to $1.24 per gallon in April, the highest since September 2023, according to data shared by the California Energy Commission earlier this week.This compares to gross margins of $1.02 in March and $0.97 for the corresponding month last year.In the pre-Iran war months of February and January, gross profit margins were reported at $0.77/gallon and $0.49/gallon respectively.In a statement issued on Wednesday, non-profit Consumer Watchdog said the refiners are expected to report a further increase in margins in May.In April 2026, Californian refiners sold a total of 929.95 million gallons of gasoline for an estimated aggregate gross margin of $1.153 billion, which compares with 962.6 million gallons of gasoline sold for an estimated aggregate gross margin $981.85 million in March, the CEC data showed.For the corresponding month last year, 1.01 billion gallons of gasoline were sold for an aggregate gross margin of $979.4 million.In December 2025, California refiners had reported an estimated aggregate gross margin of $413.41 million after the sale of 939.57 million gallons of gasoline.

Commodities55d ago

BLT Energy's 800-MW Battery Project Wins Planning Approval in Western Australia

BLT Energy said Wednesday that the Regional Development Assessment Panel has approved the development of its Red Gully battery energy storage system in Western Australia, marking a key milestone for one of the state's largest proposed energy storage projects.The project with a total capacity of 800 megawatts and 4,800 megawatt-hours of storage, is set to deliver up to 400 MW of power, with 2,400 MWh of storage to the South West Interconnected System in Phase 1.Located adjacent to Western Power's Regans Terminal, the facility is intended to store excess renewable energy generation and discharge electricity during periods of higher demand, supporting grid reliability as renewable energy penetration increases.With approvals now secured, the company said that it will advance remaining work in the project, which includes detailed engineering design and financing, before beginning with phase 1 construction.

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Commodities55d ago