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Update: Exxon Mobil to Supply LNG to South Africa's Planned Gas Import Terminal

(Updates with confirmation of deal by Zululand Energy Terminal)The Zululand Energy Terminal in South Africa has signed a Heads of Agreement to buy liquefied natural gas from ExxonMobil South Africa LNG (XOM), ZET said in a statement on Wednesday, confirming an earlier Bloomberg report of such a deal.The forthcoming LNG terminal at Richards Bay will become a key entry point for LNG imports to the country and support its transition to a more secure and diversified energy mix, the statement said.Bloomberg noted that the gas would be used by state utility Eskom holdings at a planned 3 gigawatt gas-fired power plant as the country seeks to move away from coal, currently used to produce 80% of its electricity.ZET noted that South Africa is headed towards a significant shortage of gas by 2030 as domestic resources decline, presenting risks for power generation, industry and economicgrowth.Neither the statement nor the Bloomberg article, based on sources with knowledge of the plans, mentioned an agreed volume of supply.The Bloomberg article noted that the deal advances ExxonMobil's goal of doubling its LNG supply to above 40 million tons a year by 2030.ZET said the terminal was being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines and will be South Africa's first LNG import facility, with storage, regasification and distribution all made possible.

$XOM

Oil & Energy6d ago

IEA Cuts 2026 Oil Demand Reduction, US-Iran Deal Signals 2027 Supply Surge

The International Energy Agency cut its 2026 global oil demand contraction by 700,000 barrels per day to 1.1 million barrels per day, following a severe plunge in Q2, though an interim US-Iran peace pact is expected to trigger a massive 8 mmbbl/d supply surge by 2027, the agency said Wednesday.The market is poised for a sharp recovery in 2027, with demand forecast to bounce back by 2 mb/d to average 105.3 mb/d as trade flows normalize and prices cool, IEA said in its month oil market report.On the supply side, global output is set to contract by 3.9 mb/d to 102.4 mb/d in 2026 before surging by 8 mb/d to 110.3 mb/d in 2027, it said.A major breakthrough via an interim agreement between the US and Iran scheduled to be signed on June 19 in Switzerland aims to end the Middle East conflict, lift the US blockade on Iranian crude, and reopen the Strait of Hormuz.In anticipation, ICE Brent futures have retreated below $80/bbl, down $37/bbl from their early April peak.While shipping lanes are already seeing early traffic increases rebounding from a May low of 9.6 mb/d to 12 mb/d via ship-to-ship transfers, a full recovery faces downside risks from prolonged demining and unresolved transit logistics, it noted.Crude imports into China and Japan collapsed by a combined 6 mb/d, the IEA said.While Atlantic Basin exports rose by 3.5 mb/d to markets East of Suez boosted by robust Americas production and aggressive US Strategic Petroleum Reserve releases.Looking ahead to 2027, initial balances indicate a substantial 5 mb/d supply overhang, as production growth outpaces demand, offering nations a critical window to replenish depleted strategic reserves, it noted.

Oil & Energy6d ago

Update: Ships Maneuvre in Preparation for Strait of Hormuz Reopening, Bloomberg Analysis Shows

(Removes Market Chatter tag as this is based on Bloomberg analysis.)Tankers in and outside the Strait of Hormuz are maneuvering in anticipation of the waterway's reopening, set for Friday once a preliminary peace agreement, that precedes longer negotiations, has been signed by the US and Iran in Switzerland, Bloomberg reported Tuesday, citing ship-tracking data.Shipbrokers have said that the number of empty supertankers anchored in the Gulf of Oman, outside out the Strait of Hormuz, has increased to about 60 this week, up from about three dozen earlier in the month.Their proximity to the strait will reduce the time needed to pick up new cargoes and restore Middle Eastern hydrocarbons supply to importers.Vessels linked to Iran's oil industry have also been on the move with several changing position ahead of the deal which would also end the U.S. naval blockade of its ports.Two oil tankers bound for Africa made a U-turn in the Indian Ocean following the announcement of the draft peace deal this week, and changing their broadcast destinations to the Middle East, according to Bloomberg, citing shipping data.Some of the ship diversions were observed as early as a few hours after the announcement of the peace deal between the two countries, with significant pent-up demand to meet in an energy market deprived of about 20% of the world's hydrocarbons supply since March.Some shipowners are taking a more conservative approach, opting to observe what happens in the coming days before making plans to sail out of Hormuz. Those more willing to risk an earlier crossing will earn more from importers, Bloomberg said.Some ships stuck inside the Persian Gulf since the start of the conflict appeared to be moving closer to Hormuz, with at least two bulk carriers, an LNG tanker and a container ship seen sailing eastward, possibly to join a cluster of vessels off Dubai, where they can obtain supplies and insurance.Qatar, which suffered a major blow to its LNG business after strikes on its Ras Laffan production facility, is sending some LNG tankers back to the Middle East as it makes plans for a resumption of exports after a previous declaration of force majeure on shipments.At least four empty LNG vessels Qatar owns have been heading back to the Persian Gulf region after idling or heading in a different direction, Bloomberg said, citing ship-tracking data.

Oil & Energy6d ago

Market Chatter: Ships Maneuvre in Preparation for Strait of Hormuz Reopening, Bloomberg Analysis Shows

Tankers in and outside the Strait of Hormuz are maneuvering in anticipation of the waterway's reopening, set for Friday once a preliminary peace agreement, that precedes longer negotiations, has been signed by the US and Iran in Switzerland, Bloomberg reported Tuesday, citing ship-tracking data.Shipbrokers have said that the number of empty supertankers anchored in the Gulf of Oman, outside out the Strait of Hormuz, has increased to about 60 this week, up from about three dozen earlier in the month.Their proximity to the strait will reduce the time needed to pick up new cargoes and restore Middle Eastern hydrocarbons supply to importers.Vessels linked to Iran's oil industry have also been on the move with several changing position ahead of the deal which would also end the U.S. naval blockade of its ports.Two oil tankers bound for Africa made a U-turn in the Indian Ocean following the announcement of the draft peace deal this week, and changing their broadcast destinations to the Middle East, according to Bloomberg, citing shipping data.Some of the ship diversions were observed as early as a few hours after the announcement of the peace deal between the two countries, with significant pent-up demand to meet in an energy market deprived of about 20% of the world's hydrocarbons supply since March.Some shipowners are taking a more conservative approach, opting to observe what happens in the coming days before making plans to sail out of Hormuz. Those more willing to risk an earlier crossing will earn more from importers, Bloomberg said.Some ships stuck inside the Persian Gulf since the start of the conflict appeared to be moving closer to Hormuz, with at least two bulk carriers, an LNG tanker and a container ship seen sailing eastward, possibly to join a cluster of vessels off Dubai, where they can obtain supplies and insurance.Qatar, which suffered a major blow to its LNG business after strikes on its Ras Laffan production facility, is sending some LNG tankers back to the Middle East as it makes plans for a resumption of exports after a previous declaration of force majeure on shipments.At least four empty LNG vessels Qatar owns have been heading back to the Persian Gulf region after idling or heading in a different direction, Bloomberg said, citing ship-tracking data.(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.)

Oil & Energy6d ago

EMEA Natural Gas Update: Futures Slide After More Clarity on US-Iran Memorandum

European natural gas futures were down on Wednesday, after the draft memorandum between the US and Iran was unveiled, offering much-needed clarity on Middle Eastern energy flows through the Strait of Hormuz.The Dutch TTF front-month contract fell 1.18% to 41.275 euros ($47.93) per megawatt-hour, while the UK NBP front-month contract dropped 1.16% to 98.250 British pence ($1.32) per therm.The text of the memorandum, which is scheduled to be signed by the United States and Iran in Switzerland on Friday, was reviewed by Bloomberg News.Among a series of provisions aimed at ending hostilities in the region, the agreement stipulates that Iran will immediately take measures to ensure the safe and uninterrupted passage of commercial vessels through the Strait of Hormuz within the next 30 days.It also said that immediately after the signing of the MOU, the US will lift its "naval blockade and prevent any interference or obstruction against the Islamic Republic of Iran."The development represents a major step toward stabilizing global energy markets, with fears of sustained supply shortages and shipping disruptions beginning to recede.At the same time, Qatar, the region's largest producer, said it expects to rapidly restore output once safe passage through the Strait of Hormuz resumes, with production capacity projected to recover to 50% within a month and 80% within two months, according to a Bloomberg report, citing sources familiar with the matter.The strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, continued to remain effectively shut for the 16th week running, with no vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.This comes at a critical juncture for Europe, with natural gas inventories at just 45.03% of capacity, compared to 53.78% during the corresponding period a year ago, according to Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 59.3%, according to the Swiss Federal Office of Energy.

Oil & Energy6d ago

Market Chatter: Exxon Mobil Enters Preliminary LNG Supply Deal With South Africa, Sources say

Exxon Mobil (XOM) has entered into a preliminary agreement to supply liquefied natural gas to South Africa, as the country adds generation capacity to tackle electricity outages, Bloomberg reported on Tuesday, citing sources with knowledge of the deal.The LNG supply will be used by state-owned utility Eskom Holdings to import gas at a proposed LNG terminal, Zululand, located in the industrial city of Richards Bay on the east coast, the sources told the news agency.The gas will be burned at a 3 gigawatt power plant that has not yet been built, the article said.Exxon and Eskom declined Bloomberg's requests for comment.has reached out to the companies seeking comment.The deal not only boosts energy supplies to increase power generation but will simultaneously further the country's transition away from coal, which is still used to produce 80% of the country's electricity, the article said, though gas will be more expensive than coal.Through the deal, Exxon also takes another step towards its goal of doubling LNG supply to above 40 million tons a year by 2030, Bloomberg saidThe oil major recently started operations at its Golden Pass export terminal on the US Gulf Coast and will consider later this year whether to build such facilities in Mozambique and Papua New Guinea.Eskom in turn has said the gas supply will be a bridge fuel that will facilitate the addition of renewables to the grid, providing baseload power to smooth out peaks and troughs in wind and solar output.With little domestic production and a long wait for the delivery of wind turbines, the country will likely have to slow down plans to close about 20% of its coal-fired power stations by 2030, the article 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.)

$XOM

Oil & Energy6d ago

EMEA Oil Update: Brent Firms Below $80 as Markets Assess Potential Peace Deal

Brent crude futures ticked up on Wednesday as traders assessed an pending 60-day US-Iran ceasefire deal that could soon unleash restricted Iranian crude back into global shipping lanes.The Brent futures contract edged up 0.3% at $79.16 per barrel. Murban futures closed at its lowest since late February at $71.81/bbl on June 16 and were not trading by the time of publication of this oil price update."Brent crude fell below $80/bbl for the first time since late February ahead of the signing of a peace deal between the US and Iran which is expected to result in the reopening of the Strait of Hormuz," ANZ analysts said.The market's long-term supply outlook hinges on a preliminary peace agreement that would extend the current US-Iran ceasefire by 60 days, establishing a formal framework to negotiate Tehran's nuclear program and regional maritime security.President Donald Trump reportedly stated he is open to submitting the deal's details to Congress. While the exact text remains under wraps, the administration plans to officially unveil the details this Friday.Competing against the prospect of renewed Iranian exports is a rapidly tightening domestic supply chain in the West.Data released by the American Petroleum Institute showed US commercial crude inventories plummeted by 8.33 million barrels for the week ending June 12, significantly outpacing market expectations.DBS recently slashed its long-term Brent crude price forecasts by $5 for both 2026 and 2027, cautioning that oil prices likely peaked during the Q2.All eyes now turn to the official US Energy Information Administration crude inventory report to verify the scale of the domestic drawdown.

Oil & Energy6d ago

US Oil Update: Crude Falls After US-Iran Peace Deal Signals Supply Boost

Crude oil futures settled lower in after-hours trading on Tuesday, extending losses from the previous session, as investors weighed the prospect of increased Iranian crude exports and a gradual reopening of the Strait of Hormuz following a peace agreement between the US and Iran.Front-month West Texas Intermediate crude futures tumbled 5.1% to $76.62 per barrel, while Brent futures plunged by 4.4% to $79.48/bbl.Soojin Kim, research analyst at MUFG, said optimism about a gradual recovery in Gulf exports has reduced the geopolitical risk premium built up during the conflict.On Tuesday, President Trump said that he's open to sending details of the peace agreement with Iran to members of Congress, according to media reports, as US lawmakers from both parties raise questions, saying they should vote on any final deal.The preliminary deal would extend the US-Iran ceasefire for 60 days and create a framework for future negotiations over Tehran's nuclear program and other issues. Though the agreement's text has not been released, Trump has said he would unveil details on Friday.A senior US official, in an emailed response to, described the deal as "performance-based," noting that Iran can access the agreement's benefits only if it abides by its commitments.The conditions include not pursuing a nuclear weapon, neutralizing its enriched uranium and not interfering with traffic in the Strait of Hormuz, the official said.Though market participants have welcomed the prospect of increased crude flows via the Strait of Hormuz, RBC Capital Markets analysts said the operational challenges of reopening the Strait could take months to resolve.There are about 118 laden tankers trapped in strategic waterways, according to Kpler. However, though the vessels could leave within 10-15 days, Kpler analysts said they could deliver an early spike in transits without boosting regional production.Meanwhile, market participants are still grappling with whether the Strait has been mined, whether Iran retains de facto operational control, and how any transit tolls would be structured and collected.RBC Capital Markets analysts said the core MoU tentpoles remain unchanged from April and center on lifting the double blockade and reopening the Hormuz.On the supply front, the US will reportedly also allow Iran to immediately begin selling oil and fuel under the memorandum of understanding between the two sides, reached to end the conflict.

Oil & Energy6d ago

Iranian Oil Tankers Reposition Ahead of Potential Oil Export Resumption, Bloomberg Analysis Says

Iran-linked oil tankers have begun repositioning as Tehran moves closer to an agreement that could quickly reopen access to international oil markets, according to a Bloomberg analysis on Tuesday.Attention in the oil market has shifted to the potential return of Iranian barrels as traders assess the impact of any easing in US restrictions. About 68 million barrels of Iranian crude remain stranded under the blockade, according to a Kpler estimate cited by the analysis.Under a draft agreement nearing completion, Tehran could reportedly receive sanctions waivers that would allow oil exports to resume without delay once the deal is signed.Recent vessel-tracking data indicated that four ships resumed transmitting location signals and appeared to move through the Gulf of Oman and the Strait of Hormuz. Two of the vessels are supertankers with a capacity to transport about 2 million barrels of crude each, according to the analysis.Several tankers that had been anchored near Chabahar also left the area in recent days. The destination of at least three of those vessels could not be immediately determined, the analysis added, citing TankerTrackers.com.Monitoring Iran's tanker fleet remains challenging because vessels often disable tracking systems and are frequently affected by signal interference. Ongoing regional tensions have added another layer of complexity to vessel-tracking efforts, the analysis added.Iranian media reported that efforts to remove the US naval blockade, which has been in place since mid-April, have entered the implementation stage. The Iranian Students' News Agency cited the Deputy Foreign Minister as saying the process is already underway.Shipping restrictions forced a number of Iranian tankers to remain near Chabahar after access to key export routes became limited. Reports said US naval forces also confronted some vessels attempting to move through the blockade in recent weeks.After reactivating their tracking signals, two fuel carriers crossed the Strait of Hormuz, with one continuing through the Gulf of Oman and another indicating a destination near Oman.The analysis said Washington and Tehran are expected to sign an agreement on Friday that would end both Iran's blockade of the Strait of Hormuz and the US blockade of Iranian shipping.

Oil & Energy6d ago

Update: Market Chatter: US Intel Assessments Say Iran Gains Ability to Control Strait of Hormuz

(Updated with comments from a senior US official in paragraphs 5-7 and 12, and with the Market Chatter tag in the headline.)US intelligence assessments say Iran currently has the capability to open or close the Strait of Hormuz at will, giving Tehran direct leverage over one of the world's most important energy corridors, CNN reported on Tuesday, citing sources familiar with the findings.US intelligence assessments conclude Iran now possesses a mix of military and asymmetric tools that can significantly disrupt global energy flows through the Strait of Hormuz, giving Tehran leverage far beyond its conventional military weight.Iran's toolkit includes anti-ship missiles, drones, coastal launch systems and naval mines, along with hundreds of fast attack boats capable of swarming commercial vessels and harassing naval escorts.These assets allow Tehran to create enough risk in the waterway to slow or effectively choke traffic without needing full-scale naval dominance.To counter that, a senior White House official toldthat as Iran restores traffic, the US winds down the blockade in proportion.The senior US official said Iran has agreed to a performance-based MOU. "Iran performs, the relief follows, and American leverage holds the entire way," the senior US official toldin an emailed response."They cannot access any benefits of the deal unless the Strait of Hormuz remains open, along with abiding by the other points it agreed to," the official said.The CNN report said US analysts also point to Iran's proven ability to escalate indirectly through strikes on regional energy infrastructure. That expands the threat beyond a single chokepoint to oil production and export facilities across Gulf states, multiplying the potential economic impact.Iran's leverage is reinforced by its proxy network. The assessment notes that Tehran retains the option of activating Houthi forces in Yemen to threaten the Bab-el-Mandeb strait, another critical passage linking the Red Sea and Indian Ocean. If both chokepoints were disrupted simultaneously, global trade flows would face severe stress.Iran had long threatened to close the Strait of Hormuz but had not previously shown it could do so effectively until recent US-led combat operations with Israel. Multiple sources said the Trump administration initially believed Iran would avoid closure because it would damage its own economy more than the US, and expected China to restrain Tehran.As a result, Washington prioritized strikes on Iranian targets over deterring maritime disruption. Days into the conflict, that assumption proved wrong, with officials later assessing Iran acted after interpreting US regime-change rhetoric as an existential threat and escalating deliberately once its intentions were clear.The US is counting on Iran's concern for its economy while negotiations continue. "After Operation Epic Fury dismantled its military and Operation Economic Fury strangled its economy, Iran cannot afford to keep the Strait closed, which helped bring them to the table for a deal in the first place," the senior official told.Axios describes those benefits as broader sanctions relief, access to frozen funds and a potential $300 billion rebuilding investment fund.Despite current diplomatic efforts aimed at reopening maritime traffic, US intelligence officials now believe Iran retains both the capability and the incentive to introduce new disruptions if negotiations break down. Shipping analysts say that even in a "reopened" scenario, risk premiums and uncertainty could keep volumes below normal levels.The intelligence picture also highlights Iran's continued investment in its missile and drone programs and its ability to replenish systems faster than earlier US estimates anticipated.(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.)

Oil & Energy6d ago

QatarEnergy Reportedly Prepares Rapid LNG Production Restart as Hormuz Reopening Nears

QatarEnergy is reportedly preparing to rapidly restore LNG production after the Strait of Hormuz reopens, with most export capacity expected back within two months, according to multiple media reports on Tuesday.Iranian missile strikes in March damaged two of the 14 LNG trains at the Ras Laffan LNG complex and one of Qatar's two gas-to-liquids facilities, cutting about 17% of the country's LNG export capacity and leaving repairs likely to take years, according to the reports.Following the outbreak of war in late February, Qatar shut down much of the Ras Laffan complex after disruptions to shipping through the Strait of Hormuz made large-scale exports difficult. The facility accounted for nearly one-fifth of global LNG supply last year.Shipping logistics remain the biggest challenge to restarting exports. The pace of recovery will depend on how quickly LNG tankers can return, load cargoes, and safely transit the Strait of Hormuz, according to the reports.QatarEnergy expects to bring LNG production back to about 50% of capacity within one month after safe shipping resumes through the Strait of Hormuz and raise output to around 80% within two months, the reports added.The company has been preparing for a restart since April by testing equipment and performing maintenance. Several LNG trains have also continued operating at reduced rates to supply neighboring countries while remaining ready to increase production when needed, according to the reports.A recovery in Qatari LNG exports could help ease tight global gas supplies. While Qatar has managed to move a limited number of cargoes by masking tanker locations, LNG prices in Europe and Asia remain above pre-war levels, according to the reports.QatarEnergy did not immediately respond to' request for comment.

Oil & Energy6d ago

Update: Market Chatter: Iran to Resume Oil Sales Immediately Upon Signing US Peace Deal

(Updated with comments from White House in the 4th and 5th paragraphs.)The US will permit Iran to resume oil and fuel exports immediately under a memorandum of understanding to end hostilities, Reuters reported on Tuesday, citing a senior administration official.The peace agreement, set for signing this week, includes a waiver of US sanctions on Iranian petroleum sales, as well as waivers for banking, shipping, and insurance services required to facilitate trade.The arrangement is conditional, the official said, describing it as "performance-based," with Iran required to comply with the deal terms to access any benefits."This is a performance-based agreement," a senior US official said, in an emailed response to."Iran can only access any benefits of the MOU if they abide by all of the points they agreed to - including no nuclear weapons, neutralizing its enriched material, and not interfering with the free flow of navigation in the Strait of Hormuz," the official told.The US Department of the Treasury and the Department of Energy did not immediately respond to' requests for comment.The Hormuz, a strategic waterway that handles about 20% of the world's daily crude and liquefied natural gas shipments, was effectively closed following a series of strikes by the US-Israel alliance on Iran in Feb.Iranian oil exports have been heavily restricted since the US reimposed sanctions in 2018 targeting Tehran's nuclear program and regional proxy activities. Iran has consistently maintained that its nuclear program is for peaceful civilian use.(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.)

Oil & Energy6d ago

US-Iran Draft Agreement Reportedly Includes $300 Billion Investment Plan

A draft US-Iran agreement would support a $300 billion investment initiative as both sides prepare for 60 days of negotiations to end the conflict, according to multiple media reports on Tuesday.US and Iranian officials are expected to sign the framework agreement in Switzerland on June 19, creating a roadmap for further negotiations aimed at permanently ending the war that began on Feb. 28 and imposing new restrictions on Iran's nuclear activities.Under the draft memorandum, the agreement calls for ending the US naval blockade and restoring traffic in the Strait of Hormuz to pre-war levels within 30 days, according to reports.The proposal includes a private investment fund of at least $300 billion to support Iran's economic development, with more than half of the financing already committed by companies from the US and its regional partners for projects spanning energy, logistics, manufacturing, and transportation.In an emailed response to, a White House spokesperson referred to comments Vice President JD Vance made during a CBS interview on Monday."When people say that billions of dollars of assets will be released, that's not true," Vance reportedly told CBS News.Responding to a question on whether Iran would have access to a proposed $300 billion reconstruction fund, Vance said, Iran "could have access to, funded by the Gulf Coast Coalition, so long as they honor their end of the obligation."According to the media reports, the framework also envisions regional support through financing arrangements, credit facilities and reconstruction funding for damaged infrastructure, including steel facilities, refineries, airports and other assets affected by the conflict.The draft agreement would eventually provide Iran access to its frozen assets, although no timeline has been established. Negotiations over sanctions relief and frozen sovereign assets are proceeding separately from the proposed investment fund, according to media reports.Iran must satisfy several conditions before receiving the agreement's economic benefits. Those requirements include permanently forgoing nuclear weapons, addressing enriched nuclear material and maintaining freedom of navigation through the Strait of Hormuz, according to the reports.The memorandum serves as a framework rather than a final settlement. The investment vehicle will not become operational until both sides conclude a satisfactory final agreement after the 60-day negotiation period, according to the reports.The draft agreement also reportedly calls for ending the conflict across multiple fronts and provides for the eventual removal of US sanctions and a withdrawal of US forces from surrounding areas within 30 days of a final agreement.Iran's Ministry of Foreign Affairs did not immediately respond to' request for comment.

Oil & Energy6d ago

ConocoPhillips, Novaterra Sign Gas Development Deal with Syria

US energy firms ConocoPhillips (COP) and Novaterra Energy on Tuesday signed an agreement with the Syrian Petroleum Company to develop several gas fields and boost production from existing sites.Syria's Ministry of Energy said the agreement aims to increase natural gas output from targeted fields, modernize infrastructure, and improve operational efficiency.The country has been seeking to rehabilitate its energy infrastructure, much of which was damaged during more than a decade of war, while addressing chronic electricity shortages that have hampered economic recovery.Natural gas is expected to play a key role in supplying power plants and supporting industrial activity as the government works to strengthen domestic energy production and reduce supply constraints.The financial terms of the agreement were not disclosed.Price: $111.17, Change: $-1.09, Percent Change: -0.97%

$COP

Oil & Energy6d ago

Market Chatter: Iran to Resume Oil Sales Immediately Upon Signing US Peace Deal

The US will permit Iran to resume oil and fuel exports immediately under a memorandum of understanding to end hostilities, Reuters reported on Tuesday, citing a senior administration official.The peace agreement, set for signing this week, includes a waiver of US sanctions on Iranian petroleum sales, as well as waivers for banking, shipping, and insurance services required to facilitate trade.The arrangement is conditional, the official said, describing it as "performance-based," with Iran required to comply with the deal terms to access any benefits.The US Department of the Treasury and the Department of Energy did not immediately respond to' requests for comment.The benefits include commitments not to pursue nuclear weapons, to neutralize enriched uranium stockpiles, and to refrain from disrupting maritime traffic through the Strait of Hormuz.The Hormuz, a strategic waterway that handles about 20% of the world's daily crude and liquefied natural gas shipments, was effectively closed following a series of strikes by the US-Israel alliance on Iran in Feb.Iranian oil exports have been heavily restricted since the US reimposed sanctions in 2018 targeting Tehran's nuclear program and regional proxy activities. Iran has consistently maintained that its nuclear program is for peaceful civilian use.(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.)

Oil & Energy6d ago

Essar, IRH Sign $500 Million Crude Sourcing, Product Supply Agreement

Essar Energy Transition Fuels and IRH Global Trading completed a $500 million crude sourcing and product supply facility, Essar Energy said Tuesday.The agreement gives Essar Energy Transition Fuels greater flexibility in sourcing crude and marketing refined products while improving working capital efficiency, according to the companies.The facility will strengthen feedstock security and enhance the company's ability to capture value across its refining and trading activities amid volatile energy markets.By partnering with IRH Global Trading, Essar aims to strengthen its network of strategic industry relationships, while the agreement also highlights IRH's role in supporting efficient cross-border energy trade and refining operations, Essar said.IRH Global Trading, a wholly owned subsidiary of Abu Dhabi-based International Resources Holding, will support the arrangement through its role as a global energy trader and liquidity provider, according to the companies."We are delighted to partner with IRH Global Trading on this strategically important transaction for our Stanlow refinery in the UK," Essar Energy Transition Chairman Prashant Ruia said.

Oil & Energy7d ago

US Oil Update: Futures Extend Slide After US-Iran Peace Framework

Crude oil futures plunged about 6% in midday trading on Tuesday, extending declines, after the US and Iran reached a preliminary agreement to end the Middle East conflict, reopen the Strait of Hormuz and ease the global energy crunch.Front-month West Texas Intermediate crude futures plunged 6% to $75.88 per barrel, while Brent futures retreated by 5.3% to $78.75/bbl.Erik Meyersson, chief EM Strategist at SEB Research, said that the US-Iran peace deal to be signed on Friday looks set to boost Hormuz passage and provide much-needed relief for energy markets.President Trump said upon arrival in France on Monday that the peace deal with Iran has been signed, adding that the Strait will "completely reopen" on Friday, free of Iranian tolls. The US President said a formal signing ceremony would take place on Friday in Geneva.Market participants expect a reopening of the strategic waterway to boost output from the Middle East and release millions of barrels of oil stored on tankers in the Persian Gulf.Soojin Kim, research analyst at MUFG, said Brent would remain in the $80-90/bbl range in the near term as improving supply prospects offset still-tight inventories and lingering geopolitical risks.The double blockade of Hormuz by the US and Iran has cut oil flows from the region, triggering the drawdown of commercial and strategic inventories.Though market participants have welcomed the prospect of increased crude flows via the Hormuz, RBC Capital Markets analysts said that the operational challenges of reopening the Strait could take months to resolve.Kpler analysts said about 118 laden tankers are trapped in strategic waterways. However, though the vessels could leave within 10-15 days, the analysts said they could deliver an early spike in transits without boosting regional production.Meanwhile, market participants are still grappling with whether the Strait has been cleared of mines, whether Iran retains de facto operational control, and how any transit tolls would be structured and collected.RBC Capital Markets analysts said the core MoU tentpoles remain unchanged from April and center on the lifting of the double blockade and the reopening of the Hormuz.On the supply front, the US will reportedly also allow Iran to immediately begin selling oil and fuel under the MoU between the two sides, reached to end the conflict.Trump said Russia should make peace with Ukraine, and that he would try to help, according to media reports. A settlement in the Ukrainian war could result in the lifting of some sanctions on Russia, allowing Moscow to export more crude.

Oil & Energy7d ago

EMEA Oil Update: Crude Tumbles as Markets Weigh Hormuz Reopening Prospects

EMEA crude futures retreated in after-hours trading on Monday as markets assessed a tentative US-Iran peace agreement that could pave the way for the reopening of the Strait of Hormuz, boosting expectations for a revival in supply.Brent crude futures plunged 5.4% to $78.72 per barrel, while Murban crude futures were down 6.9% to $71.87/bbl.Soojin Kim, research analyst at MUFG, said that optimism surrounding a gradual recovery in Gulf exports has reduced the geopolitical risk premium built up during the conflict.Kim said physical crude markets also weakened, with the Dubai and Murban forward curves shifting into contango for the first time since the outbreak of the Middle East conflict, signaling easing fears over immediate supply shortages.The US-Iran interim peace deal to end the conflict is set to extend the ceasefire for 60 days and reopen the Hormuz to all commercial vessels, according to media reports.President Trump said upon arrival in France on Monday that the peace deal with Iran has been signed, adding that the Strait will "completely reopen" on Friday, free of Iranian tolls. The US President said a formal signing ceremony would take place on Friday in Geneva.Though market participants have welcomed the prospect of increased crude flows via the Strait of Hormuz, RBC Capital Markets analysts said the operational challenges of reopening the Strait could take months to resolve.Kpler analysts said there are about 118 laden tankers trapped in strategic waterways. However, though the vessels could leave within 10-15 days, the analysts said they could deliver an early spike in transits without boosting regional production.Meanwhile, though uncertainty remains over the timing and practical implementation of the agreement, oil flows through Hormuz have already begun to recover before the deal announcement.On the supply front, the US will reportedly also allow Iran to immediately begin selling oil and fuel under the memorandum of understanding between the two sides, reached to end the conflict.Trump said Russia should make peace with Ukraine, and that he would try to help, according to media reports. A settlement in the Ukrainian war could result in the lifting of some sanctions on Russia, allowing Moscow to export more crude.

Oil & Energy7d ago

Recovering Middle East, Russian Supplies Offset Canadian Disruptions as China Demand Stays Weak, Kpler Says

Recovering oil supplies from the Middle East and Russia, combined with weak Chinese demand, are keeping global crude markets well supplied despite temporary disruptions in Canada, Kpler said in a Tuesday analysis.Non-Iranian crude and condensate flows through the Strait of Hormuz reached 2.9 million barrels per day in June month-to-date, the highest level since the conflict began. Increased exports from the UAE, Iraq and Kuwait drove much of the recovery.Ship-to-ship transfers near Fujairah accounted for another 1.56 million b/d that remain difficult to trace, according to Kpler.Improving security conditions have supported the rebound. US President Donald Trump recently said about 100 million barrels of oil moved through the strait during the past month, broadly matching Kpler's estimate of 98 million barrels since May 1.Despite the improvement, market conditions remain constrained. About 80% of Hormuz transits now involve dark activity, while total Persian Gulf crude and condensate exports averaged 3.76 million b/d month-to-date, far below pre-war levels of about 15 million b/d.Inventory withdrawals rather than fully restored production have fueled recent export growth. Floating storage volumes in the Persian Gulf, excluding Iran, have fallen by 69 million barrels since late April, including declines of 13 million barrels in Basrah Medium, 8 million barrels in Arab Extra Light, and 7 million barrels each in Arab Light and Das crude.Kuwait has relied on inventories to support exports, reducing storage by 7.6 million barrels over the past two weeks, equivalent to roughly 580,000 b/d, according to Kpler.Signs of production normalization are emerging in the UAE, where stronger activity at Upper Zakum and Das and increased Adnoc marketing efforts indicate a gradual recovery in output, Kpler said.Asian buyers secured most of the 12 million barrels of Upper Zakum crude recently sold by Adnoc, which also offered Zakum cargoes from Sidi Kerir into the Mediterranean in an uncommon move to reach additional markets.Kpler increased its estimate for UAE crude output to 3.18 million b/d in May, up from 2.60 million b/d in April and 2.28 million b/d in March, although production still trails pre-war levels by about 720,000 b/d.Greater crude availability from the Persian Gulf has yet to revive Chinese buying interest. Sinopec declined to nominate Saudi cargoes for July despite a $6-per-barrel reduction in Saudi Aramco's Asian official selling prices, Kpler said.Compared with rival grades, Arab Light remains relatively expensive. Kpler said the crude trades at a $9.50/bbl premium to Oman-Dubai benchmarks and lands in Northeast China at more than $10/bbl above ICE Brent.Alternative supplies continue to hold a pricing advantage in China. Brazilian Tupi and Norwegian Johan Sverdrup cargoes arrive at premiums of about $7/bbl to $7.50/bbl, while Russia's ESPO and Urals trade at roughly $1.50/bbl and negative $1/bbl, respectively, according to Kpler.Saudi Arabia shipped 3.74 million b/d from Yanbu in May, down 400,000 b/d from the prior month, as stronger domestic refinery demand, rising Gulf exports and subdued Chinese buying reduced overseas shipments, Kpler said. China's seaborne crude imports are expected to stay near May's 6.7 million b/d level.Severe weather across northeastern Alberta, including wildfires, flooding, and thunderstorms, disrupted operations at Cenovus Energy's (CVE) Foster Creek and Christina Lake facilities.The company declared force majeure, temporarily curtailing roughly 4% of its bitumen production, tightening heavy crude availability in the Canadian market.The supply disruption quickly tightened heavy crude balances, with the July WCS discount at Hardisty moving to around $12/bbl under Nymex, a three-month high, while WCS Houston narrowed to a discount of roughly $2.70/bbl.At the same time, weaker demand for diluent pushed Fort Saskatchewan condensate to nearly a $9/bbl discount to Nymex, its weakest level since June 2022.Although recent rainfall has helped contain the wildfires, uncertainty remains around the timing of a full recovery at Cenovus' affected assets.Until production returns to normal levels, Canadian heavy crude markets are likely to remain relatively tight, supporting heavy oil differentials in the near term.Russian crude exports climbed to multi-year highs in May, averaging nearly 3.9 million b/d, as refinery outages caused by Ukrainian drone strikes reduced domestic processing demand.With less crude being refined at home, more barrels were directed to export markets, increasing the availability of Russian crude globally.Recovering refinery operations are likely to reduce Russian crude exports in June. Kpler expects offline refining capacity to shrink to about 300,000 b/d by July from 2.9 million b/d in May, while crude production rises to 10.14 million b/d in June and 10.2 million b/d by August.Price: $26.33, Change: $-0.78, Percent Change: -2.88%

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Oil & Energy7d ago

Hormuz Reopening Faces 'Stop-Start' Recovery as Backlog Clears, Kpler Says

Commercial shipping through the Strait of Hormuz is set for a cautious, staggered revival following a weekend agreement between the US and Iran, but a full restoration of trade remains months away, according to Kpler's note on Tuesday.The peace deal, which aims to formally reopen the Hormuz on June 19, marks a transition from a total blockade to a "first-mover" phase for the shipping industry.However, Kpler strategists said that the return of commercial vessels will be defined by a one-off clearing of backlogged cargo rather than an immediate return to pre-war normalcy.The immediate priority for operators will be to clear a bottleneck of 118 laden tankers currently trapped in the Gulf after over 100 days of disruptions.Kpler projected that the backlog could be cleared within 10 to 15 days, providing what the report calls a "visible jump" in transit figures that may initially be mistaken for a broader market recovery.Matthew Wright, lead freight analyst at Kpler, said the deal nudges the Strait from a restricted phase into a first-movers phase, but unresolved terms cap how quickly vessels actually re-enter.Kpler, in its base-case scenario, said the real challenge lies in the pace at which new vessels enter the Gulf after the backlog is cleared.The consultancy firm projects a slow, non-linear recovery, with daily transits gradually rising from 15 to 40 by the end of the first month, which is about 50% below pre-war levels of 90-100 daily bulk commodity transits.The path to normalization faces significant hurdles, Kpler analysts said. Market participants are still grappling with whether the Strait has been mined, whether Iran retains de facto operational control, and how any transit tolls would be structured and collected.The analysts said each of these factors directly influences war-risk insurance pricing and vessel deployment decisions.Industry participants are also expected to remain cautious even in the absence of active hostilities. Kpler said insurance coverage, typically slower to adjust than geopolitical developments, may lag by weeks, while freight rates are likely to remain elevated to compensate for residual risk.The consultancy said that any implementation disputes, particularly around policing authority, routing requirements, or sanctions exposure linked to transit fees, could trigger plateaus or even temporary reversals in recovery momentum.Analysts said the result is likely to be a non-linear normalization process. Rather than a smooth return to pre-crisis flows, the Hormuz is projected to see stepwise recovery punctuated by pauses as confidence thresholds are repeatedly tested.Structural divergence between vessel classes is expected to persist even after an agreement, with tankers likely to recover ahead of dry bulk, container, and LNG carriers, masking uneven conditions beneath headline transit figures.

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Oil & Energy7d ago

Recovering Middle East, Russian Supplies Offset Canadian Disruptions as China Demand Stays Weak, Kpler Says

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