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Commodity Boom May Cushion Canada's Economy Amid Rising Oil Prices, Scotiabank Says

Oil prices climbed about $3 per barrel at the start of the week as military tensions between the US and Iran intensified and conflict in the Middle East broadened, Scotiabank strategists said in a Monday note.Analysts said both WTI and Brent crude advanced after the US and Iran exchanged attacks, while Israel expanded military operations in Lebanon, reducing the likelihood of a diplomatic breakthrough.Iran continues to resist demands related to uranium enrichment and control of the Strait of Hormuz, keeping energy markets focused on the risk of supply disruption.A broad commodity rally could support Canada's economy because stronger export prices typically boost national income and economic activity over time.Commodity-producing economies rarely enter recession during periods of widespread strength in resource markets, although positive effects often emerge with a delay.Rising commodity prices could contribute to stronger growth and inflation, factors the Bank of Canada is expected to monitor closely as it assesses future policy decisions.Strategists continue to expect Bank of Canada rate increases later this year, though they now see policymakers delaying tightening until September or later, then extending moves into Q4.Scotiabank previously projected 50 basis points of tightening in the third quarter and another 25 basis points in Q4 before rates reached 3%, but it now favors a later timeline.

Oil & Energy113d ago

Market Chatter: Strait of Hormuz Tolls Won't be Allowed, Dynacom Shipowner Says

Greece's Dynacom Tankers Management, one of the few oil tanker owners to continue transiting the Strait of Hormuz during the US-Israel-Iran conflict, rejected the idea of transit tolls in the waterway, saying it would not be accepted, Bloomberg reported on Monday."Nobody will allow tolls that are imposed in straits," George Procopiou, founder of Dynacom Tankers Management, reportedly said at the Capital Link Maritime Leaders Summit in Athens.Procopiou was speaking during the event, held alongside Greece's Posidonia shipping gathering."The freedom of navigation is essential and nobody can impose tolls or any other burden because there are many chokepoints in the world," Procopiou reportedly said.Tehran has argued that such charges are necessary to fund reconstruction following military strikes by US and Israeli forces.The proposal has been rejected by the Trump administration, while the International Maritime Organization has said such tolling would be illegal. The dispute has contributed to persistently reduced traffic through the strait, which remains well below pre-war levels.The Iran conflict has triggered severe disruption to global oil flows, leaving hundreds of tankers trapped inside the Persian Gulf while others waited outside the region in hopes the conflict would subside.Dynacom manages 73 crude and clean oil product carriers, with 54 additional vessels on order and a workforce of 5,500 seafarers.Shortly after the conflict began, tanker day rates spiked above $600,000, Bloomberg said, citing the Baltic Exchange in London, many times higher than pre-conflict levels. The surge lifted profits across the shipping sector but also sharply increased transportation costs for the broader oil industry.While most owners avoided sending vessels through the Strait of Hormuz due to security risks linked to Iran's military, Dynacom continued operations in the waterway and reportedly drew industry attention for doing so.The company sent at least eight oil tankers through the strait during the conflict, more than any other independent owner, Bloomberg said, citing its vessel tracking analysis.Procopiou praised crews operating on vessels that transit the region but provided limited detail on the procedures used to ensure safe passage."[They are] dedicated, they have strong ties to the company, and they have tried to assist and prove that we are reliable counterparties not only on good times, but in bad times as well," he said of the crews serving on ships that continued transiting Hormuz.Procopiou added that President Trump has been "good news" for shipping, "Trump is doing his best for the world but in parallel he's doing the best for shipping."Dynacom Tankers Management did not immediately respond to' request 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.)

Oil & Energy113d ago

UK Watchdog Says No Evidence Retailers Exploited Middle East Fuel Shock

The UK's Competition and Markets Authority said Monday that sustained high fuel prices at the pump are being driven primarily by elevated wholesale costs, but warned that weak competition in the retail fuel market continues to leave motorists paying more than necessary.The CMA, in its latest road fuel monitoring update, said higher pump prices seen through March and into April 2026 were largely driven by rising wholesale costs linked to geopolitical disruption, rather than by any change in retailers' pricing behavior.The watchdog said fuel retail margins, the difference between wholesale costs and pump prices, remained historically elevated, averaging about 11.3 pence per liter in April, even as some supply conditions stabilized.Though a small number of retailers saw margin increases in March, the CMA said this appeared to reflect competitive "follow-the-leader" pricing, inventory pressures and differing wholesale purchase costs rather than deliberate exploitation of the crisis.There is no evidence that retailers altered their pricing strategies to take advantage of the crisis, the regulator said, adding that broader market conditions, including volatility and supply constraints, may have reduced incentives for aggressive price competition.However, the CMA reiterated concerns over "weak competitive dynamics" in the UK fuel market, first identified in its 2023 review, saying many retailers continue to set prices passively by matching local competitors rather than competing to attract customers.The CMA said supermarkets remained the cheapest place to buy fuel on average, while motorway service stations continued to charge a significant premium.It also highlighted the potential benefits of price comparison tools under its Fuel Finder initiative, saying drivers could save up to 9 British Pounds ($12.11) per tank by shopping around.Retailers should be in no doubt that we are continuing to monitor prices and margins closely, Sarah Cardell, chief executive of CMA, said, adding that any reductions in wholesale costs should be "rapidly and fully passed on" to consumers.The regulator said it would closely monitor whether improved supply conditions in April are reflected in lower retail prices in the coming weeks.The antitrust watchdog plans to publish its next update in August, covering market developments through the end of June, and will also conduct a deeper review of retailer pricing strategies, with findings expected in the autumn as part of an assessment of the Fuel Finder scheme's impact.

Oil & Energy113d ago

US Oil Update: Crude Surges on Middle East Tensions, Uncertainty Over US-Iran Talks

Crude oil futures climbed over 5% in midday trading on Monday as heightened geopolitical tensions in the Middle East stoked supply disruption fears, and conflicting US-Iran signals fueled market volatility.Front-month West Texas Intermediate crude futures rallied 5.24% to $91.88 per barrel, while Brent futures were up 4.41% to $95.19/bbl.Bjarne Schieldrop, chief commodities analyst at SEB Research, said the likely path out of the conflict has been, for quite some time now, a deal that is essentially not a deal, but rather an agreement to talk further and resolve contentious issues later.On Monday, Iran reportedly said it would suspend indirect communications with the US, and its allied "Resistance Front" was reported to be planning to completely block the Strait of Hormuz and choke other waterways, including the Bab el-Mandeb Strait.However, President Donald Trump pushed back on those reports, saying talks were still ongoing."Talks are continuing, at a rapid pace, with the Islamic Republic of Iran," Trump posted on Truth Social.The US President had earlier said he was not informed in advance of any decision by Iran to halt negotiations and, in phone interviews with US media, dismissed concerns over the suspension."I really don't care. I couldn't care less," Trump reportedly told CNBC earlier on Monday.Foreign Minister Abbas Araghchi said that the truce agreement between the US and Iran applies to "all fronts, including in Lebanon," adding that a breach in one area constitutes a violation of the broader arrangement."The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon," Araghchi said, adding that the US-Israeli alliance is responsible for the consequences of any violation.In a separate Truth Social post on Monday, Trump said he held a call with Israel's Prime Minister Benjamin Netanyahu and instructed Israeli troops to halt a planned attack on parts of the Lebanese capital, Beirut.He added that Hezbollah had also agreed "that all shooting will stop," adding that "Israel will not attack them [Hezbollah], and they will not attack Israel."For now, Hormuz transits remain sharply below pre-conflict levels.Scotiabank strategists said a prolonged geopolitical conflict involving Iran would tighten global oil markets for an extended period and generate significant supply disruptions.The US military has redirected 121 Iran-linked commercial vessels and disabled five others since imposing the blockade on April 13, US Centcom said on Monday, while Iran's Islamic Revolutionary Guard said that 15 vessels, including four oil tankers, had transited the Strait in the last 24 hours.For shipping markets, constrained routing patterns indicate that operational risk remains elevated despite the recent pause in physical incidents, Kpler strategists said on Monday.

Oil & Energy113d ago

Mild Weather Pressures Power Demand as Natural Gas Rally Gains Momentum, EBW Analytics Says

Natural gas climbed 8.9% last week to $3.29 per million British thermal units as stronger spot prices, lower production and supportive weather lifted the July contract, EBW Analytics said Monday.Milder weather across the Southeast and Mid-Atlantic and the Memorial Day holiday reduced electricity demand last week, cutting power-sector gas consumption by 2 billion cubic feet per day as stronger nuclear output added further pressure, EBW said.Regional power markets moved in different directions as PJM West day-ahead on-peak prices fell $21 per megawatt hour from a week earlier to $36.82/MWh, while Indiana Trading Hub prices rose $11/MWh to $43/MWh on stronger heat, according to EBW.In the West, prices in the California Independent System Operator market remained weak, ranging from $11/MWh to $16/MWh, EBW said.Rising natural gas prices are making coal-fired generation more competitive, a shift that could cut gas demand by another 0.5 Bcf/d, according to EBW.Cooler weather in the Electric Reliability Council of Texas and the Southeast may also limit any rebound in gas demand this week, with power-sector consumption expected to recover by only 1.1 Bcf/d, EBW said.After holding above $3/MMBtu early in the last week, July natural gas futures settled at a nine-week high of $3.29/MMBtu on Friday, while Henry Hub spot gas traded at a 5-cent premium to the front-month contract at $3.34/MMBtu.Weather forecasts turned slightly hotter over the weekend, adding six cooling degree days, while Cameron LNG remained offline for 32 days and could restart soon, EBW added.Traders increased bearish bets to the highest level in 18 months, creating potential for additional buying if those positions unwind, while technical indicators continue to point to further near-term gains, EBW said.Looking further ahead, EBW expects natural gas inventories to rise above 4 Tcf.The firm projects a 103 Bcf storage injection for the week ended May 29 and forecasts end-of-June inventories at 2,645 Bcf to 2,670 Bcf.EBW targets July natural gas at $3.41/MMBtu within a $3.14/MMBtu to $3.55/MMBtu range, while forecasting August at $3.19/MMBtu and September at $2.86/MMBtu as prices gradually ease.July West Texas Intermediate crude fell 9.6% over the week to $87.37 per barrel after losing $9.24/bbl.While hopes for a US-Iran agreement could pressure prices toward $80/bbl, EBW said supply disruptions exceeding 1 billion barrels and the continued closure of the Strait of Hormuz could keep oil markets tight through the summer.

Oil & Energy113d ago

US Natural Gas Update: Futures Fall on Ample Supplies, Weakened Demand

US natural gas futures declined in midday trading on Monday as strong domestic production, softer demand, and elevated inventories weighed on sentiment.The front-month Henry Hub contract dropped by 3.59% to $3.172 per million British thermal units, while the continuous contract lost 3.50% to $3.175/MMBtu.Traders brushed aside media reports on Iran's exit from US talks and the Strait of Hormuz risks, which had lifted European gas futures prices on Monday, and focused on modest domestic demand and ample supply.Demand weakened through last week before stabilizing at the start of the new week, according to NRG Energy.US consumption dropped from above 100 billion cubic feet per day to below 95 Bcf/d by Saturday, before recovering to nearly 100 Bcf/d on Monday. The decline was driven mainly by lower power burn and a modest dip in exports to Mexico.On the supply side, dry gas production rose 0.6 Bcf/d week over week, with output up 3.4 Bcf/d compared with the same period last year, NRG Energy said. Trading Economics reported that Lower 48 production averaged 109.4 Bcf/d in May, slightly below April's 109.8 Bcf/d.Last week, the US Energy Information Administration reported that stock levels were 144 Bcf, or 6%, above the five-year average for this time of year.LNG export flows were largely steady but eased over the past few days, mainly due to ongoing scheduled maintenance.Feedgas volumes held near 17.4 Bcf/d for most of the week before slipping to 16.9 Bcf/d over the weekend, NRG Energy said. Trading Economics noted flows to major US LNG export facilities averaged 17.1 Bcf/d in May, down from a record 18.8 Bcf/d in April.Despite the latest pullback, prices remain volatile after a sharp monthly swing. US natural gas futures surged 18.9% in May following a 4.1% decline in April, Trading Economics said.

Oil & Energy113d ago

Trump Says US-Iran Talks Ongoing at 'Rapid Pace'

US President Donald Trump said Monday that talks were progressing at a "rapid pace" with Iran, rejecting media reports that Tehran had suspended ongoing negotiations with the US."Talks are continuing, at a rapid pace, with the Islamic Republic of Iran," Trump posted on Truth Social.In a separate post, Trump said he had spoken with Israeli Prime Minister Benjamin Netanyahu and that Israeli forces would not enter Beirut, while claiming Hezbollah had agreed to halt attacks on Israel."I had a very productive call with Prime Minister Bibi Netanyahu, of Israel, and there will be no troops going to Beirut, and any troops that are on their way, have already been turned back," Trump said in a post on Truth Social.Trump added that he also had a "very good call" with Hezbollah through intermediaries and that the group agreed "that all shooting will stop," adding that "Israel will not attack them, and they will not attack Israel."The remarks came as efforts to secure a ceasefire between Israel and Hezbollah remained uncertain and amid conflicting reports over the status of Iran-US negotiations.Earlier in the day, Trump said that he had not been informed after Iran's negotiating team had reportedly decided to suspend talks and the exchange of messages through mediators, multiple news outlets reported, citing phone interviews with Trump."It's an appropriate thing to say, because they're better negotiators than they are fighters," Trump said in a brief phone call with NBC News, adding, "But they haven't informed us of that."Trump also said Iran's decision would not immediately trigger military action and added, "It doesn't mean we're going to go and start dropping bombs all over there."On the US maritime blockade, which he lifted on Friday, Trump reportedly said it will remain in force.In another phone interview with CNBC, Trump said he was not concerned about higher oil prices following reports that Iran could block the Strait of Hormuz and halt negotiations, adding that he expects oil prices to fall sharply in the near term.The White House didn't immediately respond to' request for comment.Earlier in the day, Iran reportedly suspended indirect talks with the US as tensions in Lebanon escalated.Iran's semi-official Tasnim news agency reported Monday that Tehran's negotiating team will suspend talks and exchanges of messages with the US through mediators in response to what it described as the crossing of red lines in Lebanon and Gaza.Iran's senior military officer Mohsen Rezaee posted on X on Monday that Iran controls the Strait of Hormuz and will not allow the continuation of the maritime blockade or any further escalation in Lebanon."The Strait of Hormuz is under Iran's management. We will not allow the continuation of the maritime blockade, and the escalation of tensions in Lebanon will not be tolerated either," the post read.Rezaee, a senior commander in Iran's Islamic Revolutionary Guard Corps, added that the patience of the Islamic Republic's armed forces has limits as regional tensions continue to rise.Israeli Prime Minister Benjamin Netanyahu said in a post on X on Monday that he had instructed the Israel Defense Forces to strike Hezbollah targets in Beirut's Dahiyeh district.Netanyahu said the order came in response to Hezbollah's "repeated and ongoing violations of the ceasefire in Lebanon" and attacks against Israeli cities and citizens.Meanwhile, Lebanon's Parliament Speaker Nabih Berri told the Trump administration that Hezbollah is prepared to accept a full and immediate ceasefire with Israel, Axios reported, citing Berri's top adviser Ali Hamdan.Hamdan said that Hezbollah would fully commit to a comprehensive truce and that Berri conveyed the position to US Ambassador Michel Issa on Sunday.Hamdan rejected a limited ceasefire proposal that would halt Hezbollah attacks on northern Israel in exchange for Israel refraining from striking Beirut.Instead, he called for a full ceasefire across land, air and sea, according to the report.Oil prices climbed in early trading on Monday, with Brent crude rising 4.1% to $94.86 per barrel and West Texas Intermediate futures advancing 5% to $91.76/bbl.

Oil & Energy113d ago

EMEA Oil Update: Crude Rallies After Iran Suspends Peace Talks with US

EMEA crude futures rallied in after-hours trading on Monday after reports that Iran has suspended peace negotiations with the US, stoking concerns over geopolitical stability in the Middle East and continued closure of the Strait of Hormuz.Brent crude futures climbed 6.83% to $97.27 per barrel, while Murban oil futures advanced 5.99% to $95.45/bbl.Saxo Bank strategists said crude prices rebounded from a six-week low amid ongoing uncertainty over the prospects for a peace deal to end the war with Iran.Iran reportedly will suspend indirect communications with the US, and its allied "Resistance Front" plans to completely block the Hormuz and choke other waterways, including the Bab el-Mandeb Strait.Foreign Minister Abbas Araghchi said that the truce agreement between the US and Iran applies to "all fronts, including in Lebanon," adding that a breach in one area constitutes a violation of the broader arrangement."The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon," Araghchi said, adding that the US-Israeli alliance is responsible for the consequences of any violation.On Monday, President Trump said he had not been informed of Iran's decision to halt peace talks ahead of time, according to media reports."It's an appropriate thing to say, because they're better negotiators than they are fighters," Trump was quoted as saying. "It doesn't mean we're going to go and start dropping bombs all over there."Trump lashed out at critics on Monday amid ongoing heightened geopolitical tensions in the Middle East, saying that Tehran "really wants to make a deal" and that it will be a good one for the US.Scotiabank strategists said a prolonged geopolitical conflict involving Iran would tighten global oil markets and generate significant supply chain disruptions.Meanwhile, the US and Iran traded fresh strikes over the weekend, and Israeli Prime Minister Benjamin Netanyahu ordered troops to push deeper into Lebanon, developments that threaten a fragile ceasefire between Washington and Tehran.On Sunday, US Central Command said in a post on X that it had carried out strikes in Goruk and the island of Qeshm "in response to aggressive Iranian actions," saying Iran had shot down a US MQ-1 drone that was operating over international waters.Iran's Revolutionary Guard, on the other hand, said its aerospace force had targeted the source of what it called a US attack on a telecommunications tower on Sirik Island in Hormozgan province.Though Iran did not reveal its military target, Kuwait said in a post on Monday that its air defense systems intercepted and responded to missile and drone threats, without disclosing the origin of the attacks.

Oil & Energy113d ago

Update: Iran Reportedly Halts Talks With US, Threatens to Block Strait of Hormuz

(Updates with Trump's reported comments in paragraphs 6-9.)Iran will cease indirect communications with the US and plans to fully close the Strait of Hormuz in retaliation for alleged ceasefire violations, according to local media reports on Monday.Foreign Minister Abbas Araghchi said that the truce agreement between the US and Iran applies to "all fronts, including in Lebanon," adding that a breach in one area constitutes a violation of the broader arrangement."The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon," Araghchi said, adding that the US-Israeli alliance is responsible for the consequences of any violation.Speaker of Parliament Mohammad Baqer Ghalibaf also said on Monday that the US naval blockade of Iranian ports and Israel's renewed attacks in Lebanon will come at a price for Washington and Tel Aviv."The naval blockade and escalation of war crimes in Lebanon by the genocidal Zionist regime are clear evidence of US noncompliance with the ceasefire," Ghalibaf said in a social media post on X.Responding to the news, President Donald Trump reportedly told NBC News that Iran had not informed the US about the decision."It's an appropriate thing to say, because they're better negotiators than they are fighters," he told NBC via a phone interview. "But they haven't informed us of that.""It doesn't mean we're going to go and start dropping bombs all over there," Trump said, adding that the US naval blockade will remain in effect, "We'll keep the blockade."On Friday, Trump posted on Truth Social that the US maritime blockade will be lifted. "Ships caught in the Strait due to our amazing and unprecedented Naval Blockade, which will now be lifted, may start the process of 'heading home!'," he posted.Crude prices rallied over 7% following the remarks from Iranian officials. Front-month West Texas Intermediate crude futures jumped 7.30% to $93.77 per barrel, while Brent futures advanced 6.47% to $97.04/bbl.

Oil & Energy113d ago

Asia LNG Demand Rises on Heatwave as Europe Imports Ease, Vortexa Says

Liquefied natural gas imports into Asia strengthened last week as higher seasonal temperatures across the region increased power demand for air conditioning, while European LNG shipments declined further amid weaker import incentives, Vortexa strategists said in a Monday note.Vortexa analysts said total LNG arrivals into Asia reached 4.8 million metric tons across 79 cargoes, about 5% above the region's four-week average.China led the increase, receiving 1.3 million mt in 22 cargoes, its highest weekly intake since Q1. South Korea imported 600,000 mt through nine cargoes, rebounding from the previous week, while India's imports rose to 500,000 mt across nine cargoes.India received its first LNG cargo originating west of the Strait of Hormuz since March. Pakistan also received a Qatari cargo aboard the Fuwairit tanker, marking its third Qatari LNG delivery in May.The arbitrage opportunity for flexible Atlantic Basin LNG cargoes to Asia remained open, with Asian spot LNG prices trading at an average premium of about $2 per million British thermal units over European prices last week.Vortexa said European LNG imports fell to 1.7 million mt across 30 cargoes, over 10% below the continent's four-week average.France's imports recovered to 300,000 mt after reaching their lowest level of the year in the previous week, although maintenance at the Montoir regasification terminal continues to limit activity. Spain's imports dropped sharply to 100,000 mt, their weakest level since Q4 2025.Spain remained Europe's largest buyer of Russian LNG in May, importing 600,000 mt, accounting for more than 40% of its monthly LNG intake.Elsewhere, Vortexa said imports from Russia's Yamal LNG facility totaled 1.6 million mt in May, close to the record levels seen in March despite sanctions on spot Russian LNG purchases that took effect in late April.EU gas storage facilities were 40% full at the end of last week, 14 percentage points below the five-year average, while LNG send-out rates averaged about 3,600 gigawatt-hours per day.Meanwhile, vessel tracking data indicated that LNG shipments continued to transit the Strait of Hormuz despite regional tensions.Vortexa said an Adnoc vessel loaded cargo at the UAE's Das Island terminal after making a "dark" transit through the Strait of Hormuz with its tracking system switched off.Another Adnoc-operated tanker vessel reappeared in the Gulf of Oman after loading at Das Island and is expected to arrive at India's Dabhol terminal on June 4.However, LNG exports in the US remained subdued. Vortexa said weekly loadings totaled 2.3 million mt across 32 cargoes, unchanged from the previous week.The planned maintenance at the Freeport and Cameron export terminals has weighed on output, while the new Golden Pass facility has not loaded a cargo for more than three weeks.Feedgas deliveries to US LNG plants have recently recovered, however, and the QatarEnergy-controlled tanker Barzan is expected to arrive this week to load what would be Golden Pass's third cargo.

Oil & Energy113d ago

Pezeshkian Reportedly Says Iran Will Try to Facilitate 'Smooth' Passage for Japanese Ships Via Hormuz

Iranian President Masoud Pezeshkian told Japanese Prime Minister Sanae Takaichi on Monday that Iran will allow Japanese vessels to transit the Strait of Hormuz, according to multiple media reports."We will try to provide a smooth and easy passage for Japanese ships," Pezeshkian reportedly told Takaichi during the phone conversation.Iran's Ministry of Foreign Affairs did not immediately respond to' request for comment.During a telephone conversation with Pezeshkian, the third such exchange since the outbreak of the conflict in late February, Takaichi called for a swift resolution to the standoff between Tehran and Washington.Takaichi urged Iran to ensure the free and safe passage of commercial vessels through the Strait of Hormuz, amid the ongoing Middle East conflict and energy supply disruptions that have roiled global markets.Japan's foreign ministry said Takaichi expressed strong hope that Iran will show the greatest possible flexibility and that a peace deal can be reached as soon as possible.Takaichi reiterated her country's position that de-escalation should be pursued through dialogue and diplomacy. She also urged Iranian authorities to restore freedom of navigation via the Hormuz, one of the world's key energy chokepoints.Takaichi said that free and safe passage through the Strait of Hormuz should be secured as soon as possible for vessels from all countries, including Japan and other Asian countries. The strategic waterway handles about 20% of global crude oil and liquefied natural gas shipments.Japan's foreign affairs ministry said Pezeshkian briefed Takaichi on the current status of negotiations between the US and Iran as well as Tehran's outlook for future negotiations.The call comes as energy markets are closely monitoring developments around Hormuz, where shipping disruptions have heightened concerns about global crude supplies and contributed to price volatility.The double US-Iran closure of the Strait is further straining energy-importing nations across Asia amid efforts to stabilize regional security.

Oil & Energy113d ago

Turkey Pursues TANAP-Style Electricity Corridor With Azerbaijan, Energy Minister Says

Turkey is pursuing a TANAP-style electricity corridor with Azerbaijan as both countries broaden cooperation in power transmission and green energy, Minister of Energy and Natural Resources Alparslan Bayraktar said Monday.At Baku Energy Week, Energy Minister Alparslan Bayraktar said Turkey, Azerbaijan, Georgia, Bulgaria, and several Southeast European countries are coordinating efforts to deepen regional energy integration."We are going to create the electricity version of TANAP," Bayraktar said, describing plans for a cross-border transmission network that would support electricity trade and deeper market integration.The initiative expands cooperation between Turkey and Azerbaijan beyond oil and natural gas, with both countries increasingly focusing on electricity transmission and green energy projects.Over the next decade, Ankara plans to invest about $30 billion to modernize its transmission and distribution infrastructure and accommodate additional renewable and nuclear power generation."Energy security today is no longer defined solely by access to resources," Bayraktar said, adding that stronger infrastructure, broader supply options, and closer regional ties are becoming increasingly critical.Renewable sources now account for about 65% of Turkey's installed electricity capacity, placing the country among Europe's five largest renewable power markets and the 11th worldwide, Bayraktar said.By the end of the year, annual production from the Sakarya gas field is expected to reach 7.5 billion cubic meters, while Turkey also aims to bring the first unit of the Akkuyu nuclear power plant online, Bayraktar said.

Oil & Energy113d ago

Turkey State-Owned Botas Inks 15-Year Gas Supply Deal With Socar, Adnoc, TotalEnergies

The Turkish Ministry of Energy and Natural Resources said Monday the country's state-owned Botas has finalized a 15-year agreement for the supply of natural gas with the State Oil Company of the Azerbaijan Republic, Abu Dhabi National Oil, and oil supermajor TotalEnergies (TTE).Signed on the sidelines of Baku Energy Week, the deal includes the supply of 33 billion cubic meters of natural gas from Azerbaijan's Absheron field, according to the ministry, with supplies to begin in 2029."This strategic step, which supports Turkey's vision of becoming a central energy hub, will make significant contributions to the energy supply security of our country, our region, and Europe," the ministry said.Supplies to the Turkish market are around half of the field production, Reuters reported, citing a Socar official.The Absheron field is one of Azerbaijan's largest gas-condensate fields, with annual output potentially exceeding 4 billion cubic meters, Reuters reported.A final investment decision for the second phase of the Absheron project is reportedly planned for this year, with gas production expected to begin by 2029.Price: $89.11, Change: $+1.79, Percent Change: +2.04%

$TTE

Oil & Energy113d ago

Iran Reportedly Halts Talks With US, Threatens to Block Strait of Hormuz

Iran will cease indirect communications with the US and plans to fully close the Strait of Hormuz in retaliation for alleged ceasefire violations, according to local media reports on Monday.Foreign Minister Abbas Araghchi said that the truce agreement between the US and Iran applies to "all fronts, including in Lebanon," adding that a breach in one area constitutes a violation of the broader arrangement."The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon," Araghchi said, adding that the US-Israeli alliance is responsible for the consequences of any violation.Speaker of Parliament Mohammad Baqer Ghalibaf also said on Monday that the US naval blockade of Iranian ports and Israel's renewed attacks in Lebanon will come at a price for Washington and Tel Aviv."The naval blockade and escalation of war crimes in Lebanon by the genocidal Zionist regime are clear evidence of US noncompliance with the ceasefire," Ghalibaf said in a social media post on X.Crude prices rallied over 7% following the remarks from Iranian officials. Front-month West Texas Intermediate crude futures jumped 7.30% to $93.77 per barrel, while Brent futures advanced 6.47% to $97.04/bbl.

Oil & Energy113d ago

US Oil Update: Futures Rally as Gulf Conflict Escalates

Oil prices rallied more than 5% on Monday following intense weekend military exchanges between the US and Iran, which severely dampened hopes for a ceasefire.Front-month West Texas Intermediate crude futures climbed 5.7% to $92.37 per barrel, while Brent futures gained over 5% to $95.75/bbl.The rapid military escalation effectively erased late-week optimism surrounding the potential maritime truce, analysts noted."Oil rebounded from a six-week low amid ongoing uncertainty over the prospects for a peace deal to end the war with Iran," Saxo Bank analysts said.US Central Command confirmed it executed targeted self-defense airstrikes against Iranian radar installations, air defenses, and active drone control facilities located on Qeshm Island and the coastal city of Goruk.Compounding the regional friction, Iran's Islamic Revolutionary Guard Corps reportedly said on Monday that its aerospace forces had launched a counterstrike against a US-linked airbase.The strikes have cast a heavy shadow over fragile diplomatic negotiations that had briefly lowered energy prices late last week, analysts said.ANZ analysts emphasized that deep doubts persist regarding Tehran's willingness to accept Washington's newly revised parameters, a sentiment confirmed by Iran's Foreign Ministry, which publicly verified that no understanding has yet been reached.

Oil & Energy113d ago

EMEA Natural Gas Update: Futures Rise as Fresh Uncertainties Cloud US-Iran Peace Deal

European natural gas futures were up on Monday, rebounding after a sharp decline over the past week, as US forces escalated their offensive against Iran, casting fresh uncertainty over a potential peace deal.The Dutch TTF front-month contract was up 4.18% at 47.925 euros ($55.72) per megawatt hour, while the UK NBP front-month contract rose 5.17% to 116.520 pence ($1.57) per therm.On Monday, US Centcom said that it had conducted "self-defense strikes" against Iranian radar, command and control sites for drones, located across the Goruk and Qeshm Islands.This comes despite US President Donald Trump's claims that Tehran "really wants to make a deal" in a Truth Social post over the week, noting that the outcome would also be good for the US.Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively closed for the 14th week running, with just 20 vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.While this marks an uptick in traffic relative to recent days, when it was stuck in the low-to-mid single digits, it is still significantly below the Strait's typical daily average of 138 during normal times.Daniel Hynes, a senior commodity strategist at ANZ, noted that Indian and Southeast Asian buyers were increasingly tapping the spot markets, to address growing energy needs during the Summer.This puts European markets in a tough spot, with gas inventories, at 40.09% of capacity, still below the prior year's 47.89%, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 54.1%, according to the Swiss Federal Office of Energy.This comes at a time when much of the continent is experiencing an unprecedented heatwave, with the continent "currently warming at roughly twice the global average rate," according to a report by Severe-Weather EU, leading to increased air conditioning demand.To make matters worse, a significant number of Norwegian oil and gas workers have signaled their intention to launch a strike, over wage negotiations, according to a Reuters report, citing labor union data. This puts flows from Europe's biggest supplier at risk.

Oil & Energy113d ago

EMEA Oil Update: Prices Rebound Amid US-Iran Clashes, Choked Supply

Crude prices rallied on Monday as an abrupt escalation of military hostilities between the US and Iran shattered brief hopes that diplomacy would prevail over attacks in the Middle East.Front-month Murban crude futures gained 3.1% to $92.87 per barrel, while Brent futures were up 2.2% to $93.17/bbl.The price rebound was triggered by a rapid escalation of military tensions in the Middle East over the weekend, analysts noted.The US Central Command confirmed in a post on X that it conducted self-defense strikes against Iranian radar and drone control sites on Goruk and Qeshm Island, following the shooting down of a US MQ-1 drone over international waters.In response, Iran's Islamic Revolutionary Guard Corps reportedly said on Monday that it targeted an airbase linked to a US attack on a Sirik Island telecoms tower.These clashes have cast a shadow over diplomatic efforts though officially the mutually-agreed US-Iran ceasefire remains in place.Although US President Donald Trump stated on Friday that he would soon decide on a preliminary deal to extend the ceasefire to buy negotiators time to address Iran's nuclear program, analysts remain skeptical.ANZ analysts said that doubts persist over Iran's willingness to accept the new US proposal, and Iran's Foreign Ministry confirmed that no agreement has been reached.Meanwhile, global oil supplies remain severely constrained.The Strait of Hormuz remains closed, cutting off more than 15 million barrels per day of world oil supply. While a growing number of vessels have attempted the risky transit in recent weeks, several attacks have underscored the persistent dangers to shipowners and crews.With shipping lanes choked, global inventories are being aggressively drawn down, a trend mirrored by recent US crude inventory data showing a drop in crude stockpiles last week.

Oil & Energy113d ago

South Africa's Regulator Cuts Smelter Power Tariffs by 54%

South Africa's intensive energy users received a major lifeline after the National Energy Regulator of South Africa approved a deeply discounted electricity tariff for the domestic ferrochrome industry.The approved rate slashes power tariffs by roughly 54% to 62 cents per kilowatt-hour.The decision has prompted the Glencore-Merafe Chrome Venture to withdraw its Section 189 retrenchment consultations, effectively saving up to 1,500 jobs that had been at risk since the joint venture initiated restructuring proceedings in September 2025.South African smelters, which rely on immense baseload power to process chrome into ferrochrome for global steel production, have seen electricity costs skyrocket tenfold since 2008.This, alongside aggressive competition from Chinese producers, decimated local supply-side capacity, leaving only 11 of the country's 66 smelters operational.The structural unviability forced Merafe Resources to suspend production at its Boshoek, Wonderkop, and Lion smelters in May 2025.While NERSA's sweeping regulatory approval extends to the entire South African ferrochrome sector following joint negotiations by top producers Merafe and Samancor Chrome, the commercial rollout remains subject to power grid realities.Glencore-Merafe noted that it is still in ongoing discussions with state utility Eskom Holdings to finalize the specific terms and conditions of a negotiated price agreement.

Oil & Energy113d ago

Brazil's Petrobras Drops Diesel Distributor Prices

State-backed Petrobras (PBR) confirmed on Sunday a drop in its distributor diesel prices to 3.30 Brazilian reais ($0.65) per liter, effective June 1, from 3.65 reais.The wider policy framework is currently undergoing corporate evaluation by Petrobras' board to secure domestic supply and cap domestic volatility fueled by Middle East geopolitical disruptions.The company maintains that its ongoing commercial strategy aims to maximize local refining margins without directly transferring international crude oil volatility to the domestic market.

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Oil & Energy114d ago

EMEA Natural Gas Update: Futures Rise After Fresh US Strikes Against Iran Cast Doubt on Peace Deal

European natural gas futures were up on Monday, rebounding after a sharp decline over the past week, as US forces escalated their offensive against Iran, casting fresh uncertainty over a potential peace deal.The Dutch TTF front-month contract was up 4.89% at 48.250 euros ($56.25) per megawatt hour, while the UK NBP front-month contract rose 5.88% to 117.300 pence ($1.58) per therm.On Monday, US Centcom said that it had conducted "self-defense strikes" against Iranian radar, command and control sites for drones, located across the Goruk and Qeshm Islands.This comes despite US President Donald Trump's claims that Tehran "really wants to make a deal" in a Truth Social post over the week, noting that the outcome would also be good for the US.Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively closed for the 14th week running, with just 20 vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.While this marks an uptick in traffic relative to recent days, when it was stuck in the low-to-mid single digits, it is still significantly below the Strait's typical daily average of 138 during normal times.Daniel Hynes, a senior commodity strategist at ANZ, noted that Indian and Southeast Asian buyers were increasingly tapping the spot markets, to address growing energy needs during the Summer.This puts European markets in a tough spot, with gas inventories, at 40.09% of capacity, still below the prior year's 47.89%, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 54.1%, according to the Swiss Federal Office of Energy.This comes at a time when much of the continent is experiencing an unprecedented heatwave, with the continent "currently warming at roughly twice the global average rate," according to a report by Severe-Weather EU, leading to increased air conditioning demand.

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Oil & Energy113d ago