OPEC Cuts Short-Term Growth, Boosts the Future. In its 2025 World Oil Outlook, OPEC boosted its global demand outlook as the oil group expects consumption to reach 122.9 million b/d by 2050, adding more than 19 million b/d over the next 25 years, banking on Indian, African and Middle Eastern growth.
UAE Flexes Production Capacity Muscle. Speaking at OPEC’s summer seminar in Vienna, UAE energy minister Suhail al-Mazrouei said that the Middle Eastern country could be producing 6 million b/d of crude by 2027 if required, almost double its current levels as OPEC+ unwinds its voluntary cuts.
EU Pitches Idea of Floating Russia Cap. After the EU’s initial suggestion to lower Russia’s oil price cap from $60 per barrel to $45 per barrel failed to garner the support of US President Trump, the European Commission now proposed having a floating Russian oil price cap, adjusted depending on global prices.
Tariffs Set Up Coffee for a Megarally. The Trump administration’s planned 50% tariff on Brazilian goods (despite having a $7.4 billion trade surplus) would most probably trigger a steep rally in US coffee prices, currently trading at $2.84 per futures contract, as Brazil currently accounts for 35% of US imports.
Puerto Rico LNG Deals Are Hard to Get. US LNG developer New Fortress Energy (NASDAQ:NFE) has been on a rollercoaster ride lately after its 15-year term LNG deal to supply Puerto Rico initially lifted its stock, only to collapse after the island’s regulatory watchdog halted the deal over monopoly concerns.
Houthis Send Tanker Insurance Soaring. The insurance costs of shipping goods through the Red Sea have more than doubled since the beginning of this week, as Houthi attacks sank two Greek-owned bulkers, with war risk premiums now assessed at 0.7% of the value of the ship, up from 0.3% a week ago.
Gunvor Shuts Rotterdam Refinery. Global commodity trader Gunvor has decided to halt all terminal activities at the Europoort oil refinery in Rotterdam, Netherlands, seven months after it mothballed the processing units at the 80,000 b/d plant, formerly owned by Kuwait’s national oil company KPC.
Saudi Eyes More US LNG Deals. Saudi Arabia’s national oil firm Saudi Aramco (TADAWUL:2222) is reportedly in talks with US LNG developer Commonwealth LNG to secure 2 million tonnes of LNG per year from its planned facility in Cameron, LA, whilst also assessing the Delfin LNG and Lake Charles LNG projects.
Mars Prices Shrink on Metal Contamination. Differentials of US medium sour benchmark Mars, the largest oil stream in the Gulf of America, sank to a $0.10 per barrel discount to WTI after reports of zinc contamination in the crude, with the corrosive metal making it harder for refiners to run it.
China Doubles Down on Saudi Oil. Chinese refiners are maximizing imports of Saudi barrels, nominating 51 million barrels of August-loading cargoes and marking the highest monthly request since April 2023, despite Saudi Aramco hiking next month’s formula prices by more than $1 per barrel.
Credit: Oilprice.com
