Oil & Gas
GLOBAL oil markets remained under pressure this week despite reports of possible negotiations between the United States and Iran.
Industry analysts said Brent crude stayed above 105 dollars per barrel amid supply disruptions and worsening geopolitical tensions in the Middle East.
The International Energy Agency warned that oil markets could enter a “red zone” between July and August due to tightening supplies.
The report said OPEC+ members were expected to approve another increase in July production quotas despite disruptions around the Strait of Hormuz.
It noted that Gulf oil output had fallen sharply since the blockade of the strategic shipping route began.
The United Kingdom also suspended restrictions on diesel and jet fuel refined from Russian crude through countries including India and Turkey.
Analysts said the move reflected growing concerns over energy security and fuel shortages in Europe.
In Egypt, natural gas production dropped to its lowest level since 2011, worsening domestic shortages after reduced pipeline imports from Israel.
Japan’s utility giant JERA also moved to advance a new liquefied natural gas project in Hawaii to strengthen long-term supply security.
Nigeria’s Dangote refinery announced plans for a September initial public offering for its downstream operations.
Company President Aliko Dangote said the refinery had already attracted about two billion dollars in private investor interest.
Meanwhile, reports said Iran and Oman were discussing a permanent toll system for vessels passing through the Strait of Hormuz.
Analysts warned that any formal control arrangement could increase global energy market tensions and shipping costs.
The report added that major energy firms and governments were increasing investments in oil, gas and critical mineral projects.
Observers said markets were increasingly concerned about supply security, geopolitical instability and weakening economic conditions globally.(Oilprice.com)
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Tags: Energy Crises