Oil prices have stopped rallying as a ceasefire agreement between Israel and Hamas could lead to the end of the Houthi bombardments of the Red Sea, but prices are still set to end the week with a gain.
The recent relentless oil price rally that saw Brent break $82 appears to have slowed, but backwardation continues to expand in both Dubai and Brent futures. A potential de-escalation between Israel and Hamas, leading to the Houthis ending their maritime warfare in the Red Sea, could bring flat prices lower from next week onwards, but this week remains firmly in bullish territory.
BP Pledges Massive Layoffs and Cost-Cutting. Embattled UK oil major BP (NYSE:BP) confirmed this week that it would cut 5% of its global workforce, reducing headcount by around 4,700 positions, citing the need to simplify and refocus the company after some 30 projects were halted since June last year.
The Ouster of Libya’s Top Oil Executive Raises Disruption Risks. According to media reports, the head of Libya’s National Oil Corporation Farhat Bengdara has left his post after three years at the helm of the state oil firm, blighted by repeated shutdowns, militia interference and haggling over revenue allocation.
US Subsidizes Utilities’ Infrastructure Buildout. The US Energy Department announced $22.92 billion in financing for utility companies across 12 states to develop ageing grid infrastructure, most notably two Detroit-based firms that received $8.8 billion to reduce gas leaks and add renewable capacity.
Canada Threatens Tariffs on Critical Minerals. Canada’s Energy and Natural Resources Minister Jonathan Wilkinson could include critical minerals in its list of potential US retaliatory tariffs, potentially imposing countermeasures on up to $105 billion worth of trade.
Secretary Rubio Eyes Venezuela Sanction Snapback. Donald Trump’s Secretary of State nominee Marco Rubio stated at his confirmation hearing that the US will need to re-examine the 2022 sanctions waiver that enabled Chevron (NYSE:CVX) to expand operations in Venezuela, producing some 200,000 b/d.
Chevron’s Namibia Wells Disappoint Again. Failing to expand on the success of TotalEnergies’ (NYSE:TTE) multi-billion Venus prospect, US oil major Chevron (NYSE:CVX) stated it did not discover any commercial hydrocarbon reserves with its Kapana-1X exploration well in Namibia’s Orange Basin.
Singapore Bunker Sales Boom in 2024. The world’s largest bunkering hub in Singapore posted record-beating numbers in 2024 as Houthi attacks in the Red Sea have buoyed Asia’s bunkering demand even further with sales totalling 54.92 million metric tonnes, up 6% compared to 2023.
Asian Freight Rates Spiral Out of Control. Freight rates for giant VLCC tankers soared on the back of the US crackdown on Russia’s shadow fleet, with rates on the Persian Gulf-China route rising by 53% since the beginning of the year at $15 per metric tonne as Asian refiners scramble for available oil.
Saudi Oil Firms Seek Lithium Expansion. Saudi Arabia unveiled a new mining partnership that would see oil giant Saudi Aramco (TADAWUL:2222) team up with mining firm Ma’aden in a bid to extract lithium, building on a 2024 breakthrough in extracting lithium directly from oilfield brine in Aramco-run fields.
Mining Giants Mull Biggest Ever M&A Deal. Catching the mining universe by surprise, two of the world’s largest miners, Rio Tinto (NYSE:RIO) and Glencore (LON:GLEN), were reported to be in early-stage merger talks, potentially marking the biggest ever mining M&A deal with a market value of $158 billion.
Mexico Promises to Settle Debt with Drillers Soon. Mexico’s President Claudia Sheinbaum promised that the arrears of state oil firm Pemex vis-à-vis oil service companies, assessed around $5.1 billion, will be paid off in March, potentially lifting the upstream capex freeze currently in place.
Iran Ready to Sign Nuclear Pact with Russia. Iran’s President travelled to Moscow to sign an extended partnership pact with Russia, finalizing commercial terms on the construction of a new nuclear power plant in Iran, potentially the fourth nuclear object to be developed by Russia’s Rosatom.
Azerbaijan Turns Fashionable Again. US oil giants ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) have revisited their stance towards Azerbaijan, with the former no longer selling its stake in the Azeri-Chirag-Guneshli fields and the former holding talks with state oil firm SOCAR to use its Baku-Supsa pipeline.
