Latest news with #Opec+
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Business Standard
11 hours ago
- Business
- Business Standard
Russia increases seaborne fuel oil exports to India, Turkey in May
Oil prices fell to four-year lows as an Opec+ decision to expedite its output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain Reuters MOSCOW Russia increased seaborne fuel oil and vacuum gasoil exports to India and Turkey in May as falling oil product prices attracted buyers, while the hot summer season required more fuel for energy production, trade and shipping data showed. Oil prices fell to four-year lows as an Opec+ decision to expedite its output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain. Since the European Union's full embargo on Russian oil products went into effect in February 2023, Asian countries have become the main destination for Russia's fuel oil and VGO supplies. According to LSEG data, dirty oil products loadings from Russian ports to India almost doubled last month from April to 0.6 million metric tons. India imports straight-run fuel oil and VGO from Russia as a cheaper alternative to Urals crude oil in its refinery feedstock pool. Meanwhile, India's Reliance Industries and Nayara Energy imported 37% and 3% less Russian oil last month, respectively, than in April. Russia's seaborne fuel oil and vacuum gasoil exports to Turkey rose 75% month-on-month in May to 0.43 million tons, shipping data shows. Saudi Arabia was the main importer of Russian seaborne fuel oil last month, though loadings fell 17% from April to 0.7 million tons. The country has turned to importing more discounted Russian fuel oil for summer since 2023 as its prices declined following an EU embargo on the import of oil products from Russia. Singapore and China were also among the other top destinations for Russian fuel oil and VGO export supplies in May, according to LSEG data. Meanwhile, Russia's fuel oil supplies to Asia via the African Cape of Good Hope fell in May to around 85,000 tons, the lowest level since the start of the year. Traders have been diverting Russian oil products cargoes around Africa since December 2023 to avoid the Red Sea due to a heightened risk of attacks by Yemen's Iran-aligned Houthi group. The escalation of military strikes between Iran and Israel could also force shipowners to avoid the Red Sea routes on their way to Asian countries. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Times
4 days ago
- Business
- Business Times
Opec sees solid second-half of 2025 for world economy, trims 2026 supply
[LONDON] Opec on Monday (Jun 16) said it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider Opec+ group in 2026. In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns. Opec also said supply from countries outside the Declaration of Cooperation – the formal name for Opec+ – will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast. Lower supply growth from outside Opec+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for Opec+ to balance the market. Rapid growth from US shale and from other countries has weighed on prices in recent years. REUTERS
New Straits Times
4 days ago
- Automotive
- New Straits Times
Asean a key hub for future energy demand: Opec chief
Syakirah Nor, Faiqah Kamaruddin, Amalia Azmi KUALA LUMPUR: As global energy transitions accelerate, Asean emerges as a critical hub for shaping the future of energy demand and sustainability, according to Opec secretary general Haitham Al Ghais. At the Energy Asia 2025 here on Monday, Haitham addressed the complex interplay between energy security, affordability and sustainability, emphasising the region's pivotal role in global energy dynamics. He underscored the need for significant investment in the oil sector to ensure a reliable energy supply while meeting growing demand. "One of the key issues that I keep repeating, and Opec's position has been very clear upon, is investments. "Sustainability and continuous flow of investments in energy systems overall - and for us, particularly in oil - are critical," he said. Opec, he said, had forecast a staggering US$17.4 trillion investment requirement for the oil industry by 2050, translating to about US$640 billion annually. "This investment spans the upstream, downstream and midstream sectors, which must be viewed as an integrated value chain," he added. Despite global momentum toward renewables, Haitham highlighted that oil remains indispensable to daily life, representing 30 per cent of the global energy mix. Asia's Rising Energy Needs The Asean region, with its rapidly growing population and urbanisation rates, is at the forefront of global energy demand with Opec projecting that Asia will account for 70 per cent of energy growth by 2050, with half the world's energy consumption taking place in the region. "Asia will add over 800 million vehicles to the car fleet by 2050. While one third of the portion will be electric vehicles (EVs), the internal combustion engine will continue to play a role," he noted. He further highlighted that urbanisation across the globe will create unprecedented energy demands. "From now to 2030, around half a billion people will move into new cities, equating to the creation of 50 new cities the size of Kuala Lumpur in just five years," he explained. "Imagine what that means for energy requirements." Opec-Asean Pact Haitham pointed to the enduring collaboration between Opec member countries and Asean nations, including Malaysia's role in the Opec+ framework since 2017. "Opec member countries, being exporters of energy, and Asean countries, being importers of energy, create a recipe for good future collaboration," he said. He acknowledged Malaysia's leadership as Asean chair in fostering partnerships, adding that "stability in energy markets creates an environment conducive to investments, and we look forward to working with Asean countries like Singapore and others to strengthen collaboration." Balanced Transition to Sustainability While advocating for the transition to cleaner energy, Haitham stressed the need for a balanced approach that doesn't compromise energy security or affordability. "The Paris Agreement is about reducing emissions from all sources, not choosing one energy type over another. Renewables alone will not meet the world's needs," he said. He cited renewable energy initiatives led by Opec member nations, including Saudi Arabia's goal to source 50 per cent of its electricity from renewables by 2030, and the UAE's investment in nuclear and solar projects. Multi-dimensional Energy Future Opec, said Haitham, advocates for an "all-energy" approach to meet the increasing energy demands of a growing global population, particularly in Asia. "Our estimates are that global primary energy demand will grow by 24 per cent by 2050, with Asia accounting for the fastest growth globally. "There is no single pathway for energy transition. We need all forms of energy and technologies working together to reduce emissions while meeting demand," he added.
Business Times
11-06-2025
- Business
- Business Times
Oil prices jumps 4% to 2-month high as tensions rise in Middle East
[NEW YORK] Oil prices rose more than 4 per cent on Wednesday, to their highest in more than two months, after sources said the US was preparing to evacuate its Iraqi embassy due to heightened security concerns in the Middle East. Brent crude futures settled US$2.90, or 4.34 per cent, higher to US$69.77 a barrel. US West Texas Intermediate crude gained US$3.17, or 4.88 per cent, to US$68.15. Both Brent and WTI reached their highest since early April. Surprised traders bought crude futures on reports the US was preparing to evacuate its embassy in Iraq, Opec's No. 2 crude producer after Saudi Arabia. A US official said military dependents could also leave Bahrain. 'The market wasn't expecting this big geopolitical risk,' said Phil Flynn, analyst at Price Futures Group. Earlier, Iran's Minister of Defense Aziz Nasirzadeh said Tehran will strike US bases in the region if nuclear talks fail and conflict arises with Washington. Trump said he was less confident that Iran would agree to stop uranium enrichment in a nuclear deal with Washington, according to an interview released on Wednesday. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Ongoing tension with Iran means its oil supplies are likely to remain curtailed by sanctions. Supplies will still increase, as Opec+ plans to boost oil production by 411,000 barrels per day in July as it looks to unwind production cuts for a fourth straight month. 'Greater oil demand within Opec+ economies – most notably Saudi Arabia – could offset additional supply from the group over the coming months and support oil prices,' said Capital Economics' analyst Hamad Hussain in a note. Also keeping prices elevated was news of a trade deal between the US and China, which could boost energy demand in the world's two biggest economies. Trump said Beijing would supply magnets and rare earth minerals and the US will allow Chinese students in its colleges and universities. Trump added the deal is subject to final approval by him and President Xi Jinping. The trade-related downside risk in oil has been temporarily removed, although the market reaction has been tepid as it is not clear how economic growth and global oil demand will be affected, PVM analyst Tamas Varga said. In the US, crude inventories fell by 3.6 million barrels to 432.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a draw of 2 million barrels. 'It's a bullish report,' said Bob Yawger, director of energy futures at Mizuho, adding that the demand for motor gasoline began to strengthen. Product supplied for motor petrol, a proxy for demand, rose by about 907,000 barrels per day last week, to 9.17 million bpd. US consumer prices increased only marginally in May, deepening the conviction in financial markets that the Federal Reserve will start cutting interest rates by September. Lower interest rates can spur economic growth and demand for oil. REUTERS
Business Times
10-06-2025
- Business
- Business Times
Oil demand growth to continue, no peak in sight, Opec Secretary General says
[CALGARY] Oil demand growth will remain robust over the next two and a half decades as the world population grows, Opec Secretary General Haitham Al Ghais said on Tuesday. The organization expects a 24 per cent increase in the world's energy needs between now and 2050, with oil demand surpassing 120 million barrels per day over that time period. That estimate is in line with the group's 2024 World Oil Outlook. 'There is no peak in oil demand on the horizon,' Al Ghais said, speaking at the Global Energy Show in Calgary, Alberta. He said Opec admired what Canada's oil industry has done to increase its oil output in recent years. Canada achieved record oil production in 2024, as the completion of the Trans Mountain pipeline expansion boosted the ability of oil companies to get their product to market. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Danielle Smith, premier of Canada's main oil-producing province of Alberta, has spoken of her desire to double the province's oil and gas output by 2050. Al Ghais said Opec has been consistent in warning of the dangers of inadequate global investment in oil and gas, given its forecast for demand growth. He said failing to invest enough capital to meet projected demand growth risks undermining energy security and causing volatility for both producers and consumers, and added Opec believes there is a need for US$17.4 trillion in capital investment in the global energy sector over the next 25 years. Opec+ is unwinding its output cuts at a faster pace than originally anticipated, lifting production by 411,000 barrels per day for May, June and July. The increases, along with concerns that US President Donald Trump's trade war will weaken the global economy, have pressured oil prices in recent months. Global Brent futures settled at US$66.87 a barrel on Tuesday. The US Energy Information Administration (EIA) on Tuesday said it expected Brent oil prices to fall near US$60 a barrel by the end of the year and average US$59 a barrel next year, hitting US oil production. Al Ghais on Tuesday also said Opec welcomed recent pushback against what he referred to as unrealistic climate goals that are overly focused on meeting specific deadlines. He said there is a need for countries to reduce emissions but stressed that should not mean picking and choosing between energy sources. He said instead governments and companies should be looking for ways to reduce emissions from oil and gas through technologies such as carbon capture and storage. REUTERS
