Oil Prices Surge Amid Concerns of Tight Supply and Strengthening US Dollar
Oil prices are facing pressure as the U.S. dollar strengthens and concerns about higher interest rates weigh on demand expectations. The International Energy Agency (IEA) has softened its stance on upstream projects in its latest Net Zero Roadmap, calling for no new long-lead-time upstream projects. The IEA also highlighted the lagging production of biofuels, which would need to triple its growth rate to meet the 2050 net zero target. Chevron expects to add 65,000 b/d of crude production in Venezuela by the end of next year. Russia has eased its export ban, exempting certain bunkering fuels and high-sulfur gasoils. Canada's Trans Mountain Corporation has avoided further delays after receiving approval for an updated pipeline plan. Shale pioneer Harold Hamm has called for policy consistency in U.S. energy policy. A refinery blast in Iran has caused one death and injured four workers. The Biden administration reaffirmed its commitment to offshore wind projects. Uruguay is finalizing seven new offshore exploration licenses, attracting major companies like Shell and APA. China continues to face coal-related incidents, with another coal mine collapse leading to suspended production. The EU has agreed on new emission rules, labeled "Euro 7," to advance the ban on carbon-emitting vehicles by 2035. Iron ore prices slumped due to weaker steel consumption in China. Tanker congestion at the Panama Canal has driven VLGC freight rates to multi-year highs. Indonesia launched its own carbon emission trading mechanism to reduce coal usage and achieve net zero by 2060.