Oil and gas news covering crude prices, drilling, OPEC, natural gas, refineries, and energy sector developments.
Incoming UK Prime Minister Andy Burnham will scrap the £1.8 billion digital ID programme when he takes office on Monday, redirecting funds to cost of living measures. The programme was a flagship policy of former PM Sir Keir Starmer.
Iraq signed 48 agreements with US companies during PM al-Zaidi's Washington visit, including oil and electricity deals with ExxonMobil, KBR, and Shell. A deal with Starlink will introduce satellite communications. Iraq and Syria agreed to reconstruct the Kirkuk-Baniyas pipeline, with Chevron reportedly executing the project and a US-led consortium handling technical aspects.
Iran rapidly exported about $6 billion worth of oil starting in late June after the U.S. lifted its blockade of Iranian ships for about 10 days. Approximately 20 Iranian tankers arrived off Malaysia's east coast, with analysts indicating the ultimate destination is China.
The commentary argues that the global oil market is better at absorbing shocks like the Strait of Hormuz disruption than commonly appreciated, citing high inventories, trade flow shifts, and improved oil efficiency. It contends that oil's reduced economic burden and demand adjustments have muted the impact, challenging stagflation fears.
Oil prices rose to $86.09 per barrel on Friday, up $1.45 from the previous day and about $16 higher than a year ago. The increase is driven by ongoing Middle East conflict fears, with the U.S. Strategic Petroleum Reserve available for temporary relief if needed.
The 3-2-1 crack spread, a key benchmark for U.S. refiner margins, reached record highs this week as fuel shortage concerns mounted. Low stockpiles and supply disruptions from escalating U.S.-Iran attacks drove the spike.
The United States welcomed a new agreement between Iraq and Syria to rehabilitate an oil pipeline from Kirkuk to Syria's Mediterranean coast, providing an alternative export route. The deal was signed at a U.S. Chamber of Commerce summit with Energy Secretary Chris Wright presiding. The pipeline has been offline since the 2003 U.S. invasion.
This commentary argues that record refining margins, driven by the ongoing Iran war, are a key factor behind rising U.S. gas prices. It suggests that while crude oil costs contribute, the bottleneck in refining capacity is exacerbating price increases for consumers.
The U.S. drilling rig count increased by 7 to 588 in the latest Baker Hughes survey, marking the 12th increase in 13 weeks. The oil rig count rose by seven to 452, with the Permian Basin adding three rigs to reach 259. Natural gas rigs held steady at 126.
Argentina, Brazil, and Guyana are benefiting financially from oil export booms as the Iran war disrupts Strait of Hormuz supply. The IMF raised Brazil's 2026 growth forecast by 0.5%, and Argentina paid down $4.3 billion in debt with inflation slowing.