East Asia

According to tracking firms, three liquefied gas cargoes that were loaded in Qatar or the United Arab Emirates in recent weeks have been moved 'between' ships outside of the Strait of Hormuz for delivery to India and Japan. Since the U.S.-Israeli war against Iran began on February 28, several commercial vessels have been attacked amid increased tensions along the Strait of Hormuz, a major shipping route. The majority of LNG tankers who have successfully navigated the Strait have delivered their cargoes to the end-buyers. Ship-to-ship LNG transfers, unlike crude oil, are rare. According to Vortexa & Kpler, the LNG carrier...

Oil producers in the Americas, from Canada to Argentina have enjoyed a windfall by capturing market shares lost by Middle Eastern exporters during the Iran War. This renewed focus on global energy security could transform this crisis response into a long-lasting structural change. Since the Iran War and the closing of the Strait of Hormuz six months ago, which affected?roughly one fifth of global oil supply?, the production of oil in the Americas is now a viable option to the Middle East. This is a 'one of the most dramatic changes to the global energy scene in decades. The closure...

Six months after the U.S. vs. Iran war began, it has hardened into a stalemate which could last until 2027. Energy markets are held hostage and inflation is high, but neither side wants to or can back down. The war that has caused thousands of deaths and extensive damage in the Middle East has taken on a new face. It started on February 28, as a joint U.S. and Israeli effort to cripple Iran, aiming at eliminating Tehran's nuclear programs, weakening its proxy network, and possibly topple the Government. It has evolved into a more narrowly focused struggle centered on...

The Iran War has brought the oil refining sector to its knees, signaling that gasoline and diesel prices could remain high for many years. The global energy inflation shock will not be over until a deal is reached. Oil markets have adapted well to the sudden loss of a 5th?of the global crude supply from the Middle East due to the conflict. However, the refinery industry has had fewer options. The difference between the crude oil and fuel prices is telling. Brent crude oil, the benchmark price for all other crude oils, is around $90 per barrel. Although this is...

The LSEG preliminary data on Monday showed that Russia's exports grew by?11% from January to July compared with the corresponding period in the previous year. This was due to?supplies?from the Arctic LNG 2 Project. In the first seven months of this year, the same data shows that Arctic LNG 2 has supplied a total of 2.0 million tonnes. Total Russian LNG exports rose by 5% in July compared to the same period last year, to a total of?2.1million tons. Data also revealed that Russian LNG exports into Europe from January to July increased by 11% on an annual basis to?9.8...

The Iran war has triggered record oil refining earnings that are reviving the Big Oil business. Many investors had written it off. The sector is expected to deliver strong returns over the next few years. However, structural changes in oil demand will cause refining to lose its shine quickly. Refining is the least glamorous part of the oil industry, despite its critical role in the global supply chain. Western oil majors have been steadily retreating from the sector in the past 20 years, due to high operating costs, volatile margins, rising carbon costs, and increasing competition from state-backed refining companies...

Energy markets are stuck in a limbo of uncertainty that is not easy to get out. Buyers are increasingly worried about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military strikes against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are starting to avoid supplying a region which accounted for a fifth of the world's oil and LNG...

?China has been viewed as the main driver of future LNG demand by producers for years. This helped justify billions in investment infrastructure from?the U.S. Gulf Coast up to Qatar. China's appetite is waning for super-chilled fuel, even though producers are preparing a new wave of supply in the coming years. This could undermine the viability of future projects that rely on long-term needs of imports from Asia and Europe. The Iran 'war' has triggered a second global LNG supply crisis in four years, following Russia's invasion of Ukraine?in 2022. This is reinforcing China's push to prioritize domestic gas, pipeline...

Energy markets are stuck in a limbo of uncertainty that is not easy to escape. Buyers are increasingly concerned about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military attacks against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are also avoiding supplies from the region which accounted for about a fifth in global oil -and liquefied natural...

Europe is less vulnerable to disruptions in energy supplies since the Russia crisis of 2022, but the region still faces a new threat: high energy costs that are destroying the industrial base on the continent. Europe has fared relatively well so far in the global energy crunch caused by the Iran War that began on 28 February. This is largely due to massive investments made in LNG terminals, mandatory storage, and an increased reliance on U.S. Liquefied Natural Gas. The price of?gas in Europe has risen but the region is not yet in crisis mode, like it was after Russia...

The energy supply in Europe is alarmingly vulnerable as conflicts in the Middle East, Russia and the Middle East tighten the global markets for heating oil and liquefied gas. This has pushed inventories down to dangerously low levels. According to official statistics, natural gas and heating oil make up the majority of Europe's residential heating. Gas accounts for approximately 30% of heating demand, while heating oil makes up roughly 10%. Both fuel markets are likely to be under extreme strain in Europe after years of energy shocks. Gas vulnerability in the region is largely a result of a dramatic?transformation in...

Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan?to increase electricity consumption by 2040. The European Commission announced on Friday an Electrification Action Plan aiming to increase electricity's share in final energy consumption from 23% today to 48 % by 2040. An interim reference goal of 32 % by 2030 was set as an initial target. The strategy aims to accelerate electrification in transport, buildings, and industry. It also tackles one of Europe's largest energy paradoxes - electricity is often more...

According to?customs data?released?on?Tuesday, China's crude?imports were?down?23.4% from the same period a year earlier. Data showed that oil imports for August were 37.93 metric tons or 8.93 million barrels a day. China's crude oil imports from January to August?fell by 14.6%, reaching 320.9 million metric tonnes. China's?natural gas imports in August, including LNG, were 10.33 million tonnes, down 12.9% compared to a year ago. Natural gas imports in the first eight-month period were 78.23 millions tons, a 4.4% drop on an annual basis. Exports of China's refined oil products, such as gasoline, diesel, fuel oil, and kerosene, reached 6.01 million tonnes...

Four traders reported that the premiums for Russia’s Far East ESPO blend crude for delivery in November to China have risen to record levels as Chinese refiners increase their purchases amid shrinking Middle East and Iranian supplies. ESPO cargoes due to be delivered at the end October and November trade at a premium of over $7 a barr to ICE Brent. According to traders, offers have been heard up to a record-breaking plus $10 a barron on a shipped basis to China. Trading firms said that Sinopec, the state-owned Chinese refiner, was at the forefront of this buying spree, which...

According to Russia's Energy Minister Sergei Tsivilev, Vladimir Putin has renamed "Power of Baikal", the planned gas pipeline from Siberia to China. He didn't say if other aspects of the project were changed. Tsivilev said that the 'Power of Baikal' project, formerly called 'Power of Siberia 2 but named by Vladimir Vladimirovich Putin, was in its final stages of construction. It is estimated that the?2,600 km (1,616 miles) pipeline will carry 50 billion cubic meters (bcm), of gas to China each year from the Arctic gasfields of Yamal. The pipeline would be a complement to the existing Power of Siberia...

Yuri Ushakov, Kremlin's foreign policy adviser, said that the Russian president?Vladimir Putin would meet with Chinese President Xi Jinping?on a side-line?of??the Shanghai Cooperation Organisation summit?? in Bishkek?, Kyrgyzstan?s capital. Ushakov stated that the leaders will discuss the?planned 2,600-km (1.616-miles) Power of Siberia?2 system, which is expected to transport 50 billion cubic meters (bcm),?of gas a year?to China via Mongolia?from the Arctic Gasfields. Power of Siberia 2 is stalled because of price disagreements, and the pipeline talks have been going on for many years. Putin will also meet with Turkish President Tayyip Erdoan, and he is expected to discuss with him...

Russian traders are transferring Urals crude to very large crude carriers for delivery to Asia via ship-to ships, according traders and LSEG data. This practice is being revived by the stronger Chinese demand, higher freight costs, and increased Russian trade. China is expected to increase its imports of Russian crude oil as the Middle East's conflict causes disruptions in regional supplies. Russia delivers crude oil to China through pipelines that connect its oilfields to Chinese refiners, and via the Pacific port of Kozmino. During the summer, volumes are also transported from Russia's western port via the Red Sea or the...

Grid gridlock could stall the renewable energy transition * Many green energy plants cannot connect to an overloaded grid * Government plans major grid expansion over next decade By Kate Bartlett The President Cyril Ramaphosa launched the latest green energy projects last month. He called it part of a "clean-energy revolution" and a 155 megawatt wind farm located in Mpumalanga Province. He said that "electricity which is reliable, affordable and becoming increasingly clean is the 'lifeblood' of a growing economic system." South Africa plans to add 105 Gigawatts to its grid by 2039. This will include nuclear, wind, and solar...

Open Interest (ROI), every Friday, distills the previous five days' financial week into five charts that highlight the most important trends, surprises, and overlooked moves. 1. HORMUZ REALISTIC CHECK CLYDE RUSSEL, 'ROI Asia Commodities and Energy'?Columnist : Middle East crude exports, including?flows across the Strait of Hormuz?, have been depressed this summer, say commodity analysts Kpler. The data is in line with other vessel tracking companies but it stands in stark contrast to the claims made by U.S. Energy Sec. Chris Wright this week that 15 million barrels of crude oil per day were leaving the region. This includes 9...

Three?sources, citing data on shipping and trading, said that Russia's oil imports from western ports will fall in July due to repeated Ukrainian attacks?in the Black Sea. According to sources and calculations, the exports of 'Urals', 'KEBCO, and Siberian Light Crude from Russia’s Baltic ports Primorsk, Ust-Luga, and the Black Sea Port of Novorossiysk will total around 2.6 million barrels a day in July, down about 4 percent from June. As it struggles to maintain its crude output, Russia has tried to keep exports near records. However, refinery runs are still affected by the repeated drone attacks from Ukraine on...

Regional sources familiar with the matter said that Yemen's Houthi militia is considering charging fees to commercial ships navigating through the southern Red Sea a week after announcing a naval blockade against Saudi Arabia. The Iran-aligned Houthis declared a maritime boycott against Saudi Arabia on July 20th, opening up a "new" front against the U.S. Sources said that the Houthis are considering imposing fees for most traffic passing through the Bab el-Mandeb narrow gateway which connects the southern Red Sea to the Gulf of Aden. At this point, no timeframe for implementation was provided. The media office of the Houthis...

Europe faces a winter of alarming fragility in its energy supply as conflicts in the Middle East, Russia and the United States tighten the global markets for heating oil and liquefied gas. According to official statistics, heating oil and natural gas are the two main fuels used in Europe for residential heating. Gas accounts for approximately 30% of heating demand, while oil is responsible for 10%. Both fuel markets are under extreme strain after years of energy shocks. Gas vulnerability in the region is largely a result of the dramatic change in its energy mix that has occurred since Russia's...

Enagas, the Spanish gas grid operator, announced on Wednesday that it had agreed to purchase a 20% stake from 'Osaka Gas in eastern Spain's 'Saggas' regasification plant. It also reported first-half earnings, which it claimed kept it on track to meet its 2026 forecasts. The company announced that it would pay EUR31,000,000 ($35,000,000) for a stake in the Sagunto plant, located in the Valencia region. This plant has a storage capacity of 600,000.000 cubic meters and a regasification capability of 1.1 million normal cubic metres an hour. This is equal to 18% of Spain's total and 15% of its total....

UOB Private Bank (the wealth management arm of United Overseas Bank in Singapore) has appointed Judy Chan as managing director for Hong Kong. This appointment will take effect July 2026. The following is more information about the statement: Chan will report to Chew Mun Yew as the head of private banking for the group. She will oversee the local private banking team and lead the bank's work in Hong Kong with wealthy clients. Chan has over 30 years' experience in private and commercial banking. She has been in senior positions?managing teams, growing business?in key markets and advising on wealth planning...