North Asia

The price of Asian spot LNG (liquefied natural gases) fell this week due to a combination of factors: a weak demand, a rising supply, and an abundance in inventories. Meanwhile, the risk premiums were reduced by reducing the ceasefire between Israel & Iran. Average LNG price for August deliveries into North-east Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) was $12.70, down from $13.10/mmBtu in the previous week. The market was under pressure from a combination of factors, including the rising Pacific supply, the high LNG stocks in China and South Korea and the weak...

The price of Asian LNG spot fell from its four-month peak this week, as the threat of a supply disruption was reduced by a ceasefire agreement between Israel and Iran. Average LNG price for August deliveries into North-East Asia According to industry sources, the price was $13,10 per million British Thermal Units (mmBtu), a drop from $14.00/mmBtu a week ago. This was the highest rate since February 21. "We have a slightly negative outlook for Asian prices (which is stable)." "A sustained Iran-Israel truce would reduce geopolitical risks, and refocus on the weak demand in China, South Korea, and Japan,"...

Shiptracking data from LSEG/Kpler revealed that a liquefied gas vessel named Iris, sanctioned by America, was docked at Russia's Arctic Gas 2 plant on Friday. Kpler data shows that if the vessel takes gas, this would be the ninth LNG cargo offloaded from Arctic LNG 2 Project. The Arctic Metagaz vessel picked up the last shipment on October 5. The U.S. State Department imposed sanctions in October on owners and managers registered of several LNG ships, including Iris (formerly known as North Sky). According to Equasis, the shipping database, Iris changed its commercial or ship manager to Elegest OOO on...

Interfax reported that Sovcomflot, a tanker company from Russia, said on Wednesday that the first Russian-built ice class tanker for liquefied gas will be in operation at Arctic LNG 2. The international sanctions against Ukraine have caused a shortage in Russia of tankers that can cut thick ice. This has prevented Arctic LNG 2 from being able to export cargo since the plant's first stage began operating at the end 2023. The tanker named Alexey Kosygin, after a Soviet stateman, was constructed at the Zvezda Shipyard. It will join the fleet for the Arctic LNG 2 Plant. The final stage...

Fears of Middle East oil disruption after US strikes on Iran Iran has attempted to blockade the Strait of Hormuz in the past. US Navy is likely to respond quickly in the event of disruptions Ron Bousso LONDON, 22 June - The U.S. strikes against several Iranian nuclear sites are a significant escalation in the Middle East conflict. This could cause Tehran to disrupt essential exports of gas and oil from the region, causing a spike in energy prices. History tells us, however, that any disruption will likely be brief. Since Israel launched surprise airstrikes on Iran on June 13...

This week, Asian spot LNG prices reached their highest level in the past four months due to concerns about disruptions of supply caused by the Israel-Iran war. Average LNG price for August deliveries into North-east Asia According to industry sources, the price of gas was $14.00 per million British Thermal Units (mmBtu), an increase of 11% over $12.60/mmBtu from last week. This is also the highest since February 21. Israel launched an attack on Iran last Friday after claiming that Tehran was close to developing nuclear weapons. Iran, which claims its nuclear program is for peaceful purposes only, responded with...

The conflict between Israel and Iran has increased global diesel prices. Gains have outstripped the increase in crude oil prices. This highlights the vulnerability of Europe's diesel-heavy consumers, even though the refiners are rewarded. Benchmark Brent crude has risen 10% to more than $76 per barrel since the Israel-Iran War began on June 13. This reflects investor concerns over a potential disruption in supply, especially issues related to Strait of Hormuz – a narrow waterway that connects Iran and Oman and through which a fifth of crude oil and refined petroleum products pass. The speculation that U.S. president Donald Trump...

Section 899 proposes a tax of up to 20% on the income of foreign investors The proposal is included in President Trump's tax bill signature The tax could have a major impact on the profits of European oil giants Ron Bousso LONDON, 12 June - A proposed U.S. Tax targeting foreign investors may hurt European Energy Giants that operate in America’s booming Oil and Gas Sector, undermining President Donald Trump’s energy dominance agenda. The Senate is reviewing Trump's tax and spending plan, which includes an extra tax of up 20% on the incomes of foreign investors such as dividends or...

Trump Administration seeks license for ethane imports to China China is responsible for 46% US ethane imports Plastics are made from ethane Ron Bousso LONDON, 6th June - The Trump Administration's latest attempts to curb U.S. exports of petrochemicals to China may end up harming the U.S. economy just as much or even more than China. The boom in plastics feedstocks between the two world's largest economies is an excellent example of how a global, dynamic trading system can benefit both parties. The U.S. ethane industry has grown rapidly in recent years. This excess production was met by an expansion...

Mitsui O.S.K. Lines (MOL), Japan's second largest shipping company, is looking to capitalize on the opportunities created by a shift in routes due to new U.S. Tariffs, said CEO Takeshi Hashimoto. The U.S.'s highest tariffs in over a century came into effect on Wednesday, shaking the global markets. Hashimoto said in an interview with Reuters on Tuesday that "Trade routes are bound to be reshuffled". He said that we'd likely see an increase in trade with low-tariff nations and a decline from high-tariff countries. Some cargos might be rerouted to Mexico or Canada where tariffs are lower. MOL will monitor...

Asian spot melted gas (LNG) rates increased today to their greatest level of the year so far, tracking gains in European gas and amidst colder temperatures in both regions. The average LNG rate for January shipment into northeast Asia rose to $14.60 per million British thermal systems ( mmBtu), market sources estimated. Today's more escalations in between Russia and Ukraine have returned a high danger premium to European gas and by default Asia's JKM market, regardless of actual gas products being continuous, said Florence Schmit, energy strategist at Rabobank London, of the Asian Japan-Korea-Marker benchmark. European benchmark gas costs at...

A tanker bring freight from Russia's Arctic LNG 2 has actually gone through the Northern Sea Path for the very first time and approached a gas hub, according to LSEG shiptracking data, in the latest sign that Russia's energy exports are flowing despite Western sanctions. According to the data, the Everest Energy tanker, which was put under U.S. sanctions last month, was seen around 100 kilometres (around 50 nautical miles) off the Koryak floating storage center in Russia's far east. The system is designed to assist in Russian LNG exports to Asia, however the final destination for the freight has...

Their governments reported that the leaders of Armenian and Azerbaijan had substantive talks on Thursday in Abu Dhabi, which amounted to their most serious direct discussions yet in an effort to end nearly four decades of conflict. In March, the two sides announced that they had reached an agreement on a draft of a peace accord. However, progress has been slow and sporadic since then. The first official meeting between the Azerbaijani president Ilham Aliyev and Armenian prime minister Nikol Pashinyan in the capital city of the United Arab Emirates was the first since the leaders approved the draft. The...

According to a decree issued by the Russian president, Vladimir Putin, his transport minister was fired on Monday. Roman Starovoit had been in his position for just over a month. Starovoit was abruptly dismissed without explanation. After almost five years of serving as the governor of Russia's west Kursk region, he was appointed Transport Minister in May 2024. Few months after leaving this role, Ukrainian forces spilled across the border to Kursk when Kyiv launched their The biggest incursion Since the beginning of the war, in 2022. Vitaly Savelyev was Starovoit’s predecessor in the role of transport minister. He became...

The U.N. nuclear watchdog reported that all external power lines supplying Zaporizhzhia Nuclear Power Plant, which is occupied by Russia, were down Friday. Ukraine blamed Russian artillery for the destruction of the last powerline. The International Atomic Energy Agency reported that Europe's largest nuclear power plant is now running on diesel generators. It has not been operating, but it still needs power to cool its nuclear fuel. IAEA warned repeatedly of the danger of a catastrophic incident at Zaporizhzhia. This is a city located near the frontline of the Ukraine war. The six reactors have been shut down but the...

Three traders on the Urals crude oil market reported that discounts for Russian's flagship Urals crude for delivery to Indian ports in August have decreased to their lowest levels since 2022 due to high demand and a shrinking supply. Traders said that the lower supply and narrowing discounts of Russian spot barrels will force Indian refiners into looking for alternatives like United Arab Emirates Murban or U.S. West Texas Intermediate grades. The shrinking discount shows that Moscow has managed to maintain its oil sales despite Western sanctions. However, its discounted oil becomes more expensive, even though it is still cheaper...

LSEG data and traders reported that Russian Urals oil supplied to Turkey's STAR refining facility, controlled by Azerbaijan SOCAR in June, reached a record high of 800,000 metric tonnes (about 195,000 barallons per day). STAR has a capacity exceeding 200,000 bpd, making it the largest refinery in Turkey. SOCAR and Russia's Lukoil signed a long-term contract in 2023 for oil supplies. Traders said that the STAR refinery receives the majority of its crude oil from Lukoil. SOCAR did not immediately respond to an inquiry for comment. LSEG data shows that Turkey increased its purchases of Urals Oil in June to...

Ukrainian officials reported on Thursday that a Russian airstrike in Odesa, a southern Black Sea port, on Wednesday killed two people, and injured six others, including two foreigners. Odesa is the hub of Ukraine's seaports, and 90% of its exports to foreign markets are sent through it. This includes millions of tonnes each of metals and grain. "Today an Iskander rocket hit one of the docks at the Odesa port." On Telegram, Oleksiy Kuleba, the deputy prime minister of Ukraine, said that people were unloading metals from a foreign ship flying the flags of Sao Tome and Principe at the...

Ireneusz Fafara, the chief executive of Orlen's Czech refinery, said that after June 30th, it will no longer purchase Russian oil. Orlen said that the contract with Rosneft to supply Russian oil to the Litvinov Refinery in Czech Republic is the last contract linking it to Russian oil. Fafara said at a press conference that "we freed Central Europe today from Russian oil." In April, the Czech Republic announced that it was becoming Fully independent The completion of the capacity upgrades of the TAL pipeline from the west has resulted in the first time ever that Russia will be able...

Calculations based on two sources indicate that Russia's daily oil output from its western ports is expected to be 1.93 million barrels a day in July. This is a slight decrease from the plan for June, due to an anticipated increase in refinery runs. Daily oil loadings in Russia from Primorsk and Novorossiisk, as well as from Kazakhstan's KEBCO, and Siberian Light grades of oil, will decrease by 3% from this month. According to calculations based upon data from industry sources, the offline primary oil refinery capacity of Russia is expected to fall by 3.7% from June to 3,21 million...

A document published on Friday revealed that Germany may change its foreign trade laws to prevent the Nord Stream 2 company from being takenover. This is part of Berlin’s efforts to stop any resumption in Russian gas imports. Since the beginning of the Ukraine conflict, Germany has been looking for alternatives to cheap Russian gas. The German Chancellor Friedrich Merz said he would ensure that Nord Stream 2, a project the country had once backed, wouldn't go into operation. However, the country currently has no legal way to stop the sale of assets owned by Russian giant Gazprom. The Nord...

Two industry sources said that Kazakhstan's Tengizchevroil exported 100,000 metric tonnes of oil to Germany via Russia's Druzhba pipe last month, as it ramped up production. TCO is 50% owned by Chevron, 25% by ExxonMobil, 20% KazMunayGaz, and 5% Lukoil. Tengiz is the largest oilfield in Kazakhstan. The consortium declined comment. The Caspian Pipeline Consortium is Kazakhstan's primary oil export channel. It ships around 80% via Russia's Black Sea Terminal. The world's biggest landlocked country, however, is trying to diversify its routes of export. Chevron announced in January that it had started a $48 billion expansion at Tengiz. This is...

Tanjug News Agency reported that the United States had postponed its sanctions against NIS, a Russian-owned Serbian Oil Company for a forth time. NIS has secured three waivers so far, with the last expiring later this Friday. NIS, which has a majority ownership by Russia's Gazprom and Gazprom in Pancevo (just outside Belgrade), operates Serbia's sole oil refinery. The plant has a capacity of 4.8 millions tons per year and can meet the majority of Serbia's oil needs. The sanctions could threaten its crude oil supplies. The Office of Foreign Assets Control of the U.S. Treasury placed initial sanctions on...

Transneft, Russia's oil pipeline monopoly, has seen its oil flow continue to fall this year despite the OPEC+ agreement and technological challenges. This was confirmed by Maxim Grishanin on Friday. He also stated that due to the decline in turnover, the revenues would not reach the level typical of the last 10 years until 2030. Transneft, which operates 67,000-kilometre-long (42,000-mile) oil pipeline network, handles more than 80% of all the oil produced in Russia. Transneft CEO Nikolai Tokarev stated that the company will ship 447 million metric tonnes (around 8,94 million barrels of oil per day) in 2024. This includes...