Oil prices rose on Tuesday
** The stalemate in the war against Iran sent crude oil prices climbing again on Tuesday with Brent reaching $111 a barrel.
Iran peace offer not well received
** U.S. President Donald Trump is unhappy with the latest Iranian proposal on resolving the two-month war, a U.S. official said, dampening hopes for resolution of a conflict that has disrupted energy supplies, fueled inflation, and killed thousands.
UAE dumps OPEC and OPEC+
** The United Arab Emirates said on Tuesday it was quitting OPEC and OPEC+, dealing a heavy blow to the oil exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and unsettled the global economy.
Impact of oil supply
** Warnings are multiplying that the oil supply shock caused by the war in the Middle East is going to cause permanent changes in demand patterns. The longer the war continues, the higher the chances are of those changes materializing as lost barrels pile up. There is up to 1 billion barrels of oil in lost supply, “all but guaranteed”, Bloomberg reported last week, noting that demand is already being destroyed in Asia.
Airlines hit hard with fuel prices
** With jet fuel prices continuing to sit at highs unseen in years amid the ongoing closure of the Strait of Hormuz, dozens of airlines have reworked their summer schedules to axe flights bringing in insufficient numbers of passengers. Launched in 2021 with the goal of running low-cost transatlantic flights between European capitals and the United States, Norse Atlantic Airways has now become the latest to axe an entire market in response to the global oil crisis.
Ukraine drone hits LNG tanker
** A Russian liquefied natural gas tanker limped across the Mediterranean after a suspected Ukrainian drone strike ripped into its hull, leaving the vessel disabled, venting gas, and drifting without propulsion while maritime authorities scrambled to contain a crisis with no clear end in sight.
US Energy
** Commonwealth Fusion Systems revealed that it has formally filed a request with grid operator PJM to connect its planned power plant in Virginia. It’s the first time a fusion developer has filed one of these detailed requests to link to a major grid region, Commonwealth said.
** Shell’s $16.4 billion acquisition of Canadian oil and gas producer Arc Resources is seen as a move to bolster Shell’s access to supply for its expanding Canadian LNG business.
** The Interior Department is paying two more offshore wind developers to abandon leases in exchange for pledges to investment in U.S. oil and gas projects. The deals with BlackRock-based Bluepoint Wind and Golden State Wind total $885 million, and follow last month’s similar agreement with TotalEnergies.