Oil jumps up
** Oil prices advanced around 2% after U.S. President Donald Trump said he and Chinese President Xi Jinping agreed that Iran must not obtain nuclear weapons, while market concerns persisted over attacks and seizures involving ships near the Strait of Hormuz despite Tehran reporting increased maritime traffic through the waterway.
Oil inventories slip
** The IEA said global oil inventories fell by 250 million barrels over March and April as supply losses mounted. Restricted tanker traffic through the Strait of Hormuz has shut in more than 14 million barrels a day of oil.
Oil expansion in Venezuela
** International oil majors, including Shell, BP, Repsol, and Eni are rapidly expanding in Venezuela. Venezuela’s oil exports surged to 1.23 million barrels per day in April — the highest level in more than seven years — as shipments to the U.S., India, and Europe rebounded sharply.
New UAE pipeline
** The UAE said Friday it’s accelerating construction of a major oil pipeline that will double its export capacity through the port of Fujairah. It’s a major signal that Persian Gulf producers will seek to lower their exposure to the Strait of Hormuz. The UAE’s existing Habshan-Fujairah pipeline can carry 1.5 to 1.8 million barrels daily, per multiple reports.
US Energy
** Middle East supply disruptions and Hormuz tensions are pushing major oil companies back toward politically stable regions like Alaska, reviving interest in projects once seen as too costly or unattractive. Exxon, Shell, and Repsol placed record bids in Alaska’s latest lease sale, while projects like Willow and Pikka are expected to help reverse Alaska’s long-term production decline.
** Republican U.S. Sen John Cornyn of Texas partners with Democratic U.S. Sen. John Fetterman on a bill to block future presidential administrations from halting new liquefied natural gas export terminals.
** Public advocates from five New England states file a legal challenge against Eversource’s plan to rebuild 49 miles of transmission line in New Hampshire, arguing that the utility misclassified the project in an attempt to avoid more rigorous regulatory oversight.
** PJM, the largest grid operator in the U.S., faces a “serious legitimacy crisis,” amid faltering confidence in its governance and ability to respond to current conditions, says Federal Energy Regulatory Commission Chairman Laura Swett.
** EPA plans to weaken limits on wastewater discharges — which include toxic metals — from coal-fired power plants.