The Biden Administration’s final sanctions on Russian oil trade were the most aggressive yet and sanctioned dozens of vessels that Russia used to ship the ESPO crude blend from its Far East port of Kozmino to China’s independent refiners.
Chinese state-held oil and gas giant CNOOC is keeping its capital expenditure flat this year compared to 2024 as it lowered its oil and gas production growth target, although it still expects annual output records going forward.
Germany, which in 2023 closed all its remaining nuclear power plants – is now seeking to balance the generation and transmission systems with new gas power plants. But deadlines and timelines are being missed, and a new government is expected after the snap elections in late February.
Asian spot LNG prices have risen in the winter period, but not enough to keep a wide enough premium to Europe’s benchmark prices to incentivize selling U.S. cargoes to Asia, according to shipping data and analysts.
Analysts at Wall Street bank Citigroup have predicted that oil prices will remain elevated in 2025 thanks to U.S. sanctions on oil exports, logistical challenges and strategic policy decisions by major producers and governments. Citigroup notes that Over 180 vessels, integral to transporting Russian crude, are now restricted. Two weks ago, the Biden administration issued sanctions against Russian crude, and targeted Surgutneftgas and Gazprom Neft, two firms that handle 25% of Russian oil exports. The two companies shipped an average of 970,000 bbls per day in 2024. Earlier, Citigroup issued a Brent crude average price target of $67 per barrel for 2025, well below current price at $79.10.
The American Petroleum Institute (API) estimated that crude oil inventories in the United increased by 1 million barrels for the week ending January 17. Analysts surveyed by Reuters had expected the API to report a draw of around 1.6 million barrels.
In the latest sanction package, reported to be the harshest yet, the Treasury of the outgoing Biden administration imposed sanctions on Gazprom Neft and Surgutneftegaz, as well as on 183 tankers, many of them in the so-called shadow fleet Russia uses to ship its oil abroad without having to use Western vessels or insurance.
In the quarterly financial update, the pipeline company reported an 11% annual jump in earnings per share for the last quarter of 2024, at $0.30, slightly below analyst expectations. Revenue for the quarter dipped on an annual basis, however, because of low crude oil and condensate volumes on its pipeline network. These volumes were down by 5% on the year in Q4 2024.
President Donald Trump’s sweeping measures aimed at maximising U.S. oil and gas production mark a U-turn in energy policy from President Joe Biden’s term, and make it clear that Trump expects domestic fossil fuel production to rapidly rise.
Indonesia will exempt oil and gas exporters from its new rule that all proceeds from natural resource exports be kept onshore for a year, as companies urge adjustments to the rule out of concern over its impact on their cashflows.