Brazil’s state-owned oil and gas multinational Petróleo Brasileiro S.A. (NYSE:PBR), aka Petrobras, saw output from its refineries hit an all-time high in 2024 thanks to record production of gasoline and S-10 diesel. Petrobras reported that gasoline output totaled 24.4 billion liters, eclipsing the previous record of 24.2 billion liters posted in 2014 while diesel production reached 26.3 billion liters. The company’s annual refinery utilization rate was 93.2% last year, up from 92% in 2023.
President-elect Donald Trump is preparing to sign a host of executive orders related to energy in the first hours after his inauguration. Bloomberg reported that Trump plans to declare a national energy emergency right after he’s sworn in as part of his plan to boost oil and gas production.
The refining average constituted a dip, by the way, and that was the first dip in refining rates in 20 years. The cause of the dip was weaker fuel demand, which depressed refining margins in 2024. Oil demand in China was lackluster in 2024, with consumption growth slowed, due to weaker economic performance and a shift to electric vehicles and LNG-fueled trucks.
Prior to the decision by Baghdad, Syria was importing some ~120,000 barrels of Iraq crude daily. Meanwhile, supplies of crude oil from Iran have also ended following the news of the change in power in Syria. Fuel prices in Syria have skyrocketed due to acute shortages during the transitional period.
The Suez Canal is one of the most important channels of the global oil trade. Northbound traffic worth ~3.9 million bpd is dominated by crude oil from Middle East producers to Europe and also middle distillates from India and the Middle East. Southbound traffic, estimated at 2.9 million bpd, comprises crude flows mainly from Russia to Asian customers, and also refined products naphtha and fuel oil. The United States, Qatar and Russia are the leading shippers of LNG via Suez.
Prices could receive additional support now from the latest GDP data from China, which showed the country hit its target for 2024, at 5%, versus analyst expectations of 4.9% growth. Even with forecasts about peak demand for crude oil, China’s economy is still dependent on hydrocarbons, meaning the news is bullish for crude.
The focus of the BHP-Anglo deal was on copper, as demand prospects for the basic metal remain extremely bright amid the energy transition push. Copper would be a key consideration for a potential tie-up between Rio and Glencore as well, with majors angling for access to more of the transition metal.
The outgoing U.S. administration last Friday slapped the most severe sanctions on Russia’s oil yet, designating two major Russian oil companies, Gazprom Neft and Surgutneftegas, as well as 183 vessels, dozens of oil traders, oilfield service providers, insurance companies, and energy officials.
Just days after the US imposed sweeping sanctions on the Russian oil industry, NATO committed to a new strategy in the Baltic Sea designed to protect critical undersea infrastructure including pipelines from sabotage attacks it said are linked to Russian shadow fleets.
In October of that year, Opec+ members agreed to cut output by 2 million bpd oil after benchmark prices fell by around a quarter from above $110 per barrel as recession fears trumped conflict-related supply concerns.