Oil & Gas

Steep Backwardation in European Diesel

Europe’s diesel markets are flashing signs of tightness, with near-term diesel contracts on Tuesday hitting the steepest backwardation–a situation where futures contracts for prompt delivery are more expensive than those further down the curve–since March. Backwardation is often interpreted as a sign of limited supply, with traders now willing to pay a premium for fuel that’s available sooner.

G7 Weighing Tightening Russian Oil Price Cap

The Group of Seven is considering collectively tightening an oil price cap on Russian petroleum in an effort to cut Moscow’s oil revenues as the war in Ukraine rages on, Bloomberg has revealed. A draft statement seen by Bloomberg shows that these nations could task their finance ministers to collectively redraw the price limit–currently set at $60 a barrel for Russian crude.

Europe’s LNG Tango: A Love-Hate Relationship with Reality

The European Union, ever the conflicted protagonist in its own energy saga, is gearing up to throw its weight around in the global LNG market—again. A leaked draft from the European Commission suggests Brussels will “immediately engage” with LNG suppliers to stabilize energy prices, all while still pretending it’s on track to kiss fossil fuels goodbye by 2050. The cognitive dissonance is almost admirable.

Diamondback Nears Permian Deal to Buy Shale Producer Double Eagle

Diamondback, the largest independent oil and gas producer in the Permian Basin, plans to formally announce the deal for Double Eagle as early as Tuesday morning, said the people, who asked to not be identified because the details are private. The transaction could be valued at more than $5 billion, the Wall Street Journal reported Friday, citing unnamed sources.

Commonwealth LNG Gets Initial Approval for Non-FTA Export

“With these decisions in hand, subject to a FERC Final Order, which we expect in July 2025, and DOE final authorization, Commonwealth anticipates reaching a final investment decision in September 2025, with first LNG production expected in Q1 [first quarter] 2029”, Commonwealth chief executive Farhad Ahrabi said in an online statement issued by the company.

Egypt, Cyprus Sign Deals to Export Cronos, Aphrodite Gas

Under the deals, production from the Cronos gas field, off Cyprus’s southwest coast, and Aphrodite, located to the southeast, will be transported to Egyptian liquefaction facilities at Idku and Damietta before being exported as liquefied natural gas. The signing of the memorandum of understanding was overseen by Egyptian President Abdel-Fattah El-Sisi and Cypriot President Nikos Christodoulides at a gas conference in Cairo.