Donald Trump’s 28-point peace proposal to end the Russia-Ukraine war has become the main talking point of oil markets this week, with potentially higher Russian supply capping ICE Brent futures below $63 per barrel.
Meanwhile, refined products markets are exploding, as middle distillate cracks are the highest in almost three years, largely driven by EU sanctions on Russian oil products.
US Expands Iran Sanctions, Hitting Tankers. The US Treasury Secretary announced a new round of sanctions targeting trading and shipping companies that facilitate Iran’s oil and refined products exports, adding six more tankers to its OFAC list and targeting product traders based in India and the UAE.
India’s Top Refiner Halts Russian Imports (Or Not). India’s 1.4 million b/d Jamnagar refinery, operated by Reliance Industries, has stopped importing Russian oil to its 600,000 b/d export-oriented plant; however, it continues to run Russian crude in the 800,000 b/d unit geared towards the domestic market.
Seattle Fuel Supply Jeopardised by Pipe Leak. Seattle’s Tacoma airport moved into emergency mode after BP’s (NYSE:BP) Olympic pipeline, which moves fuel from northern Washington to Oregon, was halted due to a pipeline leak, first reported on November 11 after a sheen emerged next to a blueberry farm.
Venezuela’s Production Suffers Another Outage. Venezuela’s state oil company PDVSA halted operations at its Petrocedeno upgrader after an explosion and a fire destroyed the plant’s atmospheric distillation tower, reportedly due to overpressure and excess water, losing 30,000 b/d of production.
Mozambique’s Outlook Improves by the Day. US oil major ExxonMobil (NYSE:XOM) lifted force majeure on its 18 mtpa Rovuma LNG project, following in the footsteps of TotalEnergies as it resumed works on its Mozambique LNG a month ago, ending a four-year hiatus caused by terrorist attacks.
Beijing Allows Teapots to Buy More. China’s Ministry of Commerce approved an additional batch of crude import quotas for independent refiners, mostly located in the country’s northeastern Shandong province, allowing them to buy 10 million metric tonnes in the remaining months of 2025.
China Ups the Ante Against BHP. China’s state-owned iron ore buyer CMRG has ordered steel mills and traders across the country to stop purchasing Linbao fines, a lower-grade iron ore, from mining giant BHP (NYSE: BHP) as the two sides are locked in protracted negotiations over 2026 contract terms.
Trump Proposes New Gulf Lease Sale. The US Department of the Interior announced a new lease sale in the Gulf of Mexico this week, tentatively called ‘Big Beautiful Gulf 2′ and offering 15,000 unleased blocks across 80 million acres, with a royalty rate fixed at 12.5%, lower than the Biden-era rate of 16.67%.
Curacao Wants Its Refinery Back. Curacao, a Caribbean island that is part of the Netherlands, has asked for the US government’s approval to reopen its shuttered 335,000 b/d Isla refinery and resume dealings with Venezuela’s PDVSA, after its previous OFAC license ran out in December 2024.
Egypt Doubles Down on LNG Imports Again. After experimenting with LNG exports in recent months, Egypt’s state-controlled gas firm EGAS is seeking four LNG cargoes for December delivery, indicating a supply shortage after Israel started maintenance at its giant Leviathan field in mid-November.
Trump Is Dreaming of California Drilling. US President Donald Trump announced plans to launch the first oil and natural gas licensing round off California’s coast since 1984, eyeing six lease sales in 2027-2030, sparking criticism from the Golden State governor Gavin Newsom, who called the plan ‘idiotic’.
Europe’s Copper Industry Warns of Shortages. Europe’s metal industry is calling for the EU to replicate its ban on aluminium scrap exports and restrict copper scrap exports, too, as Chinese buyers have been mopping them up since 2022, leaving the Old Continent vulnerable to price spikes in 2026-2027.
Japan Set to Restart World’s Largest Nuclear Plant. Having received the approval of the Niigata governor, Japan’s leading utility firm Tokyo Electric Power (TYO:9501) will launch a partial restart of the Kashiwazaki-Kariwa nuclear plants, revamping 2.7 GW out of the plant’s total capacity of 8.2 GW.
Oilprice.com
