The resumption of US-Houthi hostilities and the almost immediate restart of Israeli strikes on Gaza has brought geopolitical risk premia back to the limelight, even if this week’s upside has so far been capped at $72 per barrel for ICE Brent.
China’s 180 billion package to stimulate domestic consumption has added to the slightly bullish sentiment of this week, regaining some of the territory lost in early March.
King Coal Is Back, At Least in the US. US President Donald Trump has authorized his administration to boost US coal power generation, currently accounting for 16% of total electricity output, seeking to restart recently shut plants operating on ‘beautiful clean coal’ and stop others from closing.
EU Mulls Aluminium Import Curbs To Counter Trump. Wary that Donald Trump’s metal tariffs could divert a wave of previously US-bound supply to Europe, the European Commission is currently considering potential curbs on EU imports, particularly against Chinese steel production.
Return of Red Sea Attacks Chokes Shipping. The Trump administration’s attack on Houthi rebels in Yemen is ratcheting up insurance rates for cargoes brave enough to transit the Red Sea, with insurers now asking for 0.7% of the value of the ship, back to pre-ceasefire levels of shipping costs.
Drawing From Stocks, China’s Refining Rises Again. Marking the first time in 18 months that refining rates exceeded crude imports, China processed 14.74 million b/d in the first two months of 2025, a 2% increase year-over-year as new refining capacity in Yulong and elsewhere came online.
China Locks In Term Australian LNG. Australia’s leading gas producer Woodside Energy (ASX: WDS) signed a 15-year supply and purchase deal with China Resources Gas Intl to supply 0.6 mtpa of LNG on a delivered basis from 2027 onwards, its first-ever term contract with a Chinese buyer.
Venezuela Vows to Keep Chevron’s Legacy. Venezuela’s state oil company PDVSA announced that it would operate its joint ventures with Chevron alone after the US oil firm halted all activities on April 3, intending to produce 105,000-138,000 b/d of heavy Hamaca crude and refining it domestically.
Beijing Cozies Up to Kuwait with Solar Deal. Beijing scored another geopolitical victory in the Middle East as it clinched a deal to develop two solar projects in Kuwait, less than a month after China’s state-controlled CSCC agreed to build and operate a new port in Mubarak al Kabeer.
Copper Prices React to China Promise. Copper prices shot up to their highest since early October 2024, with the 3-month LME price reaching $9,800 per metric tonne, thanks to the Chinese government announcing a $180 billion bond issuance plan to boost domestic consumption.
Chevron Sees Great Potential in Bangladesh. Having appraised Bangladesh’s offshore territorial waters since 2019, the US oil major Chevron (NYSE: CVX) has submitted a proposal to national oil firm Petrobangla to jointly develop Block 11, offering a gas price pegged at 10% of Brent futures.
Overflowing Texas Cools Henry Hub Rally. US natural gas futures dipped to a two-week low of $4.07 per mmBtu on forecasts of milder weather coming in April and spot prices at Texas’ Waha hub turning negative for the first time since November 2024, despite healthy feed gas demand.
Return of Iranian Gas Eases Iraq’s Power Woes. Whilst Iraq has doubled its electricity imports from Turkey to 600 MW, Iran has resumed gas exports to its western neighbour after an almost four-month-long hiatus as Tehran routinely runs into electricity shortages over the winter period.
Russia Sets Eyes on Lithium Expansion. Joining the lithium mining craze, Russia announced plans to produce at least 60,000 tonnes of lithium carbonate by 2030 as Moscow continues to import lithium for its consumption, eyeing Arctic mines to be operated by miner Nornickel and nuclear firm Rosatom.
BYD Signals EV Charging Revolution. China’s leading EV carmaker BYD (SHE:002594) unveiled a new super-charging platform for EVs that is allegedly capable of peak charging speeds of 1,000 kW, double Tesla’s charging capacity, enabling cars to travel 250 miles on a 5-minute charge.
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