Oil prices jumped as Washington is now pushing for secondary sanctions on India and China.
12th September, 2025
The Russia-Ukraine war is back on the agenda as ICE Brent futures jumped up to $67 per barrel after Ukrainian drones attacked Russia’s Primorsk port, a key Baltic Sea loading terminal for its crude and product flows. With the Trump administration strengthening its pressure on the EU and others to implement secondary sanctions on India and China, geopolitics became the main bullish factor for prices.
IEA Sees Supply Surge on OPEC+ Boost. The International Energy Agency lifted its 2025 global demand growth forecast by 60,000 b/d to 740,000 b/d, however, this was more than offset by its supply outlook rising from 2.5 million b/d to 2.7 million b/d after this week’s 137,000 b/d hike from OPEC+.
India Taps Myanmar Rebels for Rare Earths. According to media reports, India’s Ministry of Mines asked state-owned companies to obtain rare earths from Myanmar, taking samples from territory held by the separatist Kachin Independent Army after China introduced export curbs.
Iran Agrees to Resume Nuclear Inspections. Iran and the UN’s nuclear agency IAEA confirmed they had agreed to resume monitoring at all nuclear sites across the country, including the ones attacked by Israel and the US in June, ahead of a September 27 deadline set out by the EU.
Russia to Start Sending Gas to Iran. Russia’s gas giant Gazprom will start supplying Iran with natural gas within a ‘few weeks’, according to Iranian authorities, first at a rate of 2 bcm per year but potentially increasing to 55 bcm per year, if Moscow and Tehran agree to build a new pipeline.
Sudan’s Oil Industry Spirals Down the Drain. Sudan’s only refinery, the 100,000 b/d Khartoum plant, was debilitated again after it was struck by a wave of drone strikes this week, probably triggering an aggravation of fuel shortages across the country as the refinery met 70% of its needs.
Saudi Aramco Keeps on Borrowing More. Saudi national oil company Saudi Aramco (TADAWUL:2222) raised $3 billion from a sale of Islamic bonds at a profit rate between 4.125% and 4.625%, using the raised funds for general corporate purposes, according to the offering’s term sheet.
Phillips66 Doesn’t Give Up on US Refining. Despite closing its Los Angeles refinery this month, US downstream major Phillips66 (NYSE:PSX) agreed to buy the remaining 50% stake in its WRB Refining joint venture with Cenovus Energy for $1.4 billion, taking full control of the Wood River, IL and Borger, TX refineries.
EU Mulls Its Options vis-a-vis Russian Major. France and Germany want to sanction Russia’s largest private oil firm Lukoil and its Swiss trading arm Litasco as part of Brussels’ 19th sanctions package against Russia, potentially disrupting refinery supply in Bulgaria, Romania, and the Netherlands.
Japan Inks Controversial Alaska LNG Deal. Japan’s largest power generator JERA has signed a 20-year term LNG supply agreement with US energy developer Glenferne for gas from the $44 billion Alaska LNG project, despite concerns about the project’s exorbitant capital costs.
US Nudges Europe to Expedite Russian Gas Cut. US Energy Secretary Chris Wright said that the European Union could phase out Russian gas within the next 6 to 12 months, even if Hungary and Slovakia have so far rejected calls for a quicker regulated end to remaining flows.
Beijing Cracks Down on Teapots Tax Evasion. China’s Ministry of Commerce introduced new rules for independent refiners across the country, forcing them to scrap paper tax Ledgers and report purchases, sales and inventories of products online, further jeopardizing runs that are already at historic lows of 47-48%.
Canada Wants to Fast-Track New LNG. Canada’s new Carney government has proposed fast-tracking key LNG, nuclear and mining projects, singling out Phase 2 of the $32 billion LNG Canada project that could add an additional 14 mtpa of liquefaction capacity and become the second-largest LNG plant globally.
Lithium Prices Collapse on CATL Mine Restart. Chinese lithium carbonate futures have plunged to ¥70,000 per metric tonne ($9,900/mt) this week, marking a more than 5% weekly drop, on news that China’s largest battery maker CATL could restart its Jianxiawo mine earlier than expected.
Activist Investors Haunt Japanese Power Generators. Activist investor Elliott Management stated that Japan’s top nuclear power operator Kansai Electric (TYO:9503) could become a better long-term investment if it starts to shed non-core assets, with the US firm amassing a 4% to 5% stake in it.
By Tom Kool for Oilprice.com
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