Saudi Arabia is pushing OPEC+ to fast-track the group’s next oil production increase, moving up a supply hike originally scheduled for late 2026.
OPEC+ has injected a lot of downside pricing risk into the oil markets this week, fuelling speculation that the second wave of voluntary cuts totalling 1.65 million b/d could be unwound much quicker than previously expected. Saudi Arabia is seemingly interested in pushing ahead with the unwinding during the September 7 meeting, despite potentially facing a giant oversupply issue. The audacity of such a move has so far kept ICE Brent futures from falling more than they did, currently trading above $65 per barrel.
OPEC+ Flirts with Unwinding Ahead of Sunday Meeting. According to media reports, OPEC+ will consider unwinding the second layer of its voluntary cuts – totalling 1.65 million b/d – more than a year ahead of schedule at its upcoming meeting on Sunday, citing the need to regain market share.
US Biofuels Imports Tanks as Import Credits Vanish. US imports of biodiesel and renewable diesel collapsed in the first half of 2025 after the scrapping of tax credits for imported biofuels eliminated any business case for it, with only 7,000 b/d flowing in (equivalent to one-tenth of last year’s volumes).
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Dangote’s Leaking Gasoline Engine Stalls. A catalyst leak at the residue fluid catalytic cracking unit of Nigeria’s 650,000 b/d Dangote refinery might halt gasoline production for 2-3 months, depriving the country of 200,000 b/d output and sending European gasoline cracks to their highest since May 2024
Denmark’s Wind Giant Picks a Fight with Trump. Danish offshore wind developed Orsted (COP:ORSTED), teaming up with the states of Rhode Island and Connecticut, sued the Trump administration for the forced halt of its nearly finished Revolution Wind project, deeming it illegal.
Conoco Trims Headcount as Strategy Shifts Gear. US oil major ConocoPhillips (NYSE:COP) will lay off 20–25% of its global workforce by the end of this year, affecting up to 3,250 employees as part of a broad restructuring, citing a rise in controllable costs to $13/barrel now from $11/barrel in 2021.
Iraq Eyes Storage Beyond the Hormuz. Iraq’s state oil marketer SOMO has signed a storage deal with Oman’s OQ to build a crude storage tank farm at the latter’s port of Ras Markaz with an initial capacity of 10 million barrels, seeking to de-risk some of its oil exports from tensions in the Arab Gulf.
Trump Takes a Move Against Shipping Fuels. The US State Department has been reaching out to other countries to reject the United Nations’ IMO ‘Net Zero Framework’, imposing a fee on ships that breach global emissions standards, or otherwise face tariffs, visa restrictions and additional port levies.
Exxon Sees No Future for Europe’s Chemicals. US oil major ExxonMobil (NYSE:XOM) is reportedly seeking to divest its European chemical plants in the UK and Belgium for up to $1 billion, whilst simultaneously assessing the possibility of shutting them down for good in case buying interest is weak.
Italy Seeks Supply Guarantees from Azerbaijan. The Italian government has been in talks with Azerbaijan’s state oil company SOCAR, reportedly closing in on a deal to buy privately owned local refiner IP for approximately $3 billion, demanding guarantees for security of supply and jobs.
Guyana to Launch New Auction in 2026. The government of Guyana is planning to launch its next offshore licensing round in early 2026, postponing it to after the country’s general elections wrap up this month, as winners of the previous 2022 auction are still to be awarded their respective blocks.
Korea Delays Key Exploration Well. South Korea’s Ministry of Trade, Industry, and Energy announced that its 2026 budget does not contain any provisions for the Blue Whale deepwater project in the Ulleung Basin, derailing the country’s biggest hope for a first-ever commercial oil discovery.
Russia Boosts China Oil Export Options. Russia’s state oil company Rosneft (MOEX:ROSN) agreed to supply an additional 2.5 million tonnes per year (50,000 b/d) of crude to China through Kazakhstan, over and above the 200,000 b/d it already does under a 10-year term contract re-signed in 2022.
Japan’s Top Copper Smelter to Cut Capacity. Japan’s leading copper smelter JX Advanced Metals (TYO:5016) mulls curbing production by tens of thousands of metric tonnes this year and will unveil a roadmap to reduce smelting capacity by March 2026, as tumbling treatment fees have eroded margins.
By Tom Kool for Oilprice.com
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