It seems that the global oil market is going through a critical phase, where economic and geopolitical factors intertwine, casting a heavy shadow over crude prices, particularly U.S. crude, which continues its downward trajectory. That’s what Rania Gule, a senior market analyst at XS.com-MENA, said in a market analysis sent to Rigzone on Wednesday, adding that “this sharp decline, the most significant since November 2021, cannot merely be seen as a technical correction or a routine supply and demand adjustment”. “Rather, it is a direct reflection of mounting concerns over a global economic slowdown fueled by protectionist policies and escalating trade tensions between the world’s two largest economies – the United States and China,” Gule said in the analysis. Gule went on to note that, from her perspective, investors have grown increasingly sensitive to any signs of economic weakness. “The recent steep drop in U.S. consumer confidence to its lowest level since April 2020 stands as a clear indication of fragile economic sentiment,” Gule said in the analysis. “This significant decline did not occur in a vacuum; it coincided with sudden tariff decisions by President Donald Trump, sparking a new round of trade confrontation with China,” Gule added. “In such an environment, crude oil, as a sovereign commodity closely linked to growth and industrial activity, is often the first to take a hit, amid fears of shrinking global demand and slower supply chains,” Gule continued. Gule highlighted in the report that, in her view, “the issue is not solely about demand”. “The supply side is also placing additional pressure on prices. Data from the American Petroleum Institute showed an unexpected increase of 3.8 million barrels in U.S. crude inventories, intensifying market fears of a structural supply surplus,” Gule pointed out. “When the actual increase exceeds market expectations by nearly tenfold,

Serious politicians should always beware of what I will call Emperor’s Clothes Syndrome, when normally sensible people are carried along by a mantra that is eventually confirmed as absurd. I’ve seen it through my political life – not least on energy policy – when single issue zealots got control of the bus and the price of staying on board was to subscribe to what the passengers knew was foolish. Until someone – usually the electorate – called halt. We’ve recently seen the syndrome at work over gender policy, where it took the Supreme Court to determine a fundamental that need never have been in dispute. Yet, for many who should have known better, it was easier to nod in acquiescence than to challenge an aggressive orthodoxy. I am hopeful that energy policy may be on the verge of such a cathartic moment. But who will be the little boy in the crowd, as per the Hans Christian Andersen fairy tale, who hasn’t been let in on the secret and brings credulity to a head? Actually, there are a few queuing up for the role. At the STUC last week, Gary Smith of the GMB union did not miss and hit the wall. “Just switching off investment in the North Sea is absolute madness”, he declared. © Supplied by OEUKGMB Union general secretary Gary Smith talking with offshore workers on the Kraken FPSO in the North Sea. “It’s bad for national security, it’s bad for jobs, and the truth is it’s catastrophic for the environment because we are importing oil and gas, which is far more carbon intensive than producing it ourselves”. Like that little boy watching the Emperor’s parade, Smith has done no more than speak what pretty much everyone knows to be true, even if they feel obliged to

Abu Dhabi National Oil Co. sold debt compliant with Islamic rules for the first time as the state producer works to diversify funding. Adnoc raised $1.5 billion with its debut 10-year, Shariah-compliant notes at an annual profit rate of 4.75 percent, it said Monday. The firm had set the spread on the sukuk, as the securities are known, at 60 basis points over US Treasuries. The company didn’t say what it will use for funds for. It is raising cash amid markets that have become increasingly volatile in recent months as uncertainty over the scale of US tariffs sparks economic-growth concerns and caution around planned investments. Adnoc has been expanding globally with deals for chemical producers and stakes in US LNG export projects. The United Arab Emirates, a member of the Organization of the Petroleum Exporting Countries, is seeking international investors as it looks to reduce reliance on its own oil revenue. Hedge funds, lawyers and traders have increasingly moved to Dubai and Abu Dhabi to capture new growth opportunities and tap into finance from private and sovereign investors. Standard Chartered Bank was the global coordinator and joint sukuk structuring bank for the debt. Other regional and international lenders also participated. Adnoc sold the notes through Adnoc Murban, its dedicated vehicle for issuing debt. The deal follows a $4 billion debut bond sale last year and a $3 billion green loan signed with Japan Bank for International Cooperation. Two banks in the UAE – Mashreq Bank and Ajman Bank – have tapped dollar sukuk markets since President Donald Trump imposed the steepest US tariffs in a century on April 2. Dubai’s developers are also looking to tap fixed-income investors despite the turmoil. Central banks from the European Union, the UK, Canada and Australia have all cut interest rates recently amid threats of

Equinor saw its first-quarter profit grow, making an adjusted operating income of $8.65bn compared to the $7.53bn seen in the first quarter of 2024. According to its results, the Norwegian energy major also beat the $8.51bn previously predicted in a poll of 20 analysts Equinor compiled. Equinor president and CEO Anders Opedal said: “Equinor delivers strong financial results in the first quarter. I am pleased to see the good operational performance and solid production capturing higher gas prices. With the current market uncertainties, Equinor’s core objective is safe, stable and cost efficient operations and resilience through a strong balance sheet.” “We maintain a competitive capital distribution and expect to deliver a total of $9bn in 2025.” However, Equinor’s total equity production was down, coming in at 2.123 million boe per day in the first quarter compared to 2.164 million boe in the same quarter of last year. The company said that it experienced a strong operational performance for most of the fields on Norwegian continental shelf, with Johan Sverdrup and Troll fields helping offset the impact of the shut-in at Sleipner B after the fire in fourth quarter 2024 and planned and unplanned maintenance at Hammerfest LNG. In addition, its total power generation from its renewable portfolio was 0.76 TWh, on par with the same period last year. Opedal added: “The production start-up of the Johan Castberg field strengthens Norway’s role as a reliable energy exporter to Europe. The field opens a new region in the Barents Sea and is expected to contribute to energy supply, value creation and ripple effects for at least 30 years to come.” However, he criticised the recent halt work order issued by the US government on the offshore construction of the company’s Empire Wind project. Having obtained the lease in 2017, the project was

Aberdeen-based Wood has received a multi-million dollar FEED contract from Belgian group Vioneo to deliver the design for a plant to create fossil-free plastics from green methanol. Based in Antwerp, Belgium, the plant will have the capacity to produce 300 kilotonnes per year of high-quality, virgin polyethylene and polypropylene plastics made from green methanol and free of fossil feedstock. Wood said the renewably powered and energy efficient plant will be the first facility in the world capable of achieving this at industrial scale. These plastics will be fully traceable, segregated and carbon negative, enabling customers to reduce Scope 3 emissions. In addition, the production of these plastics does not affect the feedstock supply for food production, ensuring the project is sustainable. Wood president of eastern hemisphere projects Gerry Traynor said: “Demand for fossil-free plastics in Europe is growing and Vioneo is developing an exciting project that will accelerate the decarbonisation of Europe’s plastics sector. “Wood’s strong track record of delivering world-first projects of this size and scale will support Vioneo’s ambitions of becoming the leading producer of fossil-free plastics in Europe.” Wood will apply its extensive experience in delivering sustainable and innovative engineering solutions to large-scale energy transition projects. Vioneo is owned by AP Moller Holding, the investment arm of AP Moller Group and was launched as part of its commitment to advancing green methanol production and promoting sustainable practices in the plastics industry. Vioneo CEO Alex Hogan said: “Vioneo is driving the transition of the plastics industry by demonstrating the economic viability of large-scale, cleaner production using green methanol instead of fossil fuels. “This initiative offers Europe the opportunity to lead the €5 trillion chemicals and materials sector’s defossilisation. Our collaboration with Wood is a crucial step in realising this vision.” Wood group has been under a renewed takeover

The Marula-1X well in Block 2913B (Petroleum Exploration License 56) offshore Namibia has turned up dry after a drilling campaign that reached a total depth of 6,460 meters (21,195 feet). Africa Oil Corp. said that the well targeted Albian-aged sandstones within the Marula fan complex, some 47 kilometers (29.2 miles) south of the Venus-1X well. The well was drilled by the Deepsea Mira semi-submersible drilling rig, Africa Oil said in a media release. A comprehensive analysis of the well results is now underway. The well will now be demobilized. Impact Oil & Gas Ltd. has a 9.5 percent interest in Blocks 2912 and 2913B in Namibia’s Orange Basin. Africa Oil, through its 39.5 percent interest in Impact, has an effective interest of approximately 3.8 percent in these blocks. Block 2913B contains the Venus light oil discovery. Block 2913B spans about 8,215 square kilometers (3171 square miles) with water depths reaching 3,000 meters (9842 feet). Impact became the Operator of the license in 2014, initially acquiring 2D seismic data followed by 3D seismic data, which delineated the Venus prospect. In 2017, TotalEnergies joined Impact and Namcor, contributing deep-water drilling expertise to the joint venture. In 2019, QatarEnergy became part of the joint venture. “The farm-down agreement between Impact and TotalEnergies that was completed last year provides full carry of Impact’s exploration and development costs on Blocks 2912 and 2913B through to first commercial production from these blocks. This presents us with an attractive opportunity set to test different geological plays on these blocks at no upfront cost”, Africa Oil President and CEO Roger Tucker said. “The initial data from the Marula-1X well confirms a disappointing outcome for the Marula prospect. However, the full suite of well data acquired will be integrated into the evaluation to realize the block’s full potential”, Siraj