Oil fell to its lowest settling price in almost two weeks as US stockpiles gained and OPEC+ members discussed another major production increase, just as demand faces headwinds from the US-led trade war. West Texas Intermediate slid 0.6% to settle just above $61 a barrel. Brent dropped to settle below $65. If OPEC+ approves the potential increase of 411,000 barrels a day when it meets on June 1, it will mark the third month in a row the cartel has agreed to boost supplies by triple the initially scheduled amount. “The most likely outcome is another headline increase of 411,000 barrels a day from July, which will be primarily Saudi barrels,” said Helima Croft, head of global commodity strategy at RBC Capital Markets LLC. Crude is under pressure as the Organization of the Petroleum Exporting Countries and its allies push barrels back into a market that’s already looking well supplied, amplifying concerns about a glut. The US-led trade war has stirred fears of slower economic growth and weaker energy demand, deepening the price losses. Oil inventories are rising in the US, still the world’s biggest consumer of the commodity. US commercial inventories of crude rose for a second week, according to data on Wednesday, while gauges of gasoline and distillate demand were weak, even as the summer driving season approaches. Oil Prices WTI for July delivery fell 0.6% to settle at $61.20 a barrel in New York. Brent for July settlement fell 0.7% to settle at $64.44 a barrel. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in

Dive Brief: House Republicans passed a budget bill Thursday morning with an amendment that amplifies the impacts of the legislation’s already-steep cuts to Inflation Reduction Act funding by requiring that projects break ground within 60 days of the bill’s signing to qualify for clean electricity production and investment tax credits. If that aspect of the legislation passes through the Senate and becomes law, “it’s going to strain the renewable energy development community and the supply chain,” said Ryan Abraham, a principal with Ernst & Young’s Washington Council advisory practice. “It’s going to trigger a scramble to undertake as much as possible in that 60-day window.” Greg Matlock, EY Americas Tax Leader for Oil & Gas and Chemicals and Metals & Mining, said he didn’t think this degree of changes to the 45Y and 48E tax credits – in particular the 60-day deadline – was anticipated. “From a commercial perspective, it’s not a unilateral decision most of the time on whether you can begin construction,” he said. Dive Insight: Matlock said there was always an expectation that this administration and Congress would seek to make material changes to the clean energy provisions of the IRA, but his sense from talking to clients Thursday morning was that the 60-day clock took them by surprise. Abraham said that he was “personally surprised” by the changes to the 45Y production credit and 48E investment credit as well – the 60-day deadline especially.  “I think there was a general expectation in the sector that the House bill was kind of the bookend of negotiations, and I think that amendment has clearly taken that and moved that goal post a bit,” Abraham said. “That 60 days start-of-construction requirement, if that were to stay, is going to have a significant impact on projects that go forward …

Dive Brief: Additional tariffs will be imposed on solar imports from Cambodia, Malaysia, Thailand and Vietnam after the U.S. International Trade Commission voted that the domestic solar industry is materially injured by them, the ITC announced Tuesday. This finding follows the U.S. Commerce Department’s April final determination in an antidumping and countervailing duty investigation into solar imports from four Southeast Asian countries, which resulted in subsidy rates as high as 3,403.96% for some exporters. “The ITC vote now clears the way for updating those rates and an order that will be issued shortly to address unfair trade more fully,” said Tim Brightbill, attorney for the American Alliance for Solar Manufacturing Trade Committee, the alliance of seven U.S. solar manufacturers that petitioned the ITC and Commerce. “We’re very pleased with that … We got some great results today.” Dive Insight: Brightbill, a partner at law firm Wiley Rein, said during a Tuesday press call that the alliance doesn’t yet know if the ITC’s finding will result in additional, retroactive duties under the “critical circumstances” provision, which applies to countries that rush in imports to try to beat duties before they’re applied.  In its own final determination, the Commerce Department did make critical circumstances findings for some exporters in Thailand and Vietnam. “We’ll see shortly if that might occur,” Brightbill said. “But regardless, it’s a very strong win for the domestic industry. Our clients are pleased with the results. It’s taken a year, but we’re happy to be here.” Following the ITC’s finding, the Commerce Department is expected to issue new anti-dumping and countervailing duty orders on June 9, and update the tariff rates for the four countries.  These tariffs will impact crystalline silicon photovoltaic cells, whether or not assembled into modules, imported from the four countries – on top of President Donald Trump’s

The Air Accident Investigation Branch (AAIB) has made several safety recommendations in the aftermath of a 2023 incident that saw high winds tear blades from a helicopter parked offshore. The new report into the 2023 incident confirmed that a failed rotor brake allowed the Airbus H175’s rotors to continue spinning in high winds. This caused four of its five blades to snap off, almost striking one of the two workers tying the vehicle down. Storm Otto struck the UK in February 2023, subjecting north-east Scotland to 100 mile per hour winds. Aircraft G-MCSH, an Airbus H175 operated by Offshore Helicopter Services UK (OHS), was parked on the TotalEnergies-operated Elgin-Franklin platform, 130 miles from Aberdeen, when the incident took place. The report added that vertical air flow caused by the ‘cliff edge’ effect of an accommodation block on the platform exacerbated the rotor blade sailing. In addition, changing wind directions meant that the helicopter was no longer facing into the wind, but was increasingly being subjected to wind from its right side. In the aftermath of the event, OHS now requires pilots to record the rotor stop time after brake application on each shutdown. If the stop time is found to exceed 40 seconds, a check of the brake and its adjustment is required. The AAIB report laid out a total of six safety recommendations in its report. These include requiring Airbus Helicopters to expedite the inclusion of improved rotor brake maintenance procedures in the EC175 Aircraft Maintenance Manual. The report also said that Leading Offshore Energy Industry Competitiveness Ltd should incorporate comparative wind speed analysis as part of the Helimet quality control and notification system. In addition, an earlier report found that issues with a flight recorder on board the helicopter meant that images and data on the incident were

Dive Brief: House Republicans on Thursday morning narrowly passed a sweeping budget bill that guts federal support for wind, solar, storage and other clean energy industries. The bill terminates most technology-neutral clean energy tax credits for projects placed in service after 2028 and those that begin construction more than 60 days after the bill’s passage. It also tightens restrictions on foreign entities’ involvement in projects, creating a “truly untenable” situation for developers, Jeffries analysts said Thursday. Nuclear projects have more time to qualify for the credit. The bill advances to the Senate, which is expected to take it up next month. Several Republican senators are calling for significant changes, and questions remain as to how the two houses will reconcile “sharply contrasting versions of the bill,” Jeffries said. Dive Insight: The text that passed the House on a 215-214, party-line vote early Thursday is even less favorable to clean energy interests than a previous draft that industry groups widely panned. The bill terminates the 48E investment and 45Y production tax credits for non-nuclear clean energy projects placed in service after 2028, with no phaseout period. Projects must begin construction within 60 days of the bill’s enactment — likely later this year — to be eligible for the credits. The version the House Ways and Means Committee released on May 12 stepped down the value of the 48E and 45Y credits over three years and did not include the imminent construction-start requirement, giving developers and asset owners more leeway to wait out lengthy waits for grid interconnection. Combined with even tighter restrictions on foreign involvement in U.S. clean energy projects, the truncated eligibility window leaves a “near impossible” pathway for non-nuclear developers to qualify for the 48E and 45Y credits, Jeffries said. The foreign involvement restrictions apply to “foreign entities of

U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve (SPR), increased by 1.3 million barrels from the week ending May 9 to the week ending May 16, the U.S. Energy Information Administration (EIA) highlighted in its latest weekly petroleum status report. That EIA report was released on May 21 and included data for the week ending May 16. It showed that crude oil stocks, not including the SPR, stood at 443.2 million barrels on May 16, 441.8 million barrels on May 9, and 458.8 million barrels on May 17, 2024. The EIA report highlighted that data may not add up to totals due to independent rounding. Crude oil in the SPR stood at 400.5 million barrels on May 16, 399.7 million barrels on May 9, and 368.8 million barrels on May 17, 2024, the report outlined. Total petroleum stocks – including crude oil, total motor gasoline, fuel ethanol, kerosene type jet fuel, distillate fuel oil, residual fuel oil, propane/propylene, and other oils – stood at 1.623 billion barrels on May 16, the report showed. Total petroleum stocks were up 5.8 million barrels week on week and up 4.3 million barrels year on year, the report revealed. “At 443.2 million barrels, U.S. crude oil inventories are about six percent below the five year average for this time of year,” the EIA stated in its latest weekly petroleum status report. “Total motor gasoline inventories increased by 0.8 million barrels from last week and are about two percent below the five year average for this time of year. Both finished gasoline inventories and blending components inventories increased last week,” it added. “Distillate fuel inventories increased by 0.6 million barrels last week and are about 16 percent below the five year average for this time of year. Propane/propylene inventories increased by 2.7