OPEC+’s oil-output hikes are part of a Saudi strategy that will see the kingdom embark on a long but shallow price war designed to recapture market share, Bank of America Corp.’s head of commodities research said.  The producer group, of which Saudi Arabia is the de-facto leader, announced a third output increase of more than 400,000 barrels a day last month, bigger than previously planned. The additions are reversing years of supply curbs that were aimed at keeping prices higher. “It’s not a price war that is going to be short and steep; rather it’s going to be a price war that is long and shallow,” BofA’s Francisco Blanch said in a Bloomberg Television interview. That reflects a desire to take market share from US shale, which is in relatively good health but faces higher costs of production, he said.  The kingdom is also working to regain market share from fellow OPEC+ members, according to Blanch.  “They’ve done this price support already by themselves for three-plus years,” which has allowed competitors’ output to rise, he said. “They’re done with that.” Blanch noted that the change in strategy is already producing results, with the latest US oil-drilling data from Baker Hughes Co. showing the lowest rig count in about four years. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Oil extended last week’s gain as a renewed round of US-China trade talks offered the potential for reduced global tensions. West Texas Intermediate futures gained 1.1% to settle at $65 a barrel, the highest price since early April. Negotiators from the US and China were holding talks in London on Monday, raising the possibility the two largest economies can make progress on disputes that have rattled markets this year.  Commodity trading advisers, which can accelerate price momentum, liquidated short positions to sit flat in WTI on Monday, compared with 64% short on June 5, according to data from Bridgeton Research Group. A 3% to 4% price move higher from current price levels may trigger the funds to flip to net-long for the first time since February, the group added.  The United Nations nuclear watchdog, meanwhile, said Iran’s rapidly increasing stockpile of uranium can’t be ignored ahead of a consequential meeting this week in Vienna. Traders have been keeping a close eye on the progress of nuclear talks between Washington and Tehran, with a setback potentially crimping flows from the OPEC member.  Crude has recovered after plunging earlier this year on the twin hit of bumper OPEC+ supply increases and concerns about the outlook for demand following President Donald Trump’s tariff policies. Now, though, the peak summer demand season is looming and markets are looking tighter.  The nearest US crude futures are trading more than $1 above the next month, which indicates tight short-term supplies.  Prices WTI for July delivery climbed 1.1% to settle at $65.29 barrel in New York. Futures jumped 6.2% last week. Brent for August settlement rose 0.9% to settle at $67.04 a barrel. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or

Dive Brief: The Midcontinent Independent System Operator appears to have adequate power supplies for its next planning year, which starts June 2026 — an improvement from a year ago, according to a survey discussed at a workshop the grid operator held Friday. MISO will have a potential surplus over an expected reserve margin ranging from 1.4 GW to 6.1 GW in accredited capacity for next summer, according to the latest Organization of MISO States-MISO annual survey. Last year’s survey indicated that MISO faced a 2.7 GW shortfall to a 1.1 GW surplus for this summer. “The 2025 OMS-MISO resource adequacy survey reinforces that ongoing collaboration and information sharing through this tool is driving real progress,” Joe Sullivan, OMS president and vice chair of the Minnesota Public Utilities Commission, said during the workshop. “Capacity margins have improved since last year, and positive trends continue to emerge year over year, but we must keep up that momentum and continue to accelerate it.” Dive Insight: The OMS-MISO survey comes as utilities face growing demand for electricity, mainly from data center development. The survey indicates that electricity demand in MISO will grow 2.2% a year over the next five years, up from 1.6% annual growth in the last survey. The survey report, which is based on information collected in April, offers two forecasts: one, called the historical projection, is based on a three-year average pace of bringing power supplies online; the other, called the emerging projection, is based on MISO member responses to the survey. The historical projection results in an estimate that 3.5 GW of accredited capacity will be brought online annually on average; the emerging projection indicates 6.2 GW, on average, will begin operating each year. Using the historical projection, MISO could need an additional 1.5 GW to meet its reserve margin requirement for summer

Dive Brief: Import tariffs could raise battery costs for U.S. utility-scale energy storage installations by more than 50% and make the United States the world’s most expensive solar market, Wood Mackenzie said on June 2. Prices for four-hour battery systems have already risen 56% to 69% since January and are expected to remain volatile “until clarity returns,” Anza Renewables said Thursday in a separate quarterly pricing report.  U.S. energy storage developers will likely depend on imports well into the future as domestic manufacturing capacity expands from 6% of present-day demand to 40% of expected 2030 demand, Wood Mackenzie said.  Dive Insight: Anza’s quarterly report shows significant market impacts from the Trump administration’s tariff policy. By April, imported batteries faced a universal 10% tariff, a further 145% tariff on Chinese components and stepped-up Section 301 levies dating back to the Biden administration, Anza said.  Every battery manufacturer Anza tracks had paused price quotes by early April, according to the quarterly pricing report. Many resumed quoting on shorter validity windows in late April, ahead of a 90-day reprieve on May 14 that cut the China tariff down to 30%, Anza said. The temporary tariff reduction could indirectly increase final pricing for domestic energy storage developers next quarter as shipping prices rise amid a rush to bring inventory into the U.S., Anza said. Four-hour battery system costs increased more than 50% since January despite a 17% drop in spot prices for lithium carbonate, a key input for lithium-ion batteries, over a similar timeframe. The longer-term energy storage cost outlook depends on where import tariffs settle, Wood Mackenzie said. Its consultants considered a milder “trade tensions” scenario, with stable tariffs of 34% on China and 10% on the rest of the world by year-end 2026, and a more severe “trade war” scenario with a

Legislation directing the U.S. secretary of energy to conduct assessments of the U.S. electricity generation and transmission supply chains was approved by a House energy subcommittee on Thursday and now goes to the House Committee on Energy and Commerce. The Electric Supply Chain Act directs the energy secretary to prepare “periodic assessments” that include “any trends, risks, and vulnerabilities in the supply, demand, and availability of components for or related to generating or transmitting electricity, including components that are necessary for the construction or deployment of facilities that generate or transmit electricity.” The bill would require the secretary of energy to submit a report to Congress within one year of the legislation being enacted. The bill “takes a proactive approach to identifying and addressing emerging issues that affect the power sector,” Rep. Bob Latta, R-Ohio, said in April at a hearing on ensuring domestic energy reliability. Latta, who is chairman of the House Energy and Commerce Committee’s subcommittee on energy, introduced the legislation. Electrical equipment manufacturers say they support the bill. “We must prioritize grid reliability by ensuring all relevant voices involved in supplying energy are at the table, including supply chain vendors and the manufacturers of critical grid components,” Spencer Pederson, senior vice president of public affairs for the National Electrical Manufacturers Association, said in a statement. The legislation would allow grid component manufacturers and supply chain vendors to “provide the energy sector with greater clarity around their current and future capacity, opportunities for growth, and challenges related to maintaining a secure and resilient supply chain,” he said. “More insight into the grid’s component supply chains also will strengthen national security.” Having electrical manufacturers work with the Department of Energy’s supply chain assessment will also help “identify where potential issues related to ‘foreign entities of concern’ and other emerging issues might

Malcolm Woolf is president and CEO of the National Hydropower Association and Dr. Bryant Jones is executive director of Geothermal Rising. When asked about the current version of “The One Big Beautiful Bill,” which recently passed the U.S. House and advanced to the U.S. Senate, President Trump replied, “We will be negotiating that bill, and I’m not happy about certain aspects of it.” He’s not the only one.   As representatives of the nation’s geothermal and hydropower industries, we are deeply concerned that two of the country’s most important baseload energy resources continue to be overlooked in federal energy legislation. This is especially troubling at a time when the nation is urgently seeking clean, reliable and domestically sourced energy solutions.  The timing couldn’t be worse. Forty percent of the non-federal hydropower fleet is currently up for relicensing and at risk of voluntary license surrender (451 facilities; 15,700 MW) Hydropower is one of America’s oldest sources of domestic, renewable power, with facilities in 48 states providing 24/7 reliable, affordable electricity to an estimated 25 million Americans. It also provides a disproportionate share of essential grid services such as “black start,” which is the ability to quickly restart the energy grid when it goes offline.   Geothermal energy is at an inflection point. It is no longer a niche solution — it is an emerging pillar of American energy resilience. There are geothermal heating and cooling systems in all 50 states and 93 geothermal power plants generating over 3,700 MW. Breakthrough technologies are dramatically expanding where geothermal can be deployed — potentially tapping into more than 5,000 GW of heat energy beneath U.S. soil. Next-generation systems are already being piloted in Nevada, Utah, Texas and California.  Importantly, geothermal is a multi-use energy asset: it can provide 24/7 clean electricity, thermal energy for heating and