Daily Energy Report
Daily Energy Report
OPEC oil exports, US Iran sanctions, Medium sour crude prices, Iraq-Kurdistan pipeline, Offshore drilling grows, Shale output slows, Africa fuel growth, EV price war, and more.
Chart of the Day: Decline in OPEC Crude Exports
Summary
Figure (1) above compares OPEC oil exports (both crude and products) in the first quarter of 2024 and 2023. It shows that while crude exports decreased by about 1 mb/d, exports of products increased by 484 kb/d.
EOA’s Main Takeaway
While part of the decrease in crude exports is related to OPEC voluntary cuts, another large part is related to the start of Al Zour refinery in Kuwait that reduced crude exports significantly while it increased its products exports (more details below).
Story of the Day
Bloomberg: US Unlikely to Enforce Iran Sanctions in Election Year: Analyst
Summary
Energy Aspects Ltd. suggests the US is unlikely to enforce new sanctions against Iran's energy sector vigorously, so as not to spike oil prices during an election year. The latest legislation aims to expand sanctions, but practical enforcement challenges persist, especially with China's involvement in Iranian oil transactions. Despite nominal restrictions, Iran's exports—crucial for oil price stability—may only be minimally affected.
EOA’s Main Takeaway
We were first in the world to report that the proposed legislation will not apply until after the elections in a report that we posted on Saturday after Congress approved it.
We also held a Spaces discussion Saturday evening discussing the same subject: US Oil Sanctions on Iran: What is the Impact on the World Oil Markets?