Crude oil prices extended their climb today and are set for a sharp weekly gain as the war in the Middle East continues with little chance of peace. At the time of writing, Brent crude was trading at $95.55 per barrel, and West Texas Intermediate was changing hands for $91.53 per barrel, as Iran and the United States traded missile strikes this week and Israel’s defense minister threatened “crippling” Iran’s infrastructure, both military and civilian, including energy facilities. “The market is entering a delicate…

For decades, Venezuela has been one of China’s most important partners in Latin America and the largest recipient of Chinese government funds in Latin America, with Beijing lending Caracas tens of billions of dollars and accepting oil as repayment.  Chinese policy banks provided it with at least $60 billion in oil-backed financing through 2015, while broader estimates of Chinese lending and investment commitments exceed $100 billion. Analysts estimate that Caracas still owes Chinese lenders at least $10 billion. Recovering that money…

OPEC’s second-largest producer, Iraq, more than doubled its crude oil exports via the Strait of Hormuz in August as it offered month-watering discounts for loadings at Basrah in the Persian Gulf and Iran allowed Iraqi oil cargoes to transit the chokepoint. Iraqi oil exports jumped to some 2.34 million barrels per day (bpd) in August from 1.35 million bpd in July, two Iraqi energy officials told Reuters, in data consistent with estimates of vessel-tracking firms Vortexa and Kpler, who see Iraq’s oil shipments at between 2.2 million bpd…

Damaged refineries in the Middle East and Russia and insufficient capacity elsewhere to offset the supply disruptions will likely keep global fuel prices elevated into the next year, analysts say. The Middle East conflict and the Iranian and Houthi strikes on Persian Gulf facilities have slashed supply and deliveries from the region, while intensified Ukrainian strikes on Russian refineries have prompted a ban on diesel exports out of Russia. As a result, the global fuel markets are tightening, also because capacity elsewhere, including in the…

Europe’s lowest levels of natural gas in storage in nearly two decades risk intensifying the race for LNG supply in the coming months as both Europe and Asia are competing for a shrinking pool of supply, with the Middle East’s LNG still blocked at the Strait of Hormuz.   “The potential for a global ‘fight for fuel’ is there, particularly in a colder winter,” Go Katayama, principal insight analyst for LNG at intelligence firm Kpler, told Bloomberg. Europe is heading into the winter with one of the lowest…

Chinese refiners are paying a hefty premium for Russia’s ESPO crude to replace Iranian crude that independent refiners were importing before the U.S. installed its naval blockade on the country. East Siberia-Pacific Ocean crude, or ESPO, for delivery in November is trading at a premium of over $7 per barrel, with offers reaching as high as $10 per barrel over Brent crude, Bloomberg reported today, citing traders. The blend is loaded from Russia’s Far East coast and can reach the buyers in China in less than a week, the publication noted.…

Spot LNG prices for Asian buyers went up to almost $26 per million British thermal units yesterday for a 5% weekly gain following the resumption of strikes between the United States and Iran. Spot LNG for Asia traded at $25.908 per mmBtu late on Wednesday, Bloomberg reported, citing unnamed traders, after President Donald Trump said “We took out all of the new equipment that they tried to build along the ‌Strait of Hormuz - some defensive, some offensive ... It was a very heavy attack last night, and we're prepared to do another one…