BKR Rig Count | The total active drilling rigs in the United States decreased by 1 last week, to 587. Oil rigs dropped by 4 to 484, and gas rigs increased by 3 to 99. Rig count in the Permian Basin dropped by 1 to 306 | Sept 27 | BKR NAM Rig Count
US Crude Inventories, excluding those in the Strategic Petroleum Reserve (SPR), decreased by 4.5 MMbbl to 413 MMbbl (about 5% below the 5y average for this time of year). On the products side, gasoline decreased by 1.5 MMbbl (1% below the 5y average). Distillate fuels decreased by 2.2 MMbbl (9% below the 5y average). Total commercial petroleum inventories decreased by 14.6 MMbbl | Sept 20 | EIA Weekly Report
Libyan central bank agreement should lead to lifting of oil blockade | UN announces Libyan rival powers agree to central bank deal, including the appointment of an interim governor. Breakthrough achieved via a combination of external pressure and softening of demands by both sides. Implementation of the agreement to take two weeks, but LNA expected to lift partial oil blockade imminently. Once operations resume, oil production should ramp up towards full capacity of 1.2 mb/d within 7–10 days. OilX data show 3 mb rebuild in Libyan stocks after substantial August draws, which may aid rapid increase in loadings | Sept 25 | EA
About 24% of crude oil production and 18% of natural gas output in the U.S. Gulf of Mexico was shut in response to Hurricane Helene. Oil and natural gas production losses fell for the second consecutive day after reaching a peak of 511,000 barrels on Wednesday. Energy producers had shut in 427,000 barrels per day of oil production and nearly 343 million cubic feet of natural gas from Gulf waters, according to the U.S. Bureau of Safety and Environmental Enforcement | Sept 27 | Reuters
Uzbek Gas Sales Generate $1.15 Billion for Russia’s Gazprom | Exports of Russian gas to Uzbekistan soared in the first eight months of the year, with volumes equivalent to almost three times the 2023 annual total, helping partially offset a sharp reduction in shipments to Europe. Following last year's initial upgrades to reverse flow at the CAC pipeline, Kazakh gas pipeline network operator Qazaqgaz said earlier this year that it has started work on a $754 million second phase of upgrades, aimed at increasing transit capacity of Russian gas to Uzbekistan and Kyrgyzstan to 11 Bcm per annum. Talks are underway with Gazprom over a third expansion phase, with both companies aiming to boost transit capacity to 22 Bcm per annum, according to a Qazaqgaz executive | Sept 26 | Upstream
China Announces New Measures to Arrest Housing Slump and Boost Growth | Promising to deploy “necessary spending” by the state to meet this year’s economic growth target of 5%, China’s politburo said it would increase benefits for the poorest and give local authorities the cash and power to intervene to prevent further falls in house price values. Separately, China is reportedly considering injecting up to 1tn yuan of capital into its biggest state banks to increase their capacity to offer loans. however, price gains remained elusive, as the markets were not convinced that this would be sufficient to support future demand of the world's largest importer | Sept 26 | S&P, The Guardian
Hot weather in Japan drains LNG inventories to five-month low, increasing the need for more fuel before the seasonal peak in demand during the winter season. Temperatures are returning to near-normal at the start of fall, allowing utilities to rely on long-term contracts to refill inventories. However, the Japan Meteorological Agency forecasts colder-than-normal weather in major areas from December to February, which could increase the need for spot LNG purchases, pressuring global supply and lifting prices | Sept 25 | Bloomberg
Brazil aims to boost exports as EIG adds Repsol as its 11th client for shipping crude overseas. Repsol will use Porto do Acu, according to Victor Bomfim, who manages terminal operator Vast Infraestrutura, which handles about half of Brazil’s oil exports. Bomfim expects exports to rise to 3 mbd in 2030, up from current 1.8 mbd, due to an increase in oil production, lack of domestic refineries and full capacity at other terminals. The growth in exports highlights Brazil’s increasing role in the global oil market, as its production growth increase in recent years has complicated OPEC+'s ability to manage the market | Sept 24 | Bloomberg
Singapore will see a short-term increase in LNG demand due in part to data center growth according to state-owned importer Singapore LNG Corp, citing the challenge to “build infrastructure fast enough”. Singapore’s government is aiming to increase allocated power to data centers by as much as 35%. The jump in electricity consumption will make it tougher for Singapore to decarbonize its grid. It relies on imported gas for around 95% of its electricity, but its options to develop renewables are constrained by a lack of space. Instead, the city-state is aiming to import green power from its neighbors, and has a goal to bring in 6 gigawatts by 2035, which would be around half of overall demand | Sept 27 | Bloomberg
Colombia’s energy system is in crisis as drought cripples hydropower supplies and the capacity to import natural gas has reached its limit. Colombia’s only LNG terminal is operating at maximum capacity, handling 450 MMcfd. Naturgas, an energy-industry trade group, is projecting Colombia will face a gas shortfall starting next year, equal to about 12% of the nation’s average daily demand. In 2026, the shortfall is forecast to rise to about 30% of demand. Ecopetrol said it’s urging government officials to give producers more flexibility to negotiate for shorter-term contracts for the fuel | Sept 26 | Bloomberg
