UAE to Reduce Oil Exports in 2025 and Natural Gas Heads Toward Weekly Gain
By Christian Drolshagen
Oil is trading slightly higher and heading for a weekly gain.
Geopolitical tensions have risen after a Russian airstrike against Ukrainian energy sites
Talks of additional sanctions on Russia and Iran countered concerns of oversupply in 2025
UAE to reduce oil exports next year (BBG)
Adnoc has cut the allocation of shipments to Asian customers by as much as 230 MBbl/d across multiple grades of crude
While OPEC data shows the UAE has stuck to its production quota, some observers, such as the IEA, believe production may be significantly higher
The UAE’s quota is 2.912 MMBbl/d, but tanker tracking data compiled by Bloomberg shows exports may be as high as 3.86 MMBbl/d
Natural gas is trading lower but heading for a weekly gain.
Weather forecasts shifted cooler overnight, mostly in the Midwest and Southeast
Yesterday, the EIA reported a -190 Bcf withdrawal from storage, which was larger than analysts expected
Boardwalk approves new 1.16 Bcf/d southeast pipeline (PGJ)
Boardwalk Pipelines approved the Kosci Junction Pipeline project, a 110-mile expansion to increase natural gas capacity in Mississippi
The project supports the growing demand for energy, particularly for data centers and industrial growth
FERC pre-filing is planned for early 2025, with pipeline operation expected by the first half of 2029
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