ADNOC chief says Iran shipping disruptions amount to extortion
The head of the UAE’s national oil company said Iran’s disruption of shipping through the Strait of Hormuz amounts to extortion, as attacks and threats against vessels curb traffic through the key energy corridor.
“When Hormuz flows, energy moves and economies grow – when it is disrupted, everyone pays.” Dr. Sultan Al Jaber, Group CEO of ADNOC and the UAE’s Minister of Industry and Advanced Technology, said in a LinkedIn post.
Warning that the crisis risks undermining global energy markets, Al Jaber called for international cooperation “to protect the free flow of energy and safeguard economic stability.”
Meanwhile, Saudi Arabia’s oil exports fell by about 50% in March, dropping by roughly 3 million to 3.5 million barrels a day because of the blockade, Bloomberg reports.
The disruption has forced Saudi Aramco, the world’s biggest oil exporter, to rely on its East-West pipeline to move crude to Red Sea ports, which have capacity of roughly 5 million barrels a day, compared to normal export levels of about 7 million barrels a day.
Nuclear industry sees revival as Mideast crisis pushes oil to $100
The nuclear industry could benefit from the current bout of global energy insecurity as attacks on three more cargo ships in the Gulf push oil prices toward $100.
Boris Schucht, CEO of uranium enrichment company Urenco, told the Financial Times that a “nuclear renaissance” is underway, with the company holding a record $21.3 billion order book for uranium and fuel products.
“The supply crisis in the Middle East will refocus policymakers and industry on energy security and the need to have some form of baseload power in countries that is independent from supply threats,” Schucht said.
Analysts say the crisis is prompting governments from Europe to Japan to accelerate nuclear plans, while European Commission President Ursula von der Leyen called the continent’s earlier retreat from nuclear power a “strategic mistake.”
Aramco hunts for new China investments as oil profit slips
Amid shrinking profits, Saudi Aramco CEO Amin Nasser said the world’s biggest oil company is shopping for new investments in China.
Nasser spoke in Beijing on Monday at the China Development Forum, where he said Aramco is “currently” supporting projects in the areas of Fujian, Liaoning, Zhejiang and Tianjin.
“I emphasize ‘currently’ because we are continuing to identify additional opportunities, which include energy and chemicals, as well as technology,” Nasser said.
Aramco’s interest in China, Nasser said, rests partly on its emergence as the “world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand, and it’s becoming a major hub for the entire chemicals industry value chain, which will be critical to industries of the future.”
The conference in Beijing was the first stop for international executives and policymakers trying to navigate trade tensions between the U.S. and China, with the subject hitting center-stage this week at the Boao Forum for Asia in Hainan.
Saudi Aramco prepares for $10 billion share sale amid oil cuts
Saudi Aramco, the world’s largest oil company, is generating renewed energy among investors as it moves forward with a secondary offering.
The share sale is currently being planned to start on Sunday with the booking process to take orders and could raise more than $10 billion, making it the largest offering of its kind in years, Bloomberg reports.
No final decisions have been made on the offering period and terms of the deal, including its size, could still change, according to the news agency.
Aramco didn’t immediately respond to requests for comment.
The offering is set to come days after Aramco’s stock dropped to the lowest level in over a year.
The deal’s opening will coincide with next week’s OPEC+ meeting to discuss oil output policy, where the group is expected to maintain supply curbs.
Saudi Arabia’s production is close to its lowest level in three years.
China vital to Saudi Aramco’s future growth, CEO says
Saudi Aramco, the world’s largest oil company, sees China as vital to its future business growth.
Speaking at the China Development Forum 2024 in Beijing on Sunday, Aramco President and CEO Amin H. Nasser cited data showing that demand for oil will continue to be robust in the world’s No. 2 economy.
He also pointed to joint interests in renewable energy and materials manufacturing. “We are not mere investors, and China is not just a market to us,” Nasser said. “We want to be a partner of first resort in China’s economic development journey, as new opportunities clearly come into focus.”
On Monday, the Saudi Ports Authority announced a new shipping route connecting Damman, the center of the kingdom’s oil industry, to ports in Shanghai, Xiamen, Dachan Bay and Qingdau in China.
