Markets

Norway's oil production capacity is significantly increasing with the Johan Castberg oilfield in the Barents Sea.

Leading international energy companies are strategically expanding their offshore exploration and production in South America to boost future output.

The escalating Israel-Iran conflict has prompted India and Pakistan to prepare for potential oil supply disruptions, particularly through the crucial Strait of Hormuz, which handles over 20 MM b/d of crude.

Total crude oil exports from the US Gulf Coast (USGC) in May 2025 dropped to 3.46 MM b/d, marking the lowest monthly volume since Jan. 2023 and continuing a broader downtrend observed in recent months

US crude oil output is projected to decline in 2026, marking the first annual decrease since 2021.

Shell is significantly reinforcing its presence in Malaysia, committing to invest over RM9 B (Ringgit Malaysia) in the country over the next two to three years.

The European Union has abandoned its proposal to lower the price cap on Russian oil from the current $60/b to $45.

The future of the volatile and uncertain oil market in the near term is heavily skewed by the recent escalation of geopolitical tensions in the Middle East, while underlying global economic factors present a mixed picture.

Global oil markets experienced a tumultuous week marked by ongoing US-China trade negotiations and escalating geopolitical tensions in the Middle East.

India's strategy to diversify its crude import basket with more non-OPEC crudes will not significantly impact its long-term contracts with Middle Eastern suppliers.