Defying the IEA’s calls of fossil fuel demand peaking by 2030, the CEOs of Saudi Aramco and ExxonMobil both said the energy transition will take longer than assumed and that oil and gas investment remained critical to stop prices soaring, OilPrice reported.
The worsening macroeconomic outlook has kept oil prices largely unchanged compared to a week ago, with ICE Brent still hovering around $94 per barrel. Last week brought about a flurry of macroeconomic news with central banks meeting in the United States, the United Kingdom, Japan, and other countries, potentially reminding the oil markets of the continued risk of a significant recession in Western economies.
Saudi Arabia accounts for more than a quarter of VLCC deliveries, with more than 90% of Aramco exports taking place by means of VLCC tankers, hence the oversized impact of Saudi cuts on freight rates. UK oil major BP intends to invest up to $11 billion in low-carbon fuels, renewables, and EV charging stations in Germany by 2030 as it seeks to expand in Europe’s largest economy. French energy company TotalEnergiesis reportedly in talks with Adani Green Energy to invest up to $700 million in the Indian firm’s clean energy projects, the first deal since Hindenburg Research’s short-selling recommendations. US refiner Valero Energy announced it had authorized a share repurchase of up to $2.5 billion, with no expiration date, in addition to the $2.5 billion already authorized earlier this February.