New EU Sanctions are Lifting Oil Prices: Crude prices climbed late last week, and the main driver was the new round of EU sanctions on Russian trade. This move adds immediate pressure to an already tight global supply chain and shows that geopolitical actions, especially when combined with existing Mideast tensions, continue to have a direct, upward impact on prices.
Houthi Attacks Shut Down a Critical Israeli Port: Over the weekend, regional tensions escalated significantly as Houthi attacks forced a shutdown of Israel's Eilat port. This isn't just a threat; it's a direct disruption to a critical logistics hub for fuel imports and petrochemical exports. This action adds to the geopolitical risk premium that is currently supporting the market.
The U.S. Rig Count Sees a Rare and Notable Gain: After weeks of declines, we saw a rare uptick in the Baker Hughes rig count. While it's just one data point, it's the first notable gain in several weeks and could be an early signal that U.S. operators are starting to find confidence to put capital back to work amid the recent period of price stability. This is a key indicator to watch for a potential trend reversal.
Major Investment in Texas for New Gas Capacity: Xcel Energy just announced 17 new power generation projects across Texas and New Mexico to meet surging electricity demand. Significantly, this includes new natural gas capacity, underscoring the vital role gas plays in stabilizing the grid and providing a strong, long-term demand signal for the fuel.
BP Makes a Strategic Pivot Back to Oil and Gas: In a notable shift, BP is selling off its U.S. onshore wind assets. The move is being seen by many in the industry as a quiet retreat from renewables to realign its capital strategy back towards its core oil and gas business, likely driven by a search for better returns. It's a major data point in the ongoing energy transition debate.
The Permian Basin's Dominance Continues to Grow: The latest data is staggering: in the first half of this year, the Permian Basin alone accounted for a record-breaking 45% of all U.S. oil production. This demonstrates that the region's importance is still increasing, cementing its role as the undisputed engine of America's energy output.