Prices Rise on Stockpile Drop

Prices Rise on Stockpile Drop
America’s oil supply dropped by 9.3 million barrels last week, one of the biggest declines in years, leaving storage levels lower than normal for this time of year. Gasoline supplies also fell, while diesel stocks rose. Even with the big drawdown, oil prices slipped a bit, with Brent crude trading around $68 a barrel and WTI just slightly lower. The sharp inventory drop shows demand staying strong and supplies tightening, even as fuel use shifts between gasoline and diesel.

Chevron, Israel to Build Pipeline Supplying Gas to Egypt
Chevron and Israel Natural Gas Lines signed a deal to construct a new pipeline linking Israel’s Leviathan gas field to Egypt. The $35B project will include a compressor station and a 40-mile pipeline to the Nitzana border, enabling flows of up to 600 million cubic feet per day. The move strengthens Egypt’s energy security as domestic production falls and LNG imports rise. Chevron, which operates Leviathan, aims to boost Israeli gas deliveries and U.S. LNG supplies to meet Egypt’s surging demand despite ongoing regional tensions.

IEA Calls for New Oil & Gas Investment Amid Faster Decline Rates
In a major policy shift, the International Energy Agency (IEA) now says new oil and gas development is essential just to keep production steady, reversing its 2021 stance that no new investment was needed under a net-zero scenario. The agency’s new report warns that faster decline rates, driven by reliance on shale and deepwater projects, mean more than 45 million bpd of oil and 2,000 bcm of gas will be required from new fields by 2050. IEA Director Fatih Birol stressed that nearly 90% of industry investment already goes toward replacing lost supply, not meeting new demand, and underinvestment risks global energy security.

Moves to Watch