OPEC+ would struggle to cover main Iranian oil supply disruption
Oil market participants have switched to dreading a shortage in fuel from focusing on impending oversupply in just two days this week.
After Israel attacked Iran and Tehran pledged to retaliate, oil prices jumped as much as 13 percent to their highest since January as investors price in an increased probability of a major disruption in Middle East oil supplies.
Part of the reason for the rapid spike is that spare capacity among OPEC and allies to pump more oil to offset any disruption is roughly equivalent to Iran’s output, according to analysts and OPEC watchers.
Saudi Arabia and the United Arab Emirates are the only OPEC+ members capable of quickly boosting output and could pump around 3.5 million barrels per day (bpd) more, analysts and industry sources said.
Iran’s production stands at around 3.3 million bpd, and it exports over 2 million bpd of oil and fuel.
There has been no impact on output so far from Israel’s attacks on Iran’s oil and gas infrastructure, nor on exports from the region.
Pakistan to increase refining capacity by 15pc by 2027
Pakistan aims to increase its refining capacity by 15 percent by 2027 through various plant upgrade projects, as outlined in the Oil Refining Policy 2023 and the Annual Plan for fiscal year 2025-26.
The country’s energy sector is undergoing transformative efforts to address energy security, affordability, and sustainability. The Integrated Energy Planning Initiative, led by the Ministry of Planning and Development, aims to reshape the energy landscape through data-driven decision-making and policy formulation.
The country has set targets for crude oil and natural gas production at 24.24 million barrels and 1.24 trillion cubic feet (tcf), respectively, for FY26. Additionally, the target for local liquefied petroleum gas (LPG) supply has been set at 0.75 million tonnes.
To address the shortfall in domestic gas supplies, Pakistan plans to import 7.5 million tonnes of liquefied natural gas (LNG). Gas transmission and distribution companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), aim to add 116,270 new consumers and 2,770 kilometers of transmission and distribution pipelines during the year.
Efforts will also be made to explore 14.8 million tonnes of local coal to reduce reliance on imports and lower the import bill. In line with these objectives, the Petroleum Division has prioritised key initiatives, including the expansion of the Village Gasification project, which will extend gas access to 81 villages near gas fields through the installation of 2,770 kilometers of new pipelines.
China’s coal output rises 4pc year-on-year
China’s coal production rose 4 percent year-on-year in May, official data showed on Monday, as domestic production continued to substitute for a decline in imports.
China’s May coal output was 403.28 million metric tons, also up from 393.31 million tons in April, according to data from the National Bureau of Statistics.
Output over the first five months of the year reached 1.99 billion metric tons, up 6 percent compared with the same period of last year.
China’s coal production is expected to increase by 70 million to 80 million tons this year as China cuts back on imported coal, Xuegang Li, vice president at the China Coal Transportation and Distribution Association, told the Coaltrans China conference last week.
That would equate to a 1 percent-2 percent rise.
Bad weather cuts Kenya’s tea production by 19pc
Kenya’s tea production declined by 18.8 percent in the first quarter of 2025 due to unfavorable weather conditions, the Tea Board of Kenya (TBK) said on Wednesday.
According to a report released by the TBK, the country produced 136.91 million kilograms of tea during the period, down from 168.76 million kilograms in the same period in 2024.
The board said the drop was largely attributed to extremely hot and dry conditions, coupled with a delayed onset of the long rain season, which typically runs from March to May.
The TBK, which oversees tea marketing in Kenya, said it expects the unfavorable conditions to impact annual output.
“Going by the trend for the first quarter, production for the whole year is projected at 580 million kilograms, which will be lower compared to 594 million kilograms in 2024 but slightly higher than 570 million kilograms in 2023,” the board said.
Kenya’s tea-growing regions are primarily located in the central and Rift Valley areas, with the latter experiencing the most significant decline in output, according to the report.
In 2024, Why U.S. Uranium Production Surged 12-Fold
For decades, the United States has been the world’s biggest producer of nuclear energy, accounting for 30 percent of global production. The country, however, currently imports 98 percent of the uranium feedstock it needs to power its 94 nuclear reactors. Indeed, the U.S. accounts for less than 1 percent of the world’s uranium output, with Kazakhstan, Canada, and Namibia accounting for nearly two-thirds of global production.
But things have not always been this way. The country’s nuclear age peaked in the 1960s to the mid-1980s when it was the leader in uranium production. The downtrend that followed can largely be chalked up to government policy, with Washington de-prioritizing away from the uranium sector, including providing less government funding and subsidies to support it over the years. Meanwhile, several high-profile nuclear accidents took a heavy toll on public perception and tanked uranium prices, forcing many domestic uranium producers to shutter operations.
However, the U.S. is now enjoying a nuclear renaissance, with the sector seeing a resurgence in recent years. Last year, the country produced almost 700,000 pounds of yellowcake, good for a more than a dozen-fold increase from the previous year, thanks to surging uranium prices and favorable government policies. It all began three years ago, with Russia’s invasion of Ukraine triggering a global energy crisis and driving energy prices to historic highs. Suddenly, governments everywhere started encouraging more nuclear energy production to boost national energy security.