Oil prices have lost all the gains made for 2025 as concerns about a potential trade war continue to impact the market, affecting both Brent and WTI prices.
Brent futures have fallen back to the level they started the year at, erasing all of their 2025 gains. This shift comes amid growing worries over a potential US-China trade war, which has dominated market discussions. While US President Donald Trump’s “drill baby drill” policy was largely downplayed during a meeting of US oil executives in Houston this week, Trump reiterated his support for boosting US oil production, adding further bearish sentiment to the market. This has contributed to a $2 per barrel decline, with ICE Brent settling slightly below $75 per barrel in the first week of February.
Trump Tightens Iran Sanctions
The US Treasury has imposed new sanctions on several individuals and tankers accused of helping Iran export millions of barrels of crude oil to China annually. This move aligns with President Trump’s promise to apply maximum pressure on Iran and reduce its oil exports.
US Oil Firms Warn of Permian Slowdown
US oil executives have warned that growth in oil production from the Permian Basin will slow down by at least 25% this year. Production is expected to increase by around 250,000 barrels per day (b/d) in 2025, compared to a 380,000 b/d increase in 2024. This slowdown downplays the impact of Trump’s “drill baby drill” policies on US oil output.
Canada Seeks Alternative Export Markets
In light of potential US tariffs, Canadian ministers from Alberta visited Japan this week to explore new markets for Canadian LNG. The discussions focus on creating export opportunities beyond the $40 billion LNG Canada project, as Canada looks to secure new investments.
Iran Calls on OPEC to Defy US Sanctions
Iran’s President Masoud Pezeshkian urged OPEC members to stand against the US sanctions on Tehran. In his meeting with OPEC Secretary General Khaitam al-Ghais, Pezeshkian emphasized the need for solidarity as Iran assumes the rotating presidency of the organization.
Venezuelan Oil Exports to China Rise
Venezuela saw a 15% month-over-month increase in oil exports, reaching 867,000 b/d in January. This rise is partly driven by Chevron’s significant contribution of 294,000 b/d, the highest since it received a sanctions waiver. China remains the main buyer of Venezuela’s Merey barrels.
Namibia’s Upstream Prospects Dim
Namibia’s once-promising oil exploration outlook has weakened. TotalEnergies has postponed a final investment decision on its 150,000 b/d offshore Venus discovery, pushing it to 2026.
Oil Majors Reject Venture Global LNG Deal
Following the disappointing IPO of LNG developer Venture Global, TotalEnergies CEO Patrick Pouyanne revealed that the company had rejected Venture Global’s offer for a long-term supply contract from Calcasieu Pass. The rejection stems from a lack of trust in the company.
Colombian President Strains Ecopetrol
Colombian President Gustavo Petro’s ongoing criticism of the national oil company Ecopetrol has negatively impacted its stock performance. Petro has called for the sale of Ecopetrol’s US fracking business, developed with Occidental Petroleum, which is its only growing upstream subsidiary.
Egypt Secures Major LNG Import Deal
Egypt, which is set to become a net importer of natural gas again in 2024, has signed agreements worth $3 billion with Shell, BP, and TotalEnergies. These deals will provide 60 LNG cargoes to cover the country’s power generation needs for the year, moving away from its usual quarterly tenders.
BP Sells German Refinery to Cut Costs
In an effort to reduce operational costs by at least $2 billion, BP announced it would sell its Gelsenkirchen refinery in Germany. The company also plans to close one of the refinery’s distillation columns later this year.
Tesla’s Sales Slump in Germany
Tesla saw a sharp drop in sales in Germany, with only 1,277 cars sold in January. This marks a 59% month-over-month decline and the lowest monthly total since July 2021. The decline is attributed in part to Elon Musk’s political comments on Germany.
Trans Mountain Pushes for Pipeline Expansion
Canada’s Trans Mountain pipeline operator is pushing to accelerate expansion plans for its 890,000 b/d TMX system. The expansion could add 200,000-300,000 b/d to help Canadian producers avoid US territory and secure alternative export routes.
India to Revise Nuclear Liability Laws
India’s government plans to revise its civil nuclear liability law, which currently holds both plant operators and equipment suppliers accountable for any potential accidents. The move aims to attract private investment as India seeks to boost its nuclear capacity by 100 GW by 2047.
Related Topics:
- Today’s Oil Price Index Chart (February 6)
- Brent Crude Oil Price Today (February 6)
- Oil Prices Drop Despite Trump’s Renewed Pressure on Iran