IEA Considers Releasing Additional Strategic Reserves
Fatih Birol, Director of the International Energy Agency (IEA), said that member countries of the agency might discuss the possibility of releasing additional strategic oil reserves into the market in the future.
Birol told journalists in Dublin today, ahead of a meeting of energy ministers from European Union countries, “We are closely monitoring the markets, especially markets for products such as diesel and others. We will, of course, discuss with member countries taking the necessary steps if needed.”
Birol declined to comment on proposals hinted at by French President Emmanuel Macron and others regarding the release of more strategic reserves in an attempt to lower oil prices.
The IEA warned that Europe is facing a difficult winter due to energy shortages, calling on all parties to work together to address the anticipated energy crisis on the continent.
Tim Waterer, an analyst at KCM Trade, said, “A clearer picture is emerging of increased oil exports leaving the Gulf region, but a large part of this increase still depends on alternative solutions.”
Waterer added, “It can be said that this persistent hope of reaching an agreement is the main factor preventing Brent crude from rising sustainably above $110 in the near term.”
On the price front, the price of a barrel of Kuwaiti crude fell by $2.18 to reach $106.51 per barrel in Monday trading, compared to $108.69 in last Friday’s trading, according to the price announced by the Kuwait Petroleum Corporation.
Globally, oil prices turned lower during Tuesday morning trading, as prospects for talks between Washington and Tehran were assessed, alongside signs of a recovery in Middle East oil exports.
US and Iranian officials held separate talks with mediators today as part of renewed efforts to end the war, with upcoming talks expected to focus on a modified version of a proposal put forward by Tehran last week, according to officials speaking to Reuters.
Data from Kpler showed that crude oil exports from major Middle East producers rose to 12.8 million barrels per day in September, their highest level since February.
The European Union announced on Tuesday that it is considering delaying the implementation of its rules on methane emissions for fuel imports without easing the requirements, amid concerns about their impact on oil and gas imports to the bloc.
EU Energy Commissioner Dan Jørgensen said in a press statement during a meeting of European energy ministers in Dublin, the capital of Ireland, which holds the rotating EU presidency, that he had asked his team to study the possibility of delaying the application of EU methane rules to fuel imports.
Jørgensen clarified that the proposed approach is limited to discussing a delay in the implementation of the regulation without rolling back or easing its requirements.
This comes as some EU member states have called for suspending the enforcement of European rules aimed at reducing methane emissions or rolling back certain provisions, amid concerns that implementation could affect oil and gas imports into the EU.
The company aims to increase its oil, gas, and electricity production by 4% annually until 2030, while continuing to reduce gas emissions.
TotalEnergies also aims to cut emissions from its oil and gas activities by 50% by 2030 compared to 2015 levels, and reduce methane emissions by 80% by 2030 compared to 2020 levels.
TotalEnergies expects that increased cash flows from production will boost free cash flow by approximately $10 billion between 2025 and 2030, assuming stable prices.
The company anticipates average annual oil and gas production growth of 3% from 2025 to 2030, driven by the startup of several currently under development low-cost, low-emission projects.
To support long-term growth, the company plans to invest between $14 billion and $17 billion annually from 2027 to 2032.
Sources familiar with the matter stated that British energy company BP is considering its options regarding the future of its Brazilian biofuels business, including a potential sale, as CEO Meg O’Neill intensifies efforts to restructure the British firm’s portfolio and focus its investments on core activities.
Bloomberg News reported that BP acquired a stake in the Brazilian biofuels company in 2024, purchasing 50% of its shares for $1.4 billion, including debt.
The sources said the British company no longer considers the biofuels sector part of its core activities, adding that details of the sale plan are still in their early stages and no final decision has been reached.
A BP spokesperson declined to comment on the reports.
This deal could represent another step in BP’s broader efforts to streamline its portfolio and increase liquidity for investment in core oil and natural gas projects while reducing its debt.
The company has committed to selling assets worth approximately $20 billion by 2027, as it seeks to reduce debt, cut costs, and improve returns, following the strategic transformation announced last year by then-CEO Mary Schapiro, focusing on investments in energy transition activities, similar to the approach under her predecessor Bernard Looney.
In 2024, BP agreed to pay $1.4 billion to acquire Banji Global’s 50% stake in a Brazilian sugar and ethanol company, while BP already held the other half, aiming to fully own the entity.
The impact of rising oil prices at gas stations is not limited to car drivers; German airline Lufthansa is also forced to spend more on jet fuel, a burden felt by passengers.
Lufthansa CEO Carsten Spohr expects jet fuel costs for Germany’s largest airline to rise due to the war in Iran. Speaking to journalists in Frankfurt on Monday evening, Spohr said the company would be lucky if the additional costs were limited to the recently announced figure of €1.5 billion, adding, “The figure will be higher, and we will likely have to (...) announce it at the end of the year.”
Spohr clarified that Lufthansa still expects to achieve operating profits in 2026 at a level close to the previous year, thanks to austerity measures at its flagship Lufthansa brand and a significant recent increase in ticket prices.
Lufthansa announced in August that fuel costs were expected to rise to €8.7 billion over the full year. The airline is responding by raising ticket prices for passengers.
High fuel prices are imposing burdens on airlines worldwide.
Amid the ongoing war in Iran and Houthi advances in Yemen at the Bab el-Mandeb strait, new concerns have recently emerged regarding global oil supplies.
As the important summer season draws to a close, Shobair expressed optimism regarding ticket sales, noting that demand has been remarkably strong, particularly for premium cabins, which include first class, business class, and premium economy.
On long-haul flights, Shobair explained that Lufthansa generates more than half of its revenue from premium cabins, adding that ticket demand has “practically been unaffected by geopolitical risks,” which typically lead customers to exercise greater caution.
