Stay Ahead in Energy: OG Oil, Gas & News You Need to Know

OG Oil, Gas & Energy News - Your Comprehensive Briefing on the Energy Landscape | May 21

OG OIL GAS ENERGY NEWS

Welcome to our latest energy market update, drawing insights from recent reports on oil, gas, and related energy developments worldwide. This week, we've seen significant movement driven by trade policies, geopolitical factors, and strategic decisions by key energy players and governments, impacting everything from US fuel pumps to global crude benchmarks and long-term energy investment trends.

US Gasoline and Diesel Price Update Gasoline prices across the United States have resumed an upward trend after a brief pause. The national average price for unleaded gasoline recently climbed 6.1 cents in a week, reaching $3.14 per gallon according to GasBuddy data. AAA also reported a rise, with the national average hitting $3.13, up 4 cents from the prior week. Although still offering significant savings compared to a year ago, the gap has narrowed as oil prices have rebounded. Factors contributing to this rise include optimism following President Trump's decision to reduce tariffs and pursue new trade deals, which inspired hope that a major tariff-induced economic slowdown might be avoided. This economic optimism, coupled with tightening gasoline inventories, has put upward pressure on prices across many states. In Wyoming, the average price also rose, increasing 2 cents to $3.15 per gallon, while Laramie County saw a 5 cent jump, reaching $3.03 per gallon, making it the state's third cheapest average. Meanwhile, Natrona County held the title of the cheapest in the state at $2.83 per gallon. On the supply side, the EIA's report for the week ending May 9, 2025, showed that US oil inventories rose by 3.5 million barrels, though this is still about 6% below the seasonal average. Gasoline inventories fell by 1.0 million barrels and are 3% below the five-year average, while distillate inventories dropped by 3.2 million barrels and stand about 16% below the five-year seasonal average. Refinery utilization saw an increase of 1.2 percentage points to 90.2%.

Global Crude Oil Market Dynamics and Price Volatility Energy markets experienced a notable rally initially spurred by the de-escalation of US-China trade tensions. Oil prices rose for a second consecutive week following an agreement between the US and China to temporarily reduce tariffs, which helped alleviate recession fears. This deal saw the US reduce tariffs on imports from China and China reduce tariffs on imports from the US for 90 days, allowing trade negotiations to continue. However, this rally has faced headwinds and volatility. Global crude oil prices have seen volatility influenced by various factors. Reactions abroad to the U.S. trade situation, continued limited economic growth data from China, and varying prospects for a ceasefire between Russia and Ukraine have all played roles. News of progress in talks regarding Iran's nuclear program also prevented further significant gains, as the lifting of sanctions could allow Iran to increase oil production by around 400,000 barrels per day. Furthermore, the decision by the Organization of the Petroleum Exporting Countries (OPEC) to increase production in June has also served to limit higher oil price increases. Despite these factors creating short-term price wavering, the long-term outlook appears more solid due to projected rises in global oil demand. OPEC's strategies and US tariffs remain pivotal amidst this market volatility. In a related move highlighting market adjustments, Saudi Aramco reportedly slashed propane and butane prices for May.

Broader Energy Landscape Developments Beyond traditional oil and gas markets, the broader energy landscape is seeing significant developments. In the United States, a bipartisan group of lawmakers has introduced a bill aimed at boosting US nuclear power. This initiative is driven, in part, by concerns over China and Russia's growing influence on international nuclear energy development. The US currently possesses the most nuclear power capacity globally, but China is rapidly developing domestic reactors, and Russia is securing deals in Southeast Asia and other regions. Proponents of the bill, including Senators Jim Risch and Mike Lee (Republican) and Martin Heinrich and Chris Coons (Democrat), emphasize that US leadership in nuclear energy is crucial to compete with "authoritarian aggressors" and achieve American energy dominance. The proposed International Nuclear Energy Act would support boosting nuclear exports, financing, regulatory harmonization, and licensing standardization, along with establishing a fund for national security projects. In Europe, there is continued investment in renewable energy infrastructure. Enfinity Global recently closed a significant bond facility of up to €100 million with Eiffel Investment Group to accelerate the deployment of its energy storage and solar PV projects across Europe, particularly in Italy and the UK. This financing specifically supports Enfinity's battery energy storage system (BESS) portfolio development in Europe, which includes a large pipeline of 6.4 GW. This highlights efforts to build grid resilience and deliver 24/7 renewable energy solutions. Looking ahead, policies targeting road transport emissions could have a profound long-term impact on fuel demand. A new study indicates that measures like enhanced emission standards (e.g., Euro 6/VI) and an accelerated transition to electric vehicles could lead to significant health benefits globally by 2040. The research emphasizes that combining policies, such as Euro 6/VI standards with EV adoption and clean electricity generation for EVs, yields substantially greater benefits than single approaches. This suggests a future trajectory involving reduced demand for gasoline and diesel as vehicle fleets transition and emission standards tighten globally.