U.S. Promoting LNG to Asia: President Donald Trump urged Japan to support the $44 billion Alaska LNG project during a recent meeting, framing it as a way to reduce Middle East energy reliance and address trade imbalances. While Japan expressed cautious optimism, the project faces significant cost and logistical hurdles, though broader U.S. LNG imports to Asia are increasing. The U.S. is actively promoting its LNG to Asian allies like Japan, South Korea, Taiwan, and India, positioning American energy as a counter to Russian and Chinese influence. Trump’s energy strategy aims to strengthen economic ties and security bonds with key allies through long-term LNG investments and supply agreements.

EU Seeks More US Gas:  The EU plans to secure more gas from countries like the U.S. while accelerating renewable energy expansion to reduce dependence on Russian fuel. Although Russian pipeline gas deliveries have dropped, the EU increased imports of Russian liquefied natural gas last year, prompting calls to shift toward domestic energy production. Brussels is working on easing permit rules for renewables and securing alternative gas sources, with a focus on affordability and avoiding Russian supply. The European Commission is also developing stricter market controls to prevent speculative price spikes and proposing financial measures to decouple electricity prices from high gas costs.

Ukraine Imports: Ukraine plans to import up to 800 million cubic meters of gas from Europe in February and March to offset a significant drop in domestic production caused by Russian missile strikes. Before the attacks, Ukraine produced about 52 million cubic meters of gas daily, but recent strikes have damaged key facilities, forcing the country to rely more on imports. Gas imports have surged nearly tenfold since early February, reaching over 20 million cubic meters per day, ensuring sufficient supply for the heating season without restrictions. However, future imports beyond March remain uncertain, as they depend on local production levels and the intensity of ongoing Russian attacks.

Market Overview: Oil prices fell on Friday but remained on track for a weekly gain due to supply disruptions in Russia and ongoing uncertainty about a Ukraine peace deal. U.S. West Texas Intermediate (WTI) crude dropped 0.87% to $71.85 per barrel, while both WTI and other oil benchmarks gained about 1.5% for the week. The market remains cautious, with crude prices trading within an expected range of $65 to $85 per barrel. Oil supply disruptions were noted after a Ukrainian drone attack on a Russian pipeline, though Kazakhstan continued pumping record-high volumes. Meanwhile, U.S. crude stockpiles increased, but analysts anticipate higher demand due to cold weather in the U.S. and rising industrial activity in China.

Chinese refiners are increasing purchases of Brazilian and West African crude due to U.S. sanctions on Russia and Iran, as well as Beijing’s tariffs on U.S. oil, which have disrupted trade flows and raised costs. China’s crude imports from Brazil are expected to reach 800,000 barrels per day in February, with additional shipments from Angola and Nigeria anticipated in March and April. Shandong Yulong Petrochemical, set to start operations soon, has secured multiple shipments from Angola, Nigeria, and Brazil, while state trader Unipec has bought over 20 million barrels of Brazilian crude for April delivery. The shift away from Middle Eastern oil is driven by soaring prices, with Saudi Arabia raising its crude prices for March to a one-year high, leading Chinese refiners to cut purchases. As a result, refiners are favoring non-sanctioned, Brent-linked crude options to maintain strong profit margins amid changing market dynamics.

Oil prices dropped over $2 per barrel on Friday, marking a weekly decline due to reduced geopolitical risk in the Middle East and uncertainty over a Ukraine peace deal. U.S. crude futures ended the week with a 0.5% loss, influenced by increased domestic stockpiles and lower refinery processing. Despite concerns over supply disruptions, Kazakhstan maintained record-high oil exports even after a Ukrainian drone attack on a Russian pipeline. Traders speculated that OPEC+ might delay production cuts as prices remained below $80 per barrel. Additionally, analysts expect rising demand from cold weather in the U.S. and increased industrial activity in China.