Drone Attack Targets Tawke Oilfield in Iraq: A drone strike targeted the Tawke oilfield in Iraq’s Kurdistan region, operated by Norwegian firm DNO. The attack occurred in the Zakho area and was confirmed by the region’s counter-terrorism service. It potentially disrupted up to 150,000 barrels per day of oil production. The U.S. condemned the attack, emphasizing the threat to global energy infrastructure. Smoke was seen rising from the site, highlighting the severity of the incident. The oilfield is also linked to U.S. interests, adding geopolitical weight to the event. This underscores the persistent security risks facing energy assets in conflict-prone regions.

India Can Still Secure Oil: India’s oil minister stated that the country can meet its energy needs even if Russian oil imports are sanctioned. Indian refiners have been buying discounted Russian crude since Western sanctions began in 2022. However, they have also diversified their sources to ensure supply security. Data from January to June shows a slight increase in Asian and other import volumes. Discounts on Russian Urals crude have narrowed, making alternative sources more competitive. The minister emphasized India’s preparedness for any geopolitical disruptions. This reflects India’s strategic approach to energy security amid global uncertainties.

US Crude and Refined Products: A Reuters poll ahead of EIA data suggested U.S. crude and gasoline inventories declined last week. In contrast, distillate stocks likely increased. The mixed expectations reflect varied demand patterns across fuel types. Crude draws suggest strong refinery activity or exports. Gasoline demand may have remained firm post-holiday. Rising distillate stocks could indicate weaker industrial or heating demand. The market awaits official data for confirmation and direction.

Market Overview: Oil prices rose amid easing global trade tensions and renewed geopolitical risks. Analysts cited low inventory levels as a key support factor. Concerns over Middle East stability added upward pressure. The market responded positively to signs of diplomatic progress. However, underlying supply concerns remain. Traders are watching inventory data closely for further direction. Overall, sentiment turned bullish on a mix of geopolitical and fundamental drivers.

At the end of 2023, U.S. proved reserves of crude oil and lease condensate declined by 4% to 46 billion barrels, while natural gas reserves dropped 13% to 604 trillion cubic feet. These were the first annual decreases in proved reserves for both fuels since 2020. Proved reserves represent the estimated recoverable volumes based on geological and engineering data under current economic and operational conditions. The declines were largely due to falling energy prices in 2023,which influenced operators to revise their estimates downward. Specifically, average prices for West Texas Intermediate crude oil and Henry Hub natural gas fell by 18% and 61%, respectively, from 2022 levels.

Oil price srose on Thursday after drone attacks on oilfields in Iraq’s Kurdistan region continued for a fourth straight day, cutting output by up to 150,000 barrels per day. The attacks, suspected to be carried out by Iran-backed militias, have highlighted the vulnerability of global oil infrastructure. U.S. crude futures climbed 1.57% to $67.42 per barrel. Analysts noted that geopolitical tensions, including potential U.S. tariffs, are adding to market volatility and could shift oil trade flows toward Asia. U.S. crude inventories dropped by 3.9 million barrels last week, signaling tighter supply. The International Energy Agency reported that rising production has not led to inventory builds, indicating strong demand. Meanwhile, a tropical disturbance in the Gulf of Mexico is expected to bring rain to Louisiana but is unlikely to develop into a major storm.