2025-12-15 11:18
US seeks exemption from EU methane emissions law until 2035 EU has been increasing US LNG imports to replace Russian supply EU has refused to weaken world-first climate change policy BRUSSELS, Dec 15 (Reuters) - The U.S. has demanded that the European Union exempt its oil and gas from obligations under the bloc's methane emissions law on fuel imports until 2035, a U.S. government document seen by Reuters showed. Starting this year, the EU requires importers of oil and gas to Europe to monitor and report methane emissions associated with those imports, in a bid to curb emissions of the potent planet-warming gas. Sign up here. The world-first climate policy has faced opposition from U.S. Energy Secretary Chris Wright, who has called it impossible to implement and warned it could disrupt U.S. gas supplies to Europe. European countries have increased imports of U.S. liquefied natural gas as they phase out oil and gas from Russia. The U.S. document said that in the absence of a "full repeal" of the EU law, Washington was asking the EU to "delay requiring U.S. emissions data reporting under the EUMR [EU Methane Regulation] until October 2035." "The EU Methane Regulations is a critical non-tariff trade barrier that imposes an undue burden on U.S. exporters and our trade relationship," said the document, circulated to EU member governments ahead of a meeting of their energy ministers in Brussels on Monday. The U.S. Department of Energy did not immediately respond to a request for comment on the document. The EU said last week it would offer companies simpler routes to prove compliance with the law, aimed at complex supply chains like those in the U.S. where one LNG shipment contains gas from many different production fields. EU Energy Commissioner Dan Jorgensen told reporters on Monday the bloc was in talks with the U.S., but would not weaken the methane law, which will impose increasingly tough obligations on fuel imports over time. "We are trying to be as helpful as we can, with regards to implementation, but the legislation stands," Jorgensen said. "We are not considering withdrawing the legislation or an exemption to the legislation." Methane emissions are the second-biggest cause of global warming, after carbon dioxide. The U.S. document also asked the EU to deem U.S. methane emissions laws equivalent to its own – meaning U.S. producers would automatically comply – and for Brussels to commit to not apply penalties if U.S. oil and gas imports breach the rules. Industry sources said it was unlikely the U.S. could be granted this "equivalence", since the Trump administration has moved to roll back its federal emissions reporting requirements, including by suspending some for the oil and gas sector until 2034. A joint paper by U.S. and EU oil and gas industry groups, seen by Reuters, also called for changes to the policy, including delaying tougher obligations due to apply from 2027. Dan Byers, vice president for policy at industry group the U.S. Chamber of Commerce, said the EU methane law was "uniquely complicated for the United States, where you have all of these countless producers, molecules being co-mingled". https://www.reuters.com/business/energy/us-demands-eu-exempt-its-gas-methane-emissions-law-document-shows-2025-12-15/
2025-12-15 11:07
EU targets Murtaza Lakhani, middleman in Iraqi and Russian oil Kildiyarov from Lukoil's Dubai trading arm also targeted Lists Etibar Eyyub, linked to 2Rivers, formerly Coral Energy BRUSSELS, Dec 15 (Reuters) - The European Union adopted fresh sanctions against Russian oil interests on Monday, targeting traders Murtaza Lakhani and Etibar Eyyub for helping Moscow to circumvent Western sanctions on crude exports that help to fund Russia's war in Ukraine. The EU has imposed 19 packages of sanctions so far, but Moscow has managed to adapt to most measures and is still selling millions of barrels of oil to India and China, albeit at discounts to global prices. Much of this is transported using a so-called shadow fleet of vessels operating outside of the Western maritime industry. Sign up here. The latest EU sanctions prohibit the bloc's citizens from doing business with the listed companies and individuals, reducing their access to shipping and insurance providers. The EU has listed more than 2,600 individuals and companies in total. The EU has targeted nine individuals and entities supporting Russia's shadow fleet of oil tankers, the Council of the European Union and the EU's Official Journal said, referring to businessmen linked to oil companies Rosneft (ROSN.MM) , opens new tab and Lukoil (LKOH.MM) , opens new tab as well as shipping companies that own and manage tankers. The EU is expected by analysts to list more than 40 ships in Russia's shadow fleet this week, bringing the total to about 600 vessels. Russia's Permanent Mission to the EU, in a statement quoted by Russian news agencies, said the new measures would only hurt citizens of European Union countries and prove ineffective. "We note with regret Brussels' inability to recognise a simple truth: if the same action is repeated over and over and does not produce the desired result, it means the original strategy fundamentally does not work and is flawed," it said. The measures, it said, would amplify "the growing socio-economic problems and the declining standard of living for European citizens". OIL TRADER LINKS TO RUSSIA Among those targeted by the EU is Canadian-Pakistani oil trader Murtaza Lakhani, CEO of trading company Mercantile & Maritime. "Through his companies, he enables shipments and export of Russian oil, notably from the Russian state-owned oil company Rosneft," said the listing in the EU's Official Journal. "In particular, Murtaza Lakhani controls vessels transporting crude oil or petroleum products originating in Russia or being exported from Russia." Lakhani, Mercantile & Maritime, Litasco Middle East DMCC and 2Rivers Group did not respond to a request for comment. Lakhani, 63, runs mid-sized trading house Mercantile & Maritime Group with offices in Singapore and London. He started his career at global trader Glencore, where he worked on Iraqi oil exports during the Saddam Hussein era and later moved to Iraq’s Kurdistan region, where he acted as an intermediary between the oil ministry and international companies to sell oil independently of Baghdad. KURDISTAN OIL AND GAS DEALS During this period, he helped Russian state-controlled energy giant Rosneft to sign oil and gas deals in Kurdistan, working closely with Rosneft CEO Igor Sechin, including during signing ceremonies at Russia's main economic forum in St Petersburg. Building on this relationship, Lakhani partnered top oil trader Vitol to invest in a 5% stake in Rosneft’s largest oil project in decades, Vostok Oil in the Arctic. “This country (Russia) is the largest resource country in the world. Hampering it is a very short-term effect, not a long-term goal for anybody. They will always need Russia,” he told Russia's SolovievLive at the St Petersburg Forum in June. The EU also listed Valery Kildiyarov, a director of sanctioned Lukoil trading subsidiary Litasco Middle East DMCC and a manager at another Lukoil trading business, Alghaf Marine, in Dubai. The EU's listing of Eyyub along with Anar Madatli and Talat Safarov related to their ties to trading firm Coral Energy, renamed 2Rivers Group, the Council of the European Union said. Coral Energy grew into one of the top Russian oil traders. After a management buyout and name change in 2024, 2Rivers claimed the company largely stopped Russian oil trading in 2023 and quit its last contract in early 2024. Following UK and EU sanctions, the company said it stopped all trading activities in June before dissolving the business in August. https://www.reuters.com/world/eu-foreign-ministers-adopt-sanctions-targeting-russian-shadow-fleet-eu-official-2025-12-15/
2025-12-15 08:32
Dec 15 (Reuters) - Foreign investors snapped up Asian bonds in November as they sought shelter from an equity market selloff driven by concerns over stretched tech valuations and uncertainty around the U.S. Federal Reserve’s rate outlook. They bought a net $10.86 billion of bonds in South Korea, Thailand, Malaysia, India and Indonesia in November, marking their largest monthly net purchase since $15.29 billion of inflows in May, data from local regulatory authorities and bond market associations showed. Sign up here. "Divergence between equity and debt assets emerged again in November, likely due to investors rotating to low-risk assets," said Khoon Goh, the head of Asia research at ANZ. South Korean bonds drew $11.08 billion, the largest monthly net inflow since at least 2016, on optimism over their inclusion in the FTSE World Government Bond Index starting in April 2026. "We suspect that part of the strong inflows into South Korean bonds were diverted from the equity market," ANZ's Goh said. Thai bonds recorded a third consecutive month of foreign inflows, totalling $319 million, while Malaysian bonds saw net foreign purchases of $316 million. In contrast, foreign investors sold Indian and Indonesian bonds worth $447 million and $400 million, respectively. The U.S. Federal Reserve last week cut interest rates by 25 basis points to a 3.50%–3.75% range, reinforcing expectations that lower U.S. borrowing costs would support regional assets. Jonathan Davis, portfolio manager at PineBridge Investments, said that as equity valuations climb alongside lingering macro uncertainty, investors should remain focused on core fixed income and mindful of risk concentration in more indebted issuers. "That is why we see a growing number of institutions looking toward the Asia-Pacific dollar bond market to maintain stability and diversify risks within their core fixed income portfolios." https://www.reuters.com/world/asia-pacific/foreign-inflows-into-asian-bonds-hit-six-month-high-november-2025-12-15/
2025-12-15 07:54
NEW DELHI, Dec 15 (Reuters) - India's merchandise trade deficit (INTRD=ECI) , opens new tab narrowed to $24.53 billion in November, driven by fall in gold, oil and coal imports, government export and import data released on Monday showed. Economists had expected the November trade deficit to be $32 billion, according to a Reuters poll, compared to a record deficit of $41.68 billion in the previous month. Sign up here. Indian Prime Minister Narendra Modi's administration has rolled out measures including consumer tax cuts, an export promotion package and labour reforms to cushion the economy from the impact of steep U.S. tariffs. Modi spoke with U.S. President Donald Trump last week following a U.S. trade delegation's visit as New Delhi seeks relief on key export lines. Meanwhile, Washington is pushing India to lower tariffs and non-tariff barriers on U.S. goods and open its market to American farm products, including soybean and grain sorghum. https://www.reuters.com/world/india/indias-trade-deficit-narrows-2453-billion-november-2025-12-15/
2025-12-15 07:33
ASTANA, Dec 15 (Reuters) - Kazakhstan's energy minister, Yerlan Akkenzhenov, said on Monday that a ruling in an arbitration case involving an international consortium developing the Karachaganak oil and gas condensate field was expected before year-end. Speaking to reporters in the capital Astana, Akkenzhenov said: "There are arbitration proceedings regarding the Karachaganak project. We expect a decision this month, and it should be made by the end of this year." Sign up here. The Central Asian country in 2023 launched claims against the developers of its Kashagan and Karachaganak oilfields over $13 billion and $3.5 billion, respectively, in disputed costs. Kazakhstan has clashed for years with international oil companies over costs, bringing multi-billion-dollar claims against them. Akkenzhenov also said that the government was gathering documents for a second, larger, lawsuit against the Kashagan consortium, the value of which has not been disclosed. He said that this case would be considered by the courts in 2026 and 2027. The ruling expected this month is on the field operated by the Karachaganak Petroleum Operating consortium, which includes Eni (ENI.MI) , opens new tab with 29.25%, Shell (SHEL.L) , opens new tab with 29.25%, Chevron (CVX.N) , opens new tab with 18%, Lukoil (LKOH.MM) , opens new tab with 13.5% and KazMunayGaz (KMGZ.KZ) , opens new tab with 10%. Critics say the government is simply seeking to increase its shares in key oil and gas projects in what amounts to "resource nationalism". Kazakhstan's authorities have rejected such criticism, saying their aim was to rein in costs inflated by Western majors. In August, Kazakh authorities said they were pressing ahead with a $4.4 billion fine against Kashagan for what Astana said were ecological violations at the field. https://www.reuters.com/sustainability/boards-policy-regulation/kazakhstan-sees-arbitration-ruling-karachaganak-before-year-end-2025-12-15/
2025-12-15 07:30
LONDON, Dec 15 (Reuters) - The United States' tightening grip on Venezuela’s oil exports could strangle the country's crude output and cut off President Nicolas Maduro's main economic lifeline, but it will have limited impact on the global market. The U.S. Coast Guard last week seized in mid-ocean a supertanker carrying Venezuelan crude to Cuba, marking a step-up in Washington's campaign against Caracas as the U.S. military continues to build up its biggest presence in the Caribbean since the Cuban missile crisis. Sign up here. The U.S. is preparing to intercept more ships transporting Venezuelan oil, Reuters reported last Thursday, while Washington has also imposed new sanctions on Maduro's family, six crude tankers and shipping companies linked to them. The military chokehold on Venezuela is intended to deter shipment of Venezuelan oil via the expanding "dark fleet" - unregulated, sanctioned and uninsured ships also used extensively by Russia and Iran. There are at least a dozen sanctioned crude tankers already inside Venezuela's exclusive economic maritime zone, according to Reuters analysis of LSEG data – many of which are now at risk of being seized. CRUDE REALITY The pressure is already having an impact on Venezuela's oil industry. The country’s crude exports had spiked in September to over 1 million barrels per day, the highest since February 2019, likely because state-run oil company PDVSA was depleting inventories in anticipation of tightening restrictions. Venezuelan crude exports are now set to drop in December to 702,000 bpd, the lowest since May, according to data from analytics firm Kpler. Meanwhile, there are signs that Asian buyers are asking for deeper discounts for Venezuelan crude to accommodate the growing trading risk. The tightening restrictions have also led to a drop in Venezuelan crude production, which declined by roughly 150,000 bpd in November from a month earlier to 860,000 bpd, following several months of production hovering above 1 million bpd, according to the International Energy Agency. The drop is partly due to declining exports, meaning output could decline further if exports are constrained as Venezuela's storage fills up. On top of this, production could be severely curtailed if U.S. restrictions impede imports of naphtha and diluents that are critical for the extraction and processing of Venezuelan oil. Over two-thirds of Venezuela's oil production is of so-called heavy grade that is tar-like when extracted. Naphtha is used to reduce the oil’s viscosity, enabling it to flow through pipelines for export via terminals and tankers. Venezuela's six refineries can produce naphtha but have suffered from years of disrepair, leading the country's upstream oil industry to become heavily reliant on imports. Venezuelan imports of naphtha and chemicals are set to drop to 39,000 bpd in December, compared with 54,000 bpd in November and 89,000 bpd in October, according to Kpler. It is hard to estimate how much production will be impacted by naphtha shortages, however, as Venezuela imported large volumes in recent years that may have been placed partially into storage. But, regardless, a collapse in naphtha imports puts Venezuela’s production at high risk. A U.S. CARVE-OUT Venezuela's heavy crude production is unlikely to stop completely, though, regardless of the rising tensions, because President Donald Trump’s administration has issued Chevron (CVX.N) , opens new tab , the second-largest U.S. oil producer, with a special licence to continue operating its joint ventures in Venezuela’s Orinoco belt, which produce around 250,000 bpd. Chevron exports around 150,000 bpd of crude from Venezuela to the U.S. Gulf Coast, where refineries were built decades ago to process heavy grades from Mexico, Canada and Venezuela. Putting all of this together, Venezuela's oil production could decline by between 300,000 to 500,000 bpd because of lower exports and production restrictions, according to Reuters estimates. This figure, however, is unlikely to have much of an impact on today's well-supplied global oil market, which faces the prospect of a severe glut next year. Any shortfalls in the production of heavy crude would likely be offset by sharply increased output from Canada and the Gulf of Mexico, which also produce these types of grades. Indeed, installing a U.S.-friendly government that will lead to the removal of sanctions on Caracas could lead to a rapid revival of oil production in Venezuela, which holds the world’s largest oil reserves of around 303 billion barrels. The escalating tensions around Venezuela are already having a profound impact on the country's oil industry, but these effects are unlikely to reverberate across the world – unless, of course, the Maduro regime does fall, kicking off a rush of western energy majors back into the oil-rich nation. Want to receive my column in your inbox every Monday and Thursday, along with additional energy insights and links to trending stories? Sign up for my Power Up newsletter here. Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tabyour essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/us-squeeze-venezuela-oil-wont-create-global-crunch-2025-12-15/
