Market Insights > First Look

First Look - UAE to reduce oil exports in 2025

Oil is trading slightly higher and heading for a weekly gain
- Geopolitical tensions have risen after a Russian airstrike against Ukrainian energy sites
- Talks of additional sanctions on Russia and Iran countered concerns of oversupply in 2025
UAE to reduce oil exports next year (BBG)
- Adnoc has cut the allocation of shipments to Asian customers by as much as 230 MBbl/d across multiple grades of crude
- While OPEC data shows the UAE has stuck to its production quota, some observers, such as the IEA, believe production may be significantly higher
- The UAE’s quota is 2.912 MMBbl/d, but tanker tracking data compiled by Bloomberg shows exports may be as high as 3.86 MMBbl/d

Natural gas is trading lower but heading for a weekly gain
- Weather forecasts shifted cooler overnight, mostly in the Midwest and Southeast
- Yesterday, the EIA reported a -190 Bcf withdrawal from storage, which was larger than analysts expected
Boardwalk approves new 1.16 Bcf/d southeast pipeline (PGJ)
- Boardwalk Pipelines approved the Kosci Junction Pipeline project, a 110-mile expansion to increase natural gas capacity in Mississippi
- The project supports the growing demand for energy, particularly for data centers and industrial growth
- FERC pre-filing is planned for early 2025, with pipeline operation expected by the first half of 2029