Domestic Oil and Gas News: Week of June 23rd, 2025
Oil Prices Rebound Amid Strong U.S. Demand
Oil prices rose nearly 1% midweek, with Brent crude settling at $67.68 per barrel and West Texas Intermediate (WTI) at $64.92. This rebound followed a significant drawdown in U.S. crude inventories, which fell by 5.8 million barrels, surpassing analyst expectations. The increase in gasoline demand to its highest level since December 2021 further supported prices. Additionally, easing geopolitical tensions, including a tentative ceasefire between Iran and Israel, contributed to market stability. reuters.com+1money.usnews.com+1
Geopolitical Tensions and Energy Security
Despite a ceasefire between Iran and Israel, concerns persist over potential disruptions in the Strait of Hormuz, a critical chokepoint for global oil and LNG shipments. Iran's parliament voted to close the strait in response to U.S. airstrikes on its nuclear facilities, though implementation awaits approval from the Supreme National Security Council. Analysts warn that any closure could significantly impact global energy markets. rigzone.com+6thetimes.co.uk+6en.wikipedia.org+6
Energy Transfer Expands LNG Deal with Chevron
Energy Transfer announced an expansion of its liquefied natural gas (LNG) supply agreement with Chevron, adding 1 million tonnes per annum (mtpa) from its Lake Charles export facility. This brings the total contracted volume to 3 mtpa under a 20-year agreement. The deal, contingent on a final investment decision, reflects growing U.S. LNG export activities following the lifting of a moratorium on new export permits. reuters.com
Proposed Gulf of Mexico Lease Sale
The U.S. Department of the Interior proposed a sale of oil and gas drilling rights on 80 million acres in the Gulf of Mexico, scheduled for December 10. The sale includes lower deepwater royalty rates, aiming to boost industry participation and lower production costs. This initiative aligns with the administration's efforts to maximize energy development. reuters.com
U.S. Rig Count Declines for Eighth Consecutive Week
U.S. energy firms reduced the number of oil and natural gas rigs operating for the eighth consecutive week, bringing the total to 554—the lowest since November 2021. This trend indicates cautious investment amid market volatility. energynow.comhoustonchronicle.com
Shell Denies Merger Talks with BP
Shell publicly denied reports of preliminary talks to acquire BP in a potential $80 billion merger. While Shell dismissed the rumors as speculation, industry analysts consider a future acquisition plausible due to BP’s ongoing financial and operational challenges. investors.com+2thedailybeast.com+2houstonchronicle.com+2houstonchronicle.com+1thedailybeast.com+1