Global Oil Steady Near $110; US SPR Drawdowns Hit Record; India Curtails Renewables

Oil prices held near $110 per barrel on Tuesday as geopolitical tensions showed slight signs of easing, according to reports. The ICE Brent benchmark trended around that level after U.S. President Trump indicated he would 'hold off' on a planned military attack against Iran. Concurrently, the Trump administration extended a 30-day sanctions waiver allowing certain countries to purchase Russian crude and products risk-free, according to OilPrice.com.

A historic drawdown from the U.S. Strategic Petroleum Reserve (SPR) is propelling record volumes of American crude onto global markets. A record 9.9 million barrels were drawn from the SPR last week, lowering total inventories to 374 million barrels, their lowest since July 2024. The pace of drawdowns last week marked an all-time high, supplying more than 1.4 million barrels per day into the market. With roughly 40% of released SPR barrels being exported, May U.S. oil exports could surpass the 5.5 million b/d threshold for the first time in history, OilPrice.com reported. European buyers have shown particular interest in niche grades like Bryan Mound Sour.

Market Movers: LNG, Lithium, and Divestments Several major energy deals and project developments were reported globally. U.S. major ConocoPhillips signed a 30-year natural gas supply deal for the planned $40 billion Alaska LNG project. The proposed 14 mtpa LNG Canada Phase 2 project is targeting a final investment decision by the end of 2026. In the minerals sector, Norway's Equinor is finalizing offtake deals for its South West Arkansas lithium project, targeting a final investment decision later this year and first production in 2029, according to OilPrice.com.

India's Grid Lags Behind Renewable Boom In Asia, India's rapid build-out of solar and wind power is being hampered by slower grid expansion, creating a critical risk to its clean energy targets. Clean energy think tank Ember reported that grid and transmission constraints accounted for nearly two-thirds of all renewable energy curtailment in the first quarter, totaling 300 gigawatt-hours (GWh). The group stated this mismatch is "the most critical operational risk" to India's 2030 target of 500 GW of non-fossil electricity capacity. Despite having achieved its goal of 50% non-fossil installed capacity five years early in 2025, India still relies on coal for about 60% of its total power output, OilPrice.com reported.

North Dakota Marks Oil Anniversary Domestically, the North Dakota Department of Mineral Resources is marking the 75th anniversary of the discovery of oil in the state this week, according to Bing News.