May 19, 2026/Oilprice.com

Tom Kool
Editor, Oilprice.com

In this week’s newsletter, we will take a quick look at some of the critical figures and data in the energy markets this week. 
    
We will then look at some of the key market movers early this week before providing you with the latest analysis of the top news events taking place in the global energy complex over the past few days. We hope you enjoy.

Historic SPR Drawdowns Propel US Crude to Global Markets

– Record US SPR volumes are pushing out record volumes of US crude to the export markets, with May US oil exports potentially surpassing the 5.5 million b/d threshold for the first time in history.

– A record 9.9 million barrels were drawn from the US Strategic Petroleum Reserve last week, lowering the total inventories held in US SPR sites to just 374 million barrels, its lowest since July 2024.

– Roughly 60% of released SPRs ends up in the domestic downstream market, with the rest exported abroad – European buyers have been particularly keen to purchase niche grades such as Bryan Mound Sour. 

– The pace of SPR drawdowns seen last week marks an all-time high, with more than 1.4 million b/d of strategic stocks supplied into the market, above Biden’s average rate of 1 million b/d. 

– An expedited drawdown of the Strategic Petroleum Reserve is likely to damage the salt caverns where SPR barrels are held, making them susceptible to salt falls and cavern deformation.

Market Movers

– US oil major ConocoPhillips (NYSE:COP) has signed a 30-year long-term natural gas supply deal for the planned $40 billion Alaska LNG project with developer Glenfarne, bringing a potential FID on the 20 mtpa liquefaction plant closer.

– The proposed 14 mtpa LNG Canada Phase 2 project is aiming for a final investment decision by end-2026, boosting the LNG portfolio of UK-based energy major Shell (LON:SHEL) and its partners Petronas, Mitsubishi, PetroChina and Kogas.

– Japan’s leading upstream investor INPEX (TYO:1605) has agreed to acquire CNPC’s 10.67% stake in Australia’s Browse project, boosting its natural gas portfolio with the Brecknock, Calliance and Torosa offshore gas fields.

– Norway’s state oil firm Equinor (NYSE:EQNR) is reportedly finalizing offtake deals for its South West Arkansas (SWA) lithium project jointly developed with Canada’s Standard Lithium, aiming for an FID later this year and targeting first production in 2029.

– UK-headquartered mining giant Anglo American (LON:AAL) has agreed to divest its metallurgical coal assets in Australia to Dhilmar Ltd for up to $3.875 billion in an all-cash transaction, marking its full exit from steelmaking coal.

Tuesday, May 19, 2026
 
The noise around an imminent resumption of hostilities between the US and Iran has eased somewhat after US President Trump tweeted that his administration would ‘hold off’ on a planned military attack. The issuance of another 30-day waiver for buyers of Russian crude and products has also helped cap oil prices for this week, with ICE Brent trending around $110 per barrel. 

White House Extends Russian Sanctions Waiver. The Trump administration has announced the extension of its sanctions waiver for ‘vulnerable countries’, allowing them to buy Russian oil and refined products risk-free provided the cargoes were loaded onto ships before June 17.

AI Boom Creates US Giant Utility. Leading US utility companies NextEra Energy (NYSE:NEE) and Dominion Energy (NYSE:D) announced their plan this week to merge in a $66.8 billion deal, forming one of the world’s largest power companies with more than 130 GW of generation capacity. 

IEA Warns of Drastic Inventory Drawdowns. Fatih Birol, the executive director of the International Energy Agency, warned that commercial oil inventories in OECD countries are ‘depleting very fast’ despite the organization’s largest-ever joint release of strategic reserves, totaling 400 million barrels.

Chinese Refinery Runs Plunge on Weak Margins. China’s National Bureau of Statistics showed that the country’s April crude throughput dipped to 13.3 million b/d, the lowest monthly reading since August 2022, due to processing margins turning negative amidst a refined product export ban. 

Venezuela Revamps Its Oil Tax Code. Venezuela’s Rodriguez government has published a new draft oil law that would allow Caracas to set royalty and tax rates for private and foreign investors on a project-by-project basis, capping the royalty rate at 30% and the integrated hydrocarbon tax at 15%.  

US Boosts LNG Outlook with New Project. Caturus, the joint venture of Kimmeridge, Mubadala and Canada Pension Plan, has announced a final investment decision on the 9.5 mtpa Commonwealth LNG project after securing $9.75 billion in project financing, aiming to start production by end-2030.

Tankers Build Around Iran’s Key Loading Port. According to Bloomberg, some 23 Iran-controlled tankers are anchored near the country’s main crude oil loading terminal Kharg Island, the highest number since the US blockade of the Arabian Sea started, suggesting storage is filling up. 

Kenya Paralyzed by Nationwide Fuel Protests. Kenya’s economy has been severely disrupted by protests and police clashes across the African country’s main cities over rising fuel prices, as previous government-to-government supplies from the Middle East were stranded by the US-Iran conflict.  

Get Ready for Indonesia’s Export Restrictions. The government of Indonesia is planning to tighten control over commodity exports, including coal and palm oil, as Jakarta seeks to clamp down on tax evasion and to boost the domestic currency, creating a new state agency to manage all exports. 

Alaska’s Top 2026 Project Finally Launches. Australian upstream firm Santos (ASX:STO) has announced first oil from the first phase of its Pikka project in the US state of Alaska, ramping up production to reach a plateau of 80,000 b/d by the third quarter of this year, boosting ANS flows. 

Dangote Turns Against Nigerian State. Nigeria’s Dangote oil refinery has sued the government in the country’s High Court, claiming the Ministry of Petroleum Resources has breached laws by issuing gasoline import licenses for Q2 2026 as its own output should be enough to meet domestic demand. 

China Saves Australia from Jet Dearth. Australian Prime Minister Anthony Albanese announced his government managed to secure 3 cargoes of jet fuel from China, all arriving in June despite Beijing’s ongoing ban on refined product exports, keeping jet imports levels elevated at 140,000 b/d. 

Brazil to Breathe Life into Mexico’s Upstream Lull. Brazil’s national oil company Petrobras (NYSE:PBR) is considering investments into Mexico’s deepwater assets involving both mature areas and new frontiers, with an executive delegation from Pemex expected to come to Brazil in June. 

Nickel Jumps on Indonesia Supply Qualms. Nickel prices continued their upward momentum after Indonesia’s Tsingshan Group asked nickel pig iron producers to cut output to save electricity for aluminium production, sending the benchmark three-month LME contract to $18,840 per tonne.