May 22, 2026/Oilprice.com
Tom Kool
Editor, Oilprice.com
Global oil markets remain under severe stress as Hormuz disruptions, weak economic data, and tightening inventories reshape energy flows worldwide.
Friday, May 22, 2026
In a week of contradicting narratives, the largest ever US inventory drawdown sparked only a minor bullish moment as media reports of some form of negotiations between the US and Iran continue to resonate. With Europe posting its worst macroeconomic numbers since 2023 and the IEA warning of oil markets hitting the ‘red zone’ by July-August, ICE Brent is unlikely to fall below its current level of $105 per barrel anytime soon, barring only a diplomatic breakthrough.
Stranded or Not, OPEC+ Still Dreams Big. The seven remaining members of OPEC+ are expected to agree to another 188,000 b/d hike to their combined July crude production quotas, brushing aside the 10 million b/d plunge in Gulf states’ oil output since the blockade of the Hormuz Strait started.
UK Scraps Import Ban on Russian-Supplied Refiners. The UK government has suspended sanctions against diesel and jet fuel refined from Russian crude in third countries (such as Turkey and India) for an indefinite period, claiming the measure was taken ‘in light of the situation in the Middle East’.
Northwest Europe Faces Bunkering Chaos. Buyers of marine fuel in Europe’s main Amsterdam-Rotterdam-Antwerp (ARA) hub have started to complain about fuel quality in the region, with surveyors reporting elevated sediment levels and discovering lower-quality blending components such as shale oil.
Egyptian Gas Production Collapses. Gas production in Egypt has dropped to its lowest since the North African country started to publish official data in 2011, with March output coming in at a mere 3.34 billion m3 or 108 million m3 per day, worsening gas shortages as pipeline imports from Israel dried up.
Beijing Hikes Fuel Price Caps Again. Under pressure from soaring oil prices, China’s economic planner NDRC has raised the price cap for domestic retail prices of transportation fuels for the second time in three months, setting it at $1.33 per barrel and $$1.38 per barrel for gasoline and diesel, respectively.
Japanese Major Proposes Hawaii LNG Project. Japan’s leading utility firm JERA has filed a request to the US Federal Energy Regulatory Commission (FERC) to kickstart regulatory review of its Longboard LNG project in Hawaii’s Oahu, eyeing a floating regasification unit feeding an onshore gas power plant.
Devon Energy Spends Big on Federal Lands. US shale specialist Devon Energy (NYSE:DVN) accounted for more than half of the record $4 billion oil and gas auction for drilling acreage on federal lands in New Mexico and Texas held this week, taking 25 parcels with total bonus bids worth $2.5 billion.
Dangote Targets September IPO for Refinery. The operator of the largest refinery in Nigeria, the 650,000 b/d Dangote plant, is targeting a September IPO for its entire downstream business, with company owner Aliko Dangote claiming the firm has attracted some $2 billion in private investor offers.
Iran Mulls Joint Hormuz Control with Oman. According to Bloomberg, Iran has been discussing with Oman how to set up a permanent toll system that would formalize the two countries’ control over maritime traffic through the Strait of Hormuz, which only 24 miles wide at its narrowest point.
US Majors Pour Cold Water on Venezuela Dreams. ConocoPhillips chief executive officer Ryan Lance said that Venezuela’s initial steps to attract foreign oil companies into the Latin American country are falling well short of expectations, stating that an aggregate 95% government take ‘will not do it’.
US Government to Invest in Quantum Firms. The US Department of Commerce stated that the Trump administration will invest $2 billion in equity stakes across nine quantum-computing companies, including $1 billion funding for IBM’s new chip manufacturing venture, seeking to counter China’s clout.
UK Ramps Up Pressure on Oil Companies. Exacerbating a uniquely anti-oil regulatory policy, the UK government announced its plans to stop oil and gas companies from reducing their UK tax liabilities, as oil majors such as Shell have routinely avoided paying windfall tax as they re-invest their profits.
Coppergate Erodes Trust in Chile’s Reporting. Chile’s state-controlled mining giant Codelco, the world’s largest copper miner, said it had fired an executive and taken disciplinary action against others after an audit discovered improper reporting of its 2025 production, inflating the finished product tally.
Indonesia Opens Up for Upstream Investment. Indonesia has launched a tender for 13 new oil and gas blocks to boost domestic production and reach the government’s target of lifting output by 50% to 1 million b/d, with most acreage on offer located in the underdeveloped eastern provinces.
US to Launch First Antimony Mine Soon. US gold miner Perpetua Resources (ISE:PPTA) has secured a $2.9 billion loan from the US Export-Import Bank to support the development of the Stibnite mine in Idaho, which should by 2028 become the first operational antimony project on US soil.
Alberta Referendum Ups Canada Political Risks. Alberta Premier Danielle Smith said that the upcoming referendum in October would ask voters if Canada’s oil-rich province should remain in Canada or kickstart the process of separation, potentially putting 85% of the country’s production at risk.
