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Major Opec+ members agreed another modest symbolic increase to their oil output quotas for July, even as a blockage of exports from the Arabian Gulf prevents most of them from implementing it.Seven nations led by Saudi Arabia and Russia will raise their collective target by 188,000 barrels a day next month, continuing the process — if only on paper — of restarting production halted several years ago, the Organization of the Petroleum Exporting Countries said in a statement on Sunday after a video conference.With the Strait of Hormuz largely closed by the Iran war and Middle East producers forced to cut output, the Opec+ decision remains theoretical for the time being. It could become relevant again when the waterway reopens, with buyers clamoring for barrels to replenish the world’s depleted oil inventories.“At this stage we are basically talking about hypothetical future scenarios with the bulk of the barrels stranded,” said Helima Croft, head of commodity-markets strategy at RBC Capital Markets LLC.While Russian shipments aren’t directly affected by the war, its crude production has also been challenged, falling to a 10-month low in May as Ukraine intensified strikes on its oil infrastructure.While a surge in US supply and diminished Chinese buying have prevented crude oil prices from spiraling out of control so far, fuels like gasoline, diesel and jet fuel have nevertheless surged during the conflict.That’s squeezing consumers worldwide and heightening the risk of an economic downturn. Still, markets haven’t rallied as much as feared while China dials back imports, major consumers tap emergency stockpiles and US President Donald Trump repeatedly signals an imminent peace deal.The group’s next meeting will be on July 5.The video conference was one of four online meetings scheduled for Sunday.These included the first administrative gathering for core Opec ministers since last month’s surprise exit of long-time member the United Arab Emirates. There were also talks between the wider Opec+ alliance, and a session for its advisory body, the Joint Ministerial Monitoring Committee.The UAE announced its departure from the organization effective May 1, ending six decades of membership. Abu Dhabi had long been frustrated that Opec’s quotas prevented it from deploying new investments in production capacity.For most of the past year, key Opec+ nations had been restoring output halted several years ago, when the alliance was trying to stave off a surplus and shore up prices. They’ve continued the process since the war started, even though the conflict prevents many of them from raising production.With the quota increase for July, the group will have nominally restored almost 90% of two layers of production halted in 2023. Last month, delegates said the group had a plan to complete that chunk with increases from July to September. Those supplies amounted to 3.85mn barrels a day at the time, though the volume has been reduced slightly as a result of the UAE’s exit.A third layer, which equated to 2mn barrels a day when it was taken offline in 2022, is due to remain shut down until the end of year. Delegates said last week it could be fast-tracked, but even then most of the oil wouldn’t materialize. Pledged supply increases over the past year have fallen significantly short of the advertised amounts as a combination of under-investment, aging oil fields and sanctions have eroded production capacity in many Opec+ members. 

Brazil's government scrapped taxes on ‌diesel while imposing a levy on oil exports in a ​move Thursday that ‌could affect state-run oil firm Petrobras, as the country ‌seeks to ⁠soften the ‌blow of the recent spike in ‌global oil prices. President Luiz Inacio Lula da Silva's administration said the temporary ⁠measures would reduce the impact of price swings related to the US-Israeli war with Iran on local fuel prices, particularly diesel.The South American country cut the PIS and Cofins federal taxes levied on diesel to zero and imposed a 12% tax on crude oil exports, as well as a 50% levy on diesel ​shipments."Oil prices are getting out of control," Lula told a press conference announcing the measures in Brasilia.The spike in diesel prices has emerged as ‌a threat to Brazil's powerful farm ⁠sector, raising ​costs for producers who are harvesting a record soybean crop ​and planting corn they cannot afford to delay. While Petrobras has not raised local fuel prices, Brazil is still partly reliant on imported diesel, and distributors have been reluctant to sell it at Petrobras' prices, concerned about a possible price hike in the near future.The government expects diesel prices at the pump to fall by 0.64 reais ($0.1227) per litre due to the tax cut and a direct subsidy program that will provide payments to ‌diesel producers and importers.The export ‌tax is aimed at ⁠increasing domestic refining and securing internal supply, the government said in ⁠a statement, though it remains ⁠unclear how much refining capacity Brazil has available to boost local diesel output.Petrobras was operating its refineries at around 91% of capacity last year and aimed to increase it to 95% in the first quarter. The company's near $3bn net profit in the fourth quarter was due in ​part to record exports during the period. Sales to international markets grew 41.7% year-on-year to 42bn reais, while domestic sales dropped 6.8% to 85.4bn reais.Finance Minister Fernando Haddad said the measures would not affect Petrobras's own fuel-pricing policy. Haddad added they are set to run until the end of the year, but that the government hopes for a short-term solution to the Middle East conflict. 

Canadian Prime Minister Mark Carney signed a memorandum of understanding to build a pipeline more than 1,000 kilometers long to transport oil to the Pacific Ocean, in order to partially reduce his country’s dependence on the United States for its exports.During the signing ceremony, Carney praised the agreement, saying it would make Canada stronger and more independent, and that the relationship with the United States, once very close, has now become a point of weakness.For her part, Premier of Alberta Danielle Smith said that the agreement with the province of Alberta stipulates that Ottawa will support the construction of the pipeline, which is planned to transport one million barrels of oil per day from Alberta to an export terminal on the west coast, from where the oil will be shipped to Asia.She added that the pipeline will mean that the province and the country will no longer depend on a single customer.The project comes amid growing tensions between Ottawa and Washington since the election of President Donald Trump, who imposed tariffs on his neighbor and publicly called for annexing it to his country. 

OilOil prices settled more than 2% higher on Friday as Russia's port of Novorossiisk halted oil exports following a Ukrainian drone attack that hit an oil depot in the Russian energy hub, stoking supply concerns.Brent crude futures settled at $64.39, while US West Texas Intermediate (WTI) crude finished at $60.09. For the week, Brent rose by 1.2% and WTI rose by 0.6%.**media[381904]**The Russian port of Novorossiisk paused oil exports, equivalent to 2.2mn barrels per day, or 2% of global supply, and oil pipeline monopoly Transneft suspended crude supplies to the outlet.Ukraine on Friday said it separately struck an oil refinery in Russia's Saratov region and a fuel storage facility in nearby Engels overnight.Investors are assessing how recent attacks impact long-term Russian supply while watching how Western sanctions affect the country’s oil output and trade flows.GasAsian spot LNG prices were flat for a second consecutive week, as steady supplies of contracted cargoes and overall weak demand across the region outweighed modest spot market interest.The average LNG price for December delivery into northeast Asia held at $11.10 per million British thermal units (mmBtu), industry sources estimated.Current price levels are still too expensive for most price sensitive buyers, but minor supportive news came from Indonesia and Egypt that signalled higher domestic demand, adding a bit of tightness to the current circumstances.**media[381905]**In Europe, the Dutch TTF price settled at $10.56 per mmBtu, recording a weekly loss of 0.1%. Gas prices were under bearish pressure as oversupply, weak Asian demand, high freight rates, and strong US liquefaction kept cargoes in the Atlantic basin.This article was supplied by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.