China’s oil cushion
** China’s crude oil imports plunged to 6.36 million barrels per day in May, down from 11.39 million bpd in February, the last pre-war month — a drop of more than 44%. Chinese refiners are processing roughly twice what they’re importing, drawing down an estimated 1 billion barrels in crude stockpiles built up over more than a year of aggressive buying. Analysts warn the cushion won’t last forever.
Freezing $1 billion in projects
** High curtailment rates and the national grid operator frequently rejecting renewable power have prompted BlackRock-backed Atlas Renewable Energy, one of the biggest solar power producers in South America, to halt $1 billion in planned investment in Brazil, the company’s chief executive Carlos Barrera told Reuters on Wednesday.
Russia unloads share
** Russian President Vladimir Putin has approved the sale of a 10% stake in the sanctioned Arctic LNG 2 project held by France’s TotalEnergies to a company called Nordline LLC, according to a decree published on Wednesday. TotalEnergies declined to comment and has not issued any statement on a sale, unlike previous divestments from Russia.
US Energy
** The Little Rock Port Authority finished construction on Wednesday of a facility designed to improve conditions for railroad workers and better maintain freight cars. The facility, called the railroad depot, replaces the previous engine shed located at 6900 Lindsey Road.
** Officials in rural western Alaska villages say high petroleum prices driven by the Iran conflict “could completely wipe out” the region that depends on the fuel for heating, transportation, and power generation.
** President Donald Trump will soon announce a plan to use the wartime Defense Production Act to inject $700 million into the coal industry, with $425 million going toward upgrading existing coal plants and another $75 million for a California export terminal.
** The U.S. saw hybrid vehicle sales jump 33% in May compared to a year earlier as gas prices remain high.