1. Oil has biggest one-day loss since March.
After the Department of Energy released its weekly update last Wednesday, oil prices took a tumble. The news of higher than expected U.S. oil inventory levels sent prices down to their lowest levels in the last three months.
It looks as though the U.S. is building comfortable stockpiles of crude oil, gasoline, and diesel fuel and this seems to be keeping oil prices down even though OPEC and Russia have been keeping their promise to continue cutting supply. However, the U.S. producers keep drilling more wells and replacing foreign oil with domestic crude. As long as this continues, we can expect to see oil prices stay below $50/barrel.
2. Poland receives its first natural gas shipment from the United States.
Poland took a major step last week toward freeing itself from complete dependence on Russia for all of its energy needs. On Thursday, the first ever liquified natural gas shipment from the U.S. arrived in Poland. This is a major milestone for Poland as they look to diversify the sources of their energy imports. The shipment came from an export terminal in Louisiana, and represents just the beginning of all the natural gas that the U.S. shale boom will begin to supply to the global market in the coming months and years.
3. Iranian oil exports to the West continue to grow.
In May, Iran's oil exports to the West hit their highest levels since the lifting of sanctions in early 2016. Iran used to be OPEC’s second largest oil exporter, but with sanctions had lost ground to rivals Saudi Arabia and Iraq. Now they are gaining ground once again. Last month they exported nearly 1.1 million bpd to Europe; practically reaching pre-sanction levels. Even though they are part of OPEC, Iran has been granted an exception from the production cuts, so they could recover from the recently lifted sanctions.