02 Jun As Reported Energy Price, news updates and expert commentary 02/06/26: global oil inventories fell by over 250 million barrels between March and May
(Oilandgaspress) BP reportedly said on Tuesday it was on track to hand over the running of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline to Azerbaijan’s SOCAR from July 1 as part of a contractual obligation.
Operational since 2006, the pipeline has the capacity to move more than one million barrels per day. It is designed to deliver oil from the Caspian Sea to the Mediterranean, bypassing politically unstable regions, including Iran and Russia’s Caucasus..Giovanni Cristofoli, BP’s regional president for Azerbaijan, Georgia and Turkey, announced the transfer in a statement, stressing that it was not about BP divesting and that BP was “excited” to see SOCAR take over as the pipeline’s operator. Related News
“We’re seeing stock draws continuing into the summer, and with the possibility or the likelihood that we reach critical levels or historical low levels just ahead of the peak summer demand,” said Toril Bosoni, the IEA Head of Oil Industry and Markets Division.
The closure of the Strait of Hormuz has knocked out roughly 10% of global oil supply, making this the largest oil supply shock in history. Net cumulative losses from Gulf producers exceed 1 billion barrels, with approximately 14 million bpd shut in. Global supply is projected to fall by around 3.9 million bpd across 2026, with the IEA projecting that the global oil deficit will average 1.78 million barrels per day for the full year.
While the IEA’s 32 member countries have agreed to a historic 400 million barrel strategic reserve release, these buffers are hardly enough to replace lost supply. U.S. Strategic Petroleum Reserve (SPR) stockpiles have dropped to roughly 365 million barrels driven by record drawdowns, the lowest level in over two years after shedding around 50 million barrels over a span of three months. U.S. SPR levels are now close to the 40-year low of ~347 million barrels recorded during the Ukraine war. . Related News
Pantheon Resources plc, the oil and gas company developing the Kodiak and Ahpun projects on Alaska’s North Slope, announced that it was asked to join other North Slope producers before the Alaska Legislature’s House Finance Committee (“the Committee”) late last week, to provide an overview of the Company’s projects and their potential to provide natural gas to the proposed natural gas pipeline being pursued by The Glenfarne Group and the State of Alaska (the “AK LNG Project”).
The Legislature is currently in a Special Session focused exclusively on a tax relief package sponsored by the Governor to support the AK LNG Project. The Company joined ExxonMobil, ConocoPhillips, and Hilcorp as invited testimony from the proposed gas suppliers to the AK LNG Project.
Pantheon’s session before the Committee included a discussion of the gas supply potential of its Kodiak and Ahpun projects, the advantageous low CO2 composition of its gas and the Company’s ability and willingness to offer its gas at a relatively low price to improve the economics behind the AK LNG Project, particularly Phase 1 of the project which is intended to provide those in Southcentral Alaska with a reliable supply of natural gas at the lowest cost possible as they are facing a looming energy supply shortage. . Related News
Trump took to Truth Social to claim talks are advancing rapidly and that both Israel and Hezbollah had agreed to halt hostilities. He also noted a productive call with Israeli Prime Minister Benjamin Netanyahu to de-escalate the situation. On Monday, The Lebanese Embassy in Washington stated on social media that Hezbollah had accepted the terms of a U.S. proposal “for a mutual cessation of attacks.”
“Under the proposed arrangement, Israeli strikes on Beirut’s southern suburbs would cease in exchange for Hezbollah refraining from attacks against Israel,” the embassy said. “The ceasefire would then be expanded to encompass all Lebanese territory.”. Related News
WTI crude falls 10% as Iran deal optimism offsets supply deficit
West Texas Intermediate (WTI) crude fell almost 10% last week as progress in US-Iran ceasefire negotiations raised expectations of a Strait of Hormuz reopening. However, the scale of the underlying supply disruption suggests prices are unlikely to return to pre-war levels swiftly.
The International Energy Agency’s (IEA) May Oil Market Report laid bare the severity of the supply shock. The Strait closure has shut in more than 14 million barrels per day (mb/d) of Gulf production, partially offset by record output increases from the Americas — including the US, Brazil, Canada and Venezuela — as well as higher Russian exports. Nevertheless, global supply is projected to average 102.2 mb/d in 2026, against demand of 104 mb/d, leaving a deficit of 1.8 mb/d for the year. The IEA expects the market to remain in deficit until the fourth quarter. Rebuilding depleted inventories — which have drawn down at a record pace — could require an additional 1 mb/d of supply for the next three years.
The futures curve reflects market confidence that a resolution is achievable by year-end, with December 2026 WTI crude oil futures at around $79 per barrel trading materially below the July contract near $88. Yet even this optimistic scenario implies prices remaining well above pre-war levels of approximately $62. The broader futures curve does not project a return to pre-war pricing until 2031 — suggesting elevated prices will persist long after any near-term diplomatic resolution. Related News
| Oil and Gas Blends | Units | Oil Price | Notes |
| Crude Oil (WTI) Oilprice | US$/bbl | $92.08 | Down |
| Crude Oil (Brent) | US$/bbl | $94.83 | Down |
| Bonny Light 29/05/26 CBN | US$/bbl | $98.44 | — |
| Dubai | US$/bbl | $103.15 | — |
| Natural Gas | US$/MMBtu | $3.14 | Down |
| Murban | US$/bbl | $94.33 | Down |
| OPEC basket 01/06/26 OPEC | US$/bbl | $104.05 | Up |
| At press time June 02, 2026 |
Seven active wildfires are burning near major oil sands sites in northern Alberta, raising fears of production disruption in a region that supplies a significant share of the world’s crude oil.
Canada is the world’s fourth-largest oil producer, and the bulk of its production is clustered in northern Alberta’s boreal forest. Wildfires, which have always occurred in this environment but are more common now due to climate change, have become a perennial threat to Canadian oil output.. Related News
Dolphin Drilling AS announced the contract fixture of its semi-submersible drilling rig BORGLAND DOLPHIN with an undisclosed operator in the UK, which represents approximately USD 239 million in firm contract backlog, as referenced to in our announcement dated 14 April 2026 regarding a Letter of Intent.
The contract is scheduled to commence in the second half of 2027, in direct continuation following release of the Borgland Dolphin from its existing contract. The firm term runs through to the expiry of the rig’s current Special Period Survey (“SPS”) in October 2031 (inclusive of mobilisation and demobilisation). The contract includes options for up to a further 5-years, with a contribution to the SPS.
Chief Executive Officer, Michael Boyd said: “This contract award represents a significant milestone for Dolphin Drilling, materially strengthening our firm backlog to approximately USD 602 million. Importantly, it delivers long-term earnings visibility across two rigs in the UK, both rigs firmly secured on contract for the next five years, as we guided on and in line with the strategic plan for Dolphin.
With this enhanced backlog, we are establishing a more robust and cost-efficient operating platform, positioning the Company to generate sustainable cash flows and capture further opportunities in an increasingly tight offshore drilling market.” . Related News
UK’s HM Revenue and Customs (HMRC) has confirmed new advisory fuel rates for drivers of petrol, diesel, LPG and electric company cars from June 1.
The advisory fuel rates only apply to drivers who use a company car, with the rates used to reimburse employees for business travel in these cars, or when employees need to repay the cost of fuel used for private travel. HMRC conducts a review of these rates every quarter at the beginning of March, June, September and December, meaning the latest advisory fuel rates (AFRs) are now in effect as of June 1 and will remain in place until the next update on September 1.. Related News
U.S. Army has awarded Saab a $22.4 million order within a firm fixed price contract under the Bridge to Evolution Synthetic Training Environment Tactical Engagement Simulation Systems Multiple-Award Contract (BEST MAC). The total potential contract value is $60.8 million over 60 months.
Under Lot 2 of the BEST MAC contract, Saab will support the U.S. Army’s Tactical Engagement Simulation Systems (TESS) program through the delivery of Vehicle Tactical Engagement Simulation System (VTESS) Base Kits. .Related News
Saab has received an order from the Swedish Defence Materiel Administration (FMV) for sensors and command-and-control systems for a ground-based air defence system (GBAD) solution for the Swedish Army brigades. The order value is approximately SEK 1.2 billion. Deliveries will take place between 2029 and 2030.
The command-and-control and sensor systems continue to build on previous deliveries to FMV, strengthening Sweden’s ground-based air defence capability. This contract will provide the end-user with an improved ability to detect and counter advanced aerial threats. .Related News
Saab presents first Gripen F
The two-seat fighter, developed in partnership with Brazilian industry, accelerates training and enhances operational performance. On 2 June Saab had a rollout of the first Gripen F fighter to the Brazilian Air Force during a ceremony held at Saab´s facilities in Linköping, Sweden. Gripen F is the two-seat variant of the Gripen E series and has been developed to meet the training and operational requirements of modern air forces by combining conversion training and combat capability on the same platform.
As the launch customer, Brazil played an active role in the co development of the two-seat variant, enabling direct industrial participation and long-term cooperation. Through an extensive transfer-of-technology programme, Brazil has trained hundreds of engineers and technicians while strengthening the advanced design and development expertise within its national industrial base.
Designed for an era of rapid transformation, Gripen F delivers world-class performance, sensors, and revolutionary architecture, mirroring Gripen E. The addition of a fully independent second cockpit enables instructor-guided missions in a fully operational fighter, giving trainee pilots realistic live mission conditions. Consequently, pilot conversion and preparatory training can be dramatically accelerated compared to conventional time, while enhancing operational effectiveness in high-threat environments through shared workload and improved mission command. Before final delivery to the Brazilian Air Force the aircraft will be transferred to Saab’s Flight Test Centre in Sweden, where it will start a dedicated flight test campaign. Related News
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