Key facts
- Oil prices are near $90 a barrel, supported by disruptions in the Strait of Hormuz and Red Sea.
- Saudi Arabia is forming an international coalition to protect Red Sea shipping from Houthi attacks.
- BP is selling its UK North Sea oil and gas business.
- Egypt confirmed a drone attack at Damietta port, affecting LNG import terminals.
- Low water levels on the Rhine River are disrupting fuel transportation in Europe.
- China generated less than 50% of its electricity from coal in H1 2026.
Oil prices are poised for an 8% weekly loss, but remain near $90 a barrel due to ongoing disruptions in the Strait of Hormuz and the Red Sea. Saudi Arabia is actively seeking to establish an international coalition to safeguard maritime traffic in the Red Sea from Houthi attacks, with 13 other countries joining the initiative, and Riyadh set to host the alliance's new headquarters.
Despite these geopolitical tensions, the market is seeing significant corporate and logistical shifts. UK oil major BP has initiated the sale of its North Sea oil and gas business, citing high taxes and a deteriorating investment climate. Meanwhile, Egypt confirmed a drone attack that caused a fire on two gas vessels at the Damietta port, impacting LNG import terminals. The Caspian Pipeline Consortium has also suspended oil loadings at its Black Sea export terminal following drone strikes on incoming tankers, leading suppliers of Kazakh crude to consider an indefinite halt until safety guarantees are provided.
In Europe, critically low water levels on Germany's Rhine River are severely disrupting inland fuel transportation, driving freight rates to multi-year highs. South Korea's refiners are exploring imports of Venezuelan crude for the first time in years as Middle Eastern supply risks mount. QatarEnergy announced that one of its LNG carriers exited the Strait of Hormuz for the first time in nearly three weeks, heading to Pakistan. Russia is also expected to extend its diesel export ban for another month to curb domestic fuel prices.
On the energy transition front, China has achieved a milestone, generating less than half of its electricity from coal in the first half of 2026, with renewables surpassing 40% of the power mix. Portugal is introducing a new 33% levy on excess profits earned by oil companies. In corporate news, China's Zijin Gold and Canada's Allied Gold have abandoned a planned $3.9 billion takeover deal, with Zijin opting for a significant investment instead.