MEES - Weekly Oil & Gas News Analysis

Saudi Arabia’s petrochemicals sector suffered significant disruption last quarter as a result of the Middle East conflict. The closure of the Strait of Hormuz created substantial logistical headwinds, with the kingdom’s array of companies having to reduce operations and find alternative routes to market (MEES, 3 April).

Operators in the Kurdistan Region of Iraq have confirmed the restart of oil production and exports since late June (MEES, 3 July). In 13 July updates, Gulf Keystone and Shamaran Petroleum said that operations had resumed at Shaikhan, Atrush and Sarsang, respectively. Gulf Keystone said that Shaikan production recommenced on 24 June and was successfully ramped up to over 43,000 b/d, close to its levels prior to the US-Iran War beginning in February.

Oman has been profiting from its location outside the Strait of Hormuz, which was effectively shut down after the Middle East conflict ignited in late February. The sultanate is set for windfall oil revenues on the back of near record prices and steady exports during the past four months (MEES, 26 June).

India imported $2.73bn of crude oil from the UAE in May, the country’s latest import statistics show. This is India’s highest bill for Emirati crude imports since at least January 2022 and likely the all-time high. Volumetrically, imports of 805,000 b/d (MEES, 17 July) were the second highest on record, beaten only by September 2021’s 819,000 b/d. Volumes surged from the previous month’s 544,000 b/d despite the Hormuz crisis.

17 Jul 2026 Issue: 69 / 29 By: Jamie Ingram *After slumping in Q1, Indian imports of Russian crude rebounded in April and May thanks to US sanctions waivers (see chart).

Mitsubishi Power has signed contracts to support Saudi Arabia’s fuel conversion strategy, which aims to convert 22.3GW of power plant capacity from oil to gas. The strategy is a pillar of Saudi Arabia’s Liquid Displacement Program (LDP) designed to end more than 1mn b/d of oil burn by 2030.

Adnoc has increased supplies of seaborne crude oil and condensate to the 837,000 b/d Ruwais refining complex to the highest level since August 2025. Tanker supplies averaged 193,000 b/d last month and are in excess of 200,000 b/d over the first half of July, Kpler data shows. Tanker supplies are now running at the highest level since Adnoc opted to switch out offshore grades with its flagship Murban crude from last August in order to support Murban export prices (MEES, 6 June 2025).

Saudi petrochemicals giant Sabic, China’s Rongsheng Petrochemical and the latter’s Rongsheng New Materials (Zhoushan) subsidiary signed a Project Development Agreement (PDA) on 16 July to jointly advance the development of the Jintang New Materials Project in Zhoushan, Zhejiang Province, China. Under the PDA, Sabic is to take an equity position in Rongsheng New Materials of up to 50%.

Abu Dhabi state renewables firm Masdar is moving ahead with its pioneering ‘round-the-clock’ (RTC) project that is intended provide 1GW of continuous baseload clean low-carbon power. On 13 July, Masdar announced that it had reached financial close for the $6.1bn project being built on a 60km2 area next to the 1.58GW Al Dhafra solar PV plant. The project was first unveiled in January 2025, when it was to be built further south in Azeezah (MEES, 17 January 2025), and Masdar broke ground in October.

The US-Iran conflict has descended into the heaviest fighting in weeks, with each side carrying out a series of strikes and counter-strikes in a bid to gain leverage. Despite the breakdown of the MoU less than a month after its 17 June signing, and US President Donald Trump again threatening to attack Iranian power plants, the consensus view remains that neither party wants a major escalation. Yet the risk of escalation rises with each attack.