Logo

Oil Prices Decline as Fossil Fuel Investment Hits Post-Covid Low, Says IEA

The International Energy Agency reports a 6% drop in oil production investment for 2025, the largest since 2016 excluding pandemic disruptions, driven by lower prices and demand. US shale producers and international oil companies are cutting spending, increasing the share of state-owned oil firms in global investments. Despite falling fossil fuel spending, coal power is expanding in China and India due to energy security concerns. In contrast, US renewable projects remain robust, supported by federal tax incentives and rising electricity demand.

Oil Prices Decline as Fossil Fuel Investment Hits Post-Covid Low, Says IEA

Fossil Fuel Investment Set to Decline in 2025

The International Energy Agency (IEA) has forecasted a 6% reduction in oil production investment this year, marking the most significant drop since 2016, excluding pandemic years. This decline reflects subdued oil prices and weakening demand worldwide.

Factors Driving the Investment Downturn

Oil prices have fallen from approximately $82 a barrel in mid-January to around $65, prompting reduced investment from key producers. US shale operators, responsible for about 15% of global oil investment, are especially impacted, with expected spending cuts of 10% in 2025.

Major international oil companies are also scaling back investments, focusing more on shareholder returns than on launching new projects. This shift elevates the role of state-backed oil companies, particularly from West Asia and Asia, which now represent 40% of global oil and gas investments, up from 25% a decade ago.

Decline in Clean Energy Investment Among Oil Majors

Investment in low-emission technologies by traditional oil companies has fallen by 25% in 2024, totaling $22 billion. Despite growing global commitment to clean energy, overall spending in fossil fuels remains high but declined to an estimated $1.1 trillion in 2025, compared to the $2.2 trillion projected for renewables, nuclear, batteries, power grids, low-emission fuels, and energy efficiency combined.

Coal Power Expansion in Asia Despite Global Trends

While advanced economies have paused new coal power installations for the first time, coal-fired generation is expanding in countries like China and India to address rapidly increasing electricity demand. The IEA notes that coal additions in China are mainly motivated by energy security concerns after recent challenges with hydropower reliability during extreme weather.

Renewable Energy Outlook in the United States

In the US, increasing electricity needs driven by artificial intelligence and data centers are expected to boost demand for renewables, natural gas, and nuclear power. Energy research firm Enverus highlights that 517 gigawatts of planned renewable projects in the US still qualify for federal tax incentives, with an additional 284 gigawatts pending credits. If development continues at current rates, this capacity supports more than six years of build-out activity.

OPEC+ Approves July Oil Output Increase of 411,000 Barrels Per Day
OPEC+ Approves July Oil Output Increase of 411,000 Barrels Per Day

OPEC+ has agreed to raise oil output by 411,000 barrels per day in July, consistent with previous months, to steadily restore supply amid a stable global economic outlook. The group, including Saudi Arabia and Russia, is balancing increased production with market fundamentals and efforts to manage prior overproduction. Oil prices have recently bounced from a four-year low, while global demand is forecasted to grow through 2025.

Top Oil CEOs Warn of Escalating Israel-Iran Strikes Impacting Energy Security
Top Oil CEOs Warn of Escalating Israel-Iran Strikes Impacting Energy Security

Top oil executives are sounding alarms as escalating strikes between Israel and Iran threaten critical energy infrastructure. While major oil facilities remain mostly intact, concerns about the security of supply routes like the Strait of Hormuz have sent crude prices up over $74 per barrel. Industry leaders emphasize safety, market risks, and urge a swift conflict resolution amid ongoing volatility.

Oil Prices Plunge as Ceasefire Eases Middle East Tensions
Oil Prices Plunge as Ceasefire Eases Middle East Tensions

Following a ceasefire agreement between Israel and Iran, oil prices experienced a notable decline. Brent crude dropped nearly 3% to $69.40 per barrel, while WTI crude fell 3% to $66.48. The ceasefire alleviated fears over disruptions in the vital Middle East oil supply, particularly through the Strait of Hormuz, calming markets after recent geopolitical tensions sent prices surging.

Meta Secures 20-Year Nuclear Energy Deal to Power Illinois Operations
Meta Secures 20-Year Nuclear Energy Deal to Power Illinois Operations

Meta has entered a 20-year nuclear energy agreement with Constellation Energy to secure power from the Clinton Clean Energy Center in Illinois. Providing 1,121 MW dedicated to Meta’s operations and adding 30 MW to the grid, the deal replaces state subsidies and supports rising electricity demands driven by AI workloads. This move follows tech industry trends prioritizing reliable, clean energy to meet growing data center consumption while advancing climate commitments.

Westinghouse Unveils Ambitious Plan to Construct 10 New U.S. Nuclear Reactors by 2030
Westinghouse Unveils Ambitious Plan to Construct 10 New U.S. Nuclear Reactors by 2030

Westinghouse Electric Company, a leading player in nuclear technology, revealed plans to construct 10 large-scale AP1000 nuclear reactors across the U.S. with construction starting by 2030. The initiative, announced during an energy and AI conference at Carnegie Mellon University, aims to inject $75 billion into the economy and aligns with federal ambitions to drastically expand nuclear power. Integrating artificial intelligence, Westinghouse seeks to overcome historical cost overruns and delays, signaling a sophisticated approach to revitalizing America’s nuclear energy sector amid pressing climate and energy security challenges.

Zelenskyy Flags Oil Price Surge Threatening Ukraine Amid Israel-Iran Tensions
Zelenskyy Flags Oil Price Surge Threatening Ukraine Amid Israel-Iran Tensions

Ukrainian President Volodymyr Zelenskyy has highlighted how escalating Israel-Iran conflict has caused oil prices to surge by up to 7%, benefiting Russia's military funding. He expressed concern that regional tensions might divert Western military aid from Ukraine to Israel, jeopardizing Kyiv's defense. Zelenskyy called for steady international support and harsher sanctions against Russia, stressing the need for a strong coalition and foreign troop presence to secure Ukraine’s future.

Haifa Refinery Shuts Down After Deadly Iranian Attack on Power Station
Haifa Refinery Shuts Down After Deadly Iranian Attack on Power Station

The Bazan Group’s Haifa refinery has shut down completely after a power station vital for steam and electricity production suffered severe damage in an Iranian attack. The incident resulted in the deaths of three employees and highlights the fragile security situation impacting critical energy infrastructure in the region.

Global Airlines Address Trade Tensions and Net-Zero Challenges at Summit
Global Airlines Address Trade Tensions and Net-Zero Challenges at Summit

As global air travel reaches record levels post-pandemic, airline executives convene in India to discuss the challenges posed by escalating trade tensions, including tariffs disrupting supply chains, alongside addressing stringent 2050 net-zero emission targets. The summit focuses on balancing rising operational costs, geopolitical flight path complications, aviation safety concerns, and the costly transition to sustainable aviation fuels amid uncertain regulatory frameworks.

OPEC+ May Raise July Oil Output by 411,000 Barrels per Day, Sources Say
OPEC+ May Raise July Oil Output by 411,000 Barrels per Day, Sources Say

OPEC+ members Russia, Saudi Arabia, and six others plan to increase oil output by up to 411,000 barrels per day in July, continuing a rollback of voluntary production cuts. The decision, pending a May 31 review, reflects seasonal demand growth for fuel during summer and could influence market prices amid global uncertainties.

OPEC+ Maintains Oil Production Quotas Ahead of July Review
OPEC+ Maintains Oil Production Quotas Ahead of July Review

OPEC+ has reaffirmed its current oil production quotas, maintaining group-wide cuts of about 2 million barrels per day through 2026. A subset of eight members, including Russia and Saudi Arabia, is gradually restoring voluntary cuts and may increase output further in July. Market attention centers on quota compliance and rising summer demand, signaling a balanced oil market with prices expected to remain between $60 and $70 per barrel.

Russian Ruble Surges as Best-Performing Currency in 2025 Amid Economic Challenges
Russian Ruble Surges as Best-Performing Currency in 2025 Amid Economic Challenges

The Russian ruble has emerged as the world’s best-performing currency in 2025, appreciating over 40% this year amid ongoing sanctions and declining oil prices. Key factors include high domestic interest rates, restrictive capital controls, and mandatory export revenue conversion. Despite the rally, challenges such as falling oil prices and potential geopolitical shifts cast doubt on the ruble's sustainability.

US Plans Partial Evacuation of Iraq Embassy Amid Rising Regional Tensions
US Plans Partial Evacuation of Iraq Embassy Amid Rising Regional Tensions

In response to escalating security concerns, the US is partially evacuating its embassy in Iraq and permitting military dependents to leave several Middle Eastern locations. This comes amid heightened tensions fueled by the Gaza conflict and stalled nuclear talks with Iran. The move has impacted global oil prices and raised maritime warnings, underscoring growing instability in the region.

Asian Stocks Surge After US Court Blocks Trump’s Tariff Policy
Asian Stocks Surge After US Court Blocks Trump’s Tariff Policy

Asian equities surged as a US court blocked former President Trump’s sweeping tariffs, ruling they overstepped constitutional limits. The decision, alongside Nvidia's robust earnings driven by AI chip demand, revitalized investor confidence and lifted major Asian markets. Safe-haven assets declined, while oil prices rose amid OPEC and geopolitical tensions.

PM Modi Plants Sindoor Sapling Symbolizing Courage on World Environment Day
PM Modi Plants Sindoor Sapling Symbolizing Courage on World Environment Day

Prime Minister Narendra Modi marked World Environment Day 2025 by planting a symbolic sindoor sapling at his New Delhi residence. Presented by courageous women from Kutch who stood out during the 1971 war, the sapling represents valor and cultural heritage. Modi emphasized the global need to combat plastic pollution and praised grassroots movements embracing sustainable practices like reduce, reuse, and recycle, reinforcing India’s dedication to environmental stewardship.

UK April Inflation Rate Revised Down Due to Car Tax Data Error
UK April Inflation Rate Revised Down Due to Car Tax Data Error

The UK Office for National Statistics revised the April 2025 inflation rate from 3.5% to 3.4% following an error in car tax data supplied by the Department for Transport. The Vehicle Excise Duty data overstated the number of vehicles subject to specific tax rates, causing the inflation figure to be slightly inflated for that month only. The ONS apologized, confirmed no other periods are affected, and pledged improved quality controls moving forward. From May 2025, inflation data will reflect corrected values to ensure accuracy and reliability.