Energy and Oil Sector

U.S. copper prices hovered around $6.58 per pound as traders rushed physical metal into domestic storage facilities to preempt potential import tariffs. COMEX warehouse inventories reached an all-time high of 675,185 metric tons after rising for 46 consecutive days. Washington has weighed imposing a 15% tariff on refined copper starting January 1, 2027, with the rate climbing to 30% in 2028. This potential policy shift has drained supplies outside the United States, driving three-month London Metal Exchange copper to $14,343 a metric ton. While CRU previously forecast a global surplus of 639,000 tons for 2026, analysts note that heavy U.S. stockpiling effectively balances the accessible market. The localized accumulation forces sectors like construction, power equipment, and data-center projects to contend with higher material costs while miners capture increased revenue.

fortune.com reports that the Strait of Hormuz crisis forced Asian economies to rewrite their energy playbooks after six months of disruption following U.S. strikes on Iran and subsequent threats to shipping. The conflict exposed the vulnerability of a twenty-mile-wide waterway handling roughly a fifth of global oil trade, over eighty percent of which went to China, India, Japan, and South Korea. Governments responded by imposing export bans, cutting import duties, and rationing fuel as cheap drones threatened multibillion-dollar energy infrastructure. Importers are now shifting from just-in-time to just-in-case supply chains, with Japan investing in Australian liquefied natural gas through companies like Inpex while oil majors such as Woodside and Chevron capture rising demand. Meanwhile, producers are building pipelines and ports in Saudi Arabia to bypass the strait, aiming to reduce dependence so that only ten percent of global oil must transit the channel. Gas remains the more vulnerable commodity because it lacks alternative pipeline routes, leaving exporters like Qatar scrambling for diplomatic openings while maintaining fast recovery plans.

mining.com reports that Anfield Energy completed its first underground blast at the historic Velvet-Wood uranium and vanadium project in San Juan County, Utah. The blast marks the first underground activity at the site in nearly 40 years, following the receipt of a permit in June. Anfield has rehabilitated the first 700 feet of the decline, installing rock bolts, wire mesh, ventilation, and power infrastructure to support ongoing development. The historic Velvet deposit previously produced about 4 million pounds of U3O8 between 1979 and 1984. The site holds 4.6 million pounds of uranium oxide equivalent in the measured and indicated category, alongside 552,000 pounds in the inferred category. Construction of the water treatment plant and dewatering pump is nearing completion, with testing expected to begin in the coming weeks. The US government previously selected Velvet-Wood for fast-tracked permitting to boost domestic critical mineral production.

Bisnow.com reports that Texas Governor Greg Abbott has directed a pause on all data center connections to the state grid until agencies complete comprehensive audits of planned power, water consumption, and ownership. The directive halts an interconnection queue where the Electric Reliability Council of Texas is considering over 474 gigawatts of power capacity requested by large projects, with data centers accounting for 90% of those requests. For developers like Gigabit Fiber, which has waited three years for power from utility Encore without knowing its place in the queue, the freeze delays a crucial August 7 decision that was set to determine priority under a new batch evaluation system. The policy has fractured the industry, with some developers criticizing the move as a politically motivated measure ahead of midterm elections, while others like Skybox Datacenters Chief Development Officer Haynes Strader argue the audits are necessary to secure grid stability and separate responsible players from speculative projects. The resulting uncertainty leaves timelines for billions in digital infrastructure investments in limbo while state agencies review the backlog.

nytimes.com reports that Chevron is in advanced talks to significantly expand its oil operations in Venezuela, with a potential deal arriving as early as next week. As the second largest U.S. oil company, Chevron already accounts for about a quarter of the country's oil production and remains the only major U.S. operator with a substantial footprint there.

Oilprice.com reports that earnings on the benchmark Saudi Arabia-to-China supertanker route surged to a record $647,000 per day on Thursday. The spike stems from Persian Gulf producers increasing crude shipments through the Strait of Hormuz despite the ongoing Iran war, creating a severe shortage of vessels as few owners are willing to take the risk. Exporters are competing for a smaller pool of available tankers, leading to dual freight bills as some producers shuttle crude through the strait before transferring cargoes onto other tankers outside the Gulf. TotalEnergies CEO Patrick Pouyanne noted that moving a cargo through Hormuz cost about $20 million earlier in the week, with market participants reporting further increases since. The squeeze is compounded by Houthi attacks in the Red Sea, forcing Saudi Arabia to redirect barrels through the Mediterranean and around Africa and adding roughly 30 days to voyages bound for Asia.

Oilprice.com reports that the total number of active drilling rigs in the United States held steady at 588 this week. Active oil rigs fell by 5 to 447, while gas rigs rose by 5 to 132. US crude oil production averaged 13.843 million barrels per day, up from 13.830 million barrels per day the prior week. Brent traded down at $89.35 per barrel, and WTI fell to $83.21 per barrel. Primary Vision's Frac Spread Count dropped by 9 crews to 184.

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