Saudis Push Maritime Coalition as Oil Finds Support
By Tom Kool - Jul 31, 2026, 11:15 AM CDT
Brent is set for an 8% weekly loss, but ongoing disruptions in the Strait of Hormuz and the Red Sea continue to support oil prices near $90 a barrel.
Friday, July 31, 2026
Oil prices are set for an 8% weekly loss after the sell-off earlier this week was halted by the reality of two disrupted waterways in the Middle East, with Saudi Arabia seeking to organize a maritime coalition against the Houthis. The IRGC claims to have turned around several tankers in the Strait of Hormuz; however, that could also suggest shippers won’t give up on exiting the Strait anytime soon. Hence, as Tehran rejected Oman’s proposal for a joint regional management of Hormuz and there being no new US-Iran talks on the agenda, ICE Brent will end July at $90 per barrel.
BP Prepares North Sea Exit. Citing high taxes and a worsening investment climate, UK oil major BP (NYSE:BP) has formally launched a process to sell its UK North Sea oil and gas business, some 115,000 b/d of output, marking a historic retreat from a basin where it has operated for more than six decades.
Saudi Arabia Seeks Red Sea Shipping Coalition. Saudi Arabia has announced the creation of an international coalition to safeguard Red Sea shipping from Houthi attacks, joined by 13 other countries, with Riyadh set to serve as the founding and leading state and host the alliance’s new headquarters.
Drone Strike Reaches Egypt's LNG Gateway. Egypt confirmed that a drone attack caused a fire on two gas vessels at Damietta port, including the Energos Winter FSRU, one of the three operational LNG import terminals in the country that already saw inflows of 1.5 million tonnes LNG so far in 2026.
CPC Mulls Loadings Halt After Fresh Drone Strikes. The Caspian Pipeline Consortium has suspended oil loadings at its Black Sea export terminal following another round of drone attacks on incoming tankers, with suppliers of Kazakh crude mulling an ‘indefinite halt’ until they receive safety guarantees.
Rhine Bottleneck Chokes Europe's Fuel Arteries. Critically low water levels on Germany's Rhine River have severely disrupted inland fuel transportation, constraining fuel flows from Northwest Europe as water levels at the key Kaub chokepoint fell to just 25 cm, driving freight rates to multi-year highs.
South Korea Eyes PDVSA Imports as Supply Risks Mount. South Korea's refiners are evaluating imports of Venezuelan crude for the first time in years as disruptions in the Middle East prompt a search for alternative feedstocks, just as Venezuelan exports to the US reached a record high of 715,00 b/d in July.
TPAO Joins BP's Kirkuk Revival Project. UK oil major BP (NYSE:BP) has agreed to sell a 15% stake in its Iraqi Kirkuk venture to Turkey's state-owned TPAO, strengthening regional backing for the rehabilitation of northern Iraq's giant oil and gas fields as Baghdad seeks to boost flows via the Mediterranean.
Iraq-Turkey Pipeline Gets Temporary Reprieve. Crude flows through the Kirkuk-Ceyhan pipeline are expected to continue despite the expiry of the bilateral transit agreement, as the entry of Turkey’s state oil firm TPAO into Iraqi upstream paved the way for a negotiated 12-month contract extension.
Venezuela Eyes Gas Sector Overhaul. Venezuela is preparing to discuss a new natural gas law that would reduce the role of state oil firm PDVSA in gas production and offer more attractive fiscal terms for foreign investors, signalling a push to accelerate international participation in major offshore projects.
Shell Exit Clouds Cyprus Gas Ambitions. The decision of London-based energy giant Shell (LON:SHEL) to sell its 35% stake in Cyprus’ Aphrodite gas field to Hungary’s MOL has triggered frustration in Cyprus, with government officials criticizing the oil major’s handling of the process ahead of a long-awaited FID.
Qatar LNG Tanker Breaks Hormuz Drought. A QatarEnergy-owned LNG carrier has exited the Strait of Hormuz for the first time in nearly three weeks, with the Al Areesh vessel moving to Pakistan after Islamabad lobbied Tehran to ease its energy shortages, worsened by a coal mine explosion this week.
Russia Poised to Extend Diesel Export Curbs. Russia has prolonged its diesel export ban for another month until end-August to cap soaring fuel prices amidst Ukrainian drone strikes, with July outflows totalling only 150,000 b/d, although officials could lift the restrictions earlier if conditions improve.
China's Coal Share Drops Below 50% for First Time. China generated less than half of its electricity from coal (49.7%) in the first half of 2026, marking a major milestone in the country's energy transition as renewable energy surpassed 40% of the power mix, driven by rapid growth in wind and solar capacity.
Portugal Targets Oil Firms with New Levy. Portugal has approved a draft "solidarity" tax that would impose a 33% levy on excess profits earned by oil companies in 2026, seeking to push energy firms’ bumper revenues into household support, just as Galp (ELI:GALP) reported a $0.6 billion net profit in Q2.
Zijin's Allied Gold Takeover Falls Through. China's Zijin Gold (SSE:601899) and Canada's Allied Gold have abandoned a planned $3.9 billion takeover deal, with Zijin instead opting for a $295 million investment that secures a 9.2% stake and provides fresh funding for Allied Gold's growth projects across Africa.
By Tom Kool for Oilprice.com
