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Foreign Minister says China is ready to work with Russia to reduce tensions in the Middle East
In a Sunday phone call, Foreign Minister Wang Yi informed his Russian counterpart Sergei Lavrov that China was 'willing to continue cooperating with Russia at the U.N. Security Council' and to make efforts to "cool down" the Middle East situation. Wang stated that the best way to resolve navigational issues in the Strait of Hormuz was to achieve a cessation of fire as soon as possible. He added that China has always favored a political resolution of hot-spot?issues by dialogue and negotiation. The call was made ahead of next week's U.N. Security Council voting on a Bahraini Resolution to protect commercial shipping around and in the Strait of Hormuz. According to a ministry statement, Wang said that as permanent UNSC members, China and Russia should "adopt a balanced and objective approach" and work to gain greater support and understanding from the international community. In a statement from the Russian Foreign Ministry, it was stated that the ministers had discussed how to "achieve a rapid cessation of hostilities" and "launch a diplomatic-political dialogue." It said that "satisfaction" was expressed by the coincidence of Russia and China's 'approaches' on many global issues, including the'situation' around Iran, relating to the unprovoked attack by the U.S. China has repeatedly called on a ceasefire in the Gulf and Middle East region, calling for an end to fighting that has lasted for more than a month, and has largely closed the Strait of Hormuz - a vital shipping artery for gas and oil. Reporting by Shi Bu, Ryan Woo and Mark Porter; Editing Hugh Lawson.
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Phillies Taijuan Walk shoots for Rockies road sweep
The Philadelphia Phillies began their first road trip this season with two impressive victories over the Colorado Rockies. The Phillies will try to complete the sweep on Sunday when they finish the three-game series. Philadelphia, who won 2-1 on Saturday night, will match up Taijuan Walker (0-0, 11.57 ERA), against Colorado's Tomoyuki Sugano (00-0, 1.93 ERA), in a matchup of right-handers. Walker had a tough start for the Phillies in his first game of the year, giving up seven hits on ten in four and a half innings on Monday against Washington. He can improve against the Rockies. Walker is 5-1 in 10 career starts against Colorado with a 2.36 ERA. In 2025, he went 2-0 and had a 2.45 ERA over two appearances against the Rockies. Walker can build on the Phillies' first two starts this weekend. Aaron Nola, Jesus Luzardo and their combined teams struck out 20 batters in each of their respective appearances. Nola was able to benefit from a strong run support during a 10-1 victory on Friday, but Philadelphia only scored two runs Saturday night. The Phillies offense has struggled, except for the 10 runs they scored on Friday. Bryce Harper stated that seasons can sometimes be like this. Some guys have great first months, but then have a horrible rest of the season. They can have a bad month, but then win MVP. You play the entire season because you want to. You shouldn't place too much emphasis on the first few games. You play your own game. It's important to remember that the season is long and it's worth playing all of it. Philadelphia will face a pitcher that it has not faced before. Sugano made a good debut for Colorado on Monday, when the Rockies thrashed Toronto 14-5. Sugano allowed only one run on just two hits, but a high pitch count kept him from going beyond 4 2/3 innings. Colorado signed Sugano (?36) to shore up its rotation, which struggled in 2025. The Rockies' pitching has improved this year, but, like the Phillies, their offense has been a struggle. Colorado has scored 5 runs in its last 4 games. The Rockies scored 15 goals in their Friday home opener and another 13 on Saturday night. This has played a role in the Rockies' 1-4 start in games with one run. After the 2-1 defeat, Warren Schaeffer stated that the "big thing" with Saturday's strikeout was we missed too many pitch in the zone and early in the count. "You can't chase late and miss pitches early, it's a bad combination." Despite the strikeout problems, there have been some positives. Ezequiel Torvar, a rookie, has a.294 average after he went 1-for-4 on Saturday. Troy Johnston is batting.333 and has one of Colorado's first eight home runs. Field Level Media
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Kuwait Petroleum Corp. reports damage to units following Iran drone attacks
On?Sunday?, Iranian drone attacks hit multiple targets in Kuwait. State?energy company Kuwait Petroleum Corporation reported fires and "severe damage" to some units. KPC stated in a press release that teams are working to contain fires at National Petroleum Company and Petrochemical Industries Company affiliates. KPC said earlier that a drone had attacked the complex housing the KPC headquarters and oil ministry in Shuwaikh. Kuwaiti state media, citing Kuwait's finance ministry, reported that an Iranian drone had allegedly 'hit an office complex of government ministries, inflicting significant material damage, but no injuries. Kuwait's Ministry of Electricity and Water said that two power-generating units were taken out after Iranian drones attacked two desalination and power plants. The damage was significant. In all incidents, no injuries have been reported. The U.S. and Israeli 'war on Iran' is now in its sixth weeks, with Tehran attacking Israel and Gulf Arab states that host U.S. military bases. Iran's Revolutionary Guards have claimed responsibility for the attacks on Kuwaiti petrochemical facilities, as well as those in Bahrain and the United Arab Emirates.
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PMI data shows that Saudi Arabia's non oil business activity shrank in March amid conflict.
A 'business survey' revealed that Saudi Arabian non-oil sector activity fell in March for the first time since August 20. The war in the Middle East had slowed down supply chains. S&P Global's?seasonally-adjusted Riyad Bank Saudi Arabia Purchasing managers' Index (PMI) fell to 48.8 from 56.1 in Feb. The readings below 50 indicate contraction. Naif Al Ghaith is the chief economist at Riyad Bank. He said that the drop into contraction was largely due to short-term uncertainties linked with the geopolitical tensions of the region. "The soft reading was mainly?driven by a pause in the new orders, as clients adopted more caution." Export orders experienced a notable drop, and some firms reported a temporary slowdown of cross-border activities. This led to a moderated output, Al-Ghaith explained. For the first time, both output and new orders have declined since August 2020, when the COVID-19 epidemic brought economies to a grinding halt. New orders dropped to 45.2 in March, down from 61.8 in February. Export demand was weakening sharply. New export orders posted their steepest drop?in nearly six years. Exports were 'completely stopped' by some firms, while others experienced greater logistical problems. The conflict has slowed the flow of water through the Strait of Hormuz, but the supply strains have increased. This situation may continue as long as the Strait of Hormuz remains effectively blocked. Business expectations for the coming 12 months remain 'positive' despite a 'weakening of their lowest level since June 2020. Some firms are still confident about government spending, the development of infrastructure and the improvement in demand on the long term. (Reporting and Editing by Hugh Lawson).
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South Korea asks Gulf Nations for a steady supply of energy and safety of Korean vessels
The South Korean Ministry of Finance announced that Koo 'Yun-cheol, Minister of Finance, met with envoys of Gulf countries on Sunday to discuss energy security and the safety of 'Korean vessels near the Strait of Hormuz. This is due to the escalating Iran conflict disrupting shipping. The ministry said that during the Friday meeting, Koo requested the ambassadors of the Gulf Cooperation Council to ensure a constant supply of oil, liquefied gas, naphtha and urea as well as other critical resources. He also asked them to ensure the safety and security for Korean vessels and crews near this vital strait. The statement stated that the envoys referred to South Korea as a nation of "top priority". They also pledged to work closely with Seoul in order to maintain a stable supply. Like many Asian economies, South Korea relies heavily upon energy imports. This includes through the Strait of Hormuz. The Strait of Hormuz was the conduit for 20% of 'world oil' before Israel and the U.S. launched their war on the 28th of February. Since then, Iran has effectively closed the waterway. This has pushed up energy prices and raised fears of a global recession. Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait and Oman are the six GCC member states. Reporting by Cynthia Kim, Editing by William Mallard
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Egypt increases electricity prices for households and businesses that use more energy amid energy crisis
The electricity ministry announced on Saturday that Egypt will raise electricity prices for residential and commercial consumers who use more electricity. This increase is due to a global energy crisis caused by the Gulf War. The government has taken a number of measures to reduce energy consumption and curb fiscal pressures as rising import costs put pressure on the finances of the most populous Arab country. The ministry stated that the increase would only affect households with higher consumption and commercial users. This was done to ensure the supply of electricity across residential, industrial and commercial sectors. The report said that electricity rates for residential bands up to 2,000 kilowatt hours per month would remain the same, but tariffs for higher residential brackets will increase by an average 16%. It added that commercial electricity prices in all brackets will increase on average by about 20%. In March, Prime Minister Mostafa. Madbouly stated that Egypt's energy import bills had more than doubled in the last few years since the start of the conflict involving the United States and Israel. This forced the government to increase fuel prices, raise fares for public transportation, and slow down some state projects, to relieve pressure on the public finances. Egypt implemented measures to rationalise its energy consumption in March, including a move towards earlier closing times for commercial venues. This was due to the rise of global oil prices during the conflict. Inflation has been in double digits since September 2023, when it peaked at 38%. The country is already struggling with heavy debts. Reporting by Momen Atallah and Enas Alashray
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Slovak PM: EU should lift sanctions on Russian oil, gas and other energy sources to improve energy security
Robert Fico, the Slovakian Prime Minister, said that the European Union must end sanctions on Russian oil and gas imports and take steps to restore Druzhba pipeline flows, as well as end the conflict in Ukraine, in order to tackle the energy crisis stemming from the war with Iran. Fico stated in a press release after a phone call with Hungarian Premier Viktor Orban, that the EU should re-establish dialogue with Russia to ensure member states get gas and oil from all sources including Russia. Hungary and Slovakia are the only two EU countries that maintain relations with Moscow. Oil prices have risen?since U.S.-Israeli strikes against Iran began on February 28, causing a disruption to oil supplies in the Gulf and causing what the International Energy Agency calls the largest oil supply interruption in history. Central European nations have taken steps to reduce the impact of high fuel prices on consumers and businesses. By the end of 2025, only a fraction of EU oil imports came from Russia. This was after a steep decline in imports following Moscow's invasion of Ukraine. By January 27, Kyiv reported that a Russian drone attack had hit Ukrainian pipeline equipment, disrupting Russian oil?shipments. Budapest and Bratislava accuse Ukraine of intentionally delaying repairs in order to resume oil flow through the Druzhba pipe. This has triggered a political dispute which?has seen Hungary blocking an EU loan for Kyiv. Ukraine claims it is repairing it as fast as possible. Fico stated that it is not enough to address the energy crisis at the national or only local level. Five other European Union countries are also calling for a windfall profit tax on energy companies in response to rising fuel prices. This was revealed by a letter sent to the EU Commission on Saturday. The energy chief of the bloc said on Tuesday that it was considering reinstating energy crisis measures from 2022. This included proposals to reduce grid tariffs and electricity taxes.
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Taiwan has received assurances from a'major country' about LNG supplies
Taiwan's economy minister announced on Saturday that the energy minister of a "major country" producing liquefied gas had given Taiwan assurances about supply. He was speaking in relation to the?impact of the Iran War on Middle East energy imports. Taiwan, which is a major producer of semiconductors, relied on Qatar to supply around a third its LNG prior to the conflict. It has now said that it has secured alternative supplies from countries such as Australia and the United States for the months ahead. Kung Ming Hsin, Taiwan's Economy Minister, told reporters in Taipei that Taiwan enjoys good relations with its?crude gas and natural oil suppliers. Therefore, adjusting the origin of shipments or purchasing additional spot -cargoes will not be a problem. Kung stated that the energy minister from a "major energy producing country" had contacted him about two weeks prior. The person "explained that they would fully support our natural gas needs. He added that if we had any requests, we could let them know. Kung added: "Another nation even stated that certain countries had released strategic petroleum reserves and could help coordinate the matter if Taiwan needed assistance." He said, "This shows Taiwan has earned considerable international goodwill through the long-term confidence it has built." He refused to identify the countries involved. Angela Lin, spokesperson of state-owned refiner CPC said that at the same?newsconference, crude oil inventories are being maintained at levels prior to conflict and that overall petrochemical supply has remained stable. CPC Chairman Fang Jeng Zen said that a new agreement with the U.S. would see 1.2 millions metric tons of LNG delivered?annually. He added that Taiwan does not intend to import crude oil or LNG from Russia. (Reporting and editing by Ben Blanchard, Roger Tung and Joe Bavier).
As oil prices rise to $60, Permian's resilience is tested.
Oil production in Texas is on the rise. Mark Waters owns a shop that sells safety and tools to oil companies.
In the past four to six month, Tie Specialties in Odessa in Texas has seen a drop of 25% in sales in the oilfield. Shelves are filled with power tools, wrenches and augers to dig holes. Pegboards display hard hats and gloves as well as various colors of overalls.
This is my sixth boom and bust. I've seen it all. Waters, 65, said, "I'd call it slowdown but everyone I've spoken to says that the future for the next two years is not bright." The full impact of this downturn has not yet been felt by the U.S. Oil output. Interviews with 10 producers, services companies, and residents in the Permian basin show that Waters, and other people who live and work around oilfields, are having a harder time making a profit. Crude is hovering around $60 per barrel and this indicates that the economy will be worsened.
The biggest U.S. Oilfield has survived previous downturns. But President Donald Trump's policy has added to the slide of per-barrel profits of U.S. Producers. This was already stifled due to rising production from producer group Organization of the Petroleum Exporting Countries (OPEC) and its allies as well as the largest wave of consolidation since a century.
Cracks are starting to show
Local business owners are noticing a decline in footfall and sales.
Waters now hopes to counter the loss of oilfield services by relying on demand for electrical products from the data center boom. Waters also runs a generator-repair business that is experiencing a boom in business due to companies avoiding spending on new equipment. Midland's skyline is beginning to show signs of the recession, with idle 100-foot rigs lining stockyards. Equipment is being liquidated by service firms. Leading producers such as ConocoPhillips and Chevron have laid off employees. The latest U.S. Bureau of Labor Statistics data showed that oil and gas production jobs nationwide have dropped by 4,000 between January and July of this year. Approximately 370,000 Texans were employed in oil and natural gas production at the beginning of this year.
The U.S. produced a record number of barrels per day this month.
The improvements in technology and efficiency have allowed producers to squeeze more oil from fewer wells. As a result, some analysts predict that output will drop this year or the next due to spending cuts. In the next two years, any growth in output will come more from offshore deepwater fields than the shale patches.
Data from Enverus, an energy analytics company, showed that the Permian Rig Count, which is a proxy of future production, fell by 52 to 252 in October from the previous year. This was the biggest decline since 2020 when COVID-19 reduced demand.
We've been in contact with the administration to let them know that investment returns are becoming more difficult when oil prices are between $50 and $60. Denzil WEST, CEO of Admiral Permian Resources (which produces around 25,000 bpd) said that this will eventually lead to the current production levels becoming unsustainable.
The Economics of Drilling are 'Upside Down'
Oil companies are now facing higher production costs due to inflation and Trump's tariffs. They will need to charge even more for their oil than in previous cycles.
Kirk Edwards of Texas-based Latigo Petroleum said that drilling and finishing a shale oil well cost between $10 million and $12 million. This is 5% to 10% more than the previous year.
"The economics have completely flipped from what they were in January." Edwards stated that drilling a well is more expensive and that you are getting 20% less oil for it. Executives said that companies need oil at around $70 a barrel to maintain and increase production. However, for more than half of the days since Trump was elected, prices have been below $65 a barrel as OPEC, its allies and demand concerns continue. The U.S. Energy Information Administration forecast that West Texas Intermediate crude oil, which is the U.S. benchmark for pricing Permian Basin Oil, will average $51.26 by 2026.
Surge Energy, a major private producer in the Midland Basin, plans to continue drilling at the current price, but will do so at a slower pace, according to CEO Linhua Guan. The company has operated three rigs in the Midland basin since 2021. In July, it dropped one, reducing capex by a high single-digit percentage. The Permian oilfield, the biggest in the United States and the engine for shale production in the US, is becoming harder to gain efficiency. The area with the best economics for drilling is shrinking, forcing producers to more expensive areas.
"Investment returns are lower at $60 to $55 per barrel than they were five years ago, because the best wells had been drilled," said Admiral Permian West.
The company will assess the drilling required, but may defer completion of the wells in the event that prices fall below $50. West stated that the return of investor equity would be the priority, over increasing capital deployment.
"MORE RIGS than Work"
Oilfield services are also feeling the pain. Superior Energy Auctioneers sold equipment last month from Cleveland Lease Services contract well service division, and Lone Star Directional Drilling.
A person with knowledge of the auction stated that large trucks used for hauling fracking equipment and trailers sold at a 30% lower price in August than they did in April.
Terrel Hardin is the president of King Well Service which provides workover rigs to maintain existing production. He said that this year only two to three rigs of his company were being used, as opposed to four or five last year.
Hardin stated that "these prices don't cover the bills and everyone pulls back." SLB, a leading service provider in North America, said in October that it did not expect drilling to pick up in the near future. Halliburton, a rival company, said it would idle its equipment to cut costs. Both companies laid off employees this year.
Unemployment in the area is increasing.
According to the U.S. Bureau of Labor Statistics (BLS), Midland's unemployment rate increased by 0.5 percentage point to 3.6% in august. This was a level that the industry last reached in mid-2022, when it was recovering from a demand shock caused by the COVID-19 Pandemic.
Waters, from Tie Specialties, said that "we get people coming in everyday looking for work."
Local economies and small businesses are also feeling the effects of job losses.
D.S. Fabela's Restaurant in Odessa, which is frequented by oilfield employees, is thinning out as workers are laid off, according to manager Dulce Solis.
Yogashri Pradhan, who was laid off for the third time from her industry, decided to start IronLady Energy Advisors as a consultancy on reservoir engineering and production data.
"We are seeing more panic over $60 oil and I believe that a large part of this is due to the rhetoric and administration of, oh we could do it cheaper," said Pradhan who was laid off from Chevron in the month of June.
(source: Reuters)