The energy-focused information session by Dow Jones began with a headline that could reshape the future of Venezuela’s most valuable asset abroad. Elliott Management is set to face scrutiny in U.S. federal courts next week as they attempt to finalize their bid for CITGO Petroleum, marking one of the final stages in the forced sale of this emblematic Venezuelan energy company.
The court’s decision will be crucial for the future of PDVSA’s U.S. subsidiary, which has been at the heart of a complex creditors’ dispute for many years.
OPEC maintains demand forecast and increases production
On its part, the OPEC announced that it will keep its crude oil demand projections unchanged while confirming a new production increase for the upcoming month. The cartel is pivoting strategically to gain market share, reinforcing its commitment to abundant supply amidst global slowdown fears.
Energy markets and geopolitics: a volatile week with modest gains
Oil futures closed the week with modest gains, buoyed by a geopolitical risk premium that offset fears of oversupply. The Russia-Ukraine conflict remains unresolved, while an Israeli attack aimed at Hamas leaders in Qatar threatens to escalate tensions in the Middle East.
The International Energy Agency (IEA), on its end, revised its global supply forecast upwards, warning that the crude surplus could exceed previous estimates.
Energy transformation: from oil to AI and solar power
Oil service companies are shifting part of their operations to provide energy to data centers that require vast amounts of electricity for AI, risking the obsolescence of their traditional services.
Simultaneously, Saudi Arabia is strengthening its emerging role in solar energy, betting that sunlight can power data centers and free up more crude for export.
Tesla, on the other hand, has introduced new energy storage technologies —Megapack 3 and Megablock— which are already being described as a “game-changer” for its business and have boosted its stock prices.
Other energy sector movements
U.S. Crude inventories: rose by 3.9 million barrels last week, contrary to expectations of a decline.
Cheaper gasoline for 2026: the EIA predicts prices below $3 across most of the U.S., with a slight increase in consumption.
Phillips 66 acquires 50% of Cenovus refinery: the American oil company purchased its Canadian partner’s stake for $1.4 billion.
Political debate in the U.S.: Republican lawmakers are seeking to ease energy regulations for appliances like gas stoves and washing machines, arguing it will reduce household costs.