September saw revival of oil traffic, this month Hormuz is shut again

Hostilities increased this month after a revival of oil traffic through the strait of Hormuz in September. Oil produced in the Middle East “rebounded” in September, as more tankers travelled, reported the Financial Times. Saudi Arabia, procured 8.4m barrels a day last month, its highest level since before the start of the Iran war in February. However, an “increase in hostilities this month has threatened the revival”, the outlet said. The Daily Telegraph reported that Iran struck six commercial vessels in a single day. The New York Times reported the Iran war is “testing” the world’s “energy order”.

India may need additional coal-based power to meet rising electricity demand: CEA Chairperson

India may add 105-150 gigawatts (GW) of coal-based power capacity by 2035, significantly more than the 97 GW currently planned, to meet electricity demand, IE reported quoting Ghanshyam Prasad, chairperson of the country’s top power planner Central Electricity Authority (CEA). 

Prasad stressed the need to maintain adequate baseload capacity to address the challenges posed by the intermittency of renewable energy sources. Solar and wind power generation fluctuates depending on weather conditions, while the limited availability of energy storage restricts the ability to use surplus renewable power to meet evening and night-time demand, the article explained.

Blackouts hit Indian factories as coal crunch feeds into economy

India’s factories and households are being hit by  “plunging coal stockpiles at the country’s power stations”, reported  Bloomberg, adding that the weakest monsoon season since 2015 has heavily reduced hydropower generation. The report explained that unseasonably hot weather has sharply driven up electricity demand for residential air conditioning and agricultural irrigation. Coal-fired power plants, which provide roughly two-thirds of India's electricity, have rapidly burned through their stockpiles. State-owned Coal India Ltd. is prioritizing coal deliveries to grid-connected power generators, leaving large industrial customers in the metals smelting, chemicals, and paper sectors without enough fuel to run their own captive power plants, the article said. 

Strategic stockpiles declining:  IEA to accelerate oil reserve release, says 100 million barrels still to come

The International Energy Agency (IEA) said it would “accelerate the release” of oil reserves under a previously agreed plan to “tackle record fuel prices”, reported Reuters. Member states are “scheduled to assess and review the plans” next week, added the newswire.

The IEA announcement came after G7 countries agreed to release 100m barrels of oil from their strategic reserves over the next four months “following intense pressure from the Trump administration”, reported Politico.

This oil forms part of 400m of crude and refined products the IEA announced it would release earlier this year, rather than new commitments, according to the Financial Times.

Amin Nasser, Saudi Aramco’s chief executive, said that global oil stockpiles are “scarily thin” said the Financial Times. Nasser said the ongoing war in the Middle East “had reduced oil supply from the region by ‘nearly 3bn barrels’”, while more than 1bn barrels have been drawn from the world’s reserves in attempts to “cushion the shortfall”.

Emerging Asia's power-driven LNG demand at risk as renewables gain ground

Southeast Asia is shifting from  liquefied natural gas to cheaper renewables to generate power as geopolitical shocks and equipment shortages derail projects, Reuters reported citing study by Ember.

This has disappointed industry hopes the ‌region would drive the next wave of demand, the newswire said. Countries including Vietnam and the Philippines had planned new LNG import terminals and power plants to meet rising demand and transition from coal, but the market shocks of Russia's 2022 Ukraine invasion and the ongoing US-Iran war sent prices soaring, exposing the risks of LNG reliance, the outlet said.