International fuel prices are likely to stabilize, as Brent crude oil prices have fallen amid easing tensions in the Middle East, Minister of Economic Affairs J.W. Kuo (郭智輝) said at a meeting of the legislature’s Economics Committee yesterday.
Brent crude fell to US$67.14 a barrel yesterday morning from US$77.01 on Friday, while West Texas Intermediate crude for the August contract stood at US$64.37 a barrel, he said.
The ministry is closely monitoring supplies of crude oil and liquefied natural gas (LNG), he said.
Photo: Tu Chien-jung, Taipei Times
The ministry would coordinate with state-run CPC Corp, Taiwan (台灣中油) to request additional supplies from Australia and the US if an emergency arises, he added.
Kuo’s remarks came after US President Donald Trump on Tuesday announced a ceasefire between Israel and Iran, which diminished prospects of an Iranian blockade of the Strait of Hormuz and reduced risks to energy supplies.
Taiwan imports natural gas from 14 countries, with Qatar accounting for 25 percent of total imports and Australia 38 percent. CPC in March signed a letter of intent with Alaska Gasline Development Corp, expressing an interest to buy LNG and invest in the latter’s Alaska LNG project.
“If crude oil and natural gas shipped from Alaska have advantages in terms of transportation and safety, then we would engage,” Kuo said, adding that the ministry is still waiting for CPC’s final assessment.
Glenfarne Group, one of the primary developers of the Alaska LNG project, is selecting strategic investment partners, and CPC is striving to participate amid competition from other countries, with future involvement depending on its ongoing discussions with Glenfarne, CPC said.
Responding to lawmakers’ concerns about the deadline for the US to implement its broad tariffs on July 9, Kuo said that based on the information gathered so far, the outlook appears positive.
As the US begins to penalize and curb Chinese supply chains, Taiwan’s semiconductor, artificial intelligence and information security sectors are expected to benefit, he said.
Since China’s supply chains are likely to experience spillover effects due to the high tariffs, the ministry would also work to prevent China from exploiting Taiwan through product mislabeling and origin fraud, Kuo said.
The economic outlook for the second half of the year is positive, as key concerns raised by the US during tariff negotiations are being gradually addressed, and GDP growth is expected to stay at about 3 percent this year, he said.
HORMUZ ISSUE: The US president said he expected crude prices to drop at the end of the war, which he called a ‘minor excursion’ that could continue ‘for a little while’ The United Arab Emirates (UAE) and Kuwait started reducing oil production, as the near-closure of the crucial Strait of Hormuz ripples through energy markets and affects global supply. Abu Dhabi National Oil Co (ADNOC) is “managing offshore production levels to address storage requirements,” the company said in a statement, without giving details. Kuwait Petroleum Corp said it was lowering production at its oil fields and refineries after “Iranian threats against safe passage of ships through the Strait of Hormuz.” The war in the Middle East has all but closed Hormuz, the narrow waterway linking the Persian Gulf to the open seas,
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