Oil Prices Dip as Ukraine Peace Hopes Ease Supply Concerns

Oil prices fell slightly on Friday as optimism for a Russia-Ukraine peace deal raised hopes of lifting sanctions on Moscow, potentially easing global supply disruptions. Brent crude dropped 0.37% to $74.74 per barrel, while WTI fell 0.77% to $70.74. Market losses were limited by a delay in U.S. reciprocal tariffs, which boosted trade sentiment. Meanwhile, global oil demand surged to 103.4 million barrels per day, and U.S. energy firms increased drilling activity for the third consecutive week. The International Energy Agency noted that Russian oil exports could remain stable if alternative trade routes are found.

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Dark Fleet Tankers Find New Chinese Terminals for Sanctioned Russian and Iranian Oil

Sanctioned tankers are finding alternative discharge terminals in China for Russian and Iranian crude cargoes, following Shandong Port Group's decision to stop accepting US-sanctioned vessels in January. New terminals in Dongying, Huizhou, and Huangzeshan have emerged as willing ports for blacklisted vessels. Since the Shandong ban, fewer than 10 sanctioned oil shipments have entered China via US-designated tankers. One such vessel, the 110,000-dwt aframax Si He (2008), delivered Russian Espo crude to Dongying port. The Dongying terminal is operated by Baogang International, a subsidiary of Shandong Wanda Holdings. Additionally, terminals in Huizhou and Huangzeshan have received Iranian oil, with the latter also handling shipments from US-sanctioned vessels like the 106,000-dwt Clio and the 159,000-dwt Fury. Huangzeshan's terminal is managed by Zhejiang Energy Group, which has not commented on the shipments.

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Adnoc L&S Sees VLCC Market as Key Investment Focus Amid $6bn Expansion

Adnoc Logistics & Services (Adnoc L&S) has highlighted the VLCC market as the most attractive tanker segment for investment. The company recently completed a $1 billion acquisition of Navig8, adding 32 tankers to its fleet. Adnoc L&S plans continued investment, with a strong focus on integrated logistics growth. Despite the Navig8 deal adding only a 50% stake in a single VLCC, the company remains highly positive on the VLCC market, noting the potential for scrapping older vessels and limited newbuilds. In 2024, Adnoc L&S reported a profit of $756 million, a 22% increase from the previous year, with net profit from shipping reaching $270 million. The company also expanded into LNG carriers, ethane carriers, and ammonia carriers, with long-term contracts backing these newbuildings.

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Iraq Moves to Restart 300,000 BPD Oil Exports to Turkey After $19 Billion Loss

Iraq is working to resolve technical issues with the Kurdistan Regional Government (KRG) to restart crude exports through a pipeline to Turkey, which has been shut down for nearly two years, causing $19 billion in lost revenue. Before the shutdown, Iraq exported 400,000–500,000 barrels per day (bpd) via the pipeline, and officials now plan to resume shipments at around 300,000 bpd. Oil production in the Kurdish region is currently 280,000–300,000 bpd, with domestic consumption estimated at 110,000–120,000 bpd. The pipeline was halted in March 2023 after Turkey was ordered to pay $1.5 billion in damages for unauthorized oil transport. While disputes over payments persist, Iraq has increased production and transportation payouts from $6 to $16 per barrel to incentivize exports. Restarting shipments may challenge Iraq’s OPEC+ commitments to output cuts but is considered vital for economic and regional stability.

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Petrobras Discovers New Oil Reserves in Brazil’s Buzios Field

Brazilian state-run oil company Petrobras has announced a fresh oil discovery in the Buzios field, located offshore near Rio de Janeiro. The oil was found in the 9-BUZ-99D-RJS well, in a lower zone than the main reservoir, reaffirming the pre-salt potential of the field. Buzios, Brazil’s second-largest oil field after Tupi, continues to show promise, with tests confirming oil presence at a depth of 5,600 meters. Petrobras, which holds a nearly 90% stake in the project, operates the field in partnership with Chinese firms CNOOC and CNPC. Further laboratory analysis is planned to assess the discovery.

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India to Lead Petrochemical Demand Growth Amid Global Slowdown in 2025

Industry executives at the India Energy Week conference predict that India will be a strong market for petrochemical demand in 2025, driven by rising needs for electric vehicle parts, solar panels, and household appliances. Key players like Bharat Petroleum and Indian Oil have noted steady local demand, with TotalEnergies seeing growth in the automobile and white goods sector. However, global petrochemical margins are expected to remain low due to weak demand from China and excess supply. Despite this, India continues to attract investments, with plans to increase production from companies like Nayara Energy and Haldia Petrochemicals. The country's oil minister has announced expectations of $87 billion in investments over the next decade to meet the growing demand for petrochemicals, with the sector set to reach $300 billion by 2025. Petronet LNG is also establishing a new petrochemical complex in Gujarat. While challenges remain, industry leaders are optimistic that petrochemical margins will recover within the next few years.