Oil Prices Fall 1.5% Amid Fears of Slow Demand Due to Tariffs and Economic Concerns

Oil prices dropped 1.5% on Monday due to concerns that U.S. tariffs on Canada, Mexico, and China could slow global economies and reduce energy demand, while OPEC+ plans to increase supply. Brent crude settled at $69.28 per barrel, and U.S. West Texas Intermediate closed at $66.03 per barrel. This decline marks the seventh consecutive weekly drop for WTI, the longest losing streak since November 2023. The tariffs have led to fears of a U.S. recession, and investors are concerned about a potential economic slowdown that could further impact oil demand. While OPEC+ plans to increase production starting in April, there are ongoing uncertainties about market imbalances. Potential sanctions on Iran and Russia could provide short-term support, but analysts warn that any oil rally may be brief. Investors are also awaiting upcoming reports from the International Energy Agency and OPEC for insights into future demand and supply.

___________________________________

UK Ship Collision Involves US Military Jet Fuel and Toxic Sodium Cyanide

A collision and fire off the UK coast involved the 49,700-dwt tanker Stena Immaculate, carrying jet fuel for the US Defense Department, and the 804-teu container ship Solong, transporting 15 containers of toxic sodium cyanide. The Stena Immaculate, operated by Crowley-Stena Marine Solutions under the US Tanker Security Program, was chartered by the US Navy’s Military Sealift Command and was en route to deliver military-spec jet fuel and marine diesel to a UK fuel depot. The Solong, controlled by Ernst Russ, carried sodium cyanide, which can release highly toxic hydrogen cyanide gas when heated or dissolved in water, posing significant environmental and health risks. The Stena Immaculate crew abandoned the vessel after multiple explosions but was safely rescued. With US military cargo involved, the incident may carry legal and political implications, while concerns grow over potential environmental contamination. Both vessels are insured by Steamship Mutual and Skuld, respectively, and classified by DNV.

___________________________________

US Tariff Chaos Disrupts Canadian Oil Shipments as Tankers Reroute

At least two tankers carrying Canadian oil have changed course amid uncertainty over US tariffs on Canadian goods, with the 46,100-dwt Al Reem now headed for Amsterdam and the 49,700-dwt Solar Madelein making a U-turn back toward Boston after initially diverting to the UK. The disruptions follow US President Donald Trump’s 25% tariffs on Canadian imports, which briefly took effect on 4 March before being suspended, leaving the long-term impact uncertain. While most Canadian oil still moves to the US via pipeline and rail, crude tanker exports have surged by 59% since the expanded Trans Mountain Pipeline opened, with 42% of exports now going to Asia. Analysts suggest Canada may seek new buyers for its oil, but with US demand for Canadian gasoline remaining strong, costs may simply be passed on to consumers. The unfolding situation highlights the fragility of energy trade amid shifting geopolitical and economic policies.

___________________________________

Maduro Condemns Trump’s Decision to Cancel Venezuela-US Oil Export Deal

Venezuelan President Nicolas Maduro has criticized Donald Trump’s decision to revoke a license allowing Chevron to export Venezuelan crude, calling it an “unexplained, tremendous commotion.” The US cited a lack of progress on electoral reforms and migrant returns as reasons for halting the deal, which had allowed Venezuela to export 234,000 barrels per day to the US, mainly to the Gulf Coast. Analysts expect these exports to drop to 700,000 barrels per day, potentially increasing tonne-miles by up to 0.5% if the US replaces imports with longer-haul sources like the Middle East. Experts warn that Chevron’s exit could disrupt Venezuela’s oil production, as the company’s expertise and logistical network are crucial to maintaining output. The revoked license had contributed to Venezuela’s crude exports rising from 297,000 barrels per day in 2021 to 626,000 barrels per day in 2024, and any change is expected to significantly impact refiners processing its heavy crude blends. Industry observers believe the shift could create both logistical challenges and new opportunities in global crude shipping.

___________________________________

China’s Yulong Refinery to Test Second Crude Unit, Boosting Imports and Output

China's newest refinery, Shandong Yulong Petrochemical, is set to begin test operations of its second 200,000 barrel-per-day (bpd) crude distillation unit (CDU) around March 23, sources report. The $20 billion complex, located on a man-made island in Longkou, is China’s latest large-scale refinery project aimed at strengthening its refining sector. Yulong’s first CDU, launched last September, has been running at 90% capacity since November, while a 1.5 million metric ton-per-year ethylene unit has been operating since December. Additional secondary units, including a reformer, are scheduled to start in May. To secure crude supply amid US sanctions on Russian oil, Yulong has increased purchases from West Africa. The refinery, 51% owned by Nanshan Group and 46.1% by Shandong Energy Group, is expected to drive China’s crude imports and refined product output in 2025, though it may add pressure to already thin refining margins.

___________________________________

Aramco CEO Criticizes Energy Transition Plans, Urges Continued Fossil Fuel Investment

Amin Nasser, CEO of Saudi Aramco, expressed skepticism about the current energy transition plans, stating that the focus on green hydrogen and other immature alternatives is unworkable. Speaking at the CERAWeek conference in Houston, Nasser emphasized that while new energy sources can complement fossil fuels, they cannot replace them. He called for more investment in both conventional and renewable energy to meet global demand, criticizing the shift away from fossil fuels as self-destructive. Nasser also urged deregulation and unbiased financial support to ensure adequate energy investments.

___________________________________

Singapore Introduces New Methanol Bunkering Standard to Support Alternative Fuel Adoption

Singapore, the global leader in ship bunkering, has launched a new standard for methanol bunkering, aimed at promoting its safe and efficient use in the shipping industry. The Maritime and Port Authority of Singapore (MPA) introduced a technical reference (TR129) to guide methanol bunkering operations, facilitating the transition to alternative fuels. This move follows Singapore's success in conducting the world's first ship-to-container methanol bunkering in July 2023 and its first simultaneous methanol bunkering and cargo operation in May 2024. The new standard is part of ongoing efforts to reduce the environmental impact of conventional marine fuels.

___________________________________

Global Ship Speeds Reach Record Lows Amid Industry’s Push for Green Goals

Clarksons Research reports that ship speeds across various sectors have hit all-time lows as the industry prioritizes environmental targets and fuel efficiency. LNG carriers have averaged 14.6 knots in early 2025, a 2% drop from 2024, while bulkers and clean tankers have slowed to 10.7 knots (-1.7%) and 11.2 knots (-1.1%), respectively. Since 2008, shipping speeds have declined by up to 30%, initially due to overcapacity after the financial crisis but now driven by efforts to cut greenhouse gas emissions. Despite this trend, year-on-year fluctuations still depend on market conditions and fuel prices, with stronger markets occasionally prompting speed increases. Modern eco-friendly vessels remain 0.5 to 1.6 knots faster than older ships, with VLGCs showing the largest gap, now at 1.6 knots compared to 0.4 knots in 2020. Steam turbine LNG carriers have reduced speeds by 12% since 2018, while modern gas carriers have slowed by 6%, reflecting the industry’s ongoing shift towards sustainability.