Oil Prices Rise 2% on Tight U.S. Supplies, But Tariff Concerns Loom

Oil prices climbed 2% on Wednesday as U.S. crude stockpiles increased less than expected, and gasoline and distillate inventories saw larger-than-anticipated declines, indicating stronger demand. Brent crude settled at $70.95 per barrel, while WTI rose to $67.68 per barrel, further supported by a weaker U.S. dollar. Despite this, concerns over U.S.-EU tariffs, a potential economic slowdown, and inflationary pressures from President Trump’s aggressive trade policies cast uncertainty over future oil prices. Analysts warn that recession fears and weakened consumer confidence could limit further gains. Meanwhile, OPEC maintained its forecast for strong global oil demand in 2025, citing travel-related consumption, but noted that OPEC+ production rose by 363,000 bpd in February, led by Kazakhstan’s non-compliance with output quotas.

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US Oil Executives to Meet with Trump on Tariffs, Trade, and LNG Exports

U.S. oil executives will meet with President Donald Trump next week to discuss key industry issues, including tariffs, trade, and liquefied natural gas exports, according to the American Petroleum Institute (API). The API, which represents major companies like ExxonMobil and Chevron, organized the meeting to highlight how the U.S. oil and gas sectors are driving economic growth and national security. Trump’s trade war with Mexico and Canada has been controversial, especially with the tariffs imposed on crude imports, though exemptions exist for those who comply with the U.S.-Mexico-Canada Agreement. API has publicly opposed these tariffs, emphasizing the need for free and fair trade to ensure affordable energy for U.S. consumers. The oil and gas industry has been a major donor to Trump’s campaign, contributing millions of dollars through high-profile figures like Harold Hamm and Kelcy Warren.

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Western Canada Select Discount Narrows Amid U.S. Tariff Reprieve

The price discount for Western Canada Select (WCS) heavy crude against West Texas Intermediate (WTI) narrowed to $10.90 per barrel on Wednesday, improving from $11 the previous day. The shift comes as markets react to the one-month tariff reprieve announced by U.S. President Donald Trump, delaying a proposed 10% tariff on Canadian energy products. Canada, which exports 90% of its crude oil to the U.S., could face lower prices if tariffs are imposed, with analysts warning that Canadian producers would bear most of the cost. In response, Canada’s Energy Minister Jonathan Wilkinson suggested potential countermeasures, including restricting exports or imposing export duties. Meanwhile, global oil prices rose 2% due to tighter-than-expected U.S. fuel inventories, though economic concerns and tariff uncertainties continue to weigh on the market.

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Geopolitical Uncertainty Stalls Long-Term Tanker Deals, Says Braemar

Shipowners and charterers are hesitant to commit to long-term tanker contracts due to geopolitical uncertainty, trade tariffs, and shifting policies from US President Donald Trump. OPEC+’s plan to unwind crude production cuts has raised hopes for VLCC rate improvements, while potential Canadian oil tariffs could impact aframax demand. Despite a few short-term deals, including the 115,000-dwt Kufra renewing with Core Petroleum at $33,000 per day, overall fixing activity remains low. Spot aframax rates for eco scrubber ships have dropped 8% in a week to $29,800 per day, while MR time charter bids hover around $20,000 per day. Braemar notes that political instability makes long-term agreements difficult, and a two-tier market may emerge, favoring South Korean and Japanese-built tankers over Chinese-built ships due to possible higher US port fees. Braemar’s Adrian Wooldridge believes it is too early to determine how Chinese-built vessels will be classified, but uncertainty is already stalling market decisions.

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UK Pollution Concerns Ease After Cargo Ship Collision; Russian Captain Detained

Fears of a major environmental disaster have lessened following the collision between the Portuguese-flagged cargo ship Solong and the U.S. fuel tanker Stena Immaculate off northeast England. The crash, which caused significant fires and explosions, left a gaping hole in the Stena Immaculate, but only two of its 18 fuel tanks leaked, accounting for about 10% of its cargo. The British coastguard reported no further pollution, and fire damage has been significantly reduced. Authorities have detained the Solong's 59-year-old Russian captain on suspicion of gross negligence manslaughter, while one crew member remains missing. Despite heightened Western tensions with Russia, British officials have found no evidence of foul play. Investigations are ongoing, led by the U.S. and Portugal as the flag states of the involved vessels.

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VLCC Market Defies Paper Valuations as Older Tankers Fetch Strong Prices

The secondhand market for VLCCs remains strong despite valuation discrepancies from platforms like VesselsValue. The 296,000-dwt Yinghao Spirit (built 2009) was reportedly sold to Chinese interests for $52 million, while VesselsValue estimated it at $45 million. Similarly, the 309,000-dwt Great Lady (built 2005) changed hands for $41.5 million in February, despite a VesselsValue estimate of $37.4 million. Market optimism is driven by a robust freight outlook, with US sanctions on geopolitical adversaries accelerating sales, and the potential for further sanctions on Iran bolstering VLCC earnings in 2025. Previously active sellers are now reconsidering purchases as secondhand tanker prices have declined compared to the beginning of the quarter. Buyers are particularly focused on acquiring newer vessels at attractive price points, reflecting a shift in investment patterns and continued confidence in tanker earnings despite valuation mismatches.

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Odfjell Installs Suction Sails on Chemical Tanker for Wind-Assisted Propulsion

Norwegian shipping company Odfjell has fitted its 49,000-dwt Bow Olympus (built 2019) with four 22-meter eSAILs from Bound4blue to test wind-assisted propulsion. The vessel, which recently departed EDR Antwerp Shipyard, will navigate through windy areas to assess real-time energy savings. Due to the ship’s complex deck layout, the sail installation required careful integration but was completed in just two days with minimal modifications. Odfjell’s vice president of technology, Erik Hjortland, described this journey as a "second maiden voyage," with a team onboard collecting data to verify efficiency gains. He emphasized that suction sails retain around 90% of wind energy for propulsion, making them a more efficient renewable solution compared to conventional green power systems. The Bow Olympus is now crossing the Atlantic towards Houston with Odfjell’s technology team and Bound4blue personnel monitoring performance.