Oil prices slide 2% to near 4-year low as US trade conflict fuels recession fears

Oil prices plummeted to a near four-year low as U.S. President Donald Trump threatened to increase tariffs on China, sparking fears of a global recession and reduced energy demand. This led to extreme volatility in the market as Brent futures and West Texas Intermediate crude futures both fell over 2% to their lowest closes since 2021. China retaliated by imposing additional levies on American goods, escalating trade tensions. The European Commission proposed counter-tariffs on U.S. goods in response to Trump's tariffs, while major banks like Goldman Sachs and Citi lowered their oil price forecasts due to recession concerns. The Federal Reserve also expressed worries about inflation and the impact of Trump's policies. Saudi Arabia slashed crude oil prices for Asian buyers to the lowest in four months amid fears of reduced demand. OPEC+ announced plans to increase output in May, further contributing to the downward pressure on oil prices.

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OPEC March oil output falls on Venezuela, Iran losses amid sanctions

The production of crude oil by OPEC members decreased in March as Nigeria, Iran, and Venezuela saw declines in supply due to various reasons such as curbed deliveries to refineries and US efforts to limit exports. OPEC and its allies, including Russia, are gradually increasing output, with the extent of the hike dependent on US actions towards Iran and Venezuela. Saudi Arabia and Iraq slightly increased output, while the UAE remained on target. Despite some discrepancies in pumping estimates, overall output did not see significant increases. 

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Shadow fleet VLCC takes oil from sanctioned Sovcomflot tanker at transshipment hotspot

One industrial Source has identified a new ship-to-ship (STS) hub in Asia off the coast of Malaysia involving sanctioned Russian crude tankers. Two Sovcomflot suezmaxes, the Belgorod and Bratsk, offloaded their cargoes of Russian oil to the VLCC Atila in March. The Atila, which is not sanctioned, is en route to China. In another STS operation off Hong Kong, two Sovcomflot aframaxes transferred oil to the Chinese-controlled ship Hannah in February. ( the 104,500-dwt Zaliv Vostok and Zaliv Baikal (both built 2009) transferred 700,000 barrels of oil to the 105,900-dwt Hannah (built 2003) on 15 and 27 February) The Hannah then discharged the cargoes in China. Kpler reported spotty AIS signals during the STS operations.

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NYK orders its first methanol-fuelled VLCC backed by long-term charter

Japanese owner NYK has ordered its first methanol-powered VLCC tanker from Nihon Shipyard for delivery in 2028, with a long-term charter to Idemitsu Tanker. The 310,000-dwt vessel will also run on fuel oil and is designed by a consortium including Iino Kaiun and Hanwha. It is a Malaccamax, capable of passing through the Strait of Malacca. NYK aims to reduce CO2 emissions by 15% with methanol and plans to further reduce emissions with green methanol. The owner is committed to achieving net-zero greenhouse gas emissions by 2050 through improving energy efficiency and using alternative fuels. Iino Kaiun has also contracted a methanol VLCC for delivery in 2027, bringing the total number of VLCCs on order worldwide to 98. NYK has two other VLCCs on order and there are a total of 38 ships on order across the group. Iino Kaiun, which owns a mixed fleet of tankers, bulkers, and gas carriers, has three VLCCs built in 2020 and 2021, with five newbuildings on order.

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Monjasa breaks into MR tanker market in deal with Hafnia

Danish bunkering group Monjasa has acquired a 2010-built tanker from BW Group's Hafnia, renaming it the Monjasa Master for storage operations in Fujairah. The 50,391-dwt ship adds flexibility to the company's fleet in the Arabian Gulf. Monjasa focuses on quality tonnage and collaboration with technical ship management partners like Montec. The group's biggest ship remains the LR1 Monjasa Leader, with a total of five tankers in the Middle East fleet. Monjasa is a leading global marine fuel supplier with a fleet of 35 owned and chartered tankers and barges. Recently, the company completed Panama's first biofuel bunkering with NYK, delivering 900 tonnes of B30 biofuel blend to the Hestia Leader. Monjasa's set-up is capable of supplying between 5,000 and 7,000 tonnes of biofuel per month.

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VLCCs looking forward to double lift from sanctions and Opec

Analyst reports that utilisation for the largest tankers has reached 90% due to US sanctions on Iranian oil exports and increased oil production from Opec. This has resulted in higher earnings for VLCCs despite market uncertainty. Opec's unexpected production hike is seen as a bullish move, while the US trade policies and Iran sanctions are expected to strengthen the market in the second half of the year. President Trump's "maximum pressure" campaign against Iran has led to blacklisting of Chinese refineries importing Iranian oil. VLCC rates have fluctuated recently, with vessels earning around $45,900 per day. Overall, the tanker market is expected to improve in the coming months due to various factors.