Oil settles down over 3% as investors reassess Trump's tariff flip

Oil prices dropped over $2 per barrel after U.S. President Trump paused heavy tariffs on trading partners but increased tariffs on Chinese imports. The White House reported a total tariff of 145% on Chinese goods, prompting China to retaliate with an 84% tariff on U.S. products. This escalation in trade tensions is expected to lower U.S. crude imports by China, leading to higher supply and storage levels in the U.S. The Energy Information Administration warned that tariffs could impact oil demand and economic growth, slashing its forecasts for this year and next. Analysts predict continued pressure on oil prices as the trade disputes persist.

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US targets China oil storage terminal in new Iran-related sanctions

The Trump administration imposed sanctions on Iranian oil trading networks, including a China-based terminal, just before direct talks between the U.S. and Iran. The U.S. sanctioned a company operating a crude oil storage terminal in China that engaged with Iranian oil. China, Iran's largest oil importer, does not recognize U.S. sanctions, utilizing Chinese yuan and middlemen to avoid dollar exposure. The U.S. also sanctioned an Indian national and shipping companies for high-risk transfers of Iranian oil. The sanctions aim to disrupt Iran's oil exports but may not severely impact China's involvement. Washington's move of imposing sanctions before talks with Iran has been criticized as illogical.

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Russia's Far East oil refinery operating at full capacity after fire

An oil refinery in Russia's Far East, operated by Rosneft, is back at full capacity after a fire was put out. The blaze did not result in any casualties. The cause of the fire is still unknown. Production units were affected, with one unit already shut down and another potentially being put back into operation. The refinery processed 4 million tons of oil last year, producing large amounts of gasoline and diesel.

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US sanctions ‘expansive fleet’ of Dubai shipowner for aiding Houthis and Iran

Jugwinder Singh Brar is accused of using his coastal tanker fleet to transport Iranian cargoes and conceal their origin. The US Treasury Department has imposed sanctions on him and his companies, Prime Tankers and Glory International, for facilitating the trade in Iranian oil and supporting a key Houthi financing network. Many of Brar's vessels are part of the "shadow fleet" that transports Iranian oil, engaging in high-risk ship-to-ship transfers in the Middle East. Brar is also accused of working with associates of a key Houthi financier to enable oil sales and support destabilizing activities. Treasury Secretary Scott Bessent emphasized the US's commitment to disrupting Iran's oil exports and targeting those who profit from them. Brar's companies, Global Tankers and B and P Solutions, based in India, have also been blacklisted.

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Suezmaxes and aframaxes hit year-to-date highs as market tightens across globe

Market observers are noting tightness in the West Africa, US, Black Sea, and Mediterranean regions, with Suezmax and Aframax rates reaching year-to-date highs. The Baltic Exchange reported significant increases in both Suezmax and Aframax time-charter equivalent assessments, with rates surpassing $50,000 per day. Jefferies analyst Omar Nokta highlighted the strong performance of eco-designed tankers, with rates rising above their year-to-date averages. Broker mentioned tightness in the Atlantic basin, attributing it to charterers willing to pay higher prices for tonnage. The firm also noted increased activity in the Black Sea and Mediterranean regions. Suezmax rates saw a rise in March, while Aframax rates surged towards the end of the month, partly due to US tariffs on Canadian oil. Broker observed more vessels loading Kazakh oil from the Caspian Pipeline, leading to increased barrels destined for Asia.  Broker also highlighted shrinking tonnage lists in the Mediterranean, as shipowners enjoyed stronger rates in the region.