Oil Prices Rise on U.S.-China Trade Optimism, Mark First Weekly Gain Since April

Oil prices closed nearly 2% higher on Friday, ending a multi-week losing streak, driven by renewed optimism over U.S.-China trade discussions and a new trade deal between the U.S. and the UK. Brent crude settled at $63.91 a barrel, while WTI closed at $61.02, with both benchmarks gaining over 4% for the week. Investor sentiment improved after President Trump’s remarks suggesting China should reduce tariffs, following a new agreement with the UK on steel and car exports. The upcoming trade meeting between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng is further bolstering hopes for a breakthrough. China's better-than-expected April export data also contributed to the positive outlook. Rising geopolitical tensions, including a missile launch from Yemen intercepted by Israel, added upward pressure to oil prices. However, the long-term price direction remains uncertain due to factors like U.S. economic trends, sanctions on Iran and Russia, and future OPEC+ output decisions. Despite OPEC+ plans to raise production, actual output fell in April, offering additional support to prices.

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European Diesel Refining Margins Inch Up Amid Tight Supply and Rising Imports

European diesel refinery profit margins rose slightly on Friday, finishing the week with a modest gain. Low-sulphur gasoil futures traded at a $16.49 premium to Brent crude, up from $16.22 on Thursday. This 1.6% weekly increase reflects stronger diesel pricing relative to crude. In the Platts trading window, Litasco sold a 30,000-ton diesel cargo to Glencore for delivery between May 28 and June 1 at an $8 premium to the June gasoil contract. Diesel and gasoil inventories in the ARA region declined slightly by 0.6% to 2.08 million tons, according to Insights Global. Jet fuel stocks saw a more significant drop, down 12% to 766,000 tons. On the import front, EU and UK diesel imports are forecast to rise to 1.31 million bpd in May, up from 1.17 million bpd in April, based on Kpler data. The combination of falling stocks and higher import demand signals ongoing tightness in Europe’s distillate markets.

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VLCCs Spoof AIS to Deliver Rare Chinese-Russian Oil Blends to Venezuela

Two VLCCs, the Norns and Crystal, delivered rare cargoes of Chinese crude and Russian naphtha to Venezuela’s Jose terminal using deceptive AIS data. Satellite imagery confirmed their presence in Venezuelan waters despite AIS signals suggesting alternative locations like Brazil and Guyana. The Crystal, formerly Saudi-owned and now operated by Hong Kong’s Vast Mighty, mimicked loading operations near the FPSO Prosperity off Guyana while actually discharging in Venezuela. Similarly, Norns, now under China’s Sino Navigation, spoofed its AIS to appear near Angra dos Reis. Both vessels conducted ship-to-ship transfers of Russian-origin naphtha near Malaysia and loaded Chinese crude and condensate earlier this year. Analysts speculate the mixture may be used to condition Venezuela's heavy crude for export. The incident highlights growing sophistication in circumventing sanctions and shipping scrutiny in global oil markets.

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China’s April Crude Oil Imports Rise 7.5% Amid Strong Iranian and Russian Flows

China’s crude oil imports rose 7.5% year-on-year in April to 48.06 million metric tons (11.69 million bpd), despite a month-on-month slowdown from March’s 12.1 million bpd. The increase was largely driven by high volumes of sanctioned supplies from Iran and Russia, with state refiners stockpiling during maintenance shutdowns. Iranian oil imports—often disguised as Malaysian—remained robust near 1.5 million bpd, while imports of Russian Arctic crude hit a record 280,000 bpd. These inflows led to significant onshore stock builds, with inventories rising by over 1.1 million bpd over five weeks ending May 4. Some Iranian cargoes struggled to find buyers due to sanctions risks, causing deeper price discounts. Total imports for January-April reached 183.03 million tons, up 0.5% year-on-year. However, refining margins remained weak, with Sinopec reporting a 30% earnings drop and lower throughput amid falling domestic fuel demand. April’s refined oil product exports rose 10% to 5.01 million tons, while natural gas imports fell 6% year-on-year to 9.67 million tons.

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Dangote Refinery Diversifies Crude Supply with Domestic and Regional Imports

A CMB.Tech suezmax tanker, Sienna, has delivered the first cargo of domestic Egina crude to Nigeria’s Dangote refinery, marking its second intake of Nigerian sweet crude. The 150,000-dwt vessel loaded 1 million barrels on April 20 and discharged it at the Dangote jetty as the refinery scales up production. Egina crude, jointly owned by CNOOC (45%) and NNPC, is operated by Total Upstream Nigeria, which holds a 24% stake. The delivery is believed to be part of NNPC’s supply agreement with the refinery. Following the Egina shipment, the refinery is set to receive a cargo of Ceiba crude from Equatorial Guinea via the suezmax Popi Sazaklis. Analysts see this move as part of a broader strategy to source more West African barrels due to logistical and cost advantages. In March, the refinery also received its first Algerian crude, with the Greek-controlled Sypros delivering 1 million barrels of Saharan Blend. These developments highlight Dangote's efforts to diversify feedstock sources to reach full refining capacity.

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Indonesia to Shift Fuel Imports from Singapore to U.S. Amid Tariff Talks

Indonesia plans to reduce its reliance on Singapore for fuel imports and pivot toward the United States as part of ongoing tariff negotiations. The U.S. has imposed a 32% tariff on Indonesian goods, but implementation is paused until July to allow room for talks. Energy Minister Bahlil Lahadalia said Indonesia may shift up to 60% of its fuel imports from Singapore to the U.S. in the early phase, potentially within six months. This transition is part of a broader $10 billion proposal to boost energy imports from the U.S., including fuel, crude oil, and liquefied petroleum gas. Currently, only about 4% of Indonesia’s crude imports come from the U.S., but Jakarta aims to increase this tenfold. The move is intended to strengthen bilateral trade ties and secure more favorable terms in tariff negotiations. State-owned Pertamina has expressed readiness to implement the plan and may expand its fuel storage capacity to accommodate U.S. supplies. The shift could reshape regional fuel trade dynamics and reduce Indonesia’s dependence on Singapore.

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Nordic American Tankers Sells 2004-Built Ship Amid Fleet Modernization Drive

Nordic American Tankers (NAT) has sold the 150,000-dwt Nordic Castor (built 2004) for $22.5 million as part of a broader strategy to modernize its fleet. The vessel, acquired in 2016 for $29.7 million, was sold below its current valuation of $26 million. NAT CEO Herbjorn Hansson described early 2025 as the company’s most active period in years, emphasizing vessel renewal and a continued focus on dividends. The company previously sold another older ship, the 160,000-dwt Nordic Apollo (built 2003), for $23 million. NAT also acquired two modern 2016-built suezmaxes, reportedly Goldway and Diamondway, for $68 million each from Eastern Pacific Shipping. These new tankers are on eight-year bareboat charters from Ocean Yield, adding $90 million to the lessor's EBITDA backlog. Two other tankers were also bought out of leases earlier this year. Despite these moves, NAT’s 2024 earnings dropped sharply from $98.7 million to $46.6 million, and Q4 profit fell to $1.3 million from $17.5 million year-over-year.

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UK Sanctions Russian Insurer and Norwegian Shell Firm in Crackdown on Shadow Fleet

The UK has sanctioned Russian insurer Soglasie and Norwegian shell company Ro Marine as part of its latest effort to disrupt maritime support for Russia’s oil trade. Soglasie, recently approved by India to provide maritime insurance, is now the fifth Russian insurer on the UK's blacklist. These insurers operate outside the International Group of P&I Clubs, which covers the majority of global tankers. Ro Marine allegedly issued fraudulent insurance documents to over 250 ships and operated without a legitimate office or assets. Norwegian authorities have charged two Norwegians, a Bulgarian, and a Russian, though none have been arrested. The UK Treasury cited Soglasie’s involvement in the strategically significant Russian financial services sector as justification for the sanction. India and China have become key buyers of Russian oil post-EU import bans, increasing reliance on non-Western insurers. British Prime Minister Keir Starmer is also set to announce sanctions against 100 more tankers at a Joint Expeditionary Force summit in Norway.

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AET CEO Nick Potter Charts Course for Decarbonisation with LNG and Ammonia Focus

New AET chief executive Nick Potter has set bold decarbonisation targets, aiming for a 40% cut in greenhouse intensity by 2030 and net zero by 2050. Speaking ahead of Nor-Shipping, Potter emphasized the importance of moving beyond ambition to concrete action, including expanding AET’s LNG dual-fuel fleet and pioneering ammonia dual-fuel tankers. With over 35 years of industry experience, Potter brings a blend of technical and commercial expertise from past roles at Shell and BG Group. AET currently operates 11 advanced LNG dual-fuel vessels, with LNG seen as today’s most viable lower-carbon marine fuel. He also highlighted bio- and synthetic LNG as future options, with the latter offering net-zero potential while utilizing existing infrastructure. Ammonia is another strategic focus, with three dual-fuel aframaxes on order and strong belief in its long-term viability as a marine fuel. Potter noted that growing cross-sector demand for ammonia could drive down costs and improve scalability. AET is also exploring emerging fuels like ethanol, especially in niche markets like Brazil where conditions are favorable.