Crude Oil Jumps Over $1.60 on Tariff Relief, Cooling Inflation

Crude oil prices surged on Tuesday, with Brent rising $1.67 to $66.63 per barrel and WTI climbing $1.72 to $63.67, boosted by easing U.S.-China tariffs and a softer-than-expected U.S. inflation report. The gains followed a sharp rally the previous day, as both countries agreed to temporarily reduce tariffs for 90 days, improving market sentiment. U.S. inflation rose only 2.3% year-over-year in April—the slowest pace in four years—reducing fears of a near-term recession and giving the Federal Reserve room to maintain or cut rates. Analysts noted the bullish momentum was driven by both economic optimism and stable refined fuel demand. While OPEC+ is set to increase exports in May and June, which could cap price gains, refined product prices and margins remain firm due to limited refining capacity in the U.S. and Europe. Saudi Arabia is expected to keep oil exports to China steady after reaching a yearly high last month. JPMorgan analysts highlighted that despite a 22% decline in crude prices since mid-January, the refined product market remains resilient. Overall, the data suggests continued market strength, underpinned by robust fuel demand and easing economic pressures.

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Saudi Arabia to Maintain Elevated Oil Supply to China in June

Saudi Arabia will keep its crude oil exports to China steady in June at around 48 million barrels, matching May’s volume—the highest since early 2024, according to trade sources. The move follows OPEC+’s decision to raise production in May and June. Chinese refiners such as Sinochem, Rongsheng Petrochemical, and Hengli Petrochemical are set to receive more Saudi crude, while others like Sinopec, CNOOC, and the Fujian JV refinery will receive less. Saudi Aramco had slashed May crude prices for Asia to nearly four-year lows, boosting demand, before slightly raising them for June. Despite the price bump, June supply allocations remain robust. Saudi Arabia remains China’s second-largest crude supplier after Russia. In Q1 2025, China imported 1.62 million barrels per day from Saudi Arabia, up 3.8% year-on-year. This steady high supply underscores both nations’ deepening energy ties amid changing global market dynamics.

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U.S. Expands Iran Oil Sanctions to Target Chinese Firms and Tankers

The U.S. Treasury Department has intensified its sanctions on Iran by blacklisting additional Chinese companies aiding in the trade of Iranian oil. The latest move targets firms connected to Sepehr Energy, alleged to be linked to Iran’s Armed Forces General Staff. U.S. officials accuse these companies of facilitating disguised oil shipments to China, Iran’s top crude buyer. Among the sanctioned are CCIC Singapore and its affiliates, accused of concealing Iranian cargo origins during inspections. The crackdown includes tankers like Balu and Roc, operated by Sepehr-linked entities and allegedly used to deliver oil to China. Several Hong Kong-based middlemen companies were also blacklisted for brokering over $138 million in illicit crude sales. Treasury Secretary Scott Bessent emphasized that the action is part of Trump’s broader “maximum pressure” campaign against Iran. Despite recent trade talks with China, the U.S. insists it will continue targeting Iran’s oil revenues to curb funding for terrorism and weapons proliferation.

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Sanctioned Iranian Tanker Masquerades as Tugboat to Evade Detection

The Izumo, a 150,000-dwt suezmax tanker under U.S. sanctions, has been disguising itself as a tugboat to conduct covert ship-to-ship (STS) oil transfers. Despite its size—capable of carrying 1 million barrels of crude—the vessel has falsified its AIS (Automatic Identification System) data, pretending to be a much smaller tugboat. The Gabon-flagged tanker last broadcast an AIS signal in January 2025 near the Singapore Strait. Since then, TankerTrackers and Kpler data have shown it engaging in dark operations, including a clandestine STS transfer in Malaysian waters. The Izumo was acquired and renamed by Marshall Islands-registered Gemini Marine, a company sanctioned in October 2024 for ties to Iran’s military-linked Sepehr Energy. Both Izumo and Gemini’s other tanker, Frunze, have allegedly transported Iranian oil to Malaysia and China while avoiding detection by disabling tracking systems. The Izumo’s operations highlight the increasing use of "dark fleet" tactics among sanctioned entities, especially under lenient flag states like Gabon. These evasive strategies allow Iran-linked firms to continue oil exports despite tightening U.S. restrictions.

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EU to Ban Russian Shadow Tankers from Baltic and North Seas in Sanctions Expansion

The European Union is planning to ban 25 Russian-linked “shadow fleet” tankers from accessing the Baltic and North seas as part of a broader sanctions initiative. These vessels, used to export oil from northern Russia, are viewed as environmental threats and potential risks to undersea infrastructure like communication cables. The draft proposal, seen by EUobserver, is part of a plan to blacklist 149 new vessels, bringing the total to over 300 ships. Sanctions would bar these tankers from EU ports, insurance, refueling, or maintenance by European firms. The EU’s approach targets older ships at high risk of environmental incidents and may invoke piracy laws to address sabotage threats. Member states like Denmark are independently stepping up inspections, particularly around Skagen, to crack down on questionable ships anchoring outside innocent passage regulations. The broader crackdown includes new national laws that would require ships to use approved insurers, which most shadow fleet vessels cannot access. If passed, this would significantly tighten enforcement on Russia’s oil export logistics and increase pressure on non-transparent maritime activity in European waters.

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EU Rules Out Return to Russian Energy, Even After Ukraine Peace

The European Union will not resume imports of Russian energy even if a peace agreement is reached between Russia and Ukraine, according to EU Energy Commissioner Dan Jørgensen. Speaking at a meeting of EU ministers in Warsaw, Jørgensen stated the bloc’s stance is clear: "We do not wish energy from Russia in the future." He emphasized that this policy holds regardless of geopolitical developments or conflict resolutions. Since Russia's invasion of Ukraine, the EU has significantly reduced its reliance on Russian fossil fuels, cutting pipeline gas and coal imports and capping Russian oil prices. These actions were aimed at reducing Moscow's revenue and energy leverage over Europe. Jørgensen’s comments reaffirm the EU's long-term commitment to energy diversification and independence. He stressed that the shift away from Russian energy is part of a broader strategy to enhance energy security and accelerate the green transition. Even in the event of peace, Russia will not regain its former role as a key energy supplier to the EU.

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Russia Unveils $6.2B Plan to Build Over 1,600 Cargo Ships by 2036

Russia has launched a $6.2 billion initiative to construct over 1,600 civilian cargo vessels by 2036 in a bid to strengthen its domestic shipbuilding sector amid international sanctions. First Deputy Prime Minister Denis Manturov announced the plan, which forms part of a broader maritime strategy to make Russia more self-reliant and bolster commercial shipping capacity. The programme will support the Northern Sea Route (NSR) and North-South transport corridor, including large tankers, LNG carriers, bulkers, container ships, ferries, trawlers, and icebreakers. Of the planned 1,637 ships, 713 are expected to be delivered by 2030. From 2037 to 2050, an additional 2,634 vessels are projected, including 29 icebreakers and over 600 passenger ships. The state will maintain a leading role in funding through 2036, with expectations for private sector involvement to increase as shipyard competitiveness improves. Russia aims to produce 50% of ship components domestically by 2036 and boost shipyard utilization to 61% by then, rising to 73% by 2050. The strategy represents a shift from defense-heavy orders toward civilian fleet expansion and long-term industrial self-sufficiency.

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India Approves More Russian Insurers to Maintain Oil Imports

India has approved three more Russian insurers—including Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company—to provide marine insurance cover for ships arriving at its ports. This move brings the total number of Russian insurers recognized by India for protection and indemnity (P&I) coverage to eight. The new approvals are valid until February 20, 2026, helping Russia maintain its vital oil exports to India amid Western sanctions. As the second-largest buyer of Russian seaborne oil after China, India plays a key role in Moscow’s energy trade strategy. Russian insurers operate outside the International Group of P&I Clubs, so their recognition by India is crucial for shipping continuity. Western sanctions and price cap enforcement have made it difficult for Russia to use Western-linked ships or insurance. To circumvent this, Indian refiners purchase Russian oil on a delivered basis, with sellers providing both vessels and insurance. India’s oil ministry reaffirmed earlier that it will only import Russian oil via non-sanctioned entities and ships.

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Teekay Tanker Carries First Export of Nigeria’s New Obodo Crude, Signaling Boost for Suezmax Demand

Teekay Tankers' Atlanta Spirit has carried the first international shipment of Nigeria’s new Obodo crude, highlighting a positive shift for West African tanker demand. The 158,650-dwt suezmax departed the Port of Oyo on 3 May with cargo for Oando Trading, marking Obodo’s export debut. Obodo is a medium sweet crude with low sulfur content, produced by Continental Oil & Gas under a PSC with NNPC from the OML 150 block in the Niger Delta. Though production volumes remain undisclosed, its characteristics are expected to attract European refiners, supporting suezmax freight rates. Nigeria’s crude production climbed to a two-month high of 1.486 million bpd in April, nearing its 1.5 million bpd OPEC+ quota. In another key development, CMB.Tech’s suezmax Sienna delivered 1 million barrels of Egina crude to Nigeria’s Dangote refinery in late April—its second Nigerian crude intake. The Egina field is jointly owned by CNOOC, NNPC, and operated by Total Upstream Nigeria. These developments reflect Nigeria’s upstream expansion and growing domestic refining activity, driving higher utilization of suezmax tankers in the region.

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CMB.Tech Commits $450M to New VLCC and Suezmax Tankers in Continued Expansion

CMB.Tech is investing approximately $450 million in new crude tanker orders as part of its post-Golden Ocean acquisition expansion strategy. The company is set to order one VLCC and has signed contracts for two suezmax tankers—with options for two more—at Qingdao Beihai Heavy Industry in China. This will bring its VLCC newbuilding total at the shipyard to six, with delivery of the suezmaxes scheduled for early 2028 and the VLCC by year-end. All vessels will be conventionally fueled but ammonia-ready, with each expected to cost over $10 million more due to dual-fuel upgrades. CMB.Tech is also negotiating an additional four suezmax orders with HD Hyundai Heavy Industries in South Korea. The global suezmax orderbook remains low at 16% of the fleet, while 21% of existing ships are over 20 years old, underscoring a growing need for renewal. On the VLCC front, 102 units are now on order globally, with recent bookings by NYK, Idemitsu, Capital Group, and Advantage Tankers. CMB.Tech recently sold three older VLCCs for a $96.7 million profit and now holds a fleet of about 250 ships, making it the 21st largest shipowner by vessel count, with a combined fleet value of $5.56 billion.

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Aramco Signs MoUs with Sempra, NextDecade for 6.2M Tons of U.S. LNG

Saudi Aramco is set to sign memoranda of understanding with U.S. LNG firms NextDecade and Sempra, securing about 6.2 million tons of liquefied natural gas annually. Aramco CEO Amin Nasser announced the deals at the U.S.-Saudi Investment Forum in Riyadh, highlighting the U.S. as a strong and growing gas market worth nearly $100 billion. The agreements mark a significant step in Aramco’s strategy to expand its LNG footprint globally. The deal with NextDecade includes a 20-year LNG supply contract from its Rio Grande facility. Aramco aims to secure up to 7.5 million tons of LNG by 2030 through various partnerships. Nasser also revealed plans to invest $3.4 billion to expand the Motiva refinery in Port Arthur, Texas. The U.S. is currently the world’s largest LNG exporter, and ongoing infrastructure developments are expected to double its capacity. These moves underscore Aramco’s intent to diversify beyond oil and deepen its U.S. energy ties.