Oil Prices Dip Over 1% Amid Large U.S. Fuel Stock Builds and OPEC+ Output Boost

Oil prices fell over 1% on Wednesday, with Brent crude closing at $64.86 per barrel (down 77 cents, 1.2%) and U.S. WTI settling at $62.85 (down 56 cents, 0.9%), pressured by a large-than-expected build in U.S. gasoline (5.2 million barrels) and distillate inventories (4.2 million barrels). Despite a crude stock draw of 4.3 million barrels, the surge in refined product inventories weighed on market sentiment, compounded by OPEC+ plans to increase production by 411,000 barrels per day in July. Analysts noted the bearish outlook amid weaker demand growth and a supply glut, while the OECD downgraded global growth forecasts, citing trade tensions and economic slowdowns. Geopolitical risks remain high, with escalating tensions between Russia and Ukraine and ongoing U.S.-China trade disputes. Canadian oil production, cut by 344,000 bpd due to wildfires, began resuming operations, adding some supply stability. Overall, market analysts see limited upside as supply increases and softer demand persist.

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Saudi Arabia Pushes for Bigger, Faster OPEC+ Output Hikes to Regain Market Share

Saudi Arabia is pushing OPEC+ to extend its accelerated oil supply hikes into August and possibly September, aiming to reclaim lost market share amid peak summer demand. The group has already agreed to raise output by 411,000 barrels per day (bpd) in May, June, and July. Despite resistance from Russia and other members advocating for a pause, Riyadh wants to continue the increases, marking a sharp shift from its previous price-protection strategy. Oil prices have dropped to around $65 per barrel, down from under $60 in April, following the unexpected ramp-up in supply. The accelerated plan could fully unwind 2.2 million bpd of voluntary cuts by September—one year ahead of schedule. However, the policy shift may increase tension within OPEC+, especially ahead of the July 6 meeting, as it creates economic pressure for producers like Russia.

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Saudi Arabia Slashes July Asian Oil Prices to Four-Year Low Amid OPEC+ Supply Hike

Saudi Arabia, the world’s largest oil exporter, cut its July official selling price (OSP) for Arab Light crude to Asia to $1.20 per barrel above the Oman/Dubai average, down from $1.40 in June, marking the lowest price level in nearly four years. This move comes as Saudi Arabia has successfully pushed OPEC+ to raise production targets ahead of schedule, with an additional 411,000 bpd increase for July, following similar hikes in May and June. Despite typically healthy demand and low stock levels that would support higher prices, the price cut signals Saudi Arabia’s intent to regain market share in Asia. The OSP reduction exceeded market expectations, which predicted a smaller cut of 40 to 50 cents. Saudi crude prices strongly influence pricing for other major Middle Eastern producers like Iran, Kuwait, and Iraq, impacting about 9 million barrels per day of Asian-bound crude. The ongoing OPEC+ production increases underline a strategic shift in supply dynamics amid a complex global oil market.

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PetroChina to Shut Down Last Crude Unit at Major Dalian Refinery by End of June

PetroChina plans to close the final 200,000-bpd crude unit at its largest north China refinery, Dalian Petrochemical Corp, by June 30, completing the phased shutdown of the entire 410,000-bpd plant. This move aligns with the company’s strategy to relocate and replace the facility with a smaller refinery at a new site, although no final investment decision has been made for the Changxing Island project yet. The shutdown process began in late 2023, with secondary processing units expected to close in July, and all crude and product inventories to be cleared by the end of August. Dalian refinery accounts for nearly 3% of China's refining capacity and mainly processes Russian ESPO blend crude. This marks the first full closure of a state-run refinery in China, reflecting a shift in the country’s refining landscape. PetroChina has yet to publicly comment on the closure plan.

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BP Restarts Rotterdam Crude Unit After Unplanned Outage; Second Unit Still Offline

BP restarted one of its 200,000 bpd crude distillation units at the Rotterdam refinery on June 4, following an unexpected shutdown the day before, according to Wood Mackenzie. Another 200,000 bpd unit remains offline for scheduled maintenance since May 1. The total refining capacity at the Rotterdam facility stands at 400,000 bpd, making it one of Europe’s largest. The restart partially restores operations but still leaves the plant at half capacity. BP has not provided an official comment. The maintenance and outages underscore ongoing operational challenges at major European refineries.

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Petrobras Gains Exclusive Rights to Negotiate Offshore Exploration Blocks in Ivory Coast

Brazilian state-owned Petrobras secured exclusivity to negotiate the purchase of nine offshore exploratory blocks in Ivory Coast’s western sedimentary basin, primarily located in deep waters. The Ivory Coast government granted Petrobras exclusivity after the company submitted a declaration of interest in the assets. The Council of Ministers highlighted Petrobras’s expertise in deepwater operations and its potential to help develop the relatively untapped western margin of the country’s basin. Petrobras has expressed strategic interest in expanding its footprint in African oil assets to enhance future reserves. The company stated that this evaluation aligns with its goal to diversify its exploration portfolio while generating value. This move reflects Petrobras’s broader ambition to strengthen its position in promising offshore regions.

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Oversupply Depresses Singapore High-Sulphur Marine Fuel Prices, Squeezing Margins

High-sulphur marine fuel (HSFO) prices in Singapore have weakened due to an oversupply from countries including Mexico, Iraq, and India, while demand remains sluggish. This imbalance has squeezed bunker margins, as marine fuel prices are failing to stay above fuel oil cargo prices, which is essential to cover logistical costs. Spot cargoes traded at premiums of over $6 per metric ton, while ex-wharf bunker offers were at small single-digit discounts, further eroding profitability. Delivered 380-cst HSFO bunker fuel prices also saw minimal premiums over cargo quotes. Traders report that supply is abundant but demand has been “normal and rather slow.” Monthly sales of high-sulphur marine fuel in Singapore have averaged around 1.6 million metric tons in 2025 so far.

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Trump Reinstates Travel Ban on 12 Countries After Colorado Attack

President Donald Trump has signed a new executive action banning entry into the U.S. from 12 countries: Afghanistan, Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Somalia, Sudan, and Yemen. The proclamation follows a deadly attack in Boulder, Colorado, which Trump blamed on lax immigration policies under former President Joe Biden. Although the attacker was from Egypt, that country is not included in the ban. The order also imposes partial travel restrictions on Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan, and Venezuela. This move revives and expands Trump’s first-term travel ban, which targeted mostly Muslim-majority nations. The measure is expected to reignite political and legal debates surrounding immigration and national security.

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John Fredriksen Blasts UK and Norway as He Relocates Shipping Operations to UAE

Shipping tycoon John Fredriksen has shut down his Seatankers London headquarters and moved operations to the United Arab Emirates, citing the UK’s tightening tax rules for non-domiciled individuals. The 81-year-old billionaire, already critical of Norway, declared that "Britain has gone to hell, like Norway," criticizing both countries for political unpredictability and lack of support for shipping. He expressed frustration with Norwegian authorities, claiming shipping is now run “in spite of” government policies and highlighting issues like the 25% extra tax on salmon farming profits. Fredriksen also voiced disdain for remote work, arguing people need to return to offices and “work more.” Despite his political criticisms, fellow shipowner Arne Blystad noted that Fredriksen remains bullish on shipping. Fredriksen, a Cypriot citizen and long-time London resident, claims both the UK and Norway have become unappealing for commercial shipping due to poor regulatory environments and a shortage of qualified personnel.

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VLCC Owners Face Rate Pressure Amid Mixed Market Signals and Shifting Trade Flows

VLCC spot rates have dropped 25% week-on-week to $34,300 per day for eco tankers, driven by an oversupply of tonnage in the Middle East Gulf and weak owner resistance. Older vessels are underbidding for cargoes, while modern tonnage is holding firmer. Clarksons Securities sees potential for a rate floor, as owners resist accepting unprofitable long-haul voyages. Gibson Shipbrokers notes the second-quarter rebound is faltering, with Asia-bound volumes declining as US Gulf and West African crude is diverted to Europe—boosting demand for suezmax and aframax tankers instead. Meanwhile, a 400,000 bpd increase in CPC terminal exports and sanctions against dark fleet vessels have tightened mainstream tonnage availability. However, OPEC output hikes, geopolitical factors, and domestic crude demand may limit Middle East export growth, leaving VLCC market fundamentals uncertain heading into the summer.

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US Gulf Coast Chemical Tanker Rates Hit Yearly Lows Amid Shifting Trade Dynamics

Spot rates for chemical tankers departing the US Gulf Coast have fallen to new lows, with the Asia route dropping 2.8% to $63.13 per tonne. This marks a 9.3% drop from the peak in October. Rates to Brazil fell to $72.88 per tonne, their lowest since October, while Europe-bound rates dipped $1 to $73 per tonne, the weakest since March. Analysts, including Odin Marine CEO Rich Appell, attribute the declines to reduced parcel tanker availability and strategic redirection of vessels toward more profitable cargoes like methanol and edible oils. Tanker owners prefer full cargoes or more lucrative opportunities in Latin America, while tonnage balance has been maintained in Europe due to contracted volumes and plant shutdowns. Despite declines, rates in some regions remain firmer than expected.

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Vitol Achieves IMO Carbon Intensity Reduction Target Six Years Ahead of Schedule

Vitol, the global trader and shipowner, has exceeded the International Maritime Organization’s goal by achieving a 41.3% carbon intensity reduction in 2024, surpassing the IMO’s 40% target set for 2030, and improving from 38.7% in 2023. The company attributes this progress to a fleet-wide docking and retrofit program, including propeller enhancements, advanced hull paints, and energy-saving partnerships, such as with Finland’s Wartsila and Danish tech firm ZeroNorth. The fleet includes 54 owned vessels across gas carriers, product and chemical tankers, and asphalt carriers, all managed under Vitol International Shipping based in Singapore. Most of Vitol’s vessels scored in the top IMO Carbon Intensity Indicator bands A and B, with only one in band C, which remains compliant. Their bunker ships also supply alternative fuels like biofuels, LNG, and bio-LNG, supporting further decarbonization. CEO Russell Hardy emphasized shipping as the logistical core of Vitol’s business and praised the company’s positive environmental progress.