Crude Oil Prices Spike as Israel Launches Airstrikes on Iran

Oil prices surged up to 6% after Israel conducted preemptive airstrikes on Iran, reigniting fears of regional conflict in a zone responsible for about one-third of global crude output. Brent crude approached $74 a barrel, and West Texas Intermediate (WTI) also rallied, as Israeli officials declared a state of emergency and anticipated retaliation. The escalation follows U.S. President Donald Trump’s remarks suggesting Israeli military action against Tehran was likely. Analysts now expect a risk premium to be priced into oil markets due to geopolitical instability, with JPMorgan warning crude could hit $130 in a worst-case scenario. The situation clouds the status of upcoming U.S.-Iran nuclear talks and coincides with oil’s biggest weekly gain since 2022. Brent’s prompt timespread widened further into backwardation, reflecting near-term supply fears as tensions rise.

___________________________________

Most G7 Members Prepared to Lower Russian Oil Price Cap Without U.S. Backing

A majority of G7 countries, led by the EU and UK, are ready to lower the $60-per-barrel price cap on Russian oil to $45—even without U.S. support—according to insiders ahead of the June 15–17 G7 summit in Canada. The cap, originally implemented in late 2022, allows Russian oil sales using Western insurance only if sold below the set limit, aiming to reduce Moscow’s war financing. Recent oil price drops have rendered the current cap ineffective, prompting renewed calls for its reduction. Canada, Britain, and possibly Japan are reportedly on board, while U.S. President Trump and Treasury Secretary Scott Bessent remain hesitant. Still, some American lawmakers, including Senator Lindsey Graham, support tougher action against Russia, potentially including tariffs. While U.S. financial infrastructure remains influential, European control over shipping insurance and tankers gives the EU and allies the leverage to act unilaterally.

___________________________________

OPEC Output Surge Offers Glimmer of Hope for VLCC Market

Crude tanker loadings from Opec nations surged 24% last week to 2.3 million barrels per day — the highest level since 2023 — potentially signaling the start of a production boost that could benefit VLCC operators. BIMCO analyst Niels Rasmussen noted it’s too early to call this a trend but said sustained high volumes could lift currently depressed freight rates, especially for VLCCs, which carry 70% of Opec’s seaborne crude exports. He pointed out that earlier Opec hikes this year didn’t translate into higher export volumes, but upcoming increases in June and July may reverse that. However, long tonnage lists in the Middle East mean that increased loadings haven’t yet translated into higher earnings, with VLCC rates dropping to $25,937 per day.

___________________________________

Singapore Fuel Oil Stocks Rise for Fourth Week as Imports Surge

Singapore’s onshore fuel oil inventories rose for the fourth straight week, reaching 23.71 million barrels (3.73 million metric tons) as of June 11, according to Enterprise Singapore. This marks a 5% increase from the previous week and keeps stockpiles above the typical 20 million-barrel weekly average. The build-up is driven by strong regional imports, which climbed 3% to 784,000 tons, with Nigeria, Russia, and Mexico being the top suppliers. Meanwhile, exports rose 21% to 403,000 tons, mainly heading to China, the Philippines, and South Korea. The continued inventory build-up has pressured the spot market, pushing high-sulphur fuel oil (HSFO) bunker differentials into discount territory. Singapore’s net fuel oil imports for the week stood at 380,545 tons, highlighting the ongoing supply-demand imbalance.

___________________________________

DNV: Carbon Capture to Cut 15% of Maritime Emissions by 2050, but Net Zero Still Out of Reach

By 2050, carbon capture and storage (CCS) is expected to reduce around 15% of emissions from the maritime industry, with DNV forecasting 110 million tonnes of CO₂ captured annually from ships. This would represent 9% of all CO₂ captured through CCS globally, with onboard systems starting to scale from the 2030s. DNV projects CCS capacity to quadruple by 2030, supported by around $80 billion in investment, especially from Europe and the U.S. However, to meet net-zero targets, DNV says global CCS capacity would need to grow sixfold beyond current 2050 projections. Challenges include high costs (over $100 per tonne), policy uncertainty, and the need for port infrastructure to handle captured CO₂. Still, projects like Norway's Northern Lights and the U.S.-based Stratos are demonstrating real momentum, suggesting that CCS is entering a “turning point” in its deployment.

___________________________________

Whitaker Tankers Secures Industry-First Biofuel Blending Certification for Bunker Vessel

UK-based Whitaker Tankers and Lloyd’s Register have achieved an industry milestone by certifying the bunker tanker Whitchampion to blend 100% FAME biofuel (B100) onboard, a first under current maritime regulations. The certification, issued under the International Bulk Chemical Code and Marpol Annex II via the Isle of Man flag, allows blending of B100 with petroleum fuels without converting the vessel into a chemical tanker. Traditionally, IMO regulations restricted bunker tankers to biofuel blends of 30% or less, excluding much of the fleet from participating in higher-level biofuel operations. The breakthrough enables scalable low-carbon fuel delivery in UK coastal waters under a special agreement with UK authorities. Lloyd’s Register developed a risk mitigation pathway that allowed regulatory exemptions, making the process cost-effective and practical. A second vessel, Whitchallenger, is undergoing similar certification, signaling Whitaker’s broader commitment to decarbonization and offering a model for others to follow.