Oil Prices Steady Amid U.S.-EU Trade Uncertainty and Bullish U.S. Inventory Data

Oil prices remained largely unchanged on Wednesday, with Brent crude closing at $68.51 and WTI at $65.25 per barrel, as markets focused on U.S. trade negotiations with the EU following a $550 billion trade deal with Japan. EU officials signaled progress toward a 15% tariff agreement to avoid steeper 30% tariffs, while also preparing €93 billion ($109 billion) in countermeasures against the U.S., pending a Thursday vote. Despite a 1% drop in prices Tuesday, investor sentiment improved after the U.S. EIA reported a larger-than-expected 3.2 million barrel decline in crude inventories. U.S. crude exports rose by 337,000 bpd to 3.86 million bpd, while net imports dropped by 740,000 bpd. Meanwhile, the U.S. hinted at possible sanctions on Russian oil, as the EU adopted its 18th sanctions package targeting Russia.

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Russian Port Restrictions Halt Kazakh Oil Exports, Disrupting Over 2% of Global Supply

Foreign tankers have been temporarily barred from loading at key Russian Black Sea ports, including Novorossiysk, due to new regulations requiring approval from Russia’s FSB security service, disrupting more than 2% of global oil supply. The move has halted oil exports from Kazakhstan, which relies heavily on the Caspian Pipeline Consortium (CPC) — a major route partly owned by Chevron and ExxonMobil — that handles over 80% of the country’s oil exports. CPC Blend exports were planned at 1.66 million barrels per day for August, with total Novorossiisk-related exports expected at 2.2 million metric tons for July. The suspension follows new Russian law signed by President Putin and recent EU sanctions, and comes amid existing Mediterranean market tensions and earlier CPC disruptions, including a drone-damaged pumping station and terminal capacity limits. One industry source suggested the current suspension could be resolved within a few days.

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Chinese Tanker Diverts from Indian Refinery After EU Sanctions on Russian-Linked Facility

The 45,700-dwt Chinese tanker Chang Hang Xing Yun canceled a planned diesel loading at India’s Nayara Energy refinery—49% owned by Russia’s Rosneft—after the European Union sanctioned the facility. Scheduled to load 35,000 tonnes of diesel between July 29–31 for PetroChina, the vessel will now load ultra-low sulphur diesel from Kuwait on August 1 for delivery to East Africa. This marks the second tanker to alter course following the sanctions; BP also released the Talara, a 73,400-dwt panamax, from a 60,000-tonne diesel charter at the same refinery. Both ships were expected to supply fuel to Asia or Africa. Indian state refiners are distancing themselves from Nayara, citing sufficient domestic supply and requiring government clearance for any new deals. Analysts warn that EU sanctions could disrupt up to 200,000 bpd of diesel and 50,000 bpd of jet fuel imports into Europe, while also threatening Nayara’s crude supply and refinery operations due to tightening credit.

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EU Sanctions Put Spotlight on Reliance’s Russian Oil Use as Refiner Begins Sourcing Alternatives

India’s Reliance Industries, which sources nearly 50% of its crude imports from Russia, is facing scrutiny after the EU announced new sanctions targeting diesel refined from Russian oil, effective January 21, 2026. In a notable shift, Reliance recently purchased Abu Dhabi’s Murban crude, a premium grade it rarely buys, signaling a potential move to diversify away from discounted Russian barrels. Russian oil has been a key source for Reliance, allowing it to profit from producing diesel for European markets—where 20% of its fuel exports have gone this year. Traders say Reliance is exploring alternative sources, including the Middle East, but replacing 600,000 bpd of Russian supply may be costly and logistically complex. India has criticized the EU’s “unilateral” measures, urging a more balanced approach to secondary sanctions.

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Saudi Arabia Leads Russian Fuel Oil Imports Amid EU Embargo and Summer Demand Surge

In June, Saudi Arabia became the top importer of Russian seaborne fuel oil and vacuum gasoil (VGO), with shipments rising 9% month-on-month to 0.8 million metric tons amid increased summer energy needs. Since the EU’s full embargo on Russian oil products in February 2023, Middle Eastern and Asian countries have become primary destinations for these supplies. Shipments to India and Turkey declined sharply—by 49% and 33%, respectively—while Egypt’s Ain Sukhna terminal received nearly 400,000 tons for storage and redistribution. Other major importers included Singapore, Senegal, and China. To avoid risks in the Red Sea from Houthi attacks, nearly all Russian oil cargoes to Asia have been rerouted around the Cape of Good Hope since December 2023.

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Venezuela Imports Russian Naphtha to Sustain Heavy Oil Output Amid U.S. Sanctions

Venezuela’s PDVSA has imported a 700,000-barrel cargo of Russian-origin heavy naphtha, marking its first such delivery since U.S. license cancellations took effect in May. PDVSA relies on imported diluents like naphtha to blend its heavy crude into an exportable form, sourcing supplies from Russia and Iran due to shared sanctions. The recent cargo originated near Russia’s Tuapse port and is currently being offloaded at Venezuela’s Jose port, while PDVSA also received 1.88 million barrels of unidentified light crude last month. In response to tightening U.S. restrictions, PDVSA has modified operations in the Orinoco Belt to reduce diluent dependency. Despite sanctions, Venezuela's oil exports have held steady at around 800,000 bpd with more shipments redirected to Asian markets.

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Angola Boosts Oil Output by 60,000 Barrels Per Day with Two Offshore Projects

Angola’s crude production received a significant lift with the start-up of two offshore projects—CLOV Phase 3 and BEGONIA—each adding 30,000 barrels per day (bpd), aiming to stabilize output above 1 million bpd. CLOV 3, located in Block 17, will connect to an existing FPSO vessel operated by a consortium led by TotalEnergies (38%) and including Equinor, ExxonMobil, Azule Energy, and Sonangol. The BEGONIA project is Angola’s first inter-block subsea development, linking Blocks 17 and 17/06 via the Pazflor FPSO. These developments come amid regulatory reforms and incentives approved last year to counter declining production from maturing fields, following Angola’s departure from OPEC. Officials hailed the new oil as “very important” for the country’s energy sector and economic stability.

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California Intervenes to Prevent Valero Refinery Shutdown Amid Fuel Supply Fears

California officials are actively seeking a buyer for Valero Energy’s 145,000-bpd Benicia refinery, set to close by April 2026, to preserve fuel supply and curb soaring gasoline prices, which currently average $4.48 per gallon—over $1.30 higher than the national average. This move is a rare intervention reflecting California’s urgent concerns, as refinery closures—like those by Phillips 66—could push pump prices to $6–$8 per gallon according to university studies. The California Energy Commission (CEC) has engaged potential buyers including HF Sinclair and European operators, though previous negotiations failed over environmental issues. These closures could eliminate 17% of the state's gasoline supply, increasing dependence on costly imports. While this effort marks a departure from California's aggressive green policy stance, it underlines the growing tension between energy reliability and climate goals.

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Rising Prices Push Investors Toward Veteran MR Tankers Amid Market Cooling

Investors are rapidly acquiring veteran MR tankers, especially those built between 2007 and 2009, as high prices deter buyers from more modern vessels, according to brokers and market analysts. Five such clean tankers sold recently, while early 2010s-built ships remain priced too high for most investors. Older VLCC crude carriers also attract strong bidding, boosting values in that segment. Notable sales include South Korean-owned 17-year-old product tankers that dropped from $20.5 million to $15.5 million each, and the 2009-built 50,000-dwt Bull Shark sold for $17.2 million, signaling a price cooling but sustained MR market strength. Meanwhile, a smaller 2022-built MR1 vessel sold to a Nigerian buyer for just over $7 million, below its valuation of $7.8 million.

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Shipping Giants Launch Bunkering Services Initiative to Transform Fuel Quality and Transparency in ARA

Leading shipowners and fuel suppliers—including Frontline, Hapag-Lloyd, BP, Vitol, Trafigura, and Cargill—have launched the Bunkering Services Initiative (BSI) to address chronic issues of fuel shortages and quality in the Amsterdam-Rotterdam-Antwerp (ARA) region. Representing 20% of bunker volumes in the world’s second-largest bunkering hub, the voluntary scheme sets a new industry standard using mass flow meters (MFMs), blockchain-based workflows, real-time reporting, and traceable fuel quality data. The initiative will be audited by Lloyd’s Register and supported by Singapore-based tech firm ADP Clear, ensuring transparency, accuracy, and fair practices. Inspired by Singapore’s success with calibrated MFMs, the BSI aims to replace outdated analogue methods with fully digital, verifiable systems. Members pledge to follow strict governance rules, creating a self-regulating model designed to modernize the marine fuel supply chain without relying on government administration.

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CMA CGM and TotalEnergies Launch Joint LNG Bunkering Venture to Decarbonize Maritime Shipping

CMA CGM and TotalEnergies have formed a 50/50 joint venture to operate LNG bunkering services in the Amsterdam-Rotterdam-Antwerp region, marking the first collaboration of its kind between a shipping line and an oil major. The partnership includes the deployment of a new 20,000-cbm LNG bunker vessel by 2028 and a long-term agreement for TotalEnergies to supply up to 360,000 tonnes of LNG annually to CMA CGM through 2040. This effort supports CMA CGM’s plan to expand its LNG-powered fleet to 123 ships by 2029 and strengthens TotalEnergies’ role as a major player in LNG bunkering. The project will enhance operational efficiency by working alongside TotalEnergies’ existing 18,600-cbm bunker vessel, Gas Agility. The companies emphasize LNG as the most mature, immediately available marine fuel to reduce emissions, offering up to 20% lower greenhouse gas output compared to conventional fuels.

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Trump Announces US-Japan LNG Joint Venture in Alaska Amid Uncertainty

U.S. President Donald Trump announced that Japan and the U.S. will form a joint venture to develop an LNG project in Alaska, though Japanese officials and major LNG buyers JERA and Tokyo Gas have yet to confirm or acknowledge such plans. The venture is presumed to relate to the proposed $44 billion Alaska LNG project, which includes an 800-mile pipeline and liquefaction plant for export. Japan’s Ministry of Economy, Trade and Industry (METI) is working to verify Trump’s comments, while several Japanese companies and others from Thailand and India have shown interest in buying LNG from the project. Despite the announcement, key Japanese stakeholders remain cautious, citing the need to evaluate costs and specifics before committing. The project’s details and official partnership remain unclear pending further confirmation.