Oil Prices Ease as Trump-Putin Meeting Signals No New Sanctions on Russian Exports

Oil prices fell in early Asian trade Monday as supply concerns over Russia eased following the Trump-Putin summit in Alaska. Brent crude slipped 0.49% to $65.53 a barrel, while U.S. WTI declined 0.37% to $62.57. The U.S. signaled it would not impose further measures to curb Russian oil exports, with President Donald Trump aligning with Vladimir Putin on pursuing a peace deal for Ukraine rather than a ceasefire. Trump is set to meet Ukrainian President Volodymyr Zelenskiy and European leaders on Monday to accelerate peace negotiations. Analysts noted that the pause in new secondary sanctions on Russian energy, particularly regarding China, leaves the current status quo intact, though territorial disputes remain a key sticking point.

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Putin Decree Opens Potential Path for Exxon’s Return to Sakhalin-1

Russian President Vladimir Putin signed a decree that could allow foreign investors, including ExxonMobil, to reclaim stakes in the Sakhalin-1 oil and gas project, seized in 2022. The move coincided with Putin’s summit with Donald Trump in Alaska, where investment and Ukraine peace talks were discussed. Exxon, which previously held a 30% operator stake, quit after Russia’s invasion of Ukraine, taking a $4.6 billion impairment charge. The decree requires returning investors to help facilitate the lifting of Western sanctions, supply foreign equipment, and transfer funds to project accounts. While ONGC Videsh (India) and Japan’s SODECO retained their shares, Exxon remains the only foreign investor to have fully exited. Analysts caution that U.S. and EU sanctions remain a major obstacle, despite Trump’s openness to easing some restrictions if talks progress.

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Chevron Sends First Venezuelan Oil Cargoes to U.S. Under New License

Chevron has shipped the first two cargoes of Venezuelan crude to the U.S. after receiving a new license from the U.S. Treasury in late July, easing earlier Trump-era restrictions. The Chevron-chartered tankers Mediterranean Voyager and Canopus Voyager departed Venezuelan waters on Friday carrying Hamaca and Boscan heavy crude bound for the U.S. West Coast and Port Arthur, Texas. Chevron is also negotiating a revived supply deal with Valero Energy to deliver part of its Venezuelan cargoes to U.S. Gulf refiners. CEO Mike Wirth said exports would resume in small volumes, with initial shipments marking a significant restart of flows. In Q1, Chevron previously exported about 252,000 bpd of Venezuelan oil to the U.S., representing roughly 29% of the country’s total output.

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VLCC Rates Stabilize as Saudi Crude Exports Hit Yearly Low

Spot VLCC rates from the Middle East remained largely unchanged this week, with earnings just under $37,000 per day, as Saudi crude exports fell to their slowest level since June 2024. Fixtures included the 320,000-dwt Oceanic Fortune to South Korea at WS 50 and the 321,000-dwt Plata South to China at WS 53.25, translating to round-trip earnings of $35,200–$37,400 per day. Despite a surge in Saudi refined product exports, LR2 product tanker rates on the Middle East–Japan route dropped 7.8% to $32,200 per day, reflecting softer demand.

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Western Sanctions Curb Russia-India Crude Trade, Straining Fleet Capacity

Western pressure, including U.S. and EU sanctions, has reduced Russian crude exports to India by 20% in July, creating logistical bottlenecks rather than permanent barriers. The effective fleet capacity for this trade has dropped 35%, leaving only 93% of the 1.6m bpd average in H1 2025. Analysts estimate that at least 17 additional vessels—seven suezmaxes and ten aframaxes—would be needed to make up the shortfall. Sanctions and the EU’s dynamic price cap have pushed some vessels toward the “dark fleet,” driving demand in the secondhand tanker market. Despite these pressures, values for older VLCCs remain steady, while suezmax and aframax values show slight declines.

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BetterSea Unveils First FuelEU Maritime Index as Surplus Market Strengthens

Portugal-based BetterSea has launched the world’s first FuelEU Maritime index, providing transparency in the emerging surplus trading market created after FuelEU took effect in January. The index shows key market shifts since June, including a 24% drop in average ask prices, a 9% rise in trade prices, and a 64% narrowing of the bid-ask spread, signaling stronger buyer conviction and improved price alignment. More than 41,700 tonnes of CO2 equivalent surplus are already listed, with over 5,000 vessels using the platform, particularly in liner shipping and early adopters of alternative fuels. Interest is also growing from traders and financial intermediaries, suggesting the rise of a secondary market driven by arbitrage. BetterSea leaders — including ex-Maersk executives emphasized that the index is built on executed transactions, offering clarity and accelerating the maritime industry’s green transition.