Oil Prices Rise Over 1% as U.S. Sanctions Hit Iranian Oil Network, Markets Eye OPEC+ Meeting

Oil prices climbed on Tuesday, with Brent crude settling up 1.45% at $69.14 per barrel and WTI jumping 2.47% to $65.59, following fresh U.S. sanctions on an Iranian oil smuggling network. The sanctions, targeting companies and tankers blending Iranian oil with Iraqi supplies, come as nuclear talks remain stalled, reinforcing upward price pressure. Analysts said U.S. enforcement against Iranian exports supported prices, while investors await the OPEC+ meeting on September 7, where members are expected to maintain voluntary supply cuts. Additional factors include Saudi Aramco and Iraq halting sales to India’s Nayara Energy after EU sanctions, and Ukrainian drone strikes knocking out 17% of Russia’s refining capacity (1.1 million bpd). Meanwhile, Kazakhstan’s oil output rose 2% in August to 1.88 million bpd, adding supply, though concerns over tightening “non-sanctioned” oil availability and geopolitical tensions continue to underpin prices.

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U.S. Sanctions Network Smuggling Iranian Oil Disguised as Iraqi

The U.S. Treasury Department has imposed sanctions on an oil-smuggling network led by an Iraqi-St. Kitts & Nevis businessman based in the UAE for covertly transporting Iranian oil disguised as Iraqi. The network allegedly blended Iranian oil with Iraqi supplies through ship-to-ship transfers in the Arabian Gulf and Iraqi ports, then marketed it as solely Iraqi-origin to evade sanctions. Several Liberia-flagged tankers, including the Adena, Liliana, and Camilla, were identified as part of the operation, along with UAE-based Babylon Navigation DMCC and multiple Marshall Islands shell companies. Treasury Secretary Scott Bessent said the sanctions aim to degrade Iran’s oil revenue and disrupt its capacity to conduct attacks against the U.S. and its allies. The move comes as nuclear negotiations remain stalled, with Iran saying U.S. demands on missile curbs are blocking progress.

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Brazil Seeks IEA Membership Amid Record Oil and Gas Output

Brazil has formally requested full membership in the International Energy Agency (IEA), submitting a letter from its government ministers to the agency’s Paris headquarters. Currently an association country, Brazil’s push comes as its energy output hits record highs, with total production reaching 5.16 million barrels of oil equivalent per day (boed) in July, surpassing 5 million for the first time. Oil output rose 22.5% year-on-year to nearly 3.96 million bpd, while natural gas production jumped 26.1% to 190.9 million cubic meters per day, according to regulator ANP. IEA Executive Director Fatih Birol called Brazil a “cornerstone of the global energy system” whose importance will only increase. If accepted, Brazil would join 32 full member countries in shaping global energy policy and security.

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Kazakhstan’s Oil Output Rises Above OPEC+ Quota in August

Kazakhstan’s crude oil output excluding condensates rose 2% month-on-month to 1.88 million bpd in August from 1.84 million bpd in July, surpassing its OPEC+ quota of 1.53 million bpd, a source told Reuters. Including condensates, total oil and gas production increased to 2.15 million bpd from 2.09 million bpd. Kazakhstan has been producing above its OPEC+ quotas for several months despite the group’s restrictions. The figures highlight the country’s consistent overproduction relative to commitments. The Energy Ministry declined to comment on the matter.

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Shell to Shut Down Europe’s Largest Refinery for Maintenance from Mid-September

Shell will begin a major maintenance shutdown at its 404,000 bpd Pernis oil refinery in Rotterdam, Europe’s largest refinery, starting in mid-September. The planned turnaround, announced on the refinery’s official X account, will run until November. Frits Hoogerwerf of the turnaround team confirmed the scale of the operation, calling it a “very large maintenance stop.” Shell has not disclosed details of which units will be affected. The refinery plays a critical role in Europe’s energy supply, making the extended shutdown significant for regional markets.

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Singapore’s Bukom Refinery Ships First Full Naphtha Cargo in Five Years Amid Cracker Outage

Singapore’s Bukom refinery has exported its first naphtha cargo in years after a prolonged outage at its 1.1-million-ton-per-year naphtha cracker, with 35,000 metric tons (311,500 barrels) shipped to South Korea on the Oriental Aquamarine, sources and ship-tracking data showed. The refinery, operated by Aster Chemicals and Energy, had declared force majeure last Thursday on products from the cracker. It last exported a naphtha cargo in November 2021, and the latest full-sized shipment marks the first in five years. Two additional open-spec naphtha cargoes of up to 60,000 tons each are expected for loading between late September and early October. The cracker, initially scheduled to restart in early September, now faces an indefinite delay, according to sources.

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Russia and China Ink Landmark Gas Deal for Power of Siberia 2 Pipeline

Russia’s Gazprom signed a binding agreement to build the Power of Siberia 2 gas pipeline to China via Mongolia, with potential deliveries of up to 50 billion cubic meters per year for 30 years, while also raising flows through the existing Power of Siberia route by 6 bcm to a total of 44 bcm annually. The project, described by CEO Alexey Miller as the largest and most capital-intensive gas development in the world, is intended to compensate for reduced European deliveries amid EU sanctions and will offer gas at prices lower than current European rates. China has not confirmed details, and key elements such as pricing, flexible volume purchases, construction timelines, and financial terms remain unclear. The pipeline’s capacity through the planned Far Eastern link, starting in 2027, will exceed the initially planned 10 bcm per year.

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Northern Sea Route Summer Traffic Rises Slightly in 2025

Shipping along the Northern Sea Route (NSR) increased modestly in the 2025 summer sailing period from June to August, with 52 transit voyages recorded, up from 45 in the same period last year, according to the Centre for High North Logistics (CHNL). Of these voyages, 17 were completed, 10 nearing completion, 12 within the NSR, and 13 recently initiated, carrying an estimated 1.3 million tonnes of cargo, similar to last year’s 1.4 million tonnes. Crude oil dominated shipments, making up 54% of cargo volume (around 740,000 tonnes) with eastbound flows primarily to China, while bulk cargo accounted for 21%, container traffic 11%, and other cargoes including LNG and oil products 14%. Vessel types included 13 tankers, 10 bulkers, 10 container ships, nine general cargo ships, two LNG carriers, two research vessels, five fishing vessels, and one refrigerated cargo ship. Despite ongoing ice in parts of the route, CHNL noted that the most active months of the navigation season lie ahead in September through November, indicating further potential traffic increases.

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Cosco Shipping Energy Expands Global Reach

Chinese tanker giant Cosco Shipping Energy Transportation (CSET), the world’s largest oil tanker owner with 157 vessels totaling 23.45 million dwt and 18 under construction, expanded its small and midsize vessel operations globally, focusing on the US Gulf-Europe transatlantic route and the Mediterranean, while reporting a 29% drop in first-half net profit to CNY 1.89bn ($265.6m) on revenue of CNY 11.57bn. The profit decline was driven by rising costs from expanded fleet deployment, route restructuring, dry-docking repairs, and higher time-charter rates of VLCCs and aframaxes, although small and midsize vessel returns improved with cargo from Canada and Australia. Its oil shipping revenue fell 5.5% to CNY 10.03bn despite costs rising 9.7% to CNY 8.1bn, with Brazil and North America eastbound routes representing over 20% of VLCC trade.

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Olympic Shipping Rejoins VLCC Charter Market with ExxonMobil Deal

Onassis-controlled Olympic Shipping & Management has re-entered the period tanker charter market, fixing its 319,100-dwt VLCC Olympic Luck (built 2010) with ExxonMobil for six months at $40,000 per day, following a similar contract in August for the 319,000-dwt Olympic Trust. Both vessels are scrubber-fitted, and recent market assessments show eco VLCC spot rates at $52,700 per day with a possible $2,500 scrubber premium, while one-year fixes are around $50,000 per day. The Athens-based company, continuation of Aristotle Onassis’ original Olympic Maritime, operates 19 tankers totaling 5 million dwt, with other vessels on charter to Unipec and Sinokor Maritime. Olympic’s previous term market activity included the 320,160-dwt Olympic Trophy and 300,000-dwt Olympic Luna, both linked to deals ranging from six months to a year, involving charterers such as Mercuria, Trafigura, and Sinokor. This latest deal underscores the company’s renewed participation in a busy period market for VLCCs, following recent strong activity in the sector.

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Oil Majors Praise 99.8% Adoption of Digital Tanker Vetting System

Tanker owners have embraced the new digital vetting regime, Sire 2.0, with a 99.8% adoption rate, leaving only 0.2% of checks to rely on paper-based contingency plans, according to OCIMF. Since its launch a year ago, more than 22,000 inspections have been completed at 2,100 ports by 460 staff, covering 4,160 ships from 254 operators, with vessels inspected on average twice yearly. The system introduces tailored digital assessments focused on crew readiness for pollution and safety threats, marking a major evolution in tanker safety assurance. OCIMF plans to further optimise the programme using enhanced data insights, ongoing inspector training, and engagement with users to improve best practices. Leadership changes include Captain Aaron Cooper returning to Chevron and Dave Cudbertson of Shell taking over as OCIMF programmes director.