Oil Prices Dip on U.S. Inventory Build Ahead of OPEC+ Production Decision

Oil prices fell about 1% on Thursday, with Brent crude settling at $66.95 and WTI at $63.48, after a surprise U.S. crude stockpile build of 2.4 million barrels during the week ending August 29. Analysts noted that this exceeded expectations for a 2-million-barrel withdrawal, signaling short-term bearish pressure on the market. Attention is turning to OPEC+, whose members, including Russia, may increase October production, having already raised output by 2.2 million bpd from April to September plus a 300,000-bpd increase for the UAE. Macro factors also weighed, with U.S. jobless claims rising and Europe cutting growth forecasts, while geopolitical developments include Trump urging Europe to halt Russian oil imports, potentially affecting global supply. Meanwhile, Russia is expanding exports to China, and Venezuela’s oil shipments rose to a nine-month high of 900,000 bpd after Chevron obtained a U.S. license, reflecting resilient global flows despite price pressures.

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OPEC Crude Output Rises by 360,000 bpd in August, Survey Shows

OPEC’s crude oil production increased by 360,000 bpd in August, reaching 27.84 million bpd, according to a Reuters survey. The rise was led by SaudiArabia (+100,000 bpd), UAE (+107,000 bpd), and Iraq (+50,000 bpd), while Nigeria and Libya saw slight declines. Despite these increases, most members remain under their production targets, with Saudi Arabia and Iraq notably below quota. The output hikes are part of OPEC+’s accelerated production increases since April, aimed at regaining market share. Total production for the core OPEC 9 rose by 292,000 bpd, bringing the group closer to its agreed targets but leaving some room for further increases.

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Trump Pressures Europe to Halt Russian Oil Purchases

U.S. President Donald Trump, frustrated by the lack of progress in ending the war urged European leaders to stop buying Russian oil, saying it helps Moscow fund its war in Ukraine. He made the comments during a “Coalition of the Willing” call led by French President Emmanuel Macron, noting Russia earned €1.1 billion from EU fuel sales in a year. While most European states cut Russian crude in 2022 and fuel in 2023, exemptions remain for countries like Hungary and Slovakia, and Europe still imports refined products from Russian crude via third countries such as India.

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Rosneft Secures 2.5 Million Ton Oil Deal to China via Kazakhstan

Russia’s top oil producer, Rosneft, has finalized an additional supply deal of 2.5 million metric tons per year to China through Kazakhstan, according to Russian Energy Minister Sergei Tsivilev. The move strengthens Russia-China energy ties amid ongoing tensions with the West over the Ukraine conflict. China and India have emerged as Russia’s largest oil buyers in recent years. The additional 2.5 million tons follows a proposal from China earlier in 2025 to boost Russian oil transit via Kazakhstan. In 2024, transit through Kazakhstan totaled 10.2 million tons, equivalent to about 204,000 bpd.

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Sakhalin Governor Sees Exxon Return as Boost for Local Oil and Gas Sector

The governor of Russia’s Sakhalin region said that the potential return of Exxon Mobil to the Sakhalin-1 oil and gas project would benefit the local energy industry. Russian President Vladimir Putin recently signed a decree allowing foreign investors, including Exxon, to potentially regain their stakes in the project. Exxon, which previously held a 30% operator share, exited Russia in 2022, taking a $4.6 billion impairment charge amid the Ukraine conflict. Governor Valery Limarenko noted that while Russia has domestic technologies for oil and gas production, collaboration with Exxon would improve efficiency. The decree also allows Indian company ONGC Videsh and Japan’s SODECO to maintain their existing stakes alongside Russian partner Rosneft.

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Greek Tankers Face Exit from Russian Oil Trade as Price Cap Tightens

Intelligence firm Windward reports that Greek tankers carried 30% of Russia’s oil exports in July, including 38% of refined products and 20% of crude. However, new EU and UK sanctions lowering the crude price cap to $47.60 per barrel in September–October will likely push Greek crude shipments to zero. In July, 36% of Russian oil exports (60m of 165m barrels) were moved on sanctioned tankers, with half of all crude shipped on such vessels. With 400+ ships blacklisted, Russia faces a tanker shortage to replace the Greek-owned fleet, forcing deeper reliance on its shadow fleet. While China and India continue accepting sanctioned cargoes, Windward warns of rising compliance risks and enforcement challenges as Russia adjusts to the reduced availability of compliant carriers.

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Irving Oil’s Saint John Refinery to Undergo $40 Million Annual Turnaround

Irving Oil will begin a 30-day annual turnaround at its 320,000 bpd refinery in Saint John, New Brunswick, later this month. The $40 million project involves infrastructure replacements, equipment upgrades, and inspections of piping and key processing units. The turnaround will coincide with the ongoing upgrade of the facility’s Fluid Catalytic Cracking Unit (FCCU), which began in June. Saint John refinery is Canada’s largest and a key supplier of fuel to Atlantic Canada and the U.S. Northeast. The maintenance work ensures operational reliability and supports continued supply to these regional markets.

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Frontline’s LR2 Displaces MRs on West Africa-Europe Route as Spot Rates Collapse

Frontline’s 110,000-dwt LR2 tanker Front Feature (2021) has been fixed to carry 90,000 tonnes of jet fuel from Nigeria’s Dangote refinery to Europe, a route usually dominated by MR tankers. The move underscores a shift toward larger loadings from Dangote, which has previously shipped LR2 cargoes to the Middle East and Singapore. The Front Feature had been idle off Togo since February after ending a three-year BP charter. Meanwhile, MR tankers in the Atlantic suffered a sharp downturn, with the Baltic Exchange Atlantic basket falling $3,308 (10.2%) to $29,100/day, marking a 32.6% drop from last week’s peak of nearly $43,400/day. This slump came despite a surge in transatlantic gasoline exports, which rose by 254,000 bpd to 435,000 bpd, mainly from the Netherlands to the U.S. Gulf and East Coasts.

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Angelicoussis Group Sells 2008-Built VLCC for $52M in Fleet Renewal Drive

The Angelicoussis Shipping Group (ASG) has sold its oldest VLCC, the 320,500-dwt Maran Capricorn (built 2008), for $52m, above its market valuation of $49m, partly due to its open-loop scrubber and high maintenance standards. The vessel, built by Daewoo, has been renamed Star Pione under the Barbados flag. This marks the fourth ageing VLCC (built 2004–2008) ASG has sold since January 2024, following disposals of the Maran Canopus (2007) and Maran Aries (2006), among others. The group, led by Maria Angelicoussis, is pursuing an organic fleet renewal strategy by gradually phasing out 17–18-year-old ships and replacing them with newbuildings or younger tonnage. Currently, ASG’s fleet includes 28 VLCCs, 14 suezmaxes, and 1 aframax, with 7 suezmax newbuildings and 3 DP2 shuttle tankers due for delivery in 2026–2027.

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HD Hyundai Secures $174M Suezmax Tanker Order from African Client

South Korea’s HD Hyundai has signed a deal to build two suezmax crude tankers worth KRW 242.2bn ($174m), or $87m each, for an undisclosed African company. The vessels will be constructed by HD Hyundai Samho and delivered in the second half of 2027. This order adds to Hyundai’s growing suezmax tally, reaching 10 vessels booked in 2025, with recent contracts from Cido Shipping, Sonangol, Pantheon Tankers, and Evalend Shipping. Hyundai has secured $11.45bn worth of 84 newbuildings so far this year, meeting 60% of its $18.05bn annual order target. The broader orderbook includes 5 LNG carriers, 6 LNG bunkering vessels, 8 LPG/ammonia carriers, 2 ethane carriers, 13 tankers, and 50 container ships.