Oil Edges Lower as US–Iran Talks Temper Supply Fears

Oil prices ended slightly lower after a volatile session as markets reacted to developments in US–Iran nuclear talks in Geneva. Brent settled at $70.75 per barrel and WTI at $65.21, after earlier gains driven by reports of stalled negotiations briefly raised fears of supply disruption. Prices later retreated when both sides agreed to continue discussions next week, easing immediate concerns over escalation and potential disruptions through the Strait of Hormuz. Analysts said the pullback reflects fading geopolitical risk premiums rather than changes in underlying supply-demand fundamentals.

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EU Pushes for G7 Backing on Russian Oil Maritime Services Ban

The European Union is seeking coordination with G7 partners before advancing a full maritime services ban on Russia’s seaborne crude exports, a move that would go beyond the current $44-per-barrel price cap. The proposal would halt Western shipping and insurance services — heavily used by tankers from Greece, Cyprus and Malta— that transport Russian oil, mainly to India and China. While the EU supports the tougher measure, officials stress alignment with G7 members, particularly the United States, is essential before proceeding, as the ban could effectively replace the existing price cap regime.

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US Delays Lukoil Asset Sale to Leverage Ukraine Peace Talks

The US has delayed the sale of Lukoil’s $22bn international asset portfolio to increase pressure on Moscow during Ukraine peace negotiations, extending the deadline to April 1 through the Treasury’s OFAC. The talks, involving US, Russian and Ukrainian officials, have also covered sanctions on Rosneft, as Washington seeks to curb Russia’s war revenue. Any deal would require proceeds to be frozen under US jurisdiction, though a sale could proceed independently of a broader peace agreement.

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Motiva Buys Venezuelan Boscan Crude for March — First Since 2019

Motiva Enterprises has purchased a cargo of Venezuelan Boscan heavy crude for March delivery, marking its first Venezuelan oil buy since 2019, sources said. The cargo was sold by Chevron to Aramco’s U.S. trading arm — which owns Motiva following its 2023 acquisition — and comes as Venezuelan exports rebound under eased U.S. sanctions. The move also represents the first Venezuelan heavy crude purchase by Aramco Trading America and reflects growing U.S. refiner engagement with Venezuelan supply after years of sanctions. Venezuelan shipments to the U.S. have risen sharply, with exports reaching about 284,000 bpd in January, up from 99,000 bpd in December.

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Saudi Terminal Outage Lifts Asia LPG and Naphtha Prices

Asian LPG and naphtha prices jumped after Saudi Aramco halted LPG exports from its Juaymah terminal due to structural damage, disrupting supplies to key buyers. Far East Index March propane and butane futures surged more than 5% to around $598 and $612 per ton, while Japan naphtha swaps rose nearly 2% amid tighter prompt supply. India, which takes about 60% of Juaymah’s LPG exports, is expected to be hardest hit, with multiple March cargoes reportedly cancelled and refiners likely seeking alternative supplies, potentially from the US. China faces limited immediate impact due to seasonal low demand and refinery maintenance.

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BP Ramps Up Shale Output to Revive Growth

BP is accelerating US shale drilling through its BPX Energy unit, targeting an 8% production increase this year to about 500,000 bpd — roughly 20% of the group’s global output — with plans to reach 650,000 bpd by 2030. The expansion contrasts with peers such as Exxon Mobil and Chevron that are taking a more cautious stance amid concerns of a global supply glut. BPX aims to boost efficiency while cutting $800 million in capital spending, freeing up funds for other projects as BP seeks to rebuild production, profitability and investor confidence following its earlier pivot toward renewables.

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VLCC Rates Soar as Middle East Exports Accelerate

Rising Middle East tensions and faster crude exports have pushed VLCC spot earnings sharply higher, with Baltic Exchange assessing modern scrubber-fitted units to China at over $213,000 per day, while Adam Polemis’ New Shipping fixed the New Giant at a headline $269,000 daily rate. Fixtures linked to traders and majors including Shell and Petrobras underline the surge, as exports from Iraq, Kuwait, the UAE and Saudi Arabia ramp up amid US-Iran tensions, lifting not only VLCC returns but also smaller segments such as suezmaxes, with brokers like Clarksons Securities noting momentum spreading across tanker classes.

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Torm CEO Leaves Door Open to Product Tanker Consolidation

Torm chief executive Jacob Meldgaard said a Sinokor-style fleet consolidation in product tankers is unlikely given the sector’s size and fragmentation, but stopped short of ruling it out entirely, noting markets can surprise. South Korea’s Sinokor Maritime Co has amassed roughly 150 VLCCs — about a quarter of the compliant spot fleet — while the product tanker segment counts more than 2,200 MR vessels, making similar dominance harder to achieve. Torm itself is central to consolidation speculation after Hafnia acquired nearly 14% of its shares from Oaktree Capital Management, though Meldgaard said management remains focused on performance, even as Hafnia argues a merger could unlock scale and synergies.

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Eastern Pacific Expands VLCC Bet With Two More Orders

Eastern Pacific Shipping has added two more VLCCs at Hengli Heavy Industry, lifting its tally at the yard to 10 and reinforcing a tanker comeback that began last November after exiting the sector in 2018. The Idan Ofer-led owner now holds an orderbook exceeding $15bn and 150 vessels, with brokers estimating its VLCC prices at under $125m each for delivery between late 2027 and 2028, as surging spot earnings above $200,000 per day and a relatively moderate global orderbook — tracked by Clarksons — continue to support renewed investment in the segment.