Fuel Oil

The Jul’25 Brent futures contract saw prices fall from $64.14/bbl at 13:32 BST down to $63.19/bbl at 15:14 BST. Prices have since slowly rallied to $63.70/bbl at 17:45 BST (time of writing). In the news, Iran has agreed to resume indirect nuclear talks with the United States on Sunday, May 12 in Oman, according to Iran’s semi-official Tasnim News Agency. In other news, the UK will sanction up to 100 more tankers used to ship Russian oil. Despite earlier sanctions on 41 vessels, 39 still operate. Russia has evaded restrictions using non-G7-insured ships. BP shares rose 1.9% on Friday after the Financial Times reported that several major energy firms have evaluated the potential for a takeover. Vitol is reportedly interested in parts of the business. BP shares remain down about 28% over the past year. Mexico’s state oil company Pemex is planning to reopen thousands of idled mature wells in an urgent attempt to reverse years of production decline, with 2024 output averaging just 1.58 mb/d well below the government’s 1.8 mb/d target. Pemex reported a Q1 production drop of 11.3% and a $2.12B net loss. Indonesia plans to reduce fuel imports from Singapore and buy more refined products from the US to negotiate lower tariffs. The country aims to source up to 60% of its fuel from the US. Indonesia also offered to buy an additional $10B of U.S. energy products as part of efforts to balance its trade surplus. Finally the front-month Jul/Aug spread is at $0.46/bbl and the 6-month Jul/Jan’26 spread is at $1.15/bbl.

The Jul’25 Brent futures contract saw prices continue rallying up to $62.90/bbl at 16:59 BST (time of writing). In the news, the US and UK have agreed on a deal to lower tariffs on some goods. Key points include: cars,

The Jul’25 Brent futures contract saw prices falling from $62.72/bbl at 12:56 BST down to $61.35/bbl at 17:30 BST (time of writing). In the news, US crude oil inventories fell by 2mb in the week ending May 2, according to the US Energy Information Administration (EIA), contrasting with the American Petroleum Institute’s report a day earlier of a 4.49mb build. Gasoline inventories rose by 200kb amid increased production, while distillate stocks declined by 1.1mb, with production also ticking up. Distillate inventories remain 13% below the five-year average. Overall, US petroleum demand rose, with total products supplied averaging 19.8mb/d over the past four weeks. In other news, Colombia’s state oil company Ecopetrol plans to reduce costs and expenses by approximately $232 million and indicated it may scale back its 2025 investment plan by around $500 million. Ecopetrol had reported a 22% drop in Q1 profits, citing global economic concerns and U.S. tariff threats. Despite the headwinds, its share price saw a slight uptick on Wednesday. Norway is set to expand its oil and gas production through a new licensing round in frontier areas. The government maintains that further exploration is necessary to sustain output amid declining reserves. Earlier this year, it awarded stakes in 53 new licenses despite environmental opposition. The industry plans to invest a record $24.7B in 2025, exceeding prior expectations due to both inflation and increased drilling activity. Finally, the front-month Jul/Aug and 6-month Jul/Jan’26 spreads are at $0.34/bbl and $0.52/bbl respectively.

The Jul’25 Brent futures contract saw prices rally to $62.78/bbl at 17:17 BST before slightly coming off to $62.20/bbl at 18:20 BST (time of writing). In the news, Saudi Arabia is considering shifting towards a market share strategy in a bid to punish OPEC+ members defying quotas, but weakening global demand could blunt its strategy. OPEC+ has already agreed to unwind nearly 1mb/d of cuts by June. While Riyadh can afford short-term losses, a prolonged slump could destabilize OPEC+ and threaten Saudi Arabia’s grip on oil markets. In other news, US shale producers in the Permian Basin are cutting spending and reducing rig counts amid a sharp decline in crude prices below $60/bbl. Diamondback Energy and Coterra Energy announced over $500 million in combined budget cuts this week, joining peers like EOG Resources and Matador Resources in scaling back operations. Nabors Industries projects a 4% drop in US shale rigs by year-end. This retreat comes as US oil futures have fallen 17% year-to-date, driven by escalating tariffs under President Trump and OPEC+’s surprise decision to accelerate production increases. Argentina expects to post an $8B energy trade surplus in 2025, up from $5.7B last year, driven by strong performance in its Vaca Muerta shale formation and new government policies, Deputy Energy Secretary Federico Valler said in Houston. Vista Energy echoed the bullish outlook, while YPF (Argentina’s state owned company) and partners like Shell and Chevron are ramping up infrastructure projects. Finally, the Jul/Aug front month spread is at $ 0.40/bbl and the Jul/Jan’26 6-month spread is at $ 0.62/bbl

The Jul’25 Brent futures contract saw prices initially move up to $62.16/bbl at 14:09 BST only to quicky fall to $60.74/bbl at 15:04 BST. Prices have since gained some support at $61.37/bbl at 17:40 BST (time of writing). In the news, China is reportedly considering ways to address the Trump administration’s concerns over its role in the fentanyl trade, as per WSJ, potentially offering a way to allow for trade talks to begin. OPEC+ has moved its key meeting to Saturday, 3 May, to finalise plans for a June potential output hike of 411kb/d. Saudi Arabia appears ready to tolerate low prices, signalling growing frustration with overproducers like Iraq and Kazakhstan. April’s actual output fell despite planned increases. In other news, Exxon Mobil beat Wall Street’s Q1 expectations with a $7.71B, driven by higher oil and gas production from Guyana and the Permian Basin. Exxon maintained strong shareholder returns on track for its $20B annual repurchase goal. Production rose to 4.55 mboe/d, and the company reiterated its $27B–$29B capex target for 2025. Shell beat Q1 profit forecasts with $5.58B in earnings, despite a 28% drop from last year due to weaker oil prices and refining margins. It maintained a $3.5B share buyback, unlike BP, which cut returns. Petronas confirmed it received notices from the Sarawak state government over licensing issues tied to its subsidiary, Petronas Carigali, which local media say is operating without proper permits. The state gave 21 days to comply or face penalties. Petronas insists it operates under federal law and aims to resolve the matter collaboratively. Finally the front month Jul/Aug and 6-month Jul/Jan’26 spreads are at $0.38/bbl and $0.60/bbl respectively.

The Jul’25 Brent futures contract saw prices rally from $59.42/bbl at 12:00 BST to $61.78/bbl at 15:42 BST. Prices have since fallen off and are at $61.01/bbl at 17:45 BST (time of writing). In the news, the US and Ukraine have signed a deal to share future profits from Ukraine’s mineral and energy reserves. The agreement also establishes a US-Ukraine Reconstruction Investment Fund and includes provisions giving the US access to some of Ukraine’s natural resources in return for future security guarantees. In other news, Saudi Arabia may increase oil output starting in June. Sources told Reuters and Bloomberg that the Saudis, comfortable with current low prices, are unlikely to support further supply cuts and may instead boost production to regain market share. Venezuela’s oil exports fell nearly 20% in April to about 700kb/d , the lowest in nine months, after state-run PDVSA suspended most Chevron cargoes over payment concerns tied to US sanctions enforcement. Chevron’s exports to the US dropped 69%, while other buyers like Reliance and Maurel & Prom increased imports ahead of a 27 May sanctions deadline. Meanwhile, Venezuela boosted imports of diluents like naphtha and began exporting a new crude grade, Blend 22. The IMF has cut its 2025 growth forecast for Middle East oil exporters to 2.3%, down from 4% previously, citing falling oil prices, weak demand, and ongoing trade tensions. It now expects oil to average $66.90/bbl due to rising non-OPEC+ supply and reduced global demand. Finally, he front-month Jul/Aug and 6-month Jul/Jan spreads are at $0.35/bbl and $0.60/bbl respectively.

Jul’25 Brent futures saw heavy losses this afternoon, from $62.80/bbl at 16.35 BST to lows of $60.80/bbl at 16.55 BST before it retraced slightly to $61.30/bbl at 17.10 BST (time of writing). Reuters reported that Saudi Arabian officials are briefing allies and industry experts to say the kingdom is unwilling to prop up the oil market with further supply cuts and can handle a prolonged period of low prices, five sources with knowledge of the talks said. In 2024, Saudi Arabia’s non-oil exports (including re-exports) rose by 13.1%, signalling progress in diversifying its economy. However, total merchandise exports fell by 4.5% while imports rose 12.5%, narrowing the trade surplus to SR272.6 billion. Oil’s share of total exports dropped to 73.1%. Nexanteca reported that the Middle East is projected to boost oil refining capacity by 618 kb/d by 2029, led by Iraq and Iran, enhancing its net export potential to nearly 7 mb/d by 2040. Key projects in Iraq, Iran, Bahrain, and Oman are underway, while others in Saudi Arabia and the UAE await investment decisions. According to the EIA, US crude inventories fell by 2.696 mb last week (exp +0.39mb). Cushing stocks rose by 682kb, gasoline dropped 4mb, and distillates increased by 0.937mb. Jun/Jul and 6-month Jun/Dec spreads are at $1.92/bbl and $2.49/bbl, respectively.

The Jul’25 Brent futures contract saw a volatile afternoon, trading between $63.91/bbl at 13:02 BST and $63.10/bbl at 17:38 BST (time of writing). In the news, Scotland’s only oil refinery at Grangemouth has permanently stopped processing crude oil after 100 years of operation, following a decision announced in 2024 by owner Petroineos. The site will now function as an import and distribution hub for fuels. The closure, attributed to competition from modern refineries in Asia and the Middle East, has led to 430 job losses, with around 70 staff remaining. India is significantly increasing its imports of US crude oil ahead of key negotiations over American tariffs. Around 11.2mb are expected to arrive in June driven by state refiners like Indian Oil and BPCL. The move is seen as a strategic effort to strengthen ties and potentially reduce US tariffs. Other Asian nations, including Thailand and South Korea, are also boosting US energy purchases to avoid tariffs. In other news, PetroChina reported a 2.3% rise in first-quarter profit to $6.4B, making it the only Chinese state oil giant to post higher earnings amid weaker oil prices. Its crude oil price fell 7.2% year-on-year, while domestic gas prices dipped 3.9%. However, stronger natural gas production and sales drove a 9.7% gain in gas division profits, offsetting declines in refining. Overall revenue fell 7.3% due to lower demand for refined products. Meanwhile, Sinopec and CNOOC both reported profit declines. Finally, the front month Jun/Jul and 6-mont Jun/Dec spreads are at $0.80/bbl and $1.41/bbl respectively.