Oil prices are set to close this week below $110 per barrel, marking a week of extreme volatility as Brent’s June contract hit $126 per barrel on Thursday. Iran’s latest proposal for negotiations, sent to the Trump administration via Pakistani mediators, has been the main cause for bearishness.
The US President is only allowed to use the US Armed Forces for 60 days without Congressional approval – optimists see the current lull as the end of hostilities, sceptics counter that Trump is only resetting the 60-day clock to attack again, probably very soon.
US Warns Shippers Not to Pay Hormuz Tolls. In a sign of impending escalation between the US and Iran, the US Treasury warned shipping companies against paying tolls for passing through the Strait of Hormuz, no matter if payments to Tehran are made via fiat currency, digital assets, or in-kind payments.
With or Without UAE, OPEC+ Eyes Output Hikes. Brushing off the departure of the United Arab Emirates, the seven nations comprising OPEC+, with Saudi Arabia and Russia at the helm, are expected to add 188,000 b/d to their production targets for June 2026, even if most hikes would be only on paper.
Libya Invites Chevron to Boost Shale Prospects. Libya’s National Oil Corporation has signed a memorandum of understanding with US oil major Chevron (NYSE: CVX) to evaluate potential unconventional oil and gas assets across key producing basins, marking a full return for the US firm.
US Doubles Down on SPR Releases. The Trump administration has issued a new round of releases from the Strategic Petroleum Reserve, offering to loan 92.5 million barrels of crude across June, July and August with a 18% return clause, equivalent to more than 1 million b/d of extra supply over Q3 2026.
Chinese Refiners Eye Return to Export Markets. Chinese refiners are anticipating the resumption of export approvals after Beijing greenlighted engagement with Australian buyers of middle distillates, particularly of jet fuel, in a sign that the product export ban launched on March 12 could be relaxed.
Brazil Could Help Make Mexico Great Again. Brazil’s state-controlled Petrobras (NYSE: PBR) is in talks with Mexican national oil firm NOC Pemex to build a deepwater exploration partnership between the two companies, as Mexico’s upstream performance has been hindered by years of underinvestment.
Trump Mulls Months-Long Iran Blockade with Majors. US President Donald Trump has met with top officials from Chevron and other US oil companies to discuss possible steps to calm oil markets, with media reports indicating the White House believes Iran’s blockade would continue for months.
Iraq Seeks to Move Away from the Hormuz. According to Iraq’s Oil Ministry, the Middle Eastern country has started work on an oil pipeline linking its southern port of Basrah to Haditha in the north, allocating $1.5 billion for the much-needed interconnector that is planned to have a capacity of 2.5 million b/d.
Trading Giant Sues Baltic Exchange. Global commodity Mercuria has filed a lawsuit against the Baltic Exchange, the world’s top provider of benchmark shipping indices, over losses incurred by the latter’s pricing data that allegedly did not account for the effective closure of the Strait of Hormuz.
Upstream Recovery Fuels Venezuela’s Export Boom. Venezuela’s oil exports surged 14% month-over-month to 1.23 million b/d in April, according to shipping data from state company PDVSA, with the United States reclaiming the position of top buyer with 445,000 b/d flowing to US customers last month.
Drivers Are No Longer California Dreaming. Gasoline prices in California surged past $6 per gallon for the first time since the onset of the US-Iran conflict, with Los Angeles boasting an average price of $6.144 per gallon, whilst diesel is near all-time highs with the state average currently at $7.5 per gallon.
Surging Supply Depresses US Natural Gas Prices. US natural gas prices at the Henry Hub benchmark in Louisiana averaged a mere $2.77 per MMBtu in April, the lowest monthly reading since December 2024, as higher LNG feedgas demand failed to offset mild weather and surging supply in the Lower 48 states.
Ukraine Drone Blitz Hammers Russian Refinery. Ukraine has ratcheted up its drone warfare against Russia, hitting the 240,000 b/d Tuapse refinery (located 300 miles from the frontline) and its port infrastructure four times this week, even though previous attacks forced the plant offline on April 16.
Trump Approves New Canada-US Pipeline. US President Donald Trump has signed an executive order issuing a permit for Bridger Pipeline’s 350,000 b/d Canada-Wyoming pipeline, with the 647-mile crude conduit running from the Canadian border to Guernsey, Wyoming, a key transportation hub.
Oilprice.com
