Xi-Trump Summit Disappoints as Oil Bulls Regain Momentum
Pakistan Uses Diplomacy to Secure LNG Supply from Hormuz Tom majored in International Business at Amsterdam’s Higher School of Economics and later completed an Executive MBA in Energy Transition at the University of Groningen.… Oil prices surged $7 this week as Iran tensions, Hormuz risks, and weak signals from the Xi-Trump summit overshadow bearish OPEC and IEA demand forecasts.
In a week that started off with both OPEC and the IEA slashing their demand forecasts for 2026, oil prices are set for a hefty $7 per barrel week-on-week gain.
The much-anticipated Xi-Trump summit in Beijing provided little hope for any short-term market normalization, turning out to be quite thin on commodity-relevant substance.
Iran has added fuel to the oil market’s bullish cause by announcing it had ‘no trust’ in the United States and that it was ready to go back to fighting, denting hopes for a swift re-opening of the Strait of Hormuz.
OPEC Cuts 2026 Demand Forecast.Publishing its monthly oil market report this week, OPECloweredits forecast for global crude demand growth in 2026 by some 200,000 b/d from a month ago, now predicting consumption to rise by 1.17 million b/d this year, hiking its 2027 outlook to 1.54 million b/d.
Brussels Wants to Tax Energy Companies.Energy ministers of European Union countries havestartedto discuss the creation of a regionwide tax on energy companies’ windfall profits from surging prices on the back of the US-Iran conflict, potentially replicating the UK’s 38% Energy Profits Levy that runs until 2030.
Cuba Warns of Impending Energy Collapse.The island nation of Cuba has run out of diesel and fuel oil,accordingto its energy minister Vicente de la O Levy, stating that the country is in a ‘critical condition’ with no reserves left, with its domestic output of 40,000 b/d covering only a third of Cuba’s needs.
UAE Expedites Pipeline Infrastructure Boost.The United Arab Emirates willacceleratethe construction of a new oil pipeline bypassing the Strait of Hormuz to double its export capacity from the current 1.8 million b/d capacity, with national oil company ADNOC announcing it would be operational by 2027.
China Suggests Resuming US Crude Imports.Accordingto the White House, Chinese President Xi Jinping expressed interest in resuming US crude oil imports after Beijing's purchases came to a complete halt in late February 2025, seeking to boost inflows of crude after a 20% year-over-year drop last month.
Japan Takes Over Singapore Refining.Japan’s leading refiner Eneos (TYO:5020) hasagreedto buy Chevron’s refining and lubricant subsidiaries in southeast Asia and Australia for $2.17 billion, including a 50% stake in the 290,000 b/d Jurong Island refinery in Singapore, co-operated by Petrochina.
Delhi Asks for Extension of Russia Waiver.India hasaskedthe United States to extend its waiver on Russian oil for at least another month, with the current OFAC authorization running until May 16, seeking to prevent a collapse in Indian crude imports, do.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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