Why Oil Prices Are Falling Even as Tankers Remain Trapped
Equinor to Boost Troll Gas Output with $412 Million Subsea Development 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 tumble as markets bet on a Hormuz reopening despite slow tanker movements following the U.S.-Iran ceasefire.
The signing of the US-Iran ceasefire agreement might provide a 60-day evacuation window for all crude tankers stuck since March in the Gulf; however, up until now, the pace of outflows has been surprisingly low.
With the Israel-Lebanon issue hanging by a thread, Iran has tried to reassert its authority over Hormuz in the first days since Trump’s signing of the MoU, yet the oil markets still anticipate the much-sought reopening to happen sooner or later.
ICE Brent is set to close this week with a $8 per barrel week-on-week loss, falling to $80 per barrel.
OPEC Sees Infinite Oil Demand Growth.OPEC haspublishedits 2026 edition of the World Oil Outlook, boosting its expectations of crude demand growth, expecting an incremental 8 million b/d of growth between now and 2030, with peak consumption to be reached by 2050 around 124 million b/d.
Tehran Eyes Reassertion of Control over Hormuz.
Tehran hasannouncedthat ships crossing the Strait of Hormuz still need the permission of the Persian Gulf Strait Authority to pass the key waterway, potentially setting the stage for future tolling agreements should the current 60-day ceasefire lapse.
White House Lets Russia Waiver Lapse.The White House hasallowedits waiver of Russian oil sanctions to expire on June 17 after President Trump suggested the US-Iran ceasefire agreement will boost global crude supply, ratcheting pressure on Moscow as its oil exports soared to 6 million b/d in May.
Iran Crude Starts Flowing Again.Iran’s crude exports have resumed after three tankers with an aggregate capacity of 5 million barrels have transited the Gulf of Oman this week, marking the end of the US’ two-month blockade of Tehran’s oil flows and paving the way for a recovery of Gulf exports.
Norway’s state oil company Equinor (NYSE:EQNR) has officially shelved its 2030 renewables target, telling investors at its New York capital markets day that it would allocate 90% of capital expenditures to oil and gas projects, up from a 50% pledge a year ago.
Brazil Eyes End to Fuel Subsidies.The government of Brazil will end fuelsubsidiesfor diesel and gasoline if crude oil prices stabilize for at least a month around the $80 per barrel mark, as per the country’s Finance Ministry, with the monthly cost of subsidies estimate to come in at around $600 million.
Pakistan Doubles Down on Coal Use.Pakistan’s average coal generation soared to an all-time high of 4.28 GW in May, spearheaded by higher coal imports as the country’s usual LNG deliveries from Qatar was disrupted by the closure of the Strait of Hormuz just as temperatures started to reach 45-.
| 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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